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Newbie, FloridaBeachBum is right. People need to plan draw down around penalties and taxation or this could be the case. I don't know the exact numbers but if not withdrawn with taxation in mind you could end up with a lot less. That's why I max out my 401k and have savings post tax, so I have more control.
The point of a 401k is that it is retirement money, hence the penalty. If you need $1m immediately or your dog will die, you need a different fund for that.
The point of a 401k is that it is retirement money, hence the penalty. If you need $1m immediately or your dog will die, you need a different fund for that.
two many people pull from one front to sure up another front ..they win a battle but ultimately lose the war as they spent down their retirement money for other purposes
170K (Doesn't include value of the pension I'm supposed to get at 55...We'll see if I actually get it, ha ha )
Single, 39, Library Clerk.
Steady employment in the public sector helped a lot since I haven't had to look for a job in 13 years. I did some stupid things in my 20s and learned some lessons the hard way. Fortunately, I had frugal parents, so I understood the concept of saving and got back to it. Starting around age 26, I really started socking it away and living below my means.
Examples of how I lived/live: Having roommates for 8.5 years before upgrading to a studio apartment; paying cash for a reliable used economy car & driving it until it's not worth fixing; keeping my commute short (less stress and wear & tear on the car); eating out no more than twice a week; stocking up on sales at the grocery store; not drinking or drinking very lightly (no bar tabs for me!); I've never had cable TV; wearing clothes for a long time before I throw them out; giving regularly to church/charity (Don't ask me how it works, but money has a way of coming back to you if you give with no strings attached).
It hasn't been all deprivation, though. I've taken 4 trips to South America & 1 to Mexico, not to mention flying back East numerous times to see family over the years. It's important to foucs on just a few things that you care about most, and let the rest of the stuff go. Experiences generally bring more happiness than stuff, IMO (provided you can pay cash for them, of course).
By the way, If I'd been better at investing this figure would be a lot higher. I've actually lost principle because of poor investment decisions.
It was fun to see this thread pop up.
Here's the update for me:
Age: 53
Net Worth: 750k
Single, no kids.
I've always been a renter, so none of that is home equity, nor did I include my car.
I was a library clerk in California for just over 25 years.
Had enough of CA (I'll spare you the rant, you can DM me if you really want to know). I quit the job and took a year off in 2022 and early 2022 and traveled, visiting friends and family in various places in the U.S. and Mexico.
Currently working a retail job in PA and living with mom (not my ideal life, lol). Saving cash and can't wait to quit working for good.
Pension kicks in in less than 2 years, so I should be able to both quit my job and upgrade my lifestyle at that time. But as we've all learned, a lot can happen in 2 years, so we'll see.
How did I get there? The boring way. I just kept living a modest lifestyle and put away the money, most of it in retirement accounts. I'm living with my mom so I can continue to save a decent amount from my low paying retail job. Some would think I'm crazy for not dipping into my retirement accounts, since I've got a pension coming in less than 2 years, but with rent inflation being the way it is (plus tax issues involved in withdrawing from ret. accts.), I just couldn't bring myself to do it.
Age: 53
Net Worth: 750k
Single, no kids.
I've always been a renter, so none of that is home equity, nor did I include my car.
I was a library clerk in California for just over 25 years.
Had enough of CA (I'll spare you the rant, you can DM me if you really want to know). I quit the job and took a year off in 2022 and early 2023 and traveled, visiting friends and family in various places in the U.S. and Mexico.
Currently working a retail job in PA and living with mom (not my ideal life, lol). Saving cash and can't wait to quit working for good.
Pension kicks in in less than 2 years, so I should be able to both quit my job and upgrade my lifestyle at that time. But as we've all learned, a lot can happen in 2 years, so we'll see.
How did I get there? The boring way. I just kept living a modest lifestyle and put away the money, most of it in retirement accounts. I'm living with my mom so I can continue to save a decent amount from my low paying retail job. Some would think I'm crazy for not dipping into my retirement accounts, since I've got a pension coming in less than 2 years, but with rent inflation being the way it is (plus tax issues involved in withdrawing from ret. accts.), I just couldn't bring myself to do it.
Oops. I meant I took time off from early 2022 to early 2023.
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