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Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: Retiring @ 55 Date: 10/14/2013 5:51 PM
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Don't give up. Whatever you save will be that much more that you have working for you and growing so that you will still have a nice nest egg at retirement time. And since you do have a pension, that will provide a nice part of your retirement income where those of us without pensions have to provide all our retirement income, so this is a good thing for you.

I don't recall if you said it, but there are lots of things you can be doing. Living within your means is paramount, and so I recommend not having any debt whether that is credit card debt or car loans. If you can avoid borrowing, then all your money is working for you.

Keep saving in both your tax-deferred and taxable accounts, and add any raises you get along the way to it. If you can just live on your paycheck, then you can also bank all of your wife's and that will help to save that much faster.

At this point, see if you can figure out a reasonable annual income that you would need in retirement based on your current expenses, and use 25x that as your general target. As you get closer, refine that budget, and your savings goal will also be refined.

As has been pointed out, don't forget that the L in LBYM stands for living, so make sure you enjoy life along the way and don't just focus on that end goal. I've seen the suggestion to get a less expensive house, but if that is part of your L, then I don't see the need to trade that now, but that is your decision based on your goals and priorities.

I've done quite a few things that other people would not have done, and have not done things that quite a few other people do, and yet I'm happy with our progress in our financial life and happy with the balance that has been struck.

Keep reading, saving, and posting, and I think you will surprise yourself at how well you can do, and if it means that you can't retire at 55, but you can retire at 58 or 60, you'll still be ahead.
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