Life Situation
ME: 40
DH: 44
Married with three dependent children & annual household income of ~$100K {$8400/month gross}
Annual pre-tax deductions:
403b: $17,400
Pension: $ 5,000
H. Ins: $ 2,200
FSA: $ 1,200
Roth IRA's: $11,000 (after tax)
Qualified Dividends: ~$2000/year (taxable accounts)
Current expenses:
Mortgage: 1640
Prop Taxes: 550
Home & Auto Ins: 100
Utilities: 200
4 Cell Phones: 100
Internet: 40
Groceries: 570
Transportation: 300
Miscellaneous: 500
TOTAL = $4000/month
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Here's a breakdown of miscellaneous expenses:
sports & school fees $100
clothing & sundries $50
Netflix & Amazon Prime $17
Pet food & care $25
Restaurants $50
Home maint. $50
Home brew hobby $50
Travel expenses $150
Mortgage payments: $1515/principal + $125 towards interest
Expected ER expenses:
$2500/month with a paid off mortgage (2 years to go)
Assets
Stock: $24,300
529: $21,400
Cash: $15,000
Brokerage: $55,000
Real Estate:$340,000
Roth IRAs: $63,400
IRA/403b: $190,000
Pension: $125,000 (see scenarios below)
Liabilities
Mortgage: $50,000 @ 2.875% (15 year term) with Dec. 2017 set as final payment date
Pension scenarios
If I work another 5 years…
Pension benefit = $32K/year @ age 55
If I work another 10 years…
Pension benefit = $40K/year @ age 55
My kids will be done with high school in six years. At that time, we’d like to sell the house and downsize/rent.
Given all this, what would you determine to be a reasonable target FIRE date?
Am I underestimating my ER expenses? Healthcare is always the big “what if” but both my parents retired at 50 and purchased high deductible plans for reasonable amounts.
Only two of my kids may attend college (one is disabled and will likely live w/us as an adult).
Is my tax strategy optimal? We currently choose Roth over traditional IRA’s because we’re in the 15% bracket, and I won’t have enough time between FIRE and collecting my pension to convert all tIRA’s.
Should I be converting some tIRA’s to Roth this year to ‘fill up’ my 15% bracket?
I'm probably forgetting other relevant information so feel free to ask questions. Appreciate feedback.
Thanks!