Ah yes, retirement. Before going through this week’s class, there were some things I didn’t know. Now, I cannot wait to get to baby step 4. I’ve dreaded this lesson because I was afraid we would do some calculating and realize we were going to be broke when we retire.
I’ve had dreams, and while I still don’t know if they are feasible, I feel a little better knowing that following the path we’re on will probably mean our expenses will be covered in retirement.
I think the most interesting thing was learning about the Roth 401K and IRA. If there is one thing that really bothers me, it’s seeing how much the government steals from our income each year. It is a ridiculous amount of money. And don’t even get me started on social “security”. So, when I hear “tax free”, my ears perk up.
We’re not in a position to do Dave’s recommended 15% just yet, but we were able to diversify our existing retirement accounts with his standard plan. We have about 54K in those accounts at the moment. Kind of ironic that it’s almost the same amount of debt we have.
We’ve made the mistake of borrowing on our retirement before and don’t plan to make that mistake again. We feel so foolish, there would be a lot more in there if we hadn’t touched it all those years ago.
We were asked to talk about what we want retirement to look like. We both agreed we don’t want to “have” to work to make ends meet. That doesn’t mean we will just sit around watching tv all day. We’d also like to do some traveling. Nothing extravagant, but we enjoy seeing new places.
I would like to have a significant piece of land. No, not to farm it or raise animals, but for peace and quiet. It seems like a big wish at this point. I’m not sure we will reach our goals without a miracle since we’re starting so far behind, but it gives us something to shoot for.
As for college savings, um, not going to happen. Our youngest starts high school next year and we’ll barely be through the first three baby steps when she graduates. I will say, even if we had saved up money for their college, I think I would have told them we didn’t have a dime and then surprise them after the fact. So far, our older two are being very thrifty when it comes to choosing education and they are working/saving in the hopes of avoiding student loans.
Only two more weeks to go till we finish this class…