33m planning to retire at 60. I'm currently making \~125k/year. With inflation/lifestyle I'm expecting to need \~200K/year in retirement.
* Roth IRA $13,000 in SCHD. I'm contributing the 7K/yr from this point forward. Estimating 5% share price growth rate and 8.5% dividend growth rate.
* At 60 this would be worth \~1.6M with dividends bringing in about \~125K/yr
* at 65 this would be worth \~2.8M with dividends bringing in about \~316K/yr
* At 70 this would be worth \~6.2M with dividends bringing in about \~830K/yr
* 401K $160,000 in FXAIX. I'm only contributing up to the employer match. Estimated 8% returns
* At 60 this would be worth \~2-2.5M
* \~240K/yr gets me through about 9 years (including a continued return)
* HSA $5,500 in FXAIX. I'm contributing 7,800/yr from this point forward. Estimated 8% returns
* At 65 this would be worth \~1.2M
I should have enough money in my 401K to easily get me through \~7 years. At 67 I should be making somewhere in the ballpark of 450K/year of tax free dividends. I will also still have my HSA growing in the background, unless it's needed for health.
I guess what I'm asking is:
1. Is my math mathing?
2. Wouldn't this leave me/my family in an unbelievable position when I inevitably kick the bucket? Just shift to the dividend life at \~67 and reinvest whatever I don't use.
3. What am I missing? It's late... I have to be missing something.