Have been lurking, and might as well take the leap. Always looking for second opinions and further insight. Early retirement is always on my mind, and I often find myself daydreaming and playing with numbers. I don't know how "extreme early retirement" is defined for you all, but the plan is for DH to retire at 40, and for me to retire anywhere between 48 and 50.
Married, 27 (both me & DH), 2 kids (2YO & one on the way), $60k total annual income - 30k each (LCOLA)
Current savings:
Roth = 30k each
457b = 5k
Taxable = 8k
EF = 36k
I also contribute to a defined benefits plan which will replace 50% of my income after 25 years of service, with no min. age.
No debt, except house. $234k balance left on 0% loan. Paying $2k per month, so will be paid off by age 37. May pay off sooner just to be FI if we encounter some sort of windfall. Retirement savings come first. Once housing is paid off, all of the $24k/yr will be funneled into savings. Any overflow outside of tax-benefited retirement savings will go into taxable savings which can be used as a college fund for the kids.
Right now, we are saving $15k annually (not including my defined benefits plan contributions). Would like to boost this to $26.5k ASAP to maximize Roth and 457b contributions. Roth is already maxed annually, but maxing 457b will probably not happen until my next promotion/raise.
My goal is to have $500k in the 457b at age 50, withdraw $30k/year to supplement my defined benefits plan and continue maxing Roth contributions until the 457 is exhausted around age 65. At that point, our Roths should have a combined value around $2M (at 6% int), so hopefully we can live in perpetuity off the interest tax-free at a 2% withdrawal rate.
How does that sound so far? I realize a lot of things can change between now and then, but hopefully only for the better. I've tried to be fairly conservative. No expectation of SS, using 3% inflation and 6% interest for calculations. I do expect that my income will go up at least enough for me to meet our savings goals and expenses by the time DH retires at 40.
KisKis' Journal
Have a very generous grandpa who is really fed up with low interest rates, lol. We never asked it of him at all, and we were having no problems keeping up with the bank loan. We started with a $280k mortgage at 6.5% in 2007. Refinanced to 4.85% with $260k in 2009. When he offered to pay off our mortgage late last year, we said we'd pay him 2 or 3% interest so both sides would benefit, but he refused. What a sweetiepie.