In May 2003, our retirement balance was $25,741.51. My husband had already been saving for many years at this point, and I think I had a little from when I worked as well.
We wrapped up 2020 with a retirement balance of $834,124.84!!
I'm nearly speechless by that number.
The work and effort all of these years is working!
The balance of those accounts was $660,822.27 at the end of 2019. We contributed the maximum to our Roth IRA accounts, $6000 for me, and $7,000 for my husband since he is now over 50. We also contributed to his TSP (Thrift Savings Plan) in the amount of $10,987.80.
The increase for the year was $173,302.57. The contributions were $23,987.80, the growth portion was $149,314.77. Amazing!!
Our contributions are 18.3% of our gross income. We also saved another $20K towards our Pot of Possibilities this year, for a total savings rate of 33.6% of income.
When calculating our gross income I did include our housing allowance from the military. The full housing allowance goes to pay our rent on base housing. It's tempting to leave it out, but everyone has some type of housing expense to pay or cover out of income.
My husband was promoted in December. We are still waiting for the increased pay to hit our bank account. At this point we are owed money for December, which we will save! We have plans to increase retirement and other savings significantly in 2021. Because we can live on 2/3 of 2020 income, there is no reason to not save all of my husbands raise. I will write more on that once we are actually getting paid!
Did you successfully meet your retirement goals? Do you save automatically? (Hint, that is what helps make it so easy to do!)
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