Case Study - New to the game, anything missing? Oversights?

[minimally]

I’ve been a huge fan of this forum for about the past 9 months or so. I would love to get some feedback on my current situation, as a quick spot check. I’ve been very focused on the investment aspect of it for a while now (boglehead style), but I am just recently expanding into the broader more holistic “life” part of it and all the related MMM principles. There are specific pieces I think about more than others, but would be curious to hear what pops out to people. I welcome any and all advice (even if it is harsh). A new perspective is always helpful, and I am sure there are things I’ve never even thought about. Thank you all very much, your wise wisdom is appreciated. I kept this relatively high level, but I am happy to get into any of the specifics.

Basic Info:
Mid/late-twenties and single, but I do hope to start a family one day
Live in HCOL area (could see myself leaving, but not anytime soon)

Financial Assets/Investments:
-Liquid Cash (in checking and savings bank account): $90k
-Vanguard: $1 million, diversified across index funds (80% equity, 20% tax free fixed income)
Started as a fortunate windfall of $700k and I am basically pretending it does not exist for psychological reasons, but with some minimal management
-401k: $200k (maxing out every year, company contributes as well)
-Company stock: $40k acquired through company stock program as well as bonuses (large stable company, very correlated to sp500). I can see the argument for selling this, but I have kept it mainly for tax reasons.

Expenses/Obligations:
-Rent $1,650 a month including utilities (I live downtown in very HCOL area)
-Completely debt free (no mortgage, student loans, car payments, etc)
-I have been spending roughly 40k a year.
The main components of that are below.
   Rent: $19.8k, half of $40k already there!
   Transportation: $1K, including both work commute and personal
   Travel/Vacation: $5k, highly valued but I try to save on the margin and travel hack, deal hunt, etc.
   Food/Drinks: $4k, includes groceries, eating out, going to bars with friends
   Entertainment/"Social": ??, don't have a good number for this as it can really vary. However, that doesn't necessarily mean I don't carefully
   evaluate each of these expense very deliberately and thoughtfully. But as you imagine as an outgoing, single, mid/late 20s living in an urban
   area, this can definitely add up. This is my current area of focus for cost cutting opportunities
As a side note, I rarely accumulate fancy items and prefer to spend it on experiences with friends/family or solo travel.

Job:
-$100k/year current salary with highly variable bonus $70K +/-
-I work in financial services, but I am considering detouring into something less corporate and perhaps doing some extended travel for a while. Current job is not the most engaging, but is great in that it offers great hours and overall work/life balance, which allows the ability to travel and pursue personal hobbies/passion more than many jobs would (and good pay).
-Aside from job, no other sources of income.

Any glaring oversights? What sticks out to you?

[spicykissa]

If you are interested in the more 'holistic/life' aspects, I suggest actually looking at/listing your expenses (follow the case study sticky). This is too high-level for me. I may be wrong, but I have a feeling you don't really know much you spend if your estimate is so rough. I think you're probably doing fine (quite well, in fact!), but there is value in being mindful about your spending, especially if you want to make a career change.

[Morning Glory]

Congratulations, you never have to work again!!! Your spending matches the 4% SWR for the 1 million, plus you have the cash and 401k for a safety margin. Take some time and decide what you really want to do, then do it.

[minimally]

If you are interested in the more 'holistic/life' aspects, I suggest actually looking at/listing your expenses (follow the case study sticky). This is too high-level for me. I may be wrong, but I have a feeling you don't really know much you spend if your estimate is so rough. I think you're probably doing fine (quite well, in fact!), but there is value in being mindful about your spending, especially if you want to make a career change.

I appreciate that feedback, thanks. I will shortly add in a more detailed breakdown of the expenses. I initially left it out intentionally. This may be the wrong approach, but I'm trying to tackle this from a topdown approach first. Rather than I getting into the weeds of the budget itself, I am first evaluating how that $40k fits into the larger picture with all the other pieces. There is definitely value in dissecting the components of that, but I just personally don't think I'm there yet. And don't get me wrong, I am thinking everyday about how to lower this overall number and where I can do some damage. I just don't use strict category limits and don't have more than 3-4 main categories as long as the total number is something I can live it.
I took a closer look at the numbers. For 2017 I am on pace for $42k and 2016 spending was $39k. So I think $40k is a decent estimate to use.
 

Congratulations, you never have to work again!!! Your spending matches the 4% SWR for the 1 million, plus you have the cash and 401k for a safety margin. Take some time and decide what you really want to do, then do it.

Thanks for the feedback! I expect the spending to go up with a family so I haven't quit just quite yet.

[zolotiyeruki]

If you are interested in the more 'holistic/life' aspects, I suggest actually looking at/listing your expenses (follow the case study sticky). This is too high-level for me. I may be wrong, but I have a feeling you don't really know much you spend if your estimate is so rough. I think you're probably doing fine (quite well, in fact!), but there is value in being mindful about your spending, especially if you want to make a career change.

I appreciate that feedback, thanks. I will shortly add in a more detailed breakdown of the expenses. I initially left it out intentionally. This may be the wrong approach, but I'm trying to tackle this from a topdown approach first. Rather than I getting into the weeds of the budget itself, I am first evaluating how that $40k fits into the larger picture with all the other pieces. There is definitely value in dissecting the components of that, but I just personally don't think I'm there yet. And don't get me wrong, I am thinking everyday about how to lower this overall number and where I can do some damage. I just don't use strict category limits and don't have more than 3-4 main categories as long as the total number is something I can live it.
I took a closer look at the numbers. For 2017 I am on pace for $42k and 2016 spending was $39k. So I think $40k is a decent estimate to use.
 

I think it's worth taking a step back and figuring out what exactly makes you happy, what you want to do with your life, etc.

Congratulations, you never have to work again!!! Your spending matches the 4% SWR for the 1 million, plus you have the cash and 401k for a safety margin. Take some time and decide what you really want to do, then do it.

Thanks for the feedback! I expect the spending to go up with a family so I haven't quit just quite yet.

At the same time, though, some things will go down (drinks with friends, for example).  If you decide to move to a LCOL with your family, many of your expenses will go down.

[minimally]

@zolotiyeruki

I completely agree. and good point on the second part! I didn't really factor that is as much. Thanks for the feedback.

[marty998]

You've done well to grow the inheritance(?). Most people would have found a way to blow it up by now.

You will need to protect yourself when partnering up - it is likely you will enter a marriage with a disproportionately large amount of assets.

Seek out legal advice regarding trusts, pre-nups etc if required.

[vseddie]

Thought about getting in a house mate and reducing your expenses by 10k/yr? I'm in the process of doing that at the moment.

[PDXTabs]

Thought about getting in a house mate and reducing your expenses by 10k/yr? I'm in the process of doing that at the moment.

The OP is FI, grossing 170K a year, and has maxed out his 401(k) every year. I don't think that they need a housemate.

[minimally]

You've done well to grow the inheritance(?). Most people would have found a way to blow it up by now.

You will need to protect yourself when partnering up - it is likely you will enter a marriage with a disproportionately large amount of assets.

Seek out legal advice regarding trusts, pre-nups etc if required.

great point. i hadn't really given much that about that. i'll keep my guard up!

Thought about getting in a house mate and reducing your expenses by 10k/yr? I'm in the process of doing that at the moment.

The OP is FI, grossing 170K a year, and has maxed out his 401(k) every year. I don't think that they need a housemate.

 I currently have a housemate. I actually prefer having one right now for various non-financial reasons. I like the social aspect of it and enjoy the economies of scale for various household tasks (cooking in large batches, etc).