Specific Question(s):
Hello! My wife and I are expecting a baby this November, and we looking dropping to my income only and how it impacts our FIRE. I have outlined our current expenses and situation, but this could change in the future. Whenever I use online calculators if we drop to 1 income, it says we have about 13 years left to FIRE - which puts me at 40/41, and my first child at 13! That seems CRAZY to me! How do I get to slow-travel with my family if my first child will be 5 years from graduating HS? How can I enjoy being a stay-at-home dad if my first son is already 13?? What are we doing wrong? In the calculators, I’m assuming we have $3k a month in saving, and $3k a month in Post-FIRE spending. We have a current net worth of $275k, with $165k in the market. Whenever I look online, this should put us at a HUGE advantage compared to our peers (we’re 27, and 24 years old), but it still seems like we have a long road ahead of us. What can we be doing to get there quicker/what are we doing wrong?
I guess I just feel like we're really "piling it in" (went from NW of $50k in January 2016 when we married to $275k today) and our post-FIRE expected spending isn't exuberant (is it??).
Life Situation: Married, 2, baby boy due 11/30. homeowners in Minnesota. I'm 27, wife 24.
Gross Salary/Wages: Me: $90,000 Wife: $67,000 (plus sales comission anywhere from $0-$15k)
Individual amounts of each Pre-tax deductions 401k, HSA, FSA, IRA, insurance, etc.:
401k: $36k (+8k annually from employer)
HSA: $6900 ($1750 is by employer, though)
Insurance: $4152
Other Ordinary Income: None
Qualified Dividends & Long Term Capital Gains: None
Adjusted Gross Income: $110,000
Taxes: I can give you 2017 numbers for this: (2017 AGI: $134627)
Line 63 on 1040 "Total Tax": $25093
State Income Tax: $9348
Real Estate Taxes: $2635
Current expenses: Provide breakdown and relevant details. Aim to have “Miscellaneous” somewhere ~2.5%. Much lower and you may be providing too much detail, much higher and you have an obvious problem of not understanding your spending.
Current Monthly Take Home Pay: $5,500 (this might look low to some of you, but I just got access to an HSA account a few months ago, and I started maxing out a 401k at a new employer at the same time, so monthly deductions are artificially inflated through end of 2018)
Utilities (electric 150, gas 25, water/sewar 30, garbage 15): $220
Internet: $77
Grocery: $350
Restaurant: $500
Gas: $80
Emergency Stockpile/future car fund: $1,200
Cell Phones: Free through work
Mortgage Principle: $435
Mortgage Interest: $575
Insurance, Prop Taxes: $315
Car Insurance: $50
Roth IRA: $920
Netflix, Spotify, Amazon Prime: $37
Clothing: $150
Target/Home Improvement: $200
Amazon Junkets: $150
Leftover: $241 (usually thrown at mortgage or spent on vacations/travel)
Assets:
Home: $265,000
Car: $6,000
IRAs: $11,402
401ks: $59,795 (currently get $8k annually matched by employer, not sure where else to mention this)
Roth IRAs: $57,521
Taxable Accounts: $34,666
Emergency Fund: $18,800
Checking: $1,000
HSA: $200 (pregnancy is expensive, I guess)
Liabilities:
Home mortgage: $167,371 (originated Nov. 2015, $209,237, 30 year, 4.12%)