The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: imustacheyou124 on November 28, 2018, 07:58:58 AM
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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
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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 (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153) for the generic advice.
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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.
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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!
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Given everything going on with MMM, he would probably get a really good pre-nup if he was pre-FI and pre-marriage.
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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!