Age: 24
Income: Salary: $50K/yr + $70/day untaxed living expenses stipend (About $60K/year total after tax)
Current expenses:
Monthly:
Rent (includes untilities and some groceries--I live with my parents): $650
Gas: $50
(car + insurance provided by employer)
Additional Groceries: $40
Eating out/Entertainment: $50
Pharmacy/Incidentals: $20
Fitness Classes: $250 (I know this is a lot; I take classes in aerial silks, and I hope to become a part-time instructor when I'm retired)
Shopping (clothes, electronics, books, hobbies): $100
Charity: $50
Haircut: $12.50 ($25 haircut every 2 months)
Cell phone: $20 (my part of family plan)
Medical Insurance: $50 (my part of family med. insurance)
Total monthly expenses: $1,293
Yearly expenses:
Dentist: $500
Vision: $120
Medical: $200 (I am on my parents' health plan; this will likely increase in the future)
Travel: $1,000
Tax preparer: $200 (my tax situation is complicated due to filing returns in multiple states)
Total Expenses per Year: $18,000(approx.)
Assets:
These accounts are managed by my family's investment adviser. I plan to take them over sometime in the next few years. Many of the investment decisions were made by the previous adviser, who was terrible. My job does not offer any retirement or health benefits.
Roth IRA: $34,500
In various funds--some passively managed funds, some actively managed funds. I have spoken to my adviser about moving to all passively managed index funds with lower expenses. I contribute the max every year.
Taxable Investment Account:
$145,500
Much of this is in individual stocks that will incur significant capital gains if sold, and about 15% in an American fund. There is also $40K in cash (mostly recently deposited) that will be invested in index funds.
Additional Taxable Account:
$30,000 (approx.) in bonds, managed for free by family member
Total Assets: $210,000
Liabilities: N/A
Anticipated ER Expenses: Not sure. Higher than current expenses: I will have own place to live (rented or bought), and probably children. Anyone have an idea of what a good number to shoot for would be?
Specific Question(s): I am 24, and I hope to be able to retire by age 35. I am a single woman, no children. I plan to have children after I retire, with or without a partner. Am I on the right track? Should I change anything? My job has been really stressful of late, which has made me reconsider that timeline--could I retire earlier than 35 and still have enough to support myself and 1-2 children?
I have been thinking about moving out of my parents' house, but rent would be at least double what I'm paying (I don't want to have a roommate; If I'm living with other people, I'd rather them be family members). In addition, my parents don't have enough saved for retirement and by paying rent I am helping them out. I am in a high COL area, and don't plan to move in the near future because my job is here, and I couldn't find a similarly paying job elsewhere.
I have also been thinking about when/if to buy a house. The houses near my job are at least $1 million for a small house, which seems unreasonable. More reasonably priced houses (about $300K) are at least an hour commute each way. I may be able to move to a lower COL area and telecommute in a few years though. I will probably be able to work part-time for my current company if I want. When I move to my own place I will probably get a dog. Thoughts?