Hello,
I've been reading the blog for about 6 months now. Made quick small changes in my lifestyle (quit gym, cancelled cable, switch to republic, etc.) I always thought I was frugal, turns out I have a lot of room for improvement! I am obsessed with the idea of FI but I am not sure how much we will need to stash before we get there.
I am 30 and my husband is 34. Our current yearly expenses are $36,000 which includes the mortgage payment of $1234 a month. Let's say I wanted to retire with expenses of $30,000- how much do I need stashed?
Current Assets:
IRA $128,000
401K $32,000
TSP $12,000
Total: $172,000
Debts:
Our outstanding mortgage is about $20k less than the zillow estimate so I figure that a wash as far as debts go.
School loan: $2,250 (will be paying off ASAP)
Car loans: $1,900 (will be paid off in next 4 months)
This is where my biggest question is. My husband is a veteran and receives $1,680 each month tax free as a disability benefit (goes up each year with COLA.) This covers $20,000 of our needed $30,000 a year! I am not sure how to factor this amount into our needed stash because the payments would stop in the event of his death. Should we just plan on that money coming in and purchase life insurance for him to protect me in case something happens to him?
If there is an easy calculator to put this in just point me in the right direction :)
Let me know if additional information would be useful and I will supply it!