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Nest Egg Projections

January 24th, 2015 at 01:39 pm

Here's another overdue entry, nest egg projections based on my end-of-the-year balances.

I take my tax-deferred balance, then compound it at different interest rates until I am age 65, and see how it turns out. If I assume 6k per year of new money, it's OK. If I work until age 67, my Social Security full retirement age, it gets even better.

I'm really hoping to hit 600k, as that will replace about half of my current income. If I do better than 600k, well, I'll just have to find a way to live with that. If I have less than 600k, I will really have to think hard about whether or not I can afford to retire.

And here's the Roth. I intend to use my Roth solely for funding large, irregular expenses. Think new roof or new (to me) car. The idea is to pay for what I need without taking on debt or raiding tax-deferred (thus permanently reducing my monthly income). I had been shooting for 150k. Now that I am nearly 100% certain I want to buy a small condo as my final home, I think 100k will be more than sufficient.

I have been saving 3k annually in my Roth, but for this projection I used 2k for my "current savings rate". Beginning in 2015, that is my contribution plan.

So all in all, I feel that I am in OK shape. Not fantabulous, but OK.

5 Responses to “Nest Egg Projections”

  1. FrugalTexan75 Says:

    Do you plan on staying in CA when you retire? Or buy a condo in a lower cost of living place?

    Great projections btw!

  2. Petunia 100 Says:

    Hi FT, I plan to move to a climate with high elevation and dry air, where I can hopefully find some allergy relief. I'm thinking Reno. I believe I can find a place that will suit for less than 100k.

    I'd like to relocate well before I retire. Like maybe next year. Smile

  3. snafu Says:

    Thanks, excellent projections that I easily replicate, very helpful.

    I'd sold the house and bought a condo. I thought if I hated living in a townhouse style 'complex,' I could sell and buy a smaller house. It's so much less work it feels like a constant holiday. I bought an older unit based first on location, 2nd because of how well it had been managed, 3rd how moderate the fees were and how moderate every increase. The downside was as an older unit, needed new appliances, decor to suit me and new lighting fixtures throughout. The seller had installed new, high quality carpet before listing. I planned to replace with hardwood but the carpet continues to look pristine I feel guilty/wasteful and it's such a hassle to manage the process.

    I thought having so many seniors in the complex would be was a negative but it was a huge benefit long run for so many reasons.

  4. FrugalTexan75 Says:

    Sounds like a good plan Smile

  5. MonkeyMama Says:

    You are certainly in better shape than most!

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