I want to start off by saying that I would like folks to assist me without judgment. Of note, I have a fear of money. I have a fear of making money, a fear of spending money, a fear of letting go of money, and a fear of using money for anything other than basic necessities and to pay the bare minimum on anything (including lines of credit).
Damn, but that must keep your mental space really busy!
Keep learning and you'll find that most of those fears should either be tossed in the dustbin or be marked down as mere concerns, not fears.
Personal finance isn't all that complicated. Where people get messed up with it is when they bring mental baggage into the equation and do foolish things because of that.
As you learn, just do it. After awhile it will become routine.
I’m 30 years old and I didn’t think I would live to make it to 30, but by 27 I realized that I will (more on that someday!).
Is this based on a known medical condition or just a debilitating feeling that would be the result. I made friends with someone and discovered they had the latter issue. After a year or so of dithering about the FI info I gave him, he just decided to give it a try. 3 years later he's happy, full of purpose, with attainable goals that are well beyond anything he ever dreamed of before, and happy. Changing his actions changed his attitudes as he learned "this stuff works!"
1. Adopt two kids. I will do this through foster care by age 35; ideally, infants or toddlers. I’ve been single my entire life, so I don’t expect to have a life partner – and it’s not something I’m actively pursuing. So, we should assume one income.
God bless you for doing this. If I became Emperor of my country the first thing I would do would be to make adoptions inexpensive and the typical adoption process fully resolved within 6 months.
As for not expecting to find a partner, prepare to be surprised. Now that you're moving forward with actionable plans, you'll find that attitude infects other parts of your life, too. You'll become more attractive as your self-confidence increases. As your fears evaporate or drop down to mere concerns, you'll be more pleasant to be with.
I'll give you a piece of advice that worked for me. I put some real thought into what kind of woman I wanted to marry. And then, I asked myself, "What kind of person would I want to be that would also be attractive to that kind of woman?" And then I set out to change myself to become more like that goal. Worked like a champ, too.
2. Own a home. At 45 (or by 45), I would like to own a home. In my research, I’ve read that one should not buy a home more than 3 or 4x their income. So, my ideal mortgage would be $300k and I would like to put down 20% to avoid PMI.
Wrong. The ideal mortgage is a whole lot less than 3 or 4x your income. That 3x ratio is a "Dear God! Don't go over this!" guideline, not a "Spend this much, it's great!" guideline.
You'll find your finances are much more secure and your FIRE journey much faster if you can get your mortgage down to 2x your income or less.
3. Get rid of student loan debt. I have a total of $120,000 in student loan debt which continues to accumulate interest. If I stay in the government sector, this will be forgiven at age 38 with PSLF. I will face a tax bill, no doubt.
I've read quite a few horror stories about loan servicers screwing this up and people not getting the work credit they should have gotten. Years worth of credit lost! If I were in your shoes, I would verify your work credit totals in writing each and every single year. That way, you can fix any problems while they are easier to fix.
6. FICO score to 800. My FICO score is at 600 currently for the dumbest reasons, which I will highlight later in the post.
Yep, get that fixed!
Rent: $1150 -- Can you cut that with a roommate? That would let you up your charitable giving without slowing down your path to FI. Plus, you'll double (or more!) the number of people you know if you get to meet your roommate's friends. Your new best friend or lifetime mate could be one of those people.
Cell: $91/month -- Yikes! Cut that in half, at least.
Credit card 1: $25 (min. only) -- Pay that shit off.
Credit card 2: $25 (min. only) -- Pay that shit off.
Two life insurance policies: $46.96 -- You're single, have no kids. If you have enough that your estate can pay for a funeral so your relatives don't have to, you don't need this. Unless you have health reasons to believe you would have trouble getting it later in life when you have kids and need it... Is this term life or whole life? Get term life.
Overall, your debt and spending is pretty good.
• 401k AND 457: 2% Annual returns???!! Dear God, what the hell do you have it invested in? It sounds TERRIBLE. HORRIBLE. ROBBING YOU BLIND. Give us an update with your investment choices in these, with what the funds are and their fees.
• $42,000 cash savings (saved over three years). Unless you're in an industry where lengthy unemployment is the norm, that's plenty. Invest for growth with your new savings.
>1. Since PSLF kicks in at 38, should I still attempt to aggressively tackle the debt before then?
Not if you know that you're actually getting work credit and you keep it on track. Though as a taxpayer, I wouldn't mind it if you did. :)
2. Do I invest more in 401k/457?
Max them if you can.
3. Do I open ROTH accounts?
If you can get your marginal tax rate down to a pretty low one, I would.
4. What would taxable investing accounts look like? I’m deathly afraid of investment accounts. I’m trying to alleviate this fear of losing all of my money.
Have you read JL Collins Stock Series? (Google that phrase and it will pop right up.) The antidote to fear in this case is knowledge. Read it. Then read it again. Yes, I said "AGAIN". Then re-read the sections about market crashes. Your fear should go away.
As for what to invest in, I would suggest Vanguard's VTSMX or VTSAX (depending upon how much money you start out with, VTSMX becomes VTSAX when you've got enough invested). For more international exposure, I would go with VGTSX or VTIAX (with the same deal on fees as the other two).
But read the Collins stock series first, then you'll know why I recommend it.
5. I have a low deductible health account (and do need it), should I still get an HSA?
Sure, especially if you can decide where that money gets placed.
6. Do I begin 529 accounts now?
Hell no. Unless you've already maxed out all the other tax-sheltered approaches and are also setting aside a goodly amount in taxable accounts, too.
7. I spend $47/month on two life insurance policies (one for 10k another for 15k). Do I cancel?
Yes. Didn't realize they cover so little.
8. Is it “wise” to donate money given that I want to retire at 45?
It's good for your soul. I have no problem with it. Good life advice is decide what kind of person you want to be and practice doing what that kind of person would do as early as possible.
9. Is 45 a possible retirement age?
Hell, yes, for your situation.
10. Is $1.5 mil realistic?
Yes, it's completely believable if you start as you are and adjust as needed as you go along. Might do it a bit earlier, might take a couple years more.
Good luck!