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Old 11-21-2016, 06:25 PM
 
Location: Omaha, Nebraska
7,316 posts, read 4,157,689 times
Reputation: 18318

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Quote:
Originally Posted by CatzPaw View Post
Just keep apprised of what's happening around you, save what you can, learn investment strategies but, LIVE YOUR LIFE. Worrying constantly about the what-ifs will steal your joy.
This is the best advice anyone has given in this thread. OP, you'd be very wise to heed it. Tomorrow is not promised!
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Old 11-21-2016, 07:33 PM
 
Location: Jacksonville, FL
11,145 posts, read 14,123,720 times
Reputation: 7075
Quote:
Originally Posted by CatzPaw View Post
OP, it sounds to me as if you're doing remarkably well thus far. And the absolute truth is that no one here has a crystal ball for 30-40 years down the road.

Just keep apprised of what's happening around you, save what you can, learn investment strategies but, LIVE YOUR LIFE. Worrying constantly about the what-ifs will steal your joy.
For now, I am just going to aim to retire at the full retirement age for Social Security purposes. Saving to my 401k to supplement the years that I will be collecting SS will be easier. Once I've achieved that, then I will attempt to save even more (probably much later in life) so that I can start earmarking savings to produce income for the years in which I will not be collecting SS (the years before age 67, in my case).
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Old 11-21-2016, 07:47 PM
 
2,630 posts, read 1,935,161 times
Reputation: 4597
Do what I did. Assume you're going to retire at 55. Sock away all the money you can, stash it out of sight out of mind. Skip all those useless toys and show off junk like a Lexus - nobody cares what you drive. Pay off that house ASAP (interest is costly even at 3.5 % - just do the math) and then let whatever happens in the next 23 years decide when. That's what I did. Retired at 54 (instead of 55). BTW...make sure you've calculated how much you'll need...then double it. You'll be right on the money; and forget about SS - it probably won't be there 30 years from now.
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Old 11-21-2016, 08:11 PM
 
Location: Jacksonville, FL
11,145 posts, read 14,123,720 times
Reputation: 7075
Quote:
Originally Posted by TwinbrookNine View Post
Do what I did. Assume you're going to retire at 55. Sock away all the money you can, stash it out of sight out of mind. Skip all those useless toys and show off junk like a Lexus - nobody cares what you drive. Pay off that house ASAP (interest is costly even at 3.5 % - just do the math) and then let whatever happens in the next 23 years decide when. That's what I did. Retired at 54 (instead of 55). BTW...make sure you've calculated how much you'll need...then double it. You'll be right on the money; and forget about SS - it probably won't be there 30 years from now.
Yeah......I can't do that lol.

I'm already socking away 18% of my gross paycheck to retirement. And an additional 10% of my gross paycheck to regular cash savings, so that I can save up for a home someday. So that right there is already 28% of my gross income saved/invested. Then of course, there's taxes, healthcare deductions and living expenses, which account for the nearly 70% of my gross income in total. And I live modestly in a 600 sq ft 1 bd apartment in a crappy city here in Connecticut, alone. No central air, no dishwasher, no garage, etc. My gross income (salary) is $70,000. So I'm contributing $12,600 per year to my 401k as we speak. My company does not have any 401k matching whatsoever.

Even at this rate, I probably won't be able to retire younger than 67. I'm planning for a gross income of $55-60K per year in retirement just for myself.
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Old 11-22-2016, 06:04 AM
 
Location: annandale, va & slidell, la
7,346 posts, read 3,040,754 times
Reputation: 6158
As soon as you can afford it. Only you know what that means. At your age you'll need $3-4 million---or more, depending on your lifestyle at the time. It can be done.
Too many variables ahead for you, so start saving and contributing to a 401K like there's no tomorrow.
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Old 11-22-2016, 06:56 AM
 
Location: Wisconsin
26 posts, read 19,214 times
Reputation: 154
The laws for retirement have all changed since I was 32 years old - 30 years ago. It is likely, that will be the case for you as well. The only way to save for a successful retirement is to BEGIN.


1. Live financially within your means.


2. Pay off all bills & keep them paid in full (exception-house & car loans).


3. Start an emergency fund, to be used ONLY for emergencies like house/car/maintenance. Bump it as you can afford to throughout life.


4. Start a savings acct for the unexpected like unemployment/healthcare. The unexpected list could go on & on, always be prepared for it. This amt should be 3 to 6 months of current income at all times throughout your life.


5. To START, contribute the minimum contribution to a 401K fund, until #2 thru #4 are covered, this will ensure you never have to touch the 401K retirement money in the future. Once, #2-4 is covered, bump up to max 401K contributions (or more).


6. In 20 years, you will ask yourself, with all that money in the emergency/savings, should I pay off the house? Should I pay in cash for that next vehicle? Should I go to Hawaii/Jamaica/Australia? Should I hang onto to it to retire early?

At what age should you retire? The answer lies within you. It depends on how you chose to live life now & what you chose to save for tomorrow & your future. Best regards & good luck to you!
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Old 11-22-2016, 08:50 AM
 
Location: Jacksonville, FL
11,145 posts, read 14,123,720 times
Reputation: 7075
Quote:
Originally Posted by Rox54 View Post
The laws for retirement have all changed since I was 32 years old - 30 years ago. It is likely, that will be the case for you as well. The only way to save for a successful retirement is to BEGIN.


1. Live financially within your means.


2. Pay off all bills & keep them paid in full (exception-house & car loans).


3. Start an emergency fund, to be used ONLY for emergencies like house/car/maintenance. Bump it as you can afford to throughout life.


4. Start a savings acct for the unexpected like unemployment/healthcare. The unexpected list could go on & on, always be prepared for it. This amt should be 3 to 6 months of current income at all times throughout your life.


5. To START, contribute the minimum contribution to a 401K fund, until #2 thru #4 are covered, this will ensure you never have to touch the 401K retirement money in the future. Once, #2-4 is covered, bump up to max 401K contributions (or more).


6. In 20 years, you will ask yourself, with all that money in the emergency/savings, should I pay off the house? Should I pay in cash for that next vehicle? Should I go to Hawaii/Jamaica/Australia? Should I hang onto to it to retire early?

At what age should you retire? The answer lies within you. It depends on how you chose to live life now & what you chose to save for tomorrow & your future. Best regards & good luck to you!
I already did/started all that stuff you listed! I have a $10,000 emergency fund that is cold hard cash. Some people might think $10K is low, but I'm debt free, have no dependents, and am renting an apartment and would qualify for unemployment insurance if I lost my job. But in reality, in addition to the $10K, I actually have $54K in cash anyway.

I just dont know if I should plan to retire at 67, 65, 60, 55, 70, or never. Obviously, the earlier the better.

My friend has an 84 year old neighbor who refuses to retire. He runs a masonry business and said that if he retired, he'd probably die.

Also, sometimes I wonder...what is the purpose of retirement anyway and why is it such a big deal? Is it hard for someone over 60-65 to go to work everyday? Or is the purpose of retirement just to enjoy the last years of your life without having to work? I dont get it.
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Old 11-22-2016, 08:55 AM
 
1,831 posts, read 2,137,324 times
Reputation: 2602
One of the many issues regarding retirement is the avoidance of costs. A health care event can be life style changing. I recommend not retiring until coverage is secured.
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Old 11-22-2016, 09:14 AM
 
Location: Ypsilanti, MI
2,439 posts, read 3,664,651 times
Reputation: 4795
Plan your finances to be able to retire at age 55. Too many corporations force people out the door in their mid-fifties. Yes it is age discrimination, but everyone turns a blind eye to it, saying things like "It is a reward for a long career", or something similar. It is a reward if your are ready for it but many employees aren't. Plan ahead and put yourself in a position so that you can leave at 55 without decreasing your standard of living.
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Old 11-22-2016, 10:14 AM
 
5,191 posts, read 4,890,122 times
Reputation: 3314
Quote:
Originally Posted by Slytrix View Post
As soon as you can. 59 worked for me.

Also may want to look into Which states are more tax friendly.
What did you use for health insurance since you were not yet eligible for Medicare?
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