KumateUSMC
New member
I just started investing and after 2 weeks I found out that I dont like the stock market. I know we are going thru a hard time and the stock market is being insane but I find myself stressing over it and I don't really have any money in it. So i couldnt imagine how I felt when I did have money.
From everything i've read no one seems to do this and would never recommend it but I've been doing the numbers and they work so I'm not sure why.
Im 29 and wifes 28. This is a worst case sceniro plan. I will be donating to the TSP and 2 Roth IRA's (wife and mine).
Heres the plan and numbers.
Ok Roth IRA's
Putting them all into Bonds. Fund examples
Vanguard Inflation securities, GMNA, Total Bond Market index or Long term treasury.
Putting our Roth IRA's Into one of those fund...say GNMA or TIPS. They since inception have earned 7-8 percent. 10 year average is 5.5 to 6 percent. But lets just say worst case 5 percent for now.
My Roth
5000 x 31 years (im 29..retire at 60)
Thats 155,000 invested and return is 555,069.
Thats not even including the yearly increased (like next year is 5500) or the 50+(age) years where you can contribute more for cacth up. So 155,000 invested would be lowest I could invest.
Wife's Roth IRA
5000 x 32 (Shes 28..retire 60)
Thats 160000 invested and 591,151. Same stuff as before.
SO between us thats roughly 1.1 million dollars just doing 5 percent. Now I didnt take taxes out or the expense ratio becuase Im not sure how that all works but im sure its a decent amount but not cripling right?
Thats our Roth IRA's
Now TSP
10,000 a year for 13 years (How long I have till I retire) Im almost positve I can put more then 10 grand in a year but once again just doing worst case.
So thats 130,000 invested and after 13 years that 182,795. Now this is in the G fund which normally goes from 5-9 percent a year. Last 10 years is 5.12. The G fund expense ratio is .12 . Ok after 13 years I can no longer contribute anymore becuase I retired from the military. But I can leave it in the G fund to gain interest.
182,795 x 18 (Ill be 42) = 448736 Thats 265741 in interest x .15 for taxes which is almost 40,000 in taxes. So basically 400,000 dollars.
So 1.2 mil from Roth IRA's
400,000 from TSP
My Retirement Pension which starts at the age of 42 for around 36,000 a year (3000 a month after taxes) Thats worse case..will probably be higher rank. Thats 1 million in pension alone from 42-72 years of age.
Thats not including my Wifes 401k becuase shes finishing up her masters before she starts her job. Also not counting Social secruity(if its around) or Reverse mortgage (possible).
Now thats all just using bonds and no stocks at an average of 5 percent.
What am I missing please? I mean I just dont get why I couldnt retire of this? I mean having a million dollars gain interest when Im 60 is going to get like 30-50 grand a year in interest before taxes. I dont live like a superstar. I drive cheap cars with good gas milage (neons/corrola) and plan to keep this style as I get older. We have 1 child whos college is taken care of via MGIB. Where am I wrong to thinking that I couldnt retire doing this? Heck if I didn't even gain any interest off donating 20 grand a year thats still 640000 dollars when I'm 60 in the bank. Someone help me please with this. I know I am going to gain more via the stock market and I might even put like 80 Gfund and like 20 "I"fund just for a little stocks becuase I think I could handle that without worry ..but other then that I dont think I can stomach watching the market.
These were worst case numbers. Im sure I can donate more then 20 grand a year. Why i didnt start investing before I was 29...no idea..wasnt married and didnt have a kid till a few years ago..and I didnt have the family background to really guide me thru it or give me that swift kick in the butt...But now I do. I plan to use it wisely.
Please any thoughts or dsiapprovals welcome. Slice my plan to threads please. I wanna know where I am faulting myself and my family.
Kumate
From everything i've read no one seems to do this and would never recommend it but I've been doing the numbers and they work so I'm not sure why.
Im 29 and wifes 28. This is a worst case sceniro plan. I will be donating to the TSP and 2 Roth IRA's (wife and mine).
Heres the plan and numbers.
Ok Roth IRA's
Putting them all into Bonds. Fund examples
Vanguard Inflation securities, GMNA, Total Bond Market index or Long term treasury.
Putting our Roth IRA's Into one of those fund...say GNMA or TIPS. They since inception have earned 7-8 percent. 10 year average is 5.5 to 6 percent. But lets just say worst case 5 percent for now.
My Roth
5000 x 31 years (im 29..retire at 60)
Thats 155,000 invested and return is 555,069.
Thats not even including the yearly increased (like next year is 5500) or the 50+(age) years where you can contribute more for cacth up. So 155,000 invested would be lowest I could invest.
Wife's Roth IRA
5000 x 32 (Shes 28..retire 60)
Thats 160000 invested and 591,151. Same stuff as before.
SO between us thats roughly 1.1 million dollars just doing 5 percent. Now I didnt take taxes out or the expense ratio becuase Im not sure how that all works but im sure its a decent amount but not cripling right?
Thats our Roth IRA's
Now TSP
10,000 a year for 13 years (How long I have till I retire) Im almost positve I can put more then 10 grand in a year but once again just doing worst case.
So thats 130,000 invested and after 13 years that 182,795. Now this is in the G fund which normally goes from 5-9 percent a year. Last 10 years is 5.12. The G fund expense ratio is .12 . Ok after 13 years I can no longer contribute anymore becuase I retired from the military. But I can leave it in the G fund to gain interest.
182,795 x 18 (Ill be 42) = 448736 Thats 265741 in interest x .15 for taxes which is almost 40,000 in taxes. So basically 400,000 dollars.
So 1.2 mil from Roth IRA's
400,000 from TSP
My Retirement Pension which starts at the age of 42 for around 36,000 a year (3000 a month after taxes) Thats worse case..will probably be higher rank. Thats 1 million in pension alone from 42-72 years of age.
Thats not including my Wifes 401k becuase shes finishing up her masters before she starts her job. Also not counting Social secruity(if its around) or Reverse mortgage (possible).
Now thats all just using bonds and no stocks at an average of 5 percent.
What am I missing please? I mean I just dont get why I couldnt retire of this? I mean having a million dollars gain interest when Im 60 is going to get like 30-50 grand a year in interest before taxes. I dont live like a superstar. I drive cheap cars with good gas milage (neons/corrola) and plan to keep this style as I get older. We have 1 child whos college is taken care of via MGIB. Where am I wrong to thinking that I couldnt retire doing this? Heck if I didn't even gain any interest off donating 20 grand a year thats still 640000 dollars when I'm 60 in the bank. Someone help me please with this. I know I am going to gain more via the stock market and I might even put like 80 Gfund and like 20 "I"fund just for a little stocks becuase I think I could handle that without worry ..but other then that I dont think I can stomach watching the market.
These were worst case numbers. Im sure I can donate more then 20 grand a year. Why i didnt start investing before I was 29...no idea..wasnt married and didnt have a kid till a few years ago..and I didnt have the family background to really guide me thru it or give me that swift kick in the butt...But now I do. I plan to use it wisely.
Please any thoughts or dsiapprovals welcome. Slice my plan to threads please. I wanna know where I am faulting myself and my family.
Kumate