Hi Everyone,
I wanted to provide an update and receive more advice about our plan (see below). My biggest concern if we choose to move would be the lost income from DW job. Since March 2015 when I first posted this case study we sold the RV and paid off the line of credit. We are on track to have all debt paid off, except the mortgage, by June 2016. We are paying $5000-6000 per month towards our debt. Also, does it make more sense to pay off student loan first and then start saving more or pay some towards student loan and save a larger percentage. Thanks!
My wife (DW) and I (DH) would like to make a change in 2 to 3 years in order to spend more quality time with family, simplify our life, enjoy our hobbies more often, and escape the climate here in Minnesota. We also have three children ages 9, 7, and 2.5. We are leaning towards Colorado since I used to live there and find the climate conducive to our desired lifestyle. In addition, we have friends living there that could help us with the process of relocating. Our goal is for DW to retire in 2 to 3 years, move to Colorado, and I would work full time in my current profession.
Professions:
DH(44): A full time RN.
DW(42): A full time police sergeant.
Income & Benefits (monthly):
Combined gross income: $12,500
Combined net income: $10,000
The difference is from health ins, deferred comp, pension, and taxes.
Future Pensions:
DW: $4,000-$4,500 monthly DH: $1,200-1,500 monthly
Assets:
House $305,000
Savings $6000
MNDCP(Fidelity) $130,000
WROS (Fidelity) $88,000
SEP(Fidelity) $35,000
Roth(Fidelity) $3,600
tIRA(Fidelity) $5,600
403b(Fidelity) $1200
Liabilities:
House $175,000 (3.62% refi last fall to 15 yr loan)
Student Loan $50,000 (4.25%)
Credit Card $10,000 (0%) Basement project
RV $0 (SOLD)
Line of Credit $0 (PAID IN FULL)
Budgeted Expenses (monthly):
Cash $50
Clothing $80
Dry Cleaning $20
Food $800
Housing $150
Medical $25
Personal $110
Recreation $100
Transportation $490
Utilities $355
Liabilities $2,175
TOTAL $4,355