Author Topic: How am I doing? WWMMMD (What would MMM do)  (Read 739 times)

imustacheyou124

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How am I doing? WWMMMD (What would MMM do)
« on: November 28, 2018, 07:58:58 AM »
Hello All,

Long time reader of MMM, first time poster on this forum. Below are my "stats". I'm 28 years old, employed, and just found out my fiance and I are expecting our first child next year in july/aug. I didn't start this journey until early this year. Just want to see how you feel I'm doing and what I can do better. Thanks everyone!

Bank:
Checking: $30
Savings (Emergency Fund): $9790.86
Brokerage: $26,982.98 (50% VFIAX/ 50% VSMAX)
Roth-IRA: $7409.97 (50% VGTSX/ 50% VTSMX)
Total Liquid: $34,800.62

investment allocation:
1k/month split into 2 RIRA for spouse and I (max out)
1250/month 529 plan starting next year (max out)
1k/ month into Brokerage account
500/month padding savings/emergency fund
left over: $122.14

Asset
House: $332,687
Car: $20,000

Debt:
Mortgage: $288,498.18
no credit card debt

Income (monthly/gross):
VA Pension: $1,522.96
Employment: $6,416.66

Monthly Expenses:
Mortgage:    $(1,775.77)
Car Insurance:    $(87.55)
Live on own well, and septic. Live in country-side, no cable
Utilities (Internet, Electric) Winter max $(240.00)
Gas:    $(120.00) (take public transport into city for work)
Verizon    $(53.75)
Gym    $(10.00)
Netflix :    $(7.99)

Yearly total : $(27,540.72)

yearly savings: $46,464
Savings rate: 63%

Time to retirement:
11 years if trying to cover entire expense outside pension and on 4% withdraw only
4 years if in addition to pension income

MDM

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Re: How am I doing? WWMMMD (What would MMM do)
« Reply #1 on: November 28, 2018, 08:24:15 AM »
You may be better served by a traditional IRA than a Roth.  For that matter, do you have access to a retirement plan through work (401k, TSP, etc.)?

See Investment Order for the generic advice.

imustacheyou124

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Re: How am I doing? WWMMMD (What would MMM do)
« Reply #2 on: November 28, 2018, 08:34:04 AM »
There is no match, but they do put in a "safe harbor" and "profit sharing" amount of 3638.25/year  there for me that doesn't require me to put anything in.

Fields of Gold

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Re: How am I doing? WWMMMD (What would MMM do)
« Reply #3 on: December 02, 2018, 06:21:30 AM »
What an exciting time in your lives expecting your first newborn!  Maybe it's not listed, but immediately consider life insurance for both you and your spouse as well as $1 Million (minimum) Umbrella liability policy to protect your family.  Best wishes!

2Birds1Stone

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Re: How am I doing? WWMMMD (What would MMM do)
« Reply #4 on: December 02, 2018, 06:26:34 AM »
Given everything going on with MMM, he would probably get a really good pre-nup if he was pre-FI and pre-marriage.

Villanelle

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Re: How am I doing? WWMMMD (What would MMM do)
« Reply #5 on: December 02, 2018, 06:47:36 AM »
Is there some reason to think you would need to cover all expenses without the pension?  Am I correct that it is inflation-adjusted?

I think it will make sense to calculate again in a couple years once you are somewhat adjusted to parenthood, but you seem to be well along the path.  Congratulations!