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Retirement Goals

December 11th, 2010 at 07:45 pm

I have set some specific financial goals which I would like to reach before retirement. Reaching them is possible, though not a slam-dunk. This is another big reason I decided I had to get my over-spending in check. Here they are:

1. Have 600k in traditional IRA. This is for regular monthly income. At a 4% withdrawal rate, 600k would provide 24k annually (2k monthly) of income. Supplemented by SS benefits, this should afford me a modest yet comfortable existence.

2. Have 150k in Roth IRA. This money is for covering large irregular expenses which will come up from time to time. Home repairs, home maintenance, vehicle replacement. The point of having this fund is so I can (hopefully) avoid debt.

3. Be mortgage free. I am uncertain at this point if this will be in my current home, or if I will sell and move elsewhere. Wherever I am living, I would like to not have a mortgage.

I am single, so this nest egg is intended to support only one person.

Posted in Retirement Savings, Retirement Dreams | 2 Comments »

2 Responses to “Retirement Goals”

  1. patientsaver Says:
    December 11th, 2010 at 08:08 pm 1292098117
    1292098117

    I'm single, too. i think $750K as a retirement nest egg is very doable when supplemented, as you said, by Social Security. But if you can live on your savings for several years and not collect SS until full retirement age or up to age 70, you can really increase your monthly benefit amount.

    Right now, the magic retirement number for me is $900K, as I'd like to live a little better than "modestly." And healthcare costs are a real unknown, especially as you age.

    If you look at your annual SS statement, you can see what a big difference deferring collecting SS til later can make. I think there's a roughly 8% increase in the monthly benefit amount for every year past age 62 that you defer.

    I also plan to be mortgage free, and am pretty sure that at some point, much as i love my home, i'll want to sell it and move into a condo becus there's a lot of maintenance here.

  2. terri77 Says:
    December 31st, 2010 at 05:53 pm 1293818010
    1293818010

    These are good goals. You've really considered your retirement planning. I'm not sure what I will need, though I've envisioned and calculated several different scenarios. I'd like to retire at 60. I'd like to have $2 million in investments in addition to my pension and Social Security. I think if I keep maxing out my retirement accounts and save diligently I may achieve my goals.

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