Hey Retirement Dreamers,
So, you guys are in your 30s and already thinking about chilling under a palm tree somewhere, sipping on a cool drink, right? I like your style! But hey, better late than never to start planning, am I right?
Let’s break it down. Your wife’s bringing in 60k and you’re bringing home the bacon with 70k. Not too shabby! But hey, being spenders can definitely throw a wrench in your retirement plans. No worries, though, we’ll figure this out together.
Your wife’s got that sweet pension coming in at 60, estimated at 80-90k. Not bad at all! And you’ve got some money stashed away in those IRAs and 401k. Keep those contributions coming, my friend!
Now, let’s talk debts. That mortgage at 3.0% for 27 years…pretty sweet deal! But hey, downsizing at retirement might be in the cards, right?
So, you guys wanna be retired by 60 with that income still rolling in. I like the sound of that! Let’s crunch some numbers and see what we need to do to make that dream a reality.
Catch you later Retirement Dreamers! Remember, the beach is calling your name!
Response from HELP ME RETIRE:
Hello There,
Congratulations on taking the first step in evaluating your financial situation and looking ahead to retirement. It’s admirable that you and your wife are proactive about getting on track for your future. Based on the information provided, there are a few key areas to focus on to work towards your retirement goals.
Firstly, it’s essential to address the spending habits that you mentioned. Being aware of this and taking steps to cut back on unnecessary expenses can significantly impact your financial situation. Consider creating a budget and tracking your expenses to identify areas where you can save money and redirect those funds towards retirement savings.
When it comes to retirement savings, it’s great that you both have IRA and 401k accounts. However, to retire comfortably at 60 with a maintained or increased income, you may need to boost your contributions. Since there’s no employer match for your Roth 401k, you might want to consider increasing your contributions to maximize your savings potential. Additionally, explore other retirement saving options such as a traditional 401k or investing in a diversified portfolio to help grow your retirement nest egg.
Regarding your mortgage, it’s positive that you have a low-interest rate, but with 27 years left, it’s crucial to stay on track with payments and consider accelerating the payoff if possible. Paying off your mortgage sooner can free up more funds for retirement savings and reduce financial stress in the long run.
In conclusion, to get on track for retirement at 60 with a maintained or increased income, it’s essential to focus on budgeting, increasing retirement savings contributions, and potentially paying off your mortgage sooner. Taking steps now to secure your financial future will set you up for a comfortable retirement. Keep reviewing and adjusting your financial plan as needed to stay on track towards your retirement goals.
Best of luck on your financial journey!
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