From the case study spreadsheet:
|Salary/Wages for earner #1||$7,710||$92,520|
|Salary/Wages for earner #2||$7,400||$88,800|
|Pretax Health Ins.||$204||$2,448|
|Pretax Vision/Dental Ins.||$12||$144|
|FICA base salary/wages||$14,894||$178,728|
|401(k) / 403(b) / TSP / etc.||$3,000||At maximum||$36,000|
|457 plans ||$1,500||Room to increase?||$18,000|
|Income subject to IRS tax||$10,394||$124,728|
|Paycheck income before tax||$9,854||$118,248|
|Federal Total Income||$10,394||$124,728|
|Federal tax||$1,395||2016 rates, MFJ, item. ded., 2 exempt.||$16,734|
|State/City tax||$486||Guess, using 5.00% * (AGI - Exempt'n)||$5,831|
|Soc. Sec.||$923||Assumes 2 earners paying||$11,081|
|Total income taxes||$3,020||$36,238|
|Income before other expenses ||$6,834||$82,010|
|Monthly Average Expenses:|| || || |
|Car Maintenance, Registration, etc.||$300||$3,600|
|Loans:|| || || |
|Total to invest||$1,341||$16,092|
|Summary:|| || || |
|IRA+401k/403b/TSP/457 (Savers' credit)||$4,500||$54,000|
|Time to FIRE?:|| || || |
|Extra income after RE (pension, SS, etc.)||4780||/year|
|Time to FIRE||20||years|
|Safe Withdrawal Rate||4.00%||percent|
|Real return on tax-deferred investments||5.00%||percent|
|Real, after tax, return on taxable investments||4.25%||percent|
|Current Savings|| || || |
|Tax-deferred (e.g. trad. IRA/401k)||$78,383|
|Projected Savings at Retirement|| || || |
|Tax-deferred (e.g. trad. IRA/401k)||$1,993,536|
|Total projected stash||$2,581,902|
|Projected Expenses in Retirement|| || || |
|Non-loan, non-work expenses||$48,853|
|Annual non-tax retirement expense||$48,853|
|Total loan principal due at FI||$52,707|
|Stash needed for retirement @4.0% SWR||$1,235,809|
|Have $1,346,093 extra.|
|Filing Status||2||1=S, 2=MFJ, 3=HOH|
|Adult #1||Adult #2|
|# of earners||2|
|Tax after n-r credit||$16,734|
|Child Tax Cred.||$0|
|Mtg. Int. (approx.)||$6,825|
|Loans:||Orig. Prin.||Orig. Length||Curr. Prin.||Yrs left||Rate|
Budget/spending for the first two months
of 2017: (Courtesy of Mint)
Retirement investment info:
403b @ 18k/yr - 100% Vanguard Target Retirement 2045 (VTIVX)
403b @ 18k/yr - 100% Fidelity Freedom K 2050 (FFKHX)
457 @ 18k/yr - 40% Vanguard Total Bond Market (VBTIX) / 60% Vanguard Total Stock Market (VITSX) (+.25 expenses for account maintenance [CalSTRS Pension2])
Last year was the first year we maxed out our 403b accounts. This year I opened the 457 account to further increase contributions. My wife went from part time to full time with her employer, so it made sense to collectively put away more money.
Beyond the 403b and 457 accounts, I'm not totally sure what else I should be going with our money. We have a chunk($40k) sitting in the bank not earning any interest, so I should probably find a money market or interest bearing checking account to put that. I could also pay down the mortgage a little bit. Looking for ideas/suggestions.
I have a pension through CalPERS, which makes me think (financially) the earliest I'd want to retire is 55. I would have over 30 years of service and be able to collect $4780/mo.
More detail on the budget/spending via Mint:
Auto & Transport
My wife drives a 2014 Mazda2 which requires little or no maintenance. She works 40mins(15.8miles) from home.
I drive a 1987 Toyota Corolla FX16 GT-S and a 1986 Toyota MR2, which I maintain myself. I work 20mins(7.8miles) from home.
Bills & Utilities
I have 7 lines total with T-Mobile. My employer gives me $80/mo for maintaining a work cell # and I get $30/mo from a relative for 3 of the lines.
We eat out too much, but my wife is really motivated toward making more meals at home and preparing our own lunches. I love my cappuccinos and am debating getting another espresso machine... I tried kicking the habit, but it's so hard to do! Coffee is such a social thing, but a total waste of money.
We buy too many comic books. I'm 5 issues away from a full Daredevil run (1964-Now), but we need to hit the brakes on how many new series we're reading.
I'm guilty of buying other dumb collectibles.
Many improvements could be made through lifestyle changes and by putting more thought into purchases. Easy to say, hard to do. I appreciate any details on how others were able to learn to make changes.
I could provide a longer look back at the data on Mint. I think I've been using it for over 2 years now, but the household keeps changing. My wife was in a bachelors program for the last year and half which cost $16k and last September our niece started staying with us during the week while she's in college.
TL;DR - I'm checking if I should make any investment changes and trying to find the best way to drill the concept of the importance of lifestyle changes into my brain.