1.Pay off mortgage by 2015.
Balance as of 8/8/08: $70,000.
2.Save $1.2 million and retire by age 60. (I used to say I'd retire at 55, but i don't think that's doable now.)
Current investments/savings:
IRAs and 401(k): $285,887
Taxable investments: $127,440
Total savings: $413,327
Current approx equity in my house:
About $330,000
Total net worth: $743,327
I might be able to live comfortably on less, especially as I'm not factoring in Social Security benefits, but due to the uncertainties of the Social Security system, my income, health insurance costs, inflation rate and other things beyond my control, I've set my sights on $1.2 million.
At age 60, i would find p/t work that offers health insurance. A tough one, but that's the plan. My mortgage will be paid off at around age 58, so the goal is to work p/t between 60 and 65 and live on my savings, but defer collecting Social Security for as long as possible.
Withdrawing 4% of $1 million would give me $40,000 a year to live on, which seems like plenty. Once i do begin Social Security, i'll have even more.
3. In retirement, get a dog from the pound. Find a 'fun' part-time job with health insurance (few and far between, but they're out there) until i'm age 65 and Medicare can pick up my health care expenses. Do more volunteer work. Revive my freelance business for pocket money. Travel. Cook. Kayak. Defer collecting Social Security until age 70.
This is The Plan. (I'm still in my 40s, but hey, I really like to plan ahead.)
