Hey all, currently working my first full time job, wanted to know if my plan for retirement would be adequate to suit my retirement lifestyle. Here’s my plan:
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Currently 25, I plan on retiring around 57-60.
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I work for a local municipality that is apart of a state pension plan, I get the full benefits of it once I put in 32 years into the system. I did the math and it looks like (with no raises – unrealistic but I’d rather underestimate it than over estimate) ill be getting a bit over $54,000 per year before taxes with the pension plan.
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I plan on maxing out my Roth IRA every single year as well
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I also invest about $100-$150 per paycheck in VOO/VTI, so about $2600-$3900 per year as well.
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I also plan on working part time (3 days/week ideally) just so I don’t get bored, thinking of a chill park job. This is definitely something I’ll be doing to keep me busy, not for actual financial reasons.
For my actual retirement lifestyle:
- I would like to travel a decent amount, internationally and domestic, but not a crazy amount (think 1 international trip per year and 1 smaller domestic)
- I want to be able to live comfortably, think being able to grocery shop every week without having to stress about finances.
Does this seem reasonable for a retirement plan? Any and all critiques or comments would be greatly appreciated!
Would my Retirement Plan be enough for a comfortable retirement lifestyle?
byu/Sir_Michael2 inpersonalfinance
Posted by Sir_Michael2
2 Comments
You’re in your 20s, dude. As long as you do the following, you will be a multimillionaire in retirement:
1) Max ROTH IRA. You should already be doing this.
2) Try to max 401k, or at least get the match from your employer.
3) Build and maintain an emergency fund.
4) Invest the rest of the extra (if you have extra after 401k max) into stocks.
If you do all that for 35 years, you will be a multimillionaire and the minutiae of what trips you want to do will be irrelevant.
You can put all this into a compound interest calculator based on what you have now, your expected contributions to each account, and add that up.
I made a retirement planner because my current strategy of ‘finding a bag of money on the street’ wasn’t looking promising. It’s in my bio if you need a Plan B too.