I'm married, with a pretty high income at the moment. We have two kids, one just started college, the other starts in five years.
I'm 55, wife is 53.
I'd like to have the option to retire pretty soon, at a similar standard of living. I don't want to stop working, but would like to have the financial security to have the option to quit my job and try a somewhat risky startup idea (using investors money, not mine).
We have a pretty big home renovation underway right now, finishing up in a month or so.
College is the only other big expense we're anticipating.
I realize we spend a lot of money on crap. We live in a fairly expensive suburb just outside of Boston.
We get an excellent health care plan via my employer (I'm pretty scared to ever stop working for them for that reason).
Our mortgage has another 25 years or so on it, which is a little worrying. But we like our house.
With the college expenses, it's hard to see how I could afford to stop working for the next ten years at current spend rates. If I did the startup route, our family income could probably drop to 75% of current income or even less.
May be some arithmetic errors below, I didn't use a spreadsheet, and made some updates by hand. But the big picture is roughly accurate.
INCOME ANNUAL
Taxable............. $257,128
PRE TAX SAVINGS ANNUAL
401k................ $32,000
HSA................. $2,200
TAXES ANNUAL
Federal.............. $44,395
State................ $12,512
total Taxes......... $56,907
POST TAX SAVINGS ANNUAL
Schwab..............$50,400
FIXED EXPENSES MONTHLY ANNUAL
Mortgage payment....$3,400 $40,800 We're 5 years into a 30 year 3.625% mortgage, with $400K balance remaining
Charity.............$200 $2,400
Cell Phone..........$160 $1,920
Electric............$120 $1,440
Gas.................$186 $2,235
Water...............$100 $1,200
Internet............$50 $ 600
Spotify.............$10 $ 120
Amazon..............$10 $ 120
Netflix.............$10 $ 120
Life Insurance......$280 $3,360
Home Maint..........$1,000 $12,000
total Fixed.........$5,240 $66,315
VARIABLE EXPENSES MONTHLY ANNUAL
Auto Ins............$230 $2,760
Groceries...........$600 $7,200
Gifts & Community...$250 $3,000
Restaurants.........$775 $9,308
Travel..............$1,800 $22,000
Crap................$500 $6,000
total Variable......$3,689 $50,268
ONE TIME EXPENSES
ANNUAL
College Kid#1...... $72,000 for next five years
College Kid#2...... $80,000 in four years, for four years
Home Renovation.... $160,000 now
Total one time costs: $768,000
Total Savings Right Now:
401K................. $200,000
Taxable Investments.. $1,000,000
Cash................. $50,000
================================================================
Total savings + cash... $1,250,000
Home est. value........ $1,300,000
Mortgage remaining..... $ 400,000
Approx. Net Worth.......$2,150,000
Income $257,128
- Taxes $56,907
- Savings $81,165
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SPENDING $119,056