Hi All,
I've being thinking about ER for a couple of years now once I began to think it was possible. Now I'm almost obsessed with it after discovering MMM, ERE and earlyretirement.org for about 6 months. Wanted to get some help/advice from more knowledge people than me on our goal to ER within 2 years. Wife would like to go part time (2 days/wk) instead of full as she likes her job but would like the option not to.
About us:
Professional couple both early 40s. 3 kids (13, 10, 2) living in Toronto, Canada
Income:
Current - $200K gross combined with additional about $30K in stock dividends
In ER - side gig that will net ~$10K/yr.
DB Pension at 65(really long from now) - ~$30/yr inflation indexed
Current expenses:
Food $700
housing-insurance, maintenance $200
Prop Tax $325
Clothing $100
Kids Fitness/Programs $150
Car Gas,Maint,Depr,public transit $250
Gas $100
Electric $100
Water-Garbage $100
Phone-Cells $75
Internet $60
Health Dental $200
Home Basics $100
Gifts-Charity $200
Misc-Entertainment-Travel (Avg) $500
Current Total - $3,160/mth
Expected ER expenses:
Desired in ER $4,160/mth (Would like to increase that by $1,000/mth in ER for buffer, more extensive travel, helping kids, aging parents)
Although we can be flexible with spending in case of a down market. (e.g. no international travel, less entertainment, etc.)
Assets: Amount & description -
Home - ~$700K
1 car (6 yrs old)
$1M in various (DIY) investment accounts 100% stocks (3% REITS); 50% US, 35% CDN, 15% International
$20K cash
Total: ~$1.7M
Liabilities: None
Goal is to ER in about 2 years as stated above. Would love to hear any feedback on how we are doing, readiness for ER, anything to watch out for, optimization opportunities, etc.
Some canadian REIT are paying close to 8% distributions. Any thoughts to going 40% - 50% to cover most expenses and rest in stocks?
Thanks in advance.