Our Retirement Plan
Retirement! What all working people dream about. The day that we can stop working and start doing whatever the heck we want. I want to travel. I want to spend time with my kids and (hopefully) grandkids. Hubby wants to work on cars. He likes to work on them now, so I could see him restoring a car. He also says he wants to relax. Maybe get someone to do our yard work. Dreams. They are good to have. But a plan is even better.
Hubby and I both work. He works full time and I work part time. It works for us now. It may change over the years. I may work full time once the kids are all gone. Hubby's job offers a Roth 401K with a match. My job offers a 401K with a match. We are currently putting about 15% into both of those plus the matches. We talk with our financial adviser as well. We want our money to work hard for us.
Could we be putting more into our retirement? Probably. We have a long term plan and we are sticking with it. We follow Dave Ramsey's Baby Steps and we are currently working on Baby Steps #4 (15% into retirement) and #5 (saving for college). Dave says to fund your retirement before your kids college. That is hard for me as a mom. I do understand why he tells you to do it that way. I DO NOT want to be a burden to my kids when I am old. I know several adults 60+ that depend on their grown children to help them financially. I even know a few that have passed away that have left their spouses in a financial mess. Hubby and I do not want to do that. We want to spoil our kids and grandkids, not hurt them.We are not counting on Social Security to support us. It may not be there when we need it. If it is, then that is just frosting on our cake.
Why does Dave Ramsey say only 15% at this point? Well, we have other things to do too. We have to get our kids through college. Since we are a little behind on this step we are going crazy with it. I know that in 5 years we will be done with this step, hopefully sooner. Then we want to pay our mortgage off early. . We currently have 13 years left on our mortgage but our goal is to have it paid off in 10. I dream of the day that the mortgage is gone. We will not owe anyone anything. I am 43 soon to be 44 and Hubby is 47. If we hit our goals, I will be 53 and Hubby will be 57. Then we can go crazy on retirement. We will have no payments so we could save and invest a huge amount each month.
Do you have a goal for retirement? Do you ever crunch numbers to see where you will be at? I do all the time. There are several good retirement calculators out there. I use Dave Ramsey's Retirement Calculator. I play around with it . If I can cut our grocery budget and add $50 more a month how much more will we have. If YD gets an extra $1,000 in scholarships a semester how much more will we have. If we pay our mortgage off 6 months sooner how much will that become. If Hubby works until 62 1/2, 63, 64, 65...
If we have a goal and we go for it , even if we don't hit it 100%, we will still be in great shape. If we wander through life aimlessly, living for only today and not worrying about the consequences of tomorrow, tomorrow is going to suck. So Hubby and I are going to stick to our plan. We know things happen and we will adjust our plan if we need to. Right now we are looking at the finish line. Our retirement. We can't wait for all of the amazing things we will do.
What are your goals for retirement? Are you already retired and living all of your dreams? I would love to know how you did it.