I quote Lucky Robin.
In the year 2007 I believe, I made a pretty aggressive goal to have "$150k in retirement" by age 35. I think I was thinking more like the day I turned 35, and was definitely counting some more work retirement contributions in that calculation (another $10k-$20k that I never got). & even then, this goal felt pretty "pie in the sky."
For reference, in the year 2007 I only had $55k-ish in my retirement funds.
But, for all the setbacks, and how aggressive I felt the goal was at the time, I am getting pretty darn close!!
As of yesterday, had about $135k, including cash I already have for ROTHs but did not contribute yet. I can't physically put any more money into retirement accounts (that cash maxes me out), so it is what it is. I also don't really have any other investments (aside from things that are in the kids' name - obviously not for retirement!).
& I could set aside more money "for retirement" (in taxable accounts) to meet my goal, but it doesn't make any sense considering big picture, tax considerations, etc. So I will not do that.
But, will see how the rest of the year goes. At this rate, I suppose anything is possible. 3 more months until my 36th birthday.
& I would be willing to max out ROTHs 1/1 to meet this goal. Off by 30 days from my goal? Who gives a flip! I am at the whim of the stock market. Who cares about *perfection*? I can't beat myself up about it if the stock market takes a dive tomorrow.
I'll post again on this subject and my progress, around my birthday. Again on January 1, if need be.
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Next goal? Pay off mortgage by age 45. I have no idea how - but I think even if I fail, I will be pretty darn close. What's the worst that happens? Pay it off at 46?
{Truth is, I can imagine scenarios where we pay it off in just a few years. Other scenarios it would be put off indefinitely - like prolonged job loss - but you just have to hope for the best}.
P.S. Our retirement vehicles are maxed out, so not much else to do there. To obviously be re-evaluated as economic and job factors change. But on the retirement, I do feel the *hard* part is done. Around the $100k mark, compounding really starts to take over. We can commit to max out, but other than that, I think it's prudent start hitting other financial goals. I think I am just a "one focus at a time" person - always have been. I really enjoyed hitting the mortgage hard when younger, and hitting retirement hard for a time. IT's going to be back and forth until the mortgage is gone. But I do think the *hard* part is done with both of these monsters. Plenty of work to still do, but over the hump.
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I like aggressive goals for two reasons:
1 - If you fall short, you still did pretty darn good.
2 - I am continually amazed at what I have been able to achieve in this life. It definitely takes more than "thought." But, by the same token, "thinking it" is often 90% of the battle.
Perfect example? My spouse told me he thought we should buy a residence, in our early 20s. & I thought he was out of his flipping mind!! But, we sat down and ran the numbers, it actually made sense, and we were buying a condo just a couple of years later. I basically went from "I can never afford a home here" to "homeowner" in 2 years.
Progress, Not Perfection
September 14th, 2012 at 01:31 pm
September 14th, 2012 at 03:07 pm 1347635220
Do I think my family can save $80K cash for a new home in 4 years? Uh, I think it's highly dubious. However, I'm going to attack that goal as if I CAN succeed, and I'll get closer than if I didn't try!
September 14th, 2012 at 03:33 pm 1347636835
Great job on meeting your goal, MM!!
September 14th, 2012 at 05:35 pm 1347644145
Every time I see people base buying decisions on whether they can handles the monthly payments...I cringe. They need to figure out how much they pay in fees and interest. How many hours do they need to work to buy the item of desire?
September 15th, 2012 at 03:18 am 1347679111
September 15th, 2012 at 11:42 pm 1347752560
October 5th, 2012 at 10:48 pm 1349477308