Hello. I am a 45-year old single woman looking to retire in 10 years.
I know a friend and coworker lurks here, so if the term "525" makes you wince, or you can talk about shoelace render costs, please don't read any further =)
Current state:
Income - 142,000
15% per month put into 401K, plus employer match of up to 6%
Savings:
Employer 401K - 312,000
Former employer 401K (to be rolled over) - 188,000
Rollover IRA - 192,000
Emergency fund - 10,000
My savings will be added to by $1M in the near future, sadly, as I inherit money. And by near I mean in weeks.
Total: $1.7M
Debt:
$202,000 left on a $256,000 mortgage, interest rate 3.75% (house is currently worth $400,000)
$52,000 HELOC at 5.5%
Net income:
$7050 per month, $84,600 annual
Monthly expenses:
Mortgage payment - $1600 (base of $1158 payment + a little extra to principle)
Property tax - 300
Homeowner's insurance - 80
Car insurance - 100
Cell - $100 (just got a new phone...I know, I know - that's a beating)
Internet - 90
Electricity - 45
Water - 50
Natural gas - 110
Groceries - 300
Gas - 50
Pet food - 75
Gifts - 200
Home maintenance - 500
Car maintenance - 50
Medical/Dental/Vision - 250
Pet care - 100
Theater - 25
Charitable - 100
College fund for niece + nephew - 400
Vacations - 850
Thanksgiving + Christmas travel - 100
Clothing/fun - 150
Hair - 100
Exercise - 50
Restaurants - 100
Loan payoff - 1250
I do zero based budgeting using YNAB, so the above #s swap around at times. I'm trying to squeeze as much into loan payoff as possible, but would prefer not to take the extra principle payments off the mortgage; I know it's financially sensible, but paying off faster on the mortgage makes me happier.
Current plans:
1. When I inherit my brother + sister do as well, the same amount, so I am planning on dropping contributions to niece + nephew's college fund
2. That extra money goes towards paying off loan faster - hopefully squeezing to pay off in 3 to 3.5 years
3. The money that covers loan payoff goes towards paying off mortgage after loan is closed
Goal is to have a paid off house + no debt in 9 to 10 years, at which time I can retire.
In addition I expect to inherit another 750,000 to 1,000,000 at some point but I don't depend on that, because the person who I would inherit from is very healthy and I hope lives a very long time.
Given the above - how am I looking?