This is my first post on any internet forum. I have been reading MMM for the last 4 months and found this site while reading white coat investor so I could educate myself about money and finances. I have been wanting to write a detailed post for the last few months but I wanted to gather enough information via Mint to do an adequate posting along with accurate numbers. I am married with one child, we live in the Midwest. We are both 31 years old. I work as a physician and graduated residency in June 2014. My wife works as a nurse and has been doing so for the past 9 years while I have been doing medical school and residency. We met in 2001 during college. Fast forward to now, I have been working in my current field as a staff doctor for the last ~10 months. At first when I got out of residency my wife and I were very excited I was done with schooling. We were ready to live an awesome life of pure spending pleasures including porsches, luxury items etc until I put the major brakes on after finding these sites. There was some major hemorrhaging of money early.
Salary and wages:
Monthly after tax take home pay: $15.2K + $1.3K month rent check = 16.5K
Bonuses depending on productivity, this will be paid at end of 2015: projected currently $84K post tax
1 rental property total income was $4153 minus $2953 expenses (painting, new stove) net: $1.2K ($1300 a month rent check)
Pretax deductions:
53K into pretax IRA (funding ~4.4 K per month)
11K backdoor roth fully funded for 2015
18K wife pretax retirement fund (funding 2 K per month)
4.5K for child 529 (funding $375 a month)
Current Expenses:
Mortgage: $3846 10 year ARM 3.125% 557K left on mortgage
Rental Mortgage: $661 5 year ARM current rate 2.75% 68K left on mortgage
Rental condo association fee: $268
Restaurants: $616
Groceries: $380
Cars: $341 (this includes insurance (80$ per month for 2 cars), gas, new tires for both a car ($354)
Child care: $1150
Travel: $1000
Cable TV and internet: $106
Diapers: $25
Hair: $25
House Keeper: $120
Electronics: $80
Clothes: $60
Sports, gym, golf: $222
529 for child: $375
Vanguard taxable account funding: $5800
Utilities: paid for the year to earn credit card miles
Total: $15075
Assets:
Cash: 17.6K
Me pretax 401K: 41K
Roth: 25.5K
Taxable: 59.3
Wife pretax 401K: 52K
Roth: 23K
Total stocks: 200K
Housing
Primary house: 860K - 557K = 303K
Rental 129K - 68K = 61K
Liabilities:
Primary house: 557K 10 year ARM 3.125%,
Rental: 68K 5 year ARM current rate 2.75%
Credit card: 12.5K Paid off monthly, credit card churning (use it to pay mortgage, other credit cards, target prepaid redcard has stopped so I won't be doing the churning anymore)
Cars: Both paid for, one is 10 years old, one is 8 years old.
Net Worth: $569K
We have become interested about financial independence as soon as possible. And when that time comes we can decide about retiring early. I do not mind facepunches and actually welcome them.
Specific questions:
1) Is there any more tax savings I could be doing?
2) I plan on paying off my primary house mortgage in around 10 years. My calculation is that it will take 11 years if I pay an extra $2500 a month on the mortgage. I plan to use my bonus money each year to pay this. I am debt adverse and having the house paid off will give me peace of mind. Also since it is an ARM mortgage I do not want to be caught with a large rise in interest rate. I know I could refinance in 10 years.
3) From the bonus money the rest of it I will use to fund our back door roth accounts, and any remaining money I will put into a taxable account.
4) My calculated savings rate without accounting for any of the bonus money is around 50%? Is this correct? With the bonus money added it should be north of 60%.
5) Any suggestions welcome