Planning a pseudo-FIRE. Hoping to have ~ $1.3M in retirement accounts by age 43, then not contribute to it anymore and just let growth happen until 59.5. At 7% assumed growth, should be about $3.5M. Expenses for gap between 59.5 and 43 covered from other assets/savings, might get a low key job with health insurance (i.e. barista FIRE). Some situationals: Live in MCOL area (houses about half what bay area cost). 50/50 traditional 401k and mega backdoor Roth Primary residence paid off by 43 Current age 33 Current retirement balance $220k Assume aggressive contributions until 43 (about $5k/mo)
5k per month and a starting balance of 220k puts me at just under 1.3mm in 10 years at 7% growth. Initial balance, monthly contribution, time horizon and assumed growth rate are all as per OP’s numbers. Compounding is bonkers.
Numbers are fine but can you get there? I.e. what is current age and balance?
Very good
33 now, $220k current retirement account balance. Assuming a continued aggressive contribution, about $5000 into retirement account per month
Below average but you are on a right trajectory
Is this a serious comment? Below average based on what? 1.3M is like 10x the average.
Based on blind standard. People at big tech have 1M by 30
How did you get that much in 401k?
A mix of traditional contributions, employer match, and after-tax contributions with daily Roth conversion
Can I DM you. Need some guidance
Not a bad idea and could work. What about working for government in some capacity? Don't government jobs give good pensions? Maybe a teacher or something? Police officer - respect my authoritah? Barista could be a bit boring. Do they normally get good health insurance?
This is my plan. Mailman career post FAANG.
I think you’re forgetting that money will be worth much less 20 years later too so you have to build it into that 7%
We have almost identical numbers. (33; $230k in protected retirement accts). I had a similar plan of contributing max 401k, ira, & hsa until 45 and letting it coast. Inflation is a b*tch. I moved my fire number from $4m to $6m recently. HCOL for me.
Your inflation assumption?
Not needed, assuming 7% growth assumption is real, not nominal.