Timeline for Want to retire at 55, but 401(k) starts paying at 59.5 years old
Current License: CC BY-SA 3.0
21 events
| when toggle format | what | by | license | comment | |
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| Aug 13, 2015 at 15:55 | comment | added | keshlam | Higher productivity,alas, does not necessarily imply higher standard of living. | |
| Aug 13, 2015 at 14:56 | history | edited | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |
added 10 characters in body; edited title
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| Jul 22, 2015 at 9:33 | comment | added | Mou某 | @JBKing #5 is pretty good | |
| Jul 21, 2015 at 19:36 | comment | added | Jay | @corsiKa Our generation will also be far more productive than previous ones (overall productivity of the world economy has been rising for the past 200 years). Except for fuel and education, the cost of practically every necessity has been falling for years. As we switch to renewables, fuel costs should stabilize too. One would expect retirement ages to be lower than previous generations, not higher, right? | |
| Jul 21, 2015 at 17:23 | comment | added | Rocky | @jamesqf: no reason not to do both -- contribute to a 401k and also put aside additional savings in a taxable account. Just because there's a contribution limit doesn't mean you can't save more elsewhere. Retire early, use the taxable money at first, then start using the 401(k) after reaching typical retirement age. | |
| Jul 21, 2015 at 14:46 | comment | added | stannius | The list corsiKa mentions is true, but it doesn't inherently mean you won't be able to retire at your proposed target age. They might prevent you from savings as much, though. Having contributed more to your 401(k) and other tax advantaged accounts early on can help make up for that. | |
| Jul 21, 2015 at 13:13 | vote | accept | scubaFun | ||
| Jul 21, 2015 at 13:12 | vote | accept | scubaFun | ||
| Jul 21, 2015 at 13:13 | |||||
| Jul 21, 2015 at 8:39 | comment | added | Eagle1 | To my opinion, when it comes to financial decision, there's no other option than building a good spreadsheet with thorough calculations comparing them (NPV, DCF, FV will be your friends in this case). I've surprised myself with the results several times, which were far away from stereotypical vision. | |
| Jul 21, 2015 at 7:23 | comment | added | corsiKa | While retiring at 55 is certainly possible, you may find things (spouse, kids, bigger/better house, boat, vacations, busted investments, lucrative investments) happen in your 30s that delay when you can realistically retire. Also, I wouldn't consider 62 the 'usual retirement age'. If anything, I'd say 65 is the 'usual' and 68 is quite common. By the time our generation retires, those ages will probably be pushed back a few years, thanks both to ballooning social security costs and generally healthier and more productive later years. | |
| Jul 21, 2015 at 5:14 | comment | added | jamesqf | @Rocky: But there are limits on how much one can put into tax-deferred accounts. If the OP wants to be able to retire at 55, saving more than this amount is really desirable. | |
| Jul 20, 2015 at 22:52 | comment | added | jamesqf | The simple way is to have enough saved outside 401k/IRA accounts to live off of during that period. It's also good to have access to a nice amount of money during the 25 or so years between now and your presumed retirement. Even if you never touch a penny of it, you'll sleep better knowing it's there. And who knows? Maybe when you reach 55, you'll decide you don't want to retire. | |
| Jul 20, 2015 at 21:24 | answer | added | Craig W | timeline score: 7 | |
| Jul 20, 2015 at 20:08 | history | tweeted | twitter.com/#!/StackFinance/status/623222994903658496 | ||
| S Jul 20, 2015 at 19:18 | history | suggested | Thunderforge | CC BY-SA 3.0 |
Removing statement saying that the OP hopes it isn't a duplicate question. Nobody has pointed it out as a duplicate, and it is now a hot question
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| Jul 20, 2015 at 19:08 | review | Suggested edits | |||
| S Jul 20, 2015 at 19:18 | |||||
| Jul 20, 2015 at 17:29 | answer | added | rhaskett | timeline score: 24 | |
| Jul 20, 2015 at 17:07 | comment | added | Rocky | 401k money grows tax-deferred even if your investments pay dividends or distribute capital gains. Not so with taxable savings and investments. | |
| Jul 20, 2015 at 17:05 | answer | added | JTP - Apologise to Monica♦ | timeline score: 13 | |
| Jul 20, 2015 at 17:01 | comment | added | JB King | 16 Ways to Withdraw Money From Your 401k Without Penalty notes ways to access it earlier that may be of interest. | |
| Jul 20, 2015 at 16:52 | history | asked | scubaFun | CC BY-SA 3.0 |