You can call me Panda Pete. I am a super awesome panda and have an more awesome panda wife. Our (my) goal is to become financially independent of 9-5 jobs (more like anywhere from 8-10 and potential weekend work too) by age 45.
We have 7 years of working under our belts, and considering only 2 of those years are mine to own, I’d say we are in the beginning stages of our journey towards early retirement.
This blog will become a testament to our progress and along the way, I’ll share my experiences so that fellow pandas can learn from my achievements and downfalls.
I’m not going to lie, as a panda family unit, I supposed we are considered high income earners, but I am going to show you that anybody can retire early if you crack down on your particular financial situation. It all depends on how much you expect to spend on a yearly basis during retirement.
Even though we are considered high income earners, our yearly expenses accounts for half of our after-tax income. This includes mortgage payments, property taxes, food, student loan repayment, trips, etc.
During retirement, I can safely say that we will be spending roughly 40k a year on expenses, inclusive of any trips we are may per year. This is assuming no more mortgage payments or student loan repayments. I will write more on this in another post.
I have read several different blogs that lay claim to having a million dollars being sufficient and some even tout less to retire. That will certainly work for some people, but I tend to like to enjoy a richer lifestyle and like the idea of having my money last my lifetime and beyond for my future children.
Then there’s the issue of not being able to tap retirement accounts (401k, IRAs) until age 59½ and needing regular cash flow from non-retirement accounts to sustain retirement until that time.
At that point, I want the ability to choose where to withdraw money from in order to reduce tax liability during that year. More to come on that as well.
I will admit, my calculations, estimations and goals for my early retirement fund is probably excessive, but I’d rather be safe than sorry.
As of 2015, the estimated value of my early retirement fund at age 45 will be 1.8 million dollars with another million or so in retirement accounts that will continue to grow until age 59½. This assumes a 5% annual return on investments. This number is adjusted at the end of every calendar year to account for additional growth or loss and/or contributions. I will dive deeper into these calculations and financial goals in another post.
Check out my Investment Strategy for 2015 and let me know what you think!
I try to post at least once every 2 weeks as my work schedule allows, but if you have any feedback, please don’t hesitate to share!
I just hope that in my journey to financial freedom, I am able to help out my fellow pandas in their search of their bamboo paradise.