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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: saywhatnot on January 19, 2015, 03:44:52 PM

Title: Are we on the right track?
Post by: saywhatnot on January 19, 2015, 03:44:52 PM
Hello!

Just wanted to know if you thought we were on the right track.
DH and I are 37yo
We have invested in the market 550k and we contribute $65k anually.

We would like to retire by 55.  Is that realistic?

Our current expenses are $70k a year and that includes mortgage and daycare.
Title: Re: Are we on the right track?
Post by: wtjbatman on January 19, 2015, 04:31:29 PM
Not nearly enough information for an accurate answer, but yes, it's realistic.

Start with 550k and invest an additional 65k a year for 18 years. Assuming your investments average a 7% real return, you will retire with around $4,200,000. Following a 4% SWR with that stash will give you $168,000 a year to live on. Congratulations!
Title: Re: Are we on the right track?
Post by: MDM on January 19, 2015, 05:06:57 PM
As wtjbatman says, it looks good.

Try www.cfiresim.com and/or the spreadsheet downloadable here (http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-%27case-study%27-topic/msg274228/#msg274228) for more details.
Title: Re: Are we on the right track?
Post by: wtjbatman on January 19, 2015, 05:18:15 PM
As wtjbatman says, it looks good.

Try www.cfiresim.com and/or the spreadsheet downloadable here (http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-%27case-study%27-topic/msg274228/#msg274228) for more details.

+1

You have the numbers, your best bet will likely be to model your own scenarios.
Title: Re: Are we on the right track?
Post by: saywhatnot on January 19, 2015, 05:25:43 PM
Thanks for the responses.  I will  use the tools provided.
Title: Re: Are we on the right track?
Post by: sleepyguy on January 19, 2015, 05:27:27 PM
Mortgage will be gone at some point, and so will daycare.  That 70k/yr will drop drastically.

You are in fine shape.