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About Me:

Not So Mighty Merch

I know that where I am now is not where I want to be (in credit card debt and medical debt). I vaguely now where I want to be (running a small business (franchise or real estate), having more quality time with my family, and less stress or maybe different stress).

So, this is a journey from here to there. Wherever there is. Hence the title and my confusing ramblings.

I am embarrassed to say: I make more then I should and still live paycheck to paycheck, I am older and should be more mature, I am educated (MBA in Finance) and should know better, I have worked for investment houses and am unable to manage mine.

I think you get the general idea.

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Goals 2010
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2. EF Fully Funded
. a. 4th Month - $5,000
. b. 5th Month - $5,000
. c. 6th Month - $5,000
3. Contribute $14,000 to Son 1 529
4. Contribute $8,000 to Son 2 529
5. Extra $36,000 to mortgage
6. Rebalance portfolio
7. Educate myself more on Real Estate
8. Educate myself more on foundations

DONE:
1. Invest $16,500 in 401(k)

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Savings and Investing
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Mortgage (4.5% interest rate)
01/31/2010 - $341,840 ($1,413 paid)
02/28/2010 - $340,422 ($1,418 paid)
03/31/2010 - $338,973 ($1,448 paid)
04/30/2010 - $337,544 ($1,429 paid)
05/31/2010 - $336,109 ($1,434 paid)

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DONE:

Invest $16,500 in 401 (k)
01/31/2010 - 2,295 Invested
02/28/2010 - 4,718 Invested
03/31/2010 - 7,268 Invested
04/30/2010 - 10,430 Invested
05/31/2010 - 12,980 Invested
06/30/2010 - 15,402 Invested
07/31/2010 - 16,500 Invested

My Pages

What's your W:R?

March 12th, 2008 at 08:39 pm

There was an interesting article I came across that offered a different way to look at retirement planning.

The article discusses a years worked to years in retirement ratio. So, if I work from 25 � 65 and plan on living till 85, my ratio is 40:20 or 2:1. To live comfortably in retirement, I would have to save 15% a year. The article continues that a 15% savings rate over 40 years is extremely aggressive

I just thought it was an interesting and different view of retirement savings.

W:R RATIO AND REQUIRED SAVINGS RATE FOR RETIREMENT

Working Retirement W:R Required
Savings Rate (%)
40 20 2:1 14
43 17 2.5:1 11
45 15 3:1 9.5
48 12 4:1 7
50 10 5:1 6

Source: http://www.aei.org/publications/filter.all,pubID.24940/pub_detail.asp

Posted in Random Thoughts | 4 Comments »

4 Responses to “What's your W:R?”

Caoineag Says:
March 12th, 2008 at 09:14 pm 1205356484
1205356484

Interesting idea but am a little disturbed by the ratios. They assume a rather short retirement so what happens when you don't die as early as planned? I realize his premise is that people need to begin working longer but then he also thinks its too much to ask that we save 14% of our income...

Oh and my ratio I am shooting for is 40:30...
merch Says:
March 12th, 2008 at 09:18 pm 1205356720
1205356720

Was it Bladder runner that on a certain birthday society would kill you?
I wish the table continued, but I thought it was interesting. It orginal appeared in Barron's in 2005.
baselle Says:
March 13th, 2008 at 04:24 am 1205382261
1205382261

Kinda the Logan's Run version of retirement, dontcha think?
merch Says:
March 13th, 2008 at 11:41 am 1205408462
1205408462

That's what I was thinking - Logan's run. LOL.

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Not So Mighty Merch

Where I am now is not where I want to be. So this is my journey from here to there.

What's your W:R?

4 Responses to “What's your W:R?”

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