First of all; AMAZING job on the income. Others have already given you some great advice regarding investment options and your risks of being highly invested in RE. Now I'm not an expert on investing or RE, but I'm pretty good at frugality so I'll go over your expenses:
Car: 2 yr old SUV bought new for 36k (face punching myself)
Bolt lease at $218/month for 3 years. Yay for carpool lane access
You've just given yourself a facepunch. 36k is a lot of car. Would you consider selling it and getting a simpler one?EXPENSES are very high:
$5100 mortgage plus property taxes
$1200 preschool (we will pay for college, but public schools. This will go to 529 from next year)
As said before, this'll result in a lot of college savings. You could lower the amount into the 529. Also think about what you'd like for your child; you want him/her to be applying for scholarships, have a job on the side to gain work experience and learn the value of money? My personal favorite is to be able to cover tuition costs of a state school and let your kid decide whether to apply for more pricey unis and scholarships. Also I greatly valued paying my own rent/food in college as it taught me a LOT about the value of money in general.$300 phones plus internet
That's a lot - shop around for a cheaper plan.$500 mom medicare
$300 utilities plus water
$500 shopping (keeps DW happy, she works super hard at work and home)
I get she loves shopping, but does it really have to be this much? Thrift shopping is more fun - it's like treasure hunting!$1500 travel (annual trip to India and Cabo/elsewhere)
$1500 a month sounds like a lot to me. Sure flights to India aren't cheap, but do you really spend that much there and on your Cabo trips (I have no clue what that is) that it costs you $18k/year?!$1000 eating out plus grocery, organic everything, home supplies
Can easily be cut down. Also for lots of products organic doesn't make sense and is just a way to make more money. Even at all organic $1k is a lot for 2 people and a toddler. Check out the <$200 grocery thread (family of 4!) for inspiration: $200 gits, borthdays, christmas etc
$400 miscellaneous home repairs (50 yr okd home)
$300 life insurance for both of us
$700 bolt lease plus insurance plus gas for SUV
$12,000
About the travel, we want to stay attached to India even though US is our home and the country that has given us everything and welcomed us with open arms. About Cabo, we have high stress jobs and recharging is great for our health.
Recently got introduced to MMM and its given me a new perspective so expecting this monster expense budget to be cut down soon.
Good you've realized this, I'm excited to see how you'll be rocking cutting out unneccesary expenses!Phew, not sure why id been avoiding writing this up. Now for goals:
Retire with $10k in monthly income in-hand and a paid off home. Even at 25% tax, it would mean making $13k/month or $156k annual. So $5M incl home payoff. Feels too far at ~$2.5M to go. Call me paranoid.
Are you sure you'll need $10k of income? Currently about half of your expenses consist of mortgage and preschool, which will both go away. All your other (quite high!) expenses only add up to about $6k, which would require a stash of only $1.8M and a paid off house. For covering college costs of 1-2 children ofcourse you'd need a bit more. If you'd be willing to move to a lower COL area in retirement you could retire much earlier (maybe even today!)