Category | Monthly | Comments | Annual |
Salary/Wages for person #1 | $8,833 | $106,000 | |
Pretax Health Ins. | $333 | $3,996 | |
Pretax Vision/Dental Ins. | $14 | $168 | |
HSA/Pension | $33 | $390 | |
FICA base salary/wages | $8,454 | $101,446 | |
401(k) / 403(b) / TSP / etc. | $795 | Room to increase? | $9,540 |
Employer Match | $530 | $6,360 | |
Income subject to IRS tax | $7,659 | $91,906 | |
Federal Total Income | $7,659 | $91,906 | |
Federal tax | $1,433 | 2015 rates, S, stand. ded., 0 exempt. | $17,195 |
State/City tax | $407 | Guess, using 5.70% * Fed. Taxable | $4,880 |
Soc. Sec. | $524 | Assumes 1 earner paying | $6,290 |
Medicare | $123 | $1,471 | |
Total income taxes | $2,486 | $29,835 | |
Income before other expenses | $5,173 | $62,070 | |
Monthly Average Expenses: | |||
Mortgage | $550 | $6,601 | |
Property Tax | $91 | $1,092 | |
Mortgage Insurance | $72 | $862 | |
Beauty Shop | $5 | $60 | |
Cable TV | $14 | $168 | |
Car Insurance | $75 | $900 | |
Car Maintenance, Registration, etc. | $460 | $5,520 | |
Clothing/Shoes | $30 | $360 | |
Dining (Pizza, Restaurant, etc.) | $560 | $6,720 | |
Electricity | $100 | $1,200 | |
Emergency Fund | $2,167 | $26,000 | |
Entertainment | $125 | $1,500 | |
Fuel/Public Transport | $70 | $840 | |
Gas/Oil for heating | $12 | $144 | |
Groceries | $115 | $1,380 | |
Hair Care | $25 | $300 | |
Home Alarm System | $40 | $480 | |
Internet | $55 | $660 | |
Landscaping/Yard work | $60 | $720 | |
Phone (cell) | $90 | $1,080 | |
Subscriptions (paper/magazines/etc.) | $15 | $180 | |
Water/Sewer | $40 | $480 | |
Wine/Beer/Tobacco | $50 | $600 | |
Non-mortgage total | $4,271 | $51,246 | |
Other tax-advantaged investments: | |||
Roth IRA | $350 | Room to increase? | $4,200 |
Total Expense | $5,171 | $62,048 | |
Total to invest | $2 | $23 | |
Summary: | |||
"Gross" income | $8,833 | $106,000 | |
Income taxes | $2,486 | $29,835 | |
After-tax income | $6,347 | $76,164 | |
IRA+401k/403b/TSP/457 (Savers' credit) | $1,145 | $13,740 | |
Living expenses | $5,200 | $62,402 | |
After-tax investable | $2 | $23 | |
Time to FIRE?: | |||
Time to FIRE | 18 | years | |
Safe Withdrawal Rate | 4.00% | percent | |
Real return on tax-deferred investments | 6.00% | percent | |
Real, after tax, return on taxable investments | 5.10% | percent | |
Expected retirement total tax rate | 10.00% | ||
Current Savings | |||
Taxable | $73,000 | ||
Tax-deferred (e.g. trad. IRA/401k) | $56,000 | ||
Roth | $19,000 | ||
Projected Savings at Retirement | |||
Taxable | $366,820 | ||
Tax-deferred (e.g. trad. IRA/401k) | $651,243 | ||
Roth | $184,036 | ||
Total projected stash | $1,202,099 | ||
Projected Expenses in Retirement | |||
Non-loan, non-work expenses | $51,246 | ||
Income taxes | $5,694 | ||
Total | $56,940 | ||
Stash needed for retirement @4.0% SWR | $1,423,510 | ||
Need $221,411 more. |
Filing Status | 1 | 1=S, 2=MFJ | |
# of earners | 1 | ||
Total Income | $91,906 | ||
Std. Deduct. | $6,300 | ||
Act. Deduct. | $6,300 | ||
AGI | $91,906 | ||
MAGI | $91,906 | ||
Taxable | $85,606 | ||
Tax | $17,195 | ||
Savers' credit | $0 | ||
Tax after n-r credit | $17,195 | ||
Child Tax Cred. | $0 | ||
EIC | $0 | ||
Net Tax | $17,195 | ||
Monthly | $1,433 | ||
State tax | $4,880 | 5.7% | |
Prop tax | $1,092 | .% | |
Item. Deduct. | $5,972 |
Can I make the 18k max contributions and the 5.5k IRA contributions?Yes!
I don't think I have an option for an IRA at work so I'm assuming it would be created with after tax money and a tax write off at the end of the year?
In #3 are you suggesting taking my after tax cash and max out my 401k today? My current plan is to change my contribution % for the rest of the year to hit 18k.No, the "max your 401k" comment is all pre-tax. With your high income and single filing status, you need to cut your taxable income as much as possible. So you're on the right track by changing your contribution up to the maximum pre-tax that's allowed.
My grocery bill is high because I had no goal and vision so I didn't care to keep track of it. Once I set some goals for myself I shouldn't have an issue cutting it by 75%.
I'll check what my car insurance covers.
The mortgage insurance is the PMI since I only put 5% down. I think it would be a good idea to pay it down.
I need to look into the 401k rules again for some reason I was thinking the max was 18K with employer matching combined. It sounds like I can change my 401k contribution to ~17% next year if I don't have to worry about employer matching impacting the total. I can adjust my current contribution and do a catch up for the rest of the year.
Category | Monthly | Comments | Annual |
Salary/Wages for person #1 | $8,833 | $106,000 | |
Pretax Health Ins. | $218 | $2,620 | |
Pretax Vision/Dental Ins. | $14 | $168 | |
HSA/Pension | $275 | $3,300 | |
FICA base salary/wages | $8,326 | $99,912 | |
401(k) / 403(b) / TSP / etc. | $1,500 | At maximum | $18,000 |
Employer Match | $530 | $6,360 | |
Income subject to IRS tax | $6,826 | $81,912 | |
Other ordinary income | $2 | $24 | |
Federal Total Income | $6,828 | $81,936 | |
Federal tax | $1,192 | 2015 rates, S, item. ded., 0 exempt. | $14,301 |
State/City tax | $267 | Guess, using 4.24% * Fed. Taxable | $3,207 |
Soc. Sec. | $516 | Assumes 1 earner paying | $6,195 |
Medicare | $121 | $1,449 | |
Total income taxes | $2,096 | $25,151 | |
Income before other expenses | $4,732 | $56,785 | |
Monthly Average Expenses: | |||
Mortgage | $607 | $7,284 | |
Property Tax | $44 | $532 | |
Home/Rent Insurance | $31 | $372 | |
Beauty Shop | $5 | $60 | |
Cable TV | $14 | $168 | |
Car Insurance | $60 | $720 | |
Car Maintenance, Registration, etc. | $50 | $600 | |
Clothing/Shoes | $30 | $360 | |
Dining (Pizza, Restaurant, etc.) | $250 | $3,000 | |
Electricity | $150 | $1,800 | |
Entertainment | $175 | $2,100 | |
Fuel/Public Transport | $70 | $840 | |
Gas/Oil for heating | $15 | $180 | |
Groceries | $155 | $1,860 | |
Hair Care | $20 | $240 | |
Home Alarm System | $30 | $360 | |
Internet | $7 | $84 | |
Landscaping/Yard work | $60 | $720 | |
Subscriptions (paper/magazines/etc.) | $15 | $180 | |
Travel/Vacation | $150 | $1,800 | |
Water/Sewer | $40 | $480 | |
Non-mortgage total | $1,371 | $16,456 | |
Loans: | |||
Car Payment | $400 | $4,800 | |
Other tax-advantaged investments: | |||
Roth IRA | $458 | Room to increase? | $5,496 |
Total Expense | $2,836 | $34,036 | |
Total to invest | $1,896 | $22,749 | |
Summary: | |||
"Gross" income | $8,835 | $106,024 | |
Income taxes | $2,096 | $25,151 | |
After-tax income | $6,739 | $80,873 | |
IRA+401k/403b/TSP/457 (Savers' credit) | $1,958 | $23,496 | |
Living expenses | $2,486 | $29,828 | |
Non-mortgage loans | $400 | $4,800 | |
After-tax investable | $1,896 | $22,749 | |
Time to FIRE?: | |||
Time to FIRE | 8.5 | years | |
Safe Withdrawal Rate | 4.00% | percent | |
Real return on tax-deferred investments | 6.50% | percent | |
Real, after tax, return on taxable investments | 6.50% | percent | |
Current Savings | |||
Taxable | $40,000 | ||
Tax-deferred (e.g. trad. IRA/401k) | $53,000 | ||
Roth | $28,500 | ||
Projected Savings at Retirement | |||
Taxable | $353,437 | ||
Tax-deferred (e.g. trad. IRA/401k) | $355,833 | ||
Roth | $108,535 | ||
Total projected stash | $817,805 | ||
Projected Expenses in Retirement | |||
Non-loan, non-work expenses | $16,456 | ||
Change in spending after RE | $7,200 | /year | |
Total | $23,656 | ||
Total loan principal due at FI | $80,149 | ||
Stash needed for retirement @4.0% SWR | $671,560 | ||
Have $146,246 extra. |
Filing Status | 1 | 1=S, 2=MFJ | |
# of earners | 1 | ||
Total Income | $81,936 | ||
Std. Deduct. | $6,300 | ||
Act. Deduct. | $7,909 | ||
AGI | $81,936 | ||
MAGI | $81,936 | ||
Taxable | $74,027 | ||
Tax | $14,301 | ||
Savers' credit | $0 | ||
Tax after n-r credit | $14,301 | ||
Child Tax Cred. | $0 | ||
EIC | $0 | ||
Net Tax | $14,301 | ||
Monthly | $1,192 | ||
Mtg. Int. (approx.) | $4,170 | .% | |
State tax | $3,207 | 4.24% | |
Prop tax | $532 | .% | |
Item. Deduct. | $7,909 |
So I've made some adjustments.Indeed you have - well done!
I'm currently all in with VTSAX/VTI in my IRA, ROTH IRA, and taxable. The 401k is in all low cost Vanguard funds(VIMAX,VSMAX,VFIAX).Certainly defensible, and may well be optimal.