Thursday, September 03, 2009

Retirement - I'm only a mil or so short

I just calculated my personal retirement projected income and the program calculated how much they think I'll need to retire at age 65. According to the calculator, I'll need $1,212,896 to retire at a replacement of 85% of my current salary (I only put in my salary, not my hubby's so we'll be much shorter than even $1.2 mil). It also says my current asset shortfall is projected to begin between the age of 68-69 and that I'll need additional monthly retirement savings of merely $2,234-$3,226 to reduce the gap. Is that all? For years, I contributed 18% of my salary to my 403b. That's a lot more than most of my friends contribute. But yet, I'll be this short? It looks as if I won't be able to retire - ever. I'll be one of the 90-year old women having to slave even if I can barely walk. I hadn't planned to retire from writing, just from my day job. In fact, I look forward to the day I can devote full-time to writing. But I'd hoped I could do it because I wanted to, not because I need to. If I have to, the pressure will very likely get to me. I'd love to bump my 403b contribution back up, but other problems at this time prevent that - unless I get a huge raise (bwahahahaha - in this economy? I'm lucky to keep my job at my current pay. Or that my royalties skyrocket). I'm not holding my breath on a raise. I'm working hard on writing books already - I don't think I have the energy to work harder. Even if I could increase my 403b, I can't get close to $2,234 the calculator says I need. I started saving at age 35. I wish I'd started as a baby, or at least 21. But I didn't and I don't have a time machine. So what now??? You'll also want to see what Amarinda Jones, Anika Hamilton, Anny Cook, Barbara Huffert, Brynn Paulin, Bronwyn Green, Dakota Rebel, Kelly Kirch, Molly Daniels, Sandra Cox, Regina Carlysle, and Cindy Spencer Pape are up to, so make sure to visit them also. :)


Unknown said...

Well - you are not alone. I started early in superannuation - our equivalent - but that was through sheer fluke - and I'll probably still not have enough...may look at opening that brothel. There's always money in sex.

Unknown said...

I feel your pain. While I haven't calculated what I'll need to retire, I'm lucky to have a day job, but took a 10% pay cut. Still I'm employed.
As for the royalties - I think we all want more. :)

Linda Kage said...

Sounds like it's time to pull out that best seller you wrote and start making the big bucks. Ahhh. Wouldn't that be nice?

The Bumbles said...

Talk to a Financial Planner. I work for one and that is what he does every day - helps people determine their goals, their needs and how to reach them affordably.

You can meet with one on a fee basis where they produce analysis and a plan for you and then you can implement it yourself, or you can work with one on a commission basis where there are no hourly fees because they earn a commission off of any products that you purchase through them which they have recommended after producing the same analysis as above.

Find someone who has a CLU, ChFC and or CFP designation who has been in the business for at least 10 years. If they specialize in a certain area make sure you know where it is - if their focus is on small business owners and you are looking for personal planning it might not be a good fit. Someone who handles investments as well as insurance is important because both are a part of planning.

Ask your friends and family for referrals - you shouldn't have to pay to meet with someone to interview them and learn about their practice.

Unknown said...

Thanks for the excellent advice and the kudos.

I'm working on that bestseller. I've published many - but no one seems to realize it yet. :)

As for the brothel, I'll think about doing that here, too. Of course my church would have a conniption, but they will anyway if they find out what I write.

As for the financial planner, I will definitely have to speak to one. I should have before.

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