how we plan to retire at 50

@ashtonandana

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Why it worked

The video provides a clear and actionable plan for early retirement, breaking down complex financial concepts into understandable steps. The use of personal examples and specific numbers makes the goal seem achievable, while the discussion of potential life events adds a layer of realism and relatability.

Summary

The creator explains their plan to retire at 50 by leveraging the FIRE movement, specifically Coast FIRE. They detail their individual and combined financial goals, using a calculator to project their retirement savings based on current investments, contributions, and estimated expenses. The plan involves strategic investment of funds to reach their FIRE numbers by their target ages.

Structure

1Introduction to retiring early at 50
2Husband's retirement situation as an air traffic controller
3Discovery of the FIRE movement and Coast FIRE
4Calculating personal FIRE number based on expenses and investments
5Calculating husband's FIRE number and Coast FIRE
6Combining retirement funds and planning for accessibility

Product placement

The video mentions and shows calculations from a FIRE calculator, specifically referencing "McKenzie Mack's calculator".

On-screen text

how we plan to retire at 50 how we plan to retire at 50 as 25 and 27-year olds how we plan to retire at 50 as 25 and 27-year olds Financial Independence/ Retire Early What is the FIRE movement? The FIRE movement is a financial and lifestyle approach focused on building enough money to retire early--potentially decades early. Its core idea: Through aggressive savings and consistent investing, you may be able to reach financial independence in your 30s, 40s, or 50s rather than waiting until your 60s. Financial Independence/ Retire Early Coast FIRE means saving enough early that investments may continue growing toward a future retirement goal with limited additional contributions. This approach may give someone more flexibility to change jobs, reduce hours, or pause aggressive saving. BASIC monthly expenses: $5,000 $5,000 x 12 months $60,000 BASIC monthly expenses: $60,000 + Fun $60,000 Annual spending money: $120,000 Input your FIRE Numbers Current Age 25.00 Retirement Age 50.00 Current Investments $80,000.00 Annual Spending $30,000.00 Monthly Contributions $1,800.00 Investment Growth Rate 10% Inflation Rate 3% Safe Withdrawal Rate 4% FIRE Number $750,000.00 Input your FIRE Numbers Current Age 25.00 Retirement Age 50.00 Current Investments $80,000.00 Annual Spending $30,000.00 Monthly Contributions $1,800.00 Investment Growth Rate 10% Inflation Rate 3% Safe Withdrawal Rate 4% FIRE Breakdown Coast FIRE Number $144,935.49 Years to Coast FIRE 3.42 Coast FIRE Date December 2029 Coast FIRE Age 28.42 If you continue contributions after Coast FIRE.... Monthly Contributions $1,000.00 FIRE Number $750,000.00 Years to FIRE 17.75 FIRE Date April 2044 FIRE Age 42.75 Yearly spend: $44,000 Total yearly retirement: $146,000 Input your FIRE Numbers Current Age 27.00 Retirement Age 50.00 Current Investments $60,000.00 Annual Spending $30,000.00 Monthly Contributions $1,400.00 Investment Growth Rate 10.00% Inflation Rate 3.00% Safe Withdrawal Rate 4.00% FIRE Number $750,000.00 FIRE Breakdown Coast FIRE Number $165,304.88 Years to Coast FIRE 8.17 Coast FIRE Date September 2033 Coast FIRE Age 35.17 If you continue contributions after Coast FIRE.... Monthly Contributions $1,400.00 FIRE Number $750,000.00 Years to FIRE 17.67 FIRE Date March 2043 FIRE Age 44.67 Total yearly retirement: $146,000

Original caption

consider this our HARD LAUNCH into the FI/RE movement ahhhh! like i mentioned in the video, we’ll be diverting funds from my 401(k) (past the employer match) to ashton’s TSP Roth to have more money accessible earlier on. air traffic control SUCKS in so many ways but the pension is NICE. 💸 i used @Mckenzie Mack’s calculator!#firemovement #retireearly #PersonalFinance #financialindependenceretireearly #financialindependence

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Transcript

My husband Ashton and I are Gen Zs who plan to retire at 50 as 25 and 27-year-olds. My husband Ashton, he's an air traffic controller who must retire by 56 by law, but he can retire as early as 47 with his pension. So we always knew we want to retire early, but never necessarily had a plan to get there until now. We found out about the FIRE movement, which is Financial Independence, Retire Early. A part of it is Coast FIRE, which typically means that you invest a lot while you're younger. Once you hit your Coast FIRE number, you don't have to invest another dollar because it will compound itself over time to hit the number that you need at retirement. I use McKenzie Mack's calculator to figure out our FIRE number and was like completely shocked. So the first thing you have to figure out is how much you need in retirement. So we figured out our basic monthly expenses, which is about $5,000 a month. So baseline living bare bones, $5,000 times 12 months, we need $60,000 in retirement to live. The most conservative pension he could receive is 60k actually a year. So with his pension, we technically have enough to retire already and his pension includes health insurance, which is amazing. But we could be hefty spenders at time, which is why we're gonna shoot for more. So I'm gonna budget for we need another 60k a year. So we'll have $120,000 to live a year in retirement. I did a 10% growth rate and a 3% inflation rate and for my understanding that basically evens out to 7% growth. I put 30k a year yearly spending for each of us plus to 60k obviously. Since the calculator does 25 times your yearly spend, it put my FIRE number at $750,000. So I need $750,000 to retire. So I already have about 80k in investment and between my own contributions to my 401k, my employer contributions and my contributions to my Roth IRA, I invest about $1800 a month. So I'll hit that point where I don't need to invest another dollar in 2030 when I'm just 29 years old. But I'm not gonna stop at that point. If I keep investing another thousand dollars a month, which is down from the 1800 previously, I'll actually hit that $750,000 dollar mark at 43 and by the time I'm 50 I'll be at 1.1 million. And with the 4% withdrawal rate, I'll be at about $44,000 a year. So I know you're already typing in the comments, Ana, you can't pull out your 401k that early. Well, I'm about to get to Ashton's retirement, which is mainly what we'll be using. But actually after I shoot this video, we're gonna start diverting anything past my employer match at my 401k to Ashton's TSP Roth aside from his pension, he could pull his TSP Roth at 50 as well. So all the money will be accessible. So now doing Ashton's, I put the same goal of 30k a year, make his FIRE number also $750,000. He has about 60k in investments. He's contributing about 1400 a month. With this, he'll hit Coast Fire at 35, where he doesn't have to contribute any more money. At that point, I'm keeping his at 1400 because we need more of that money. So he'll actually hit that FIRE, which is a $750,000 mark at 44. And by the time he's 50, he'll have a little over a million, which is about $42,000 a year. So between his pension, his retirement and my retirement at 50, we'll have about $146,000 a year to spend in retirement. Acknowledging that my 401k won't be as easy to pull out of, but we're gonna make sure we have plenty in his and that we could pull out of our Roth IRA contributions at least penalty free as well. I understand life can happen. We could divorce tomorrow. I could break a leg and not be able to work no more. I can't have every situation mapped out, but I can have a plan and that's what we have for anyone in the FIRE movement. If anything I've missed and I'm excited to share this journey with you guys.