I had a great conversation with my father-in-law regarding my in-laws' retirement plans and certain aspects of GJS and my retirement. One of the things I didn't know about my future retirement was what kind of annuity payments I would be receiving through my work pension plan. With 11 years of service under my belt I calculate I will receive monthly payments of $1160 starting at age 62, which is of course 30 years away. It isn't great but I'll take it.
It sure makes me wish I could continue in my current employment situation in order to keep socking away more and more years of service to bulk up that annuity payment in retirement. I'm not going to let it get me down though because once we are out of debt we'll be on target to invest 15% of our household income and build our nest egg per Dave Ramsey's plan. At the end of the day I feel better that our 2 million mark is on target to live off of our interest in retirement. Social Security and my pension will just be gravy, not something we're counting on.
Another concept that my father-in-law introduced me to was the rule of 4%. I found this definition on www.investopedia.com: A rule of thumb used to determine the amount of funds to withdraw from a
retirement account each year. The four percent rule seeks to provide a
steady stream of funds to the retiree, while also keeping an account
balance that will allow funds to be withdrawn for a number of years. The
4% rate is considered to be a "safe" rate, with the withdrawals
consisting primarily of interest and dividends. The withdraw rate is
kept constant, though it can be increased to keep pace with inflation.
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