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OP - one tip to tuck away when you get to the retirement period, (when you're free to go on short notice). We snag some super discounts (up to 50%) via last minute travel deals on major trips.
Our international trips to date have all been with the same company and as departure gets within 2 months or less they may offer 20-50% discounts for unbooked space.
It really comes into play on river cruising. The ship's got X# of cabins and they really discount any open spaces as departure gets tight. We've become last minute trip vultures, its saved many thousands of $$$ to spend on other trips. You may have to spend a few hundred extra for expedited visas (where required, Russia for example) but its well worth it. Travel is a blast!
This isn't close. Your pension/SS will give you a 20% raise over what you are living on now....you already won the game. Have a little fun every day, we don't know when the days run out. In addition to the potential for physical limitations in retirement that would limit your possibilities for travel and adventure, there is another issue. The first question isn't "when" you retire, it is "if" you retire. They bury people every day who didn't make it to retirement.
No to "catch up!" Yes to balance in your planning!
Might want to touch base with a financial planner to review your plan. Your employer might even have this as a benefit.
I think a lot of people underestimate the amount of money they need. But once you are satisfied that you have the retirement money you need I would increase my travel etc and spend the money now. In effect start to phase into retirement.
i never did make a lots of money in my working life, the only entertainment for me is saving. i managed to save when work for $16.00 per month clean hotel room for GI in Asia living in where human or animal should not live pay $3.00 a month for roof to keep off from rain and floor space to lay down at night when it rain it smell so bad from garbage dump under the shack build from discard stuff. manage to save more when work in US doing better now living on ss benefit below or at the poverty level base on US standard of living but i have a house build in the wood, clean air and never want be near the awful smell again.
I’m curious what the extra $5500 would do to my future budget 10 years from now so I thought I would try to plug-in the 401 K on-line calculator. Here are the results based on 5% and 6% return for 10 years:
At 5% = $71251 (including $5500 x 10 years)
At 6% = $75486 (including $5500 x 10 years)
Let’s say I need the money to last 20 years with no inflation factoring in, monthly payment will be between $297 and $315.
I guess an extra $300 can go a long way for some people or just a pocket change for others.
To me, the total of $55000 could mean skipping 3 international trips for the next 10 years or waiting until retirement and taking 4 international trips by then (if I’m still able).
What I’m saying here is that I’m NOT trying to keep up with the Jones. There are people who make less than a dollar a day in the world, but there are also people who make more than a million dollars a day in the world. It is difficult to compare to both of them. I will be a rich guy if I compare myself to the one who makes only a dollar a day and I will be a poor guy if I compare myself to the other who makes a million dollars a day. So I guess we should live within our means and be happy of what we have.
Just for fun, let’s add the what-if scenario into the mix. What if your 401 k goes up to a million dollars by the time you retire without the catch-up. It would not be an issue between $1,000,000 and $1,075,486. Would it?
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Rememeber that life brings change (health and financial)
I would add to non-taxable accounts (ROTHs / primary residence) and to alternative income streams for future.
BUT I would certainly be having a blast TODAY, especially if you have a liberal vacation policy. Too many folks I know had serious setbacks 'shortly pre-retirement'. Such as an uncle I attended to last week. Went in for elective surgery a few weeks before retirement. Operation / recovery got muffed up... Been 'totally disabled' for last 12 yrs. Can't talk, walk, feed himself, dress ... NOTHING, and a mellow guy, now very combative. Can't be fun. Wife / caregiver is a total saint.
Another good friend had a heart attack and died just after retirement luncheon, and while cleaning out desk. I'm glad I don't have to worry about dying at work... That would be the ultimate embarrassment.
That's why I would like to enjoy some of the activities now, e.g. traveling, going places...and at the same time I don't want to tie my money into an account where I will be penalized if I take it out before 59 1/2. Remember, I did put max into my 401 K for more than several years now. In a nutshell, that money in my 401 k will be my traveling money (whatever will be).
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