I realize it’s been a couple of weeks since I roughly defined my goal. It’s time to come up with rigid numbers though. I’m not quite comfortable giving exact numbers, so you are going to have to settle for ranges. Deal with it.
My net worth is currently between $150K and $200K. About 45% ($67.5K – $90K) of that is in retirement accounts. And while I should differentiate between the Roth and 401(k) because of the pre and post tax money, at age 30, this is just a rough battle plan. I have about 40% in the value of my primary residence. The remaining 15% or so is in cash or possessions (i.e. car, my new TV etc.).
As mentioned in the previous post, my fiancee will be earning a pension for life when she retires at age 41 from the military. I’m not sure if she’ll work a second career or not at this point. Without the second career, that pension will be a significant amount of the passive income that we need. I’d rather not that count that egg before it’s hatched. However, I’m going to have to include it in my calculation if my goal is be financially free in 11 years.
So how much money am I going to need to be financially free in 11 years? I’m going to make you wait just a little longer.