Greetings all. Despite my low post count I have been here reading for quite a while. Been running numbers here a number of different ways, but a human look would be very valuable.
The story here is similar to what I'm sure many others have said - I work in a high pressure job, 60+ hours/week, nights, weekends, holidays (1 sick day taken this year, no vacation). I'm not necessarily looking to tell my boss to FU as what I do for my clients is something that I value highly as there is an appreciation there and I'd be incredibly hard to replace. But, when I'm waking up just about every night at 3am with my mind racing with anxiety over budgets, technical items, management BS, etc. I want to know I have the FU optionality. There is peace of mind there, I think. Burnout is real, and there is no hope of management easing up.
Short financial synopsis: I think I'm close. I have calculated how much further I have to go to FU money, but wanted to see what the crowd thinks.
Family: Married (48, 45), 2 kids, one early teen, one late. Late one may be a military recruit soon, so off the payroll. MCOL area.
Assets: Tax Deferred: 1185000 Tax Free: 5750 Taxable: 635000 Real Estate: House Value: 375000 Rental Value: 290000 Debts: Mortgage: (227,000) 2.875% Fixed, 12yrs. Left Total Assets: 2,263,750 Education 529: 55000 (Not included in overall assets)
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Income, Taxes, Saving
Gross Pay 115000 DW Gross Pay 50000 Taxes - Federal (19000) SS/Medicare (12000) Taxes - State/Local (6500) Property Tax (2300) Net Income 125200
Rental income, net: 15000 (note this is new this year so not included in current salary). Tax Deferrals: 401k 18000 DW 401 2000 HSA 6900 Roth IRA 5500 Total 32400 Take home pay: 92800 Employer Matches: 401k Match 9200 DW 401 Match: 5800 Total all tax deferred/free savings: 47400
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Expenses currently:
Expenses Monthly Annual Mortgage 1875 22500 Property Insurance 125 1500 Umbrella ins. 65 780 Car maint 200 2400 Gasoline 150 1800 Car Insurance 200 2400 House maint. 175 2100 Electricity 250 3000 Gas 100 1200 TV 175 2100 Phone 105 1260 Water/Sewer 100 1200 Grocery 600 7200 Restaurants 200 2400 Medical ins 600 7200 Education/child care 500 6000 529 175 2100 Charity 900 10800 Vacation 250 3000 Random 150 1800 Totals 6495 82740 Take home pay 92800 After Tax Saving 10060
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For future expenses if I anticipate some expenses to come well down if I do kick off (charity, eating out, education). I'll also note that in July I'll be going to a less expensive TV/internet cost ($125). I don't have much choice on internet, so it's expensive. I also plan on repricing all my insurance soon and saving some there. I expect medical expenses to go up. No telling if DW will kick off with me or stay working - she likes her job. I'm assuming she gets jealous and splits. Also big unknown where the younger kid ends up - I don't expect a scholarship or going to Harvard, but college is very likely. I may well be coughing up more than the 70k or so I have built up by then in the 529.
Future cost of living: ~60k/yr
One thing I am struggling with is the thought of positioning myself to pay off the house. It would get me underneath the ACA limit for a while and even allow for a bit of Roth conversion arbitrage. But it doesn't leave me quite enough post tax cash to stretch until 59.5. First world problems.
Analysis, suggestions, gut punching are all good!