Challenge "Magic number"

There are many nice blogs by physicians who set as their goal to retire early from their medical carriers.  

I do have a family history of "early" retirements: my mother retired with 55 and father with 60. When they retired they found some new things to do for themselves. My father started a new business and my mother got a lot of chickens, turkeys and geese to keep herself busy. 
I don't have any particular plans yet. 


I am not in a hurry to retire and to retire early is not my goal. I like my work. After I moved to the place where I live now from a very very cold place, the weather here makes me feel like I am on vacation almost every day. When I go on vacation, it is like I am taking vacation from my vacation. 


My main motivation to reach that magic number of $3,000,000 is just to finally feel safe, because I grew up very poor and that "post-traumatic stress syndrome" of growing up very poor still doesn't let me go.  


In savings, like in other things I like to underpromice and to overachieve.
Of course I will try to overachieve here in this challenge. 

I don't know when I reach the magic number of $3,000,000 or even if I ever reach it. But I every month I will make small steps toward my goal.











    

How long is the list of tax advantaged retirement savings options?

The tax advantaged options are very few: 401k (and similar plans like 403(b), 457 and SEP), IRAs and HSA.

HSA is a special case: it is a health savings account but after age of 65 it can be used as an IRA.
401k and IRAs have 2 varieties: Roth and Traditional which means the contributions are post-tax or pre-tax. 

Here is this short list including contribution limits:

1. 401k (or Roth 401k) How to decide between regular 401k and Roth 401k 
    2018 limits: $18,500, catch up with 50 - additional $6,000


2. IRA (Traditional or Roth) How to use backdoor Roth IRA
    2018 limits: $5,500, at 50 - additional $1,000
      

3. HSA Why is it on this list
    2018 limits: 
    Individual $3,450, family: $6,900, 
    at age 55 - additional $1,000 (per person of age 55)


I am not counting the 529 college savings plan. Even if this account is in your name and theoretically it can be used as savings back up but the penalties are very high.



In the tables below are the maximum yearly contributions based on 2017 contribution limits. 
The first table is for a family with two working adults showing two 401k and IRA accounts and a family HSA.

You can see the added "catch-up" contributions at age 50 (401k and IRA) and at age 55 (HSA). 

The second table shows yearly contributions for a single person showing one 401k, IRA and single HSA.

The list is short and the contribution amounts are small. 
A high income professional will use up those options fairly soon. 
The rest of the savings will have to go into a taxable account.