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Financial question for you financial wiz kids

Discussion in 'Non-Vegas Chat' started by jagdan61, May 3, 2016.

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  1. jagdan61

    jagdan61 Low-Roller

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    Ok...kinda putting my stuff out there..so here it goes

    Between wife and I we have about 300k in 401k's and TSP (military version of 401k)
    I sock away between the two of us 1700 a month and plan on (hopefully) retiring in 8 years.
    between our Retirements and hopefully S.S. we should get have 6k a month coming in even in the worse case we don't
    get anymore pay increases in Military Retirement.
    I would like to receive an additional 1500 a month from the Investments. Possible in 8 years to do
    that? Yes I should have more money put away, You don't get rich being Enlisted in the military:cry:
    Thanks for any responses.
     
  2. Joe

    Joe VIP Whale

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    Wow! Really hard to answer. Can you live on 6k per month? All bills and mortgage paid off?
    So many factors to consider and VMB probably not the place to discuss them.
     
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  3. jagdan61

    jagdan61 Low-Roller

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    No mortgage no bills except normal bills. Utilities and such.
    The 6k would be what I will bring in minus what I have invested. Hoping to supplement the 6k with another 1500 from Retirement savings. It's invested in Fidelity life funds.


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  4. jagdan61

    jagdan61 Low-Roller

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    I guess I should phrase like this. With 300k invested and I am investing 1700 a month. In 8 years it is resonable to draw out 1500 a month with my current investing?


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  5. mdee

    mdee VIP Whale

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    Sounds like you could use a Financial Advisor.
    Call the Dave Ramsey Show and ask him.
    And thank you for your service!
     
  6. jagdan61

    jagdan61 Low-Roller

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    Thanks
     
  7. WichitaMuskie

    WichitaMuskie Low-Roller

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    Or call someone good instead.
     
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  8. Ty

    Ty ?

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    There's a lot of variables but I would say you are very close, just going the ole 4% withdrawal rate. And if the market behaves.
     
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  9. Joe

    Joe VIP Whale

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    Some very good, free calculators here:

    http://www.financialcalculators.com/

    Also, I haven't been a Fidelity customer for a decade or so, but as I recall, they also had some good calculators on their site.
    And yes. thank you for your service!!
     
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  10. Nevyn

    Nevyn VIP Whale

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    So the 6k a month is coming from elsewhere, and the 300k plus extra saving is just to generate the 1500 a month?

    If so, you ought to be fine. I did some quick calculations with conservative return rates, and that seems like plenty. But I may have misunderstood. Is the extra 1500 after tax? What sort of rate of return are you expecting?

    By fine, I mean I assumed you would have a very conservative asset mix, and only a 2% annual rate of return (I compounded monthly for simplicty). Based on that, I had you at just below 500k in 8 years, and then had that lasting just about 40 years thereafter. This did not account for inflation, but that was balanced out by the low return assumption.
     
  11. jagdan61

    jagdan61 Low-Roller

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    Yes 1500 after tax. Rate of return is tricky. Who really knows. I'm in fidelity 2030 funds which historically returns around 6% but future return who knows.

    Yes I have roughly 6k in guaranteed income a month. The 300k I'm currently putting an additional 1700 a month for I hope 8 more years


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  12. jerseyguy

    jerseyguy VIP Whale

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    What works for me anyway,very simple equation .Taylor your lifestyle and expenses to live within or slightly below your means. Basically if you get 6k a month dont live like a guy who gets 8k a month.
    Simple enough?
     
  13. DrLect

    DrLect Low-Roller

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    Too many unknown variables. How old are you? How old is your wife? Do either of you have any health concerns? Will you have adequate medical benefits in retirement, or will you have to purchase insurance? You did not mention children and potential needs to provide post secondary education? What are your current monthly expenses ...
     
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  14. Nevyn

    Nevyn VIP Whale

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    Yeah, I would definitely find a fee based advisor to plan this out (not a commission based one).

    I'm not american and not super familiar with 401k tax treatment. If you want to net an extra 1500 after tax, you'll need to figure out how much that has to be pre-tax. You'll want to assume the need to increase this amount with inflation as well.

    The fidelity 2030 looks like a target date fund. It will shift its asset mix over time to be lower return but more stable. So you would probably want to assume a lower rate of return in future years. Also, just an observation that the funds target (like its name) is 2030, 7 years after your retirement. So you could be withdrawing from it in years where it is still designed for growth. That could be ok (that 6k guaranteed is a comfortable backstop especially with a paid off home)

    Anyway, short back-of-a-napkin answer is I would expect this to be fine. Longer answer though would be to talk it out with someone. There are a lot of other questions to be asked and assumptions to be made.
     
  15. jagdan61

    jagdan61 Low-Roller

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    No kids no mortgage no health concerns and have medical under military healthcare ( tri care) I'm 54. Wife same age.
    I pretty much know what I need. That's not my question.
    I'm just asking on my current 300k portfolio is it reasonable investing 1700 a month for 8 years to have a portfolio large enough to draw out 1500 a month?


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  16. Joe

    Joe VIP Whale

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    Such a simple philosophy, but why can't the majority follow it? Always been a head scratcher for me. Live within your means.
     
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  17. jagdan61

    jagdan61 Low-Roller

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    I know how to live within my means. I invest 1700 a month a put another 1000 " under the mattress" each month for vacation/emergency money. I think I'm not phrasing my question correctly


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  18. Joe

    Joe VIP Whale

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    That reply was not aimed at you. Just folks in general.
     
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  19. jagdan61

    jagdan61 Low-Roller

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    I know joe. Thanks


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  20. Joe

    Joe VIP Whale

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    I have no financial advise for you, but I give you a ton of credit for thinking about your future. Some of these studies about how much people have saved for retirement and their totally unrealistic concept about how much they"ll need is just mind-blowing.
     
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