If I'm adding your numbers together correctly you have $2 million in vested assets (not counting the ~$1 million in housing).
Yes, that is about right.
Per the 4% rule that is enough to sustain 80k/year in spending. Since you guys only spend $78k/year you can retire now!
I think I was really afraid someone would say that. It feels pretty scary to me! And to my husband, too. We had a baby 6 months ago. And now we are going to leave my husband's high earning job??? It feels like that just can't be possible and work.
You should ensure your assets are properly invested in low cost index funds. You should also have an investment policy statement to decide on asset allocation.
Do you mean that when my husband leaves his job and we pull all of those employer-related accounts, that we should put the money into our Vanguard funds? That was actually another of my specific questions, and what I figured.
And, what do you mean by investment policy statement? I feel like I haven't run into that term before....unless I know the concept by another name.
You should track your expenses to confirm that $78k is your actual spending per year.
Yes. We track diligently using ynab. 78k is our number with a decent cushion built in.
1. Have you got a written investment strategy? Do you know your risk tolerances? Do you know what your investment charges are?
We don't know what that is.
High risk I suppose? - Since right now we have 90% stocks and 10% bonds.
Yes, probably less than ~.05% in total.
Thank you. Great questions.
2. Have you worked out what each of you is due on social security?
No, but great point - we need to. I just googled a quick calculator and don't think I arrived at the right numbers. Do you have a link to a good calculator?
That is of course, assuming there is still social security is there to be had. My husband will very likely get his but I am not banking on mine. However, if I understand correctly, when/if he dies first...I can forego mine and take his if his is a higher amount. We also think it makes sense for him to defer taking social security until as late as possible (is it age 66?)...because then he will be collecting the highest amount possible.
3. Are you planning on any more kids? If so, add them into your plans. If not, make sure that no more will be on the way. How does moving in two years time fit into your kids lives (friends, schooling, opportunities, etc? At 8 and 7 your two oldest will remember the move very clearly).
No more kids, unfortunately. If my husband were younger, I would totally have one or two more. But well stop at four and yes, we've made sure of that.
Good questions about the move. This is something I think about often. Particularly for my oldest. Our backyard here is her sanctuary and she has every bird nest, plant and natural hiding placed imprinted in her mind and heart. She is also very attached to one set of neighbors, whose house she can walk to on her own basically whenever she pleases. However, ALL of our family - including my kids' 10 cousins who are all the same ages....are 3,000 miles away. And a big part of Mustachianism for us is the connection, quality time, relationships piece. That is the sole motivator really - for all of us I'm sure! And we just have to get ourselves nearer to our family. We also are culturally pretty out of place down here in the south. We moved here from Seattle 6 years ago. All I can do about this one is dream and pray that we find an amazing community wherever we land here.
5. Two more years for DH at his current high pressure job is pretty significant: are there options for part time or consultancy work in the meantime?
Sigh.....he travels a lot right now, it is a huge strain on all of us. Part-time consulting is really something to consider. On the one hand, he likes the projects he is working on a work much of the time. And, two more years at his current salary and our savings rate would give our portfolio a healthy boost. I don't know, maybe we need someone to knock us upside the head here! Maybe it's not all or none though. Maybe we could compromise on one year of regular employment and one year of consulting after that. Or something in the middle of the road.
I think part of our hesitation is that I am still pretty young. It feels hard for us to know if we would have enough shares to last for the rest of MY life. Because anytime you are drawing a percentage, you are selling shares, right? And eventually, even though each share will be worth a lot - well, the shares won't last forever! What am I missing here? However, our draw will be heavily subsidized at different points and to that end, my husband's older age is actually a huge benefit to us. We can live off our draw and ss can pay for college :)
Thank you all! I can't tell you how much I appreciate you putting time and thought into this with me.