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Investing/Strategies / Retirement Investing
|Subject: Re: Retiring @ 55||Date: 10/14/2013 6:16 PM|
|Author: Rayvt||Number: 73566 of 79108|
A few thoughts:
*) Someone else's opinion of the size/price of your house is something that you should pay no attention to.
*) Hopefully you have a *smart* (financially) mortgage. 30 yr FRM that you refi'ed into when the rates were near 4%. And you do NOT make extra principal payments.
*) If you *are* making extra principal payments, you need to drop what you're doing and find out why that's a bad thing if you plan to be FIRE'd (Financially Independent, Retired Early).
*) You cannot "save" yourself into becoming a millionaire. You can, however, *invest* your way to millionaire status. At a minimum, put enough into your 401K's to capture the entire employer match.
*) There's nothing wrong with having a big mortgage in retirement -- as long as it's a "smart" mortgage. If you pay 4% while earning 8.5% (average) on your investments, then you're making a net 4.5%
*) Figure your current effective net income -- subtract out the things that you pay now that you won't after you retire. FICA, 401K contribution, income tax, etc. If you are maxing out your IRAs and 401Ks, that's a few 10's of thousands of dollars of outflow that will disappear at retirement. Your income taxes will go down a lot, too.
*) I echo what RAD said. Moreover: Wouldn't you have the same taxes if your retirement income matched your pre-retirement income??