I finally stumbled on to someone at work that is looking at retiring early like I am. I was shocked when her date was two years sooner than mine (we are the same age). It helps that her husband is older than she is and already qualifies for a pension and has a large 401K. She will also qualify for a pension at 55 but she’s looking to retire before age 50!
We only had a short conversation about retirement but I look forward to talking more with her about it. She mentioned that they’d been to a financial adviser and I was thrilled to hear that she used a “fee only” adviser to avoid all the conflicts of interest with the other types. While we haven’t gone to an adviser yet, I’ve been considering it in the next couple years.
I was able to share a few things with her that she wasn’t aware of including that our 401K plan now lets you invest after tax dollars (up to a max of $53,000 a year including pretax) and then lets you do annual ROTH conversions. For us it would allow us to drastically increase our ROTH contributions, although I haven’t even taken full advantage of ROTH’s because we never set one up for my wife. That’s currently the number one thing nagging me in the back of my brain. It’s been foolish for me not to have started a ROTH for her. I found myself justifying by saying that I wanted to get more money put in post tax accounts to help us live during the years before we turn 59.5 even though I KNOW I can access all the ROTH contributions before 59.5. You know how sometimes you just make stupid decisions and can’t explain it? Yeah, this is one for me. My goal for this year is to correct that.