Hi everyone!
Life Situation: Married, filing jointly, me - 38, DW - 37, no kids, live in HCOL area, no state taxes
Gross Salary/Wages:
Joint gross wages:
9,434 /month me
5,992 /month DW
15,426 /month total
185,119 /year total
Individual amounts of each Pre-tax deductions
Annual Amounts
13,585 Employer provided 401(a)
9,055 Employer provided 403(b)#1
18,500 Optional 403(b)#2
18,500 DW’s 457
6,900 HSA
1856 employer health care premiums
4,807 DW’s Pension
73,204 Total
Other Ordinary Income:
2,000 annually
Qualified Dividends & Long Term Capital Gains:
1,300 dividends from taxable brokerage account
5,464 dividends from non taxable accounts
Rental Income, Actual Expenses, and Depreciation: If these are significant for you
NA
Adjusted Gross Income:
127,340 annually (from tax return, doesn’t exactly match the above math, not sure why)
Taxes:
Annual
17,976 Total Federal withholding tax
1,478 me Medicare tax (I don't pay into SS)
4426 DW SS tax
1035 DW Medicare tax
No state taxes
Current expenses:
% of total Monthly Annual
Budget
Non Discretionary
14.66% $718 $8,621 mortgage principle (P)
4.01% $197 $2,360 mortgage interest (I)
11.70% $573 $6,878 Food/alcohol/household
6.54% $321 $3,846 Utilities(internet, elec, water, propane, septic)
9.11% $446 $5,356 healthcare
6.05% $296 $3,557 auto maintenance
5.66% $277 $3,326 property taxes (T)
4.03% $198 $2,372 heating fuel
4.02% $197 $2,364 gasoline
3.40% $167 $2,000 home improvement/maintenance
2.46% $121 $1,448 car insurance
1.22% $60 $720 home insurance (I)
72.87% $3,571 $42,848 Total non discretionary
Luxuries
6.80% $333 $4,000 atm/cash/entertainment/hobbies/gifts/misc
3.40% $167 $2,000 restaurants
1.43% $70 $840 cell phones
12.77% $626 $7,507 travel
2.74% $134 $1,609 pets
1.18% $58 $693 Union dues
$1,330 $15,956 Total luxuries
Totals
$4,900 $58,804 Total Budget including PI
$3,985 $47,823 Total Budget eliminating PI
Expected ER expenses:
Might be $5000 less on annual basis, so $53,000 or $42,000 depending on PI included or not
Assets:
$35k Cash
$38k HSA ($15k of receipts saved:)
$82k 457
$420k 401/403 (a, b)
$247k Roth IRAs ($116,500 contributions)
$103k After tax brokerage accounts
$135k Trad rollover IRAs
$3k Teachers Retirement fund that I think is matched if we hold until retirement age! (60)
$16k Cars
$230k House
$1,309,000 Total Assets
$132k Present value of DW’s pension ($25k/year @ age 60 if DW retires at age 40)
$10K? We’ll have health care covered from age 60-death via DW’s retirement program. Medicare will be primary, employer-provided as secondary, no premiums, $300 deductible, $2MM lifetime limit, pretty sweet!
$13k/year Social security for DW @ age 70 if retire @age 40.
Our AA is about 17% cash, 83% index funds (VTSAX or Fidelity versions), 0% bonds. I kept it together during this recent 10% correction!
Liabilities:
$64,000 mortgage balance
3.5%, $128,000 loan started in 2011, 15 year term, $1300 PITI, + $300 extra principle payment every month, about 4-5 years left at current payback rate.
~$4000 credit cards monthly, paid off in full every month (these are the expenses listed above, minus PITI)
Net Worth:
Net worth today including present value of Pension but not house = $1,211,000
Net worth today including present value of Pension + house = $1,441,000
We currently save about 69% of our after tax income, or $123k/year
Calculations/Model results:
Personal Cap:
Me going to half time, DW staying full time for 2 more years: 90% success
Both half time for 2 more years: 88%
Both full time for 2 more years: 92%
Both retire now! = 82%
CfireSim:
100% success, very hard to make fail in any reasonable situation
Specific Question(s):
We’d like to both be FI and likely RE by age 40, or about 2 years from now, but hey, the earlier the better! I’m not a big fan of my current job. I would welcome any feedback if you think we’re golden or perhaps should stick it out a bit longer. Also, any advice as to how to bridge the gap between RE and RE+5. I’m thinking to start a Roth Ladder while living on taxable accounts + HSA + 457 + Roth IRA contributions.
