Hello again, everyone! I wanted to give a short update. I started thinking about my early retirement date and then realized that I had no idea if my boyfriend was on track to also retire around the same time that I would be able to! It turns out that he isn’t far behind me after all!! This is GREAT news!
So here’s the nitty gritty for my boyfriend. He currently has about $90,000 in a traditional IRA since he moved his old 401k from a previous job into it. He contributes 10% of his salary to his 401k at his current job and has a 6% match from his employer. It’s also likely that he will get at least a 3% raise every year (keeping his 401k percent contribution the same) which increases his yearly dollar amount contribution. On top of that, he contributes the maximum to a Roth IRA. Now, assuming an 8% return every year, he will reach $1,000,000 by the end of 2034 (mine is the end of 2032) if he literally does nothing else at all and just keeps on keepin’ on!
When I told him all this, he seem pretty relieved and more confident in his future! Isn’t that great?! I thought so too! He also asked me to run the numbers to see what his retirement date would be if his retirement only averaged 6% return each year AND if he decided to not contribute to his Roth IRA at all. It turns out, factoring in both of those possibilities he could still retire by 2040 which would put him only 6 years behind the “ideal” target date. And he would still be relatively young at 53 years old!
This is exciting because I was actually a little worried that I would be enjoying my FIRE days all alone while he’s at work for several more years. And let’s be realistic, if something happens and we don’t end up still together in several years, I want him to still be financially secure with or without me in case he ends up getting burnt out with his finance job. However, make no mistake about it, I plan to keep him around for quite a while! 🙂
Keep checking back for updates on my FIRE endeavors! For those of you keeping track, I had orientation for my side hustle (delivery for Jimmy John’s) today and I actually start tomorrow! #LookingForwardToTips