Topic Title: Reader Case Study - your question here
Life Situation: Married filing jointly. No dependents. Relatively high-tax state.
Gross Salary/Wages: 72,500 (me); 65,000 (spouse)
Individual amounts of each Pre-tax deductions:
401k: 18,500 (me), 18,500 (spouse)
HSA: 3100 (me)
IRA: 5500 (me), 5500 (spouse)
Healthcare: ~300/month (me), 0 (spouse)
Rental Income, Actual Expenses, and Depreciation:
Month-to-month rental of rooms in primary residence: ~$8000/year.
Expenses: $2000 / year (maintenance)
Adjusted Gross Income: $91,900
Taxes: Federal, state/local, and FICA: ~$18,000
Current expenses: What follows are my actual yearly expenses, averaged over the last three years, and rounded up to the nearest 10 dollars.
Yearly:
Auto (including gas, insurance, registration, maintenance): $2000
Discretionary Travel: $2500
Entertainment (including alcohol, homebrewing, events, movies, skiing, etc.): $1400
Dining Out: $500
Groceries: $2750
Healthcare (including fitness-related items, such as running shoes, and bike parts): $1250
Household goods (e.g., kitchen items, electronics, etc): $600
Rent and or Property Tax: $9000
(Expected) maintenance on house: $2000
Electric Utility: $500
Gas Utility: $670
Internet Service: $400
Cell Phones (x2, with data): $150
Dog (including food, vet visits): $500
Total Yearly: $25,220
Expected ER expenses: About the same? See below.
Assets:
Investments in VTSAX or equivalent:
Taxable Brokerage: $89,000
401ks: $76,000
IRAs: $86,000
Total Investments: $251,000
House: Paid off, purchased for $150k. Worth about the same, but very illiquid. Not counting value toward net worth in any FI plan.
Liabilities: Student loan: $11,200 @ 4.23%
Specific Question:
If you do the math, this leaves about $48k every year, after funding 401ks, IRAs, taxes, and living expenses, to invest. Right now, that money's just going into the taxable brokerage. Assuming our ER expenses never exceed an inflation-adjusted $30k, at a 3.5% SWR which is the spending ceiling I've set and the SWR I'm comfortable with, I have us as on-track for FI in about 5 years, assuming a conservative 4% nominal YOY ROI in the meantime. That seems really soon to me, but hey numbers are numbers, right? So, I guess my main question is: Does that sound right?