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Interim Retirement Nestegg Report $50,000 Retirement Income

Interim Retirement Nestegg Report $50,000 Retirement Income

Another neat milestone is that our estimated retirement income today has now surpassed $50,000 per year using the 4% rule.

For those of you that don’t know the 4% rule it is based off of a bunch of studies of what would be an absolutely safe withdrawal rate from a diversified stock & bond portfolio that would survive even the worst downturns (retiring the day before the great depression) and still have the retiree never run out of money.

This means that if my family of 7 could survive on $50k a year we would be financially independent and never need to earn income again and could just live off our our nestegg.

Now yes the market has been on a very huge runup this year and well for the last decade which is why this update is coming just 6 days after my nestegg just crossed $1.2M for the first time, but again the 4% rule is the based off of the unluckiest investor in the world who retired right before a massive market crash and they still survive. In almost all scenarios the retiree ends up having their portfolio greatly increase in size at the end of their life despite withdrawing 4% every year.

What does this mean for us? I’m not sure as there are a few caveats that we need to figure out. The first being that the vast majority of my money is tied up in retirement accounts that we can’t access for another 19 years without paying a penalty so we’d have to account for that piece.

I know we could live off $50k a year if we needed without too much struggle, but also am not sure we are ready to fully retire at this point as both of our work schedules coincide pretty well with our kids schedules so the only benefit of retiring fully would be to spend individual time outside of our kids and to be honest I’m not sure either of us have any great plans for what we would do with that time, so for the time being we will keep the spigot of additional money flowing in.

The other big wild card is health insurance which is ultimately probably going to be the biggest and most costly item we need to figure out before we pull the plug completely.

So right now this doesn’t affect us too much other than to give us confidence that no matter what happens with our work we are sitting

Taxable Account- $71,065.52
Private Stock $72,000
Traditional Rollover IRA – $44,844.64
My Roth IRA – $309,696.78
Wife Roth IRA – $197,579.94
Wife 401k – $4,744.59
Traditional 401k – $554,514.71

Roth/Traditional % = 40.40% (tax free)

Total Retirement Nest Egg $1,254,446.18
Retirement Salary (4%) $50,178

Interim Retirement Nestegg Report $1.2M

Interim Retirement Nestegg Report $1.2M

Well it took 8 months to hit my next 100k milestone this time, but today my retirement nestegg hit a valuation of $1.2M. Despite the really good market performance my nestegg has actually grown slower the last two milestones than it did the previous 4 milestones. I actually went ahead and added a new column to my table to track the time between milestones.

Part of this is probably because I am not contributing nearly as much to my retirement accounts these days. Previously I was doing a little bit more of the heavy lifting and now I’m sort of doing the bare minimum and letting the nestegg do the heavy lifting on it’s own.

Despite this I expect we should have a new record between milestones coming up here in the future. In fact at some point in the future I expect to be writing two of these types of reports in the same month!

Taxable Account- $66,591.53
Private Stock $72,000
Traditional Rollover IRA – $43,223.63
My Roth IRA – $294,222.91
Wife Roth IRA – $187,810.82
Wife 401k – $4,663.90
Traditional 401k – $544,146.32

Roth/Traditional % = 39.75% (tax free)

Total Retirement Nest Egg $1,212,659.11
Retirement Salary (4%) $48,506

$100,000 NestEgg Milestones

Date DOW Jones Value MFJ Nestegg Time to Achieve
Oct 2008 10,000 $ 69,300 29 years 2 months
Oct 2009 10,000 (+0%) $100,000 (+44%) 30 years 2 months
Feb 2012 13,000 (+30%) $200,000 (+100%) 2 years 5 months
Jul 2013 15,423 (+19%) $300,000 (+50%) 1 years 5 months
Feb 2014 16,395.88 (+6.3%) $400,000 (+33%) 7 months
April 2015 18,084.48 (+10.30%) $500,000 (+25%) 1 year 2 months
August 2016 18,636.05 (+3.05%) $600,000 (+20%) 1 year 4 months
January 2017 20,068.51 (+7.69%) $700,000 (+17%) 5 months
June 2017 $21,182.53 (+5.56%) $800,000 (+14%) 5 months
January 2018 $25,484.72(+20.31%) $900,000 (+12.5%) 7 months
May 2018 $24,667.78(-3.21%) $1,000,000 (+11.1%) 4 months
April 2019 $26,234.34 (+2.94%) $1,100,000 (+10.0%) 11 months
December 2019 $28,331.20 (+7.99%) $1,200,000 (+9.1%) 8 months
Retirement Nestegg Report November 2019

Retirement Nestegg Report November 2019

Another all-time high for my retirement nestegg and creeping up on the next 100k mile stone and also getting close to having $50k in forever retirement income which is another cool milestone.

Taxable Account- $61,881.46(+3.68%)
Private Stock $72,000 (+0.00%)
Traditional Rollover IRA – $42,332.64(+1.14%)
My Roth IRA – $282,435.80(+3.51%)
Wife Roth IRA – $180,800.01(+2.72%)
Wife 401k – $4,618.79(+3.43%)
Traditional 401k – $537,941.57(+3.94%)

Roth/Traditional % = 39.19% (tax free)

Total Retirement Nest Egg $1,182,010.27(+3.02%)
Retirement Salary (4%) $47,280

Monthly Contributions $903.32(401k)
SP500 Performance +3.41%
My Monthly Investment Performance +2.94% (-0.47% vs SP500)
My Monthly Individual Stocks Performance +3.10% (-0.31% vs SP500)

Retirement Nestegg Report October 2019

Retirement Nestegg Report October 2019

Well a very good month for my nestegg and a new all-time high. The market was up over 2% and my investments were up quite a bit more – driven primarily by the big run up in Tesla this month.

Taxable Account- $59,684.60(+10.11%)
Private Stock $72,000 (+0.00%)
Traditional Rollover IRA – $41,856.11(-1.82%)
My Roth IRA – $272,855.47(+6.31%)
Wife Roth IRA – $176.012.04(+6.47%)
Wife 401k – $4,465.82(+2.84%)
Traditional 401k – $517,536.16(+2.84%)

Roth/Traditional % = 39.11% (tax free)

Total Retirement Nest Egg $1,147,419.20(+4.83%)
Retirement Salary (4%) $44,049

Monthly Contributions $903.32(401k)
SP500 Performance +2.04%
My Monthly Investment Performance +4.75% (+2.71% vs SP500)
My Monthly Individual Stocks Performance +6.86% (+4.82% vs SP500)

Retirement Nestegg Report September 2019

Retirement Nestegg Report September 2019

Overall a pretty flat month for my retirement nestegg and a pretty bad month for my individual stock performance. My individual stocks now trail the market for the first time this year. Overall I think as time goes on my individual stocks will slowly fade as more and more of my money tilts towards index funds that I do not need to try to put any effort into, but for now I won’t make any drastic changes.

Taxable Account- $54,202.74(+1.45%)
Private Stock $72,000 (+0.00%)
Traditional Rollover IRA – $42,632.43(-10.22%)
My Roth IRA – $256,600.48(-3.49%)
Wife Roth IRA – $161,511.53(-3.88%)
Wife 401k – $4,342.68(+1.33%)
Traditional 401k – $503,265.62(+1.71%)

Roth/Traditional % = 39.32% (tax free)

Total Retirement Nest Egg $1,094,555.48(-0.42%)
Retirement Salary (4%) $44,049

Monthly Contributions $903.32(401k)
SP500 Performance +1.72%
My Monthly Investment Performance -1.10% (-2.82% vs SP500)
My Monthly Individual Stocks Performance -3.71% (-5.43% vs SP500)

Retirement Nestegg Report August 2019

Retirement Nestegg Report August 2019

I’ll save the commentary for an upcoming holy crap I’m 40 post, but overall slight decrease in the nestegg and zero care in the world by me as I was busy not working and spending time with my family which I think is probably going to be a more common theme going forward. I honestly didn’t check my portfolio more than once this month and well turns out its still here and still pretty big so that’s about all I need to know at this point in my journey.

Taxable Account- $53,426.31(-4.23%)
Private Stock $72,000 (+0.00%)
Traditional Rollover IRA – $47,483.34(+2.30%)
My Roth IRA – $265,869.24(-2.76%)
Wife Roth IRA – $168,021.63(-1.75%)
Wife 401k – $4,285.79(-1.61%)
Traditional 401k – $494,781.08(-2.43%)

Roth/Traditional % = 39.32% (tax free)

Total Retirement Nest Egg $1,105,867.39(-2.14%)
Retirement Salary (4%) $44,234

Monthly Contributions $553.99(401k)
SP500 Performance -1.81%
My Monthly Investment Performance -2.19% (-0.38% vs SP500)
My Monthly Individual Stocks Performance -2.16% (-0.35% vs SP500)

Retirement Nestegg Report June 2019

Retirement Nestegg Report June 2019

Well this month basically reversed last months drop and I’m basically back to where I was at the end of April. My 401k contributions have been dialed back as I will be taking most of the summer off and want to conserve our cash flow without much income coming in. Other than that it’s business as usual.

Taxable Account- $55,020.46(+12.35%)
Private Stock $72,000 (+0.00%)
Traditional Rollover IRA – $43,935.23(+12.35%)
My Roth IRA – $270,194.45(+9.10%)
Wife Roth IRA – $173,063.52(+8.88%)
Wife 401k – $4,295.39(+7.02%)
Traditional 401k – $499,855.11(+7.04%)

Roth/Traditional % = 39.63% (tax free)

Total Retirement Nest Egg $1,118,364.16(+7.78%)
Retirement Salary (4%) $44,734

Monthly Contributions $903.30(401k)
SP500 Performance +6.89%
My Monthly Investment Performance +7.69% (+0.80% vs SP500)
My Monthly Individual Stocks Performance +9.61% (+2.72% vs SP500)