Personal Investments • Need help to retire in 5 years.

Im estimating for a comfortable lifestyle i will like to have 100-110k a year.
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I would love your opinion and advice....
I suspect that you may be overestimating your retirement expenses.

Your expenses might be high at first but as the kids launch and get through college and you get on Medicare they will go down.

You will have some other new costs in retirement but you will not have;
1) Child raising and college costs
2) Health insurance(other than Medicare)
3) Retirement savings
4) FICA taxes.
5) Mortgage payments
6) Lower income taxes, likely the 12% federal tax bracket or less.

Once your get to be in your mid 60s or so I suspect that you may need a lot less than $100-$110K a year to be "comfortable" unless you live in a very expensive area or want to live a pretty high end lifestyle.

I have also seen relatives get to be in about their mid 70s and naturally slow down even though they were in relatively good health for their age. At that point they did not want to travel much and even an evening out was a infrequent event. They were more interested in downsizing and clearing out stuff than buying more stuff. At that point there were often months when they would not even spend their entire Social Security check.

At some point you will also realize that you could retire today if you are willing to cut back and live on maybe $70K in with a paid off house is likely enough for an upper middle class lifestyle in most areas. I would guess that it might be the same lifestyle as someone earning around $150K who still had all those other expenses I mentioned.

My situation was a lot different but once I reached that point I retired in my late 50s even though my job was relatively secure and I could have worked a few more years to have more money in retirement. At least for me once I had "enough" there was little motivation to keep working.

The numbers vary from year to year but we have two Social Security checks now for about $48K so we do not need to spend that much from our savings each year. Our biggest challenge was to fund the years between when I retired and when we both got on Medicare and Social Security.