Hello Everyone,
Topic Title: Reader Case Study - Retirement in 2018 possible? Save more or ease up a little ?
Life Situation: Married filing jointly, 2 kids who will be out in 4 & 7 years , Live outside USA in a Developing country , Husband US Citizen
Gross Salary/Wages: $130K (approx. based on exchange rate)
Pre-tax deductions: 401k, HSA, FSA, IRA, insurance, etc. - $45K going to Retirement a/c , tax deferred, Rate of interest 8-8.5% (guaranteed by Gov.)
Other Ordinary Income: Interest income in the range of $18K , everything being reinvested
Adjusted Gross Income: Not sure of the purpose, hard to calculate
Taxes: $30-35K (Complex situation of being taxed in USA & Home country)
Current expenses: Total expenses in the range of $2700
Savings : $45K into Retirement a/c (Interest rate @ 8%) , $5-15K extra savings
Kids Education : $400
Rent+ Maintenance : $500
Groceries & household: $250
Electricity/Maintenance: $50
Phone/Internet :$50
Eat-outs: $150
Maid/Services: $50
Petrol & Maintenance: $150
Clothing: $50
Entertainment (Movies/Festivals): $150
Misc: $200 (Health included)
Vacation: $700
Expected ER expenses: $2000 per month (Education expenses saved in a separate pile)
Assets:
Local Retirement (all cash, 8%+ guaranteed return) : $250K
401K (US Stock Vanguard) : $200K
Local Stock Market: $200K
Bank Accounts: $300K+
Local Property (No rental yet, can't sell , not accounting in any calculation): $400K+
Gold : $80K
Liabilities: ZERO :-)
Specific Question(s): Can my DH retire in 2018 @ age of 45 with Retirement Folio of $850K+ , Hard Assets (Real Estate & Gold) - $480K+ , Expenses of $25000 .
After saving $45K fixed per annum, should we still maximize the extra savings to $15K or ease up a little and save $5-10K comfortably.
Thanks,
DesiGirl