The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Great opportunity...need advice||Date: 10/27/2000 11:24 AM|
|Author: intercst||Number: 25775 of 80202|
Between us both, our pretax income is $174,000. We have minimal debt, and want a house in two years. Sounds like a trip down Pleasantville Road, huh? Not quite yet.... The only savings we have to speak of is 30,000 in a discount broker account from a 401K rollover from my last employer(which I am proud of doing before I ever found this website).
Here is what I am proposing to my wife for the short term investing "game" (She thinks I am a rookie and have no financial savy) that's making our financial discussions edgy.
Our Income 174,000
401K (maxed) + 2 Roths 14,000
Taxable Income 160,000
Taxes (State & Federal) 55,200
Other Expenses (rent/bills/debt 58,800
Net Investible Income 46,000
That's an excellent plan! Saving more than 25% of your income at such a young age should put you well on the path to retiring before age 50.
There's a spreadsheet on the Retire Early Home Page, the Millennium Edition -- Generation-X Retirement Calculator, that can show you the effect of various levels of savings and spending on your retirement date, it's worth a look:
|Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|