I can't afford to take it for granted. These days, I'm happy to still a job the next day. Tell me that's not fu---d up.
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We pay state tax 4% no matter what unless it's Roth money. Our house is paid off and don't have consumer debt so monthly expenses are minimal. Save up over years for larger expenses like a car replacement and don't borrow money to keep expense low and risk minimal.
Property tax and insurance are about 6k annually between both. Shouldn't need to draw much with working part time (for insurance) to live a decent semi-retired life at 55.
@jq It also depends on the state. It is true that there are no federal tax penalties after 55 when you leave and the 401K is associated with that same company. In PA, Traditional 401K withdrawals are taxed before 59 1/2. Afterwards, no state taxes. I am planning retirement by end of year and looking into options to include the Roth conversion ladder. My goal is to have all my 401K at BOA removed as soon as possible with rollovers. I can't wait...
@h7 55 if you pull from the 401k balance of the company you retire from at age 55 or higher. Look it up.
@et 401k penalty-free withdrawals start at age 59 1/2.
It's just a fun topic, any decent black swan event (surely you know what that is, you work at this wonderful FI) can wipe out the retirement dreams/fantasies of the 99%, don't think it can't happen
I think about retirement quite frequently but I'm 10 years out from being able to use the IRS rule of 55 and start drawing off of 401k without penalty. If the market returns 7% over the next decade, I'll be just about able to replace my current income drawing 4% per year at 55. Maybe go get a low stress part-time job somewhere for health insurance. Remember that retirement is not an age, it's a financial number. If I head 2 million in a brokerage at 50, could retire easily then.
I'm nowhere near retirement age but I honestly just am thankful my login works everyday. I know this job has more bad days than good sometimes but the way the economy is right now I'm just glad I'm still employed.