I've been participating in the forum for a few months now. I made a new user name to help protect my identity a bit. I just started to take FIRE serious about 1 year ago.
I maxed out my 401k for the first time last year, this year I'm maxing it and my Roth out.
My goal is to FIRE by 45 at the latest, I'd like to do it by 42 if possible. I'm current 32.
Married with ~1 year old child. We are planning a second baby in 1-2 years, then snip snip for me.
Our current budget is about 40k/yr, which includes our mortgage.
We want to use a 3.5% SWR, targeting a yearly budget of 40-50k. We'd like to stay on the higher end to account for health care, cost of raising kids, and travel.
I calculate a nest egg of about 1.4MM to achieve. Does that sound correct?
Salary $95,000.00
Bi-Weekly $3,653.85
Local Taxes $164.42
401k & HSA $828.52
Fed Taxes $673.77
After Deduction Bi $1,987.14
After-Tax Yearly $51,665.53
After-Tax Monthly $4,305.46
My Assests:
401K - $7,800.00
Roth IRA - $5,900.00
tIRA - $200,000.00 (from two previous employer 401k's)
Taxable - $17,000.00 (e-fund, goal is to get to 40k)
Savings - $9,200.00
"Kids" fund - $7,100.00 (Long term savings for kids - college, emergencies, weddings?)
HSA - $1,000.00 (will be 2k + 1K employer match at end of year, will add more if cashflow available in last quarter)
Wife Assets
401k - $80,000.00
Roth IRA - $40,000.00
Total - $368,000.00
Home
Worth about 225k
Owe 116k @3.25%, will be paid off in 10 years (11/2027)
Monthly Expenses Yearly
Mortgage $1,102.00 $13,224.00
Property Tax $349.54 $4,194.52
Groceries/Dining $450.00 $5,400.00
Life Insurance $190.00 $2,280.00
Home/Auto Ins $180.56 $2,166.76
Medical $364.02 $4,368.26
Dental $32.41 $388.96
Vision $17.36 $208.26
Legal $18.01 $216.06
Phone $80.00 $960.00
Electric $122.28 $1,467.36
Gas $60.44 $725.29
Water/Sewage/Trash $50.00 $600.00
Internet $35.00 $420.00
Hulu/Netflix $22.00 $264.00
Auto (gas, car wash, etc) $65.00 $780.00
YMCA $66.67 $800.00
Misc $150.00 $1,800.00 (home improvement, toiletries, hair cuts, clothing, etc)
Total $3,355.29 $40,263.47
How does the budget look? Am I missing anything major? I think we are pretty streamlined for expenses. I'm trying to talk my wife into switching to Google FI or Ting to save on cell phone.
My bigger questions concern my wife. She was planning to go back to work after the baby, but now she doesn't want to, so we are losing her salary (86k/yr).
We've kept separate finances up to this point and are looking to combine.
Am I allowed to roll her 401k into my tIRA?
Am I allowed to make additional Roth contributions for a non-working spouse?
Please facepunch me.