Goal Progress

Today, I thought I would share where I am at related to my goals and outline the steps I am taking to reach those goals.

Long-term Retirement Goal

I currently have a little over $30,000 saved for retirement. While it is a good start and appears to be above average for someone my age, it is still less than 2% of my retirement goal. I currently allocate 10% of each paycheck to my company 401k plan and my employer contributes 2.5%. The company match is structured that they match 50% of my contribution up to 2% and then 25% of my contribution up to 8%. I have projected out that my 401k balance will reach my magical goal of $1.75 million when I am in my mid-fifties. The assumptions in my projection are 3% wage increases annually, 1% contribution increases annually and 8% return on investment. I am hoping that the first and third assumptions turn out to be conservative so that I can reach this goal a little sooner. Once my wife returns to the workforce (when the kids are old enough to go to school), we should be able to ramp up the retirement savings even more.