Hoping someone can help me out with some math. I have a spreadsheet that I've been building forever but I think I've confused myself too far from an answer here.
Long story short: I travel extensively for work and my job pays for most of my living expenses, so I have been able to put a lot away for retirement throughout my twenties. I will be turning 30 in a few months and will have roughly $300K saved at that time. My funds are almost exclusively invested in VTIVX. I have been and will continue to max out my 401K, IRA, and HSA each year going forward. I have no dependents or debt and don't plan on having any.
My spending estimate for retirement is around 50K each year, post-tax, in current year dollars. I am assuming 8% growth rate in the account balances in the immediate decades including inflation, which I think errs on the conservative side. However, the asset mix will rebalance away from stocks beginning in 2019 and I haven't accounted for that.
With early retirement as the goal, can or should I stop saving in my 401K (except for the match) and instead start putting those funds into a taxable brokerage account for early retirement? I'm having trouble accounting for the growth of money in the in-between years vs. the reduced amount that would be in there at age 60.
My thinking is, if I did this right, it seems like I could make this switch now and will be able to retire at around age 48. In other words, I think I will have accumulated enough from saving in a taxable account from age 30-48 to live on from age 48-60 and then I can start withdrawing from the retirement accounts at 60. So my questions are:
1.) Will maxing out IRA/401K/HSA now (age 30) give me enough to live on from age 48-60 if I plan to spend the equivalent of 50K in today's dollars in each of those years?
2.) If not, is there some pre-60 age where that is the case?
3.) And finally, would the existing (age 30) 300K principal have grown enough to finance the balance of my years (60 - 90+) based on the assumptions above?
Any math-y thoughts would be most welcome. Thanks!
Submitted March 18, 2017 at 01:25AM by theloudestshoutout http://ift.tt/2njkLKE
