Saturday, December 28, 2019

Current Retirement Status - Where We Are With the Numbers

Obviously if this is a blog primarily about reaching our retirement savings goals I need to provide a starting point on our retirement savings, our ultimate goal and maybe a little background.

As of about mid-December, the overall total of our combined retirement accounts is about $852,400.

Realizing that we have likely saved more than many people, I feel that I need to explain some things.

First of all The Love of My Life ("LoML") is not a high earner nor a saver by nature. We have about $150,000 in outside savings for him because for a while he had no savings plans available and he has less than that saved in a couple of 401k accounts. He has only been in his current job for about 7 years now and I believe he contributes about 10% to his current 401k.

I have been saving in my 401k since I became eligible, at least up to the company match amount and  for the last 13 years or so I've contributed 15% or more.  I also am fortunate enough to have a pension.

So as lovely as that number looks, I feel that in order to retire sooner than later and to feel that we have a safe amount to last us, I am aiming at a total needed retirement amount of about $2,000,000.  I am aiming for a generous $65,000 per year but we'll see how that goes.  We would in no way need to live on that amount but medical costs scare the crap out of me so that is why.

I know it seems like a crazy number and I know I am extremely fortunate that I make a really decent salary.  But I am also always at risk of losing my job due to the nature of my industry.  So in reality I am just super cautious and planning for the worst case scenario i.e. forced early retirement and high future medical costs.

Ever since I crossed the 50 year old catch-up contribution threshold I've added a little bit more than the IRS regular limit, just by maintaining my current level of contributions.  But this past year I made a concerted effort to add even more and next year my goal is to max out the catch-up contribution as well.  I just need to make sure that austerity does not infiltrate our lives due to that goal.

So there you have it. Thoughts and comments are appreciated. 

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