Hail Mustachians!
Total & Complete Newb here - love what I have seen so far - looking for advice (and face punches as needed - I know I need quite a few to help me wake up.)
My Wife and I have been typical consumerists. We love our gadgets and toys - but I have hope we can do better.
My Dad passed away about 5 weeks ago, he was a great man and a great provider - I am in process of inheriting roughly $650,000 from insurance, stocks, IRA, ETC. I also inherited his relationship with the fine financial advisers at MSSB - but I haven't met with them yet beyond an introduction a few weeks before my Dad passed of cancer. The money should be in my account in a month or so - until then I have begun look at finances - a duty my wife has carried for our 18 years together - this is where we are at.
$132K left on home mortgage approx. 30 miles from work for each of us. 60 miles round trip every day.
We chose our homes location because this area has the best school district in Texas and our youngest has some special needs.
$500 / month Lease on the wife's Toyota minivan (face punch accepted - the sales guy on our first ever lease lied to us leaving us scrambling into this compromise 6 months ago - haven't looked at what it'll cost to break yet)
My 2008 Chevy Uplander is paid off but at 94K miles is having mechanical difficulties for the 2nd time this quarter - planning to trade it in on a smaller car soon - maybe a Yaris. In the past both the wife and I had to have large cars due to schedule instability and 2 Large kids and Mother-in-law with physical disabilities. (my 13 year old is 6'2" and 240 Lbs, the rest of the family is built to similar dimensions and his 8 year old little brother is coming along in a similar way - future linebackers). I carpool to work with a coworker who lives in the same town. My job doesn’t suck - I’m a manager in IT Support for a manufacturing company. I Love supporting my team, coaching them & helping my company. My wife is less thrilled with going to work everyday.
Our oldest boys’ college 529 account is in good shape - should be sufficient for 4 years at a State University; youngest needs a $30K infusion to make the goal in his account.
$43K Student Loan debt
$40K Credit card & Consumer debt
$12K in Home repairs needed in near future (weather/water leak at back porch and bath tub unusable)
My wife and I make about $105K Gross annual salary / approx. net monthly $6,000.00
current budget runs something like this…
$500.00 Gasoline
$1200.00 Groceries / Shopping (includes Medications, Clothes, ETC)
$1200.00 House Payment
$347.00 Car Insurance (3 cars - Mine, Wifes’ & MIL; recent accident)
$490.00 Lease payment on minivan #2
$500.00 Entertainment - Date Nights, Family Dining Out, Books, Movies, ETC.
$75.00 Water, Sewer & Garbage
$130.00 Verizon Family Cell Plan
$286.00 Electric Bill (averaged billing to balance out Texas Heat)
$168.00 TV & Internet
$48.00 AHS - Home Warranty
Remainder Pay on Consumer Debt
The Inherited IRA is roughly half of the inheritance I will receive - I will leave this money alone - taking just the RMD - required minimum distribution annually to preserve this money for retirement. I am not particularly worried about my retirement - - the men in my family do not live beyond their 6th decade. My Dad was a MD and ironman triathlete and died at 62, Grandpa and his brothers didn’t make it to 70. My wife and kids will have use for the money however. Presently, I plan on using the RMD payment to take a family vacation every year.
The other $325K I will use to pay off the mortgage and all of our debts, set aside an $30K Emergency fund, make home repairs and pay for a family reunion trip and some non-critical medical procedures I have been putting off.
As much as i like my job - it would be nice to retire in 12-17 years at 50/55 years old and enjoy my last decade. To this end I am looking at ways to end the consumer cycle and build wealth over those 12 years to retire. My wife and I have only been discussing this in any detail for the last few weeks - previously she has done all the household finances - a duty I have begun to share in.
This reflects my current thinking & reality. Any thoughts you have to help me are welcome.