Your "retirement" plan

When do you want to be retired? How do you plan on saving for retirement?
💡
Tip:
Think about how your dream life in 10 years is different from your dream life in retirement, and how your retirement plan would look like if you were to successfully have your dream life in 10 years.

1. At what age do you want to be “retired”
00
59

The way we define “retirement” is just when we don’t need to work anymore to sustain ourselves financially, as in the amount we need to live our lives the way we want to is less than the amount we make from our investment returns. We put it in quotes because many of us will likely continue making money doing what we love, but we won’t
need
to.

2. How do you plan on saving for retirement?

The way we define “retirement” is just when we don’t need to work anymore to sustain ourselves financially, as in the amount we need to live our lives the way we want to is less than the amount we make from our investment returns. We put it in quotes because many of us will likely continue making money doing what we love, but we won’t
need
to.

Do you have, or do you want to have at some point, a job with a 401K?
No
Please skip!
Please skip!
No
Skip

Note 1:
The logic we use here for saving for retirement is the following. If your income is more than your expenses, then you have money to save. This is how that money is distributed:
We prioritize 401K first because of the possibility to get free money through employee matching, so if you have a 401K, then we contribute up to the max (see table below).
If there’s left over money, or if your company doesn’t have a 401K, then we look at contributing to an IRA. The max contribution is based on your income level, your tax filing status, and whether your company has a 401K (see table below)
If there’s still left over money after these 2 steps, the rest goes into your investment account.
Important to note that in this model, 401K and IRA are mixed into the same account and are treated the same, as pre-tax contributions that are taxed as ordinary income when distributions are made (when money is withdrawn). More on how distributions work on the next page.

For reference only:
For reference only:

3. Calculate your expenses

Same exercise as before, but for “retirement” this time!

To help you, you can start off with your 10 year dream monthly costs, copy and paste them to the retirement row, then add or modify the things as needed. If there are items that are not relevant in retirement, put the monthly cost to $0 but
do not delete the row entirely
!

Important note
:
Do not include mortgage, rent, or kid related costs here. These have been calculated in already.

Input your retirement expenses!

👉 This may seem daunting, but let’s calculate

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