Current "liquid" funds: ~$400k
Current annual spending: ~60k
Amount needed based on 4% rule: $1.5 million
So in 8 years you need to save up around a million additional dollars (assuming you spend the same in retirement as you do today). Currently you're saving around $25k/year. There is obviously a large shortfall here that can be addressed in a few ways. Reducing spending now, reducing spending in retirement, or working longer. It sounds like working longer in some capacity is part of the plan anyway. Just wanted to put some ballpark numbers out there for you, they can change depending how you value the rental properties and a safe withdrawal rate. I didn't put any value on the rental properties for this quick math.
Things I noticed right away:
Here is a look at our budget. These are the monthly numbers. I know we can do better, we just need another set of eyes! I have put explanations below.
Income 7609.90 (after taxes)
Tithe 993.06
Emergency fund Met
College Met
Household 250
Mutual Fund 1098.56 Roths 833 1951.88
Mortgage 1550.39
HOA 21.83
Electricity 330
Water trash sewage (City bill) 85
Internet 72.16
Cell phone 229
Netflix 8.19
Groceries 400
Gasoline 200
Auto repair 80
Auto insurance 90
registration 37
AAA 7
Life insurance term for both of us 65
ID theft 12
Clothing 100
Hair cuts 25
School supplies activities kids 25
Vet care 40
Entertainment 200
Fun money 90
Vacation 500
gifts 100
gym 10
Pool guy 80
natural gas 15
You're tithing $12,000 a year. I get that it's important to you, but over the next 8 years that's an additional $130,000 assuming 7% growth. If you plan to continue tithing this much in retirement it adds $300k you need in your nest egg. Just saying.
Electricity and cell phone both seem high, look into reduction strategies for those.
Entertainment and fun money both? What's the difference?
$1200 a year in gifts? Seems pretty high.
Pool guy? Over 8 years you're paying over $10k for that service assuming 7%. It also raises the amount you need to save by $24,000 compared to ditching it.
From:
http://www.mrmoneymustache.com/2011/04/15/getting-started-3-eliminate-short-termitis-the-bankruptcy-disease/•to calculate a weekly expense compounded over ten years, multiply the price by 752
•for a monthly expense, multiply by 173
Even if you save $1000 on all of these expenses, you're still saving around $35k a year. While the reduction will also bring down your needed nest egg (since you'll be spending less), you're going to have to see some really good returns to be fully FI in 8 years.
I'd suggest putting together a budget of the things you'll be paying for after retirement so you can get a better idea of what you need to save. Are you still planning on tithing $1,000? Is a yearly $6,000 on vacations still the plan? Is there any chance of downsizing your home? etc etc.