Life Situation:
Married Filing Jointly. I live in a LCOL area with relatively high taxes (property and income). I’m 50 and my DW is 51. I would like to retire in 2022 – the year I turn 55.
Gross Salary/Wages:
Salary: 8,790
Military Retirement: 3,392 (Indexed for inflation)
Total: 12,182
Individual amounts of each Pre-tax deductions:
401K: 1,500
401K Catch Up Contributions: 167
Survivor Benefit Plan (Military Ret - Insurance): 220
Life Insurance: 51
Dental Insurance: 41
Vision Insurance: 18
Flexible Spending Account (FSA): 42
Healthcare (Tricare): 47
Total: 2,086
Adjusted Gross Income:
Total: 10,096
Taxes:
Federal: 1,686
State: 484
FICA: 539
Medicare: 126
Property: 508
Vehicle / Personal Property: 27
Total: 3,370
Current expenses:
Roth IRA: 542
Spousal Roth IRA: 542
Mortgage P&I (15 Year @3% w/~10 yrs remaining): 1,195
Homeowners Insurance: 100
Cable: 103
Internet: 68
Land Line: 11
Cell Phone X 2: $30 (Republic Wireless)
Netflix: 10
Car Insurance: 60 – for both cars
Car Maintenance: 80 – for both cars
Auto Gas: 120 – for both cars
Electric: 110 (average/month)
Gas Heat: 60 (average/month)
Water/sewer: 100 (average/month – this is mostly taxes/fees/infrastructure replacement costs)
Pets (food/vet): 150 (average/month)
Home/General Maintenance: 100 (average/month)
Groceries: 800
Restaurants: 150
Donations: 200
Savings: 1,462
Miscellaneous: 733 - not any one thing (gifts/vacations/hobbies etc.)
Total: 6,726
Assets:
Emergency Fund: 30,000 (High yield savings)
EE Savings Bonds: ~10,000 (Current value)
Taxable Brokerage account: 46,000
Roth IRA: 180,000
DW’s Roth IRA: 140,000
401K: 194,000
Home Equity: 175,000 (300K value w/125,000 remaining on loan @ 3%)
2015 Subaru Outback: 17,000 (Paid off)
2003 Honda Pilot: 2,000 (Paid off)
Total: 794,000
Liabilities:
Mortgage:
Original Loan Amount: 175,000
Rate: 3%
Length: 15 Years (10 remaining)
Payment: 1,195
Specific Question(s):
1) Am I FI?
2) Thoughts on redirecting contributions I’m currently making to the Roth IRA’s (1,084 / month) towards paying off the mortgage? I’m considering doing this to retire mortgage free in 2022. I’m familiar with the recommended investment order, but if I were to eliminate the mortgage, my military retirement would cover the bulk of my monthly expenses with little to no market risk.
3) Other recommendations / thoughts?