Background: Single, no dependents, male in their early thirties. No debt or loans. I live in a walkable city, so I don't own a car. My employer reimburse my transit pass, so I take public transportation.
Note: Do not plan to have kids nor do I want to buy a house. I will rent indefinitely.
Current monthly net income: $3,000 (After a $1,000 pre-tax contribution to a 457(b) retirement account)
Expenses:
Rent&Utilities: $1,600.00
Gym Membership: $109
Food&Supplies: $500
Total Monthly Expenses: $2,209
Current balance in checking account: $5,000
Current balance in 457(b) – $10,000
Current liquid savings in a CD @ 3.5%: $20,000
I work in the public sector, so I get 5% merit-based raises every year until I max out my cap. That will take five years and I just got my first 5% raise.
My Salary range: $5,110.00 – $6,500.00
Every 5% raise, I will increase $200 to my 457(b) contribution until I max it out at around $2,041.00 a month, which should get me to the $24k annual limit.
I save my monthly surplus and would occasionally use it as a vacation or "guilt" spending.
My main questions:
Am I in a good position? I don't plan to invest in a Roth IRA because I feel like I would have enough for retirement given that I will have SS, Pension, and my 457(b) retirement account.
My investment is mainly in my savings (CDs) and my 457(b).
Trying to figure if I am managing my finances "correctly" Would I be able to retire comfortably if I don't invest in a Roth IRA?
byu/Kaffiendtol inpersonalfinance
Posted by Kaffiendtol