I posted my original case study in 2015. My family and I have had quite a few changes since then so I wanted to get my case back out here for an update and hopefully some fresh new advice as we continue lurking in these waters.
PERSONAL:
33, married (stay at home wife, 32) w/ 3 kids (8, 6, 3) in south of Houston, TX.
IN THE "BANK"
Bank: $56k (checking)
Company 401k (Vanguard): $107k [Before-Tax: $68.7k, Success Share: $4.7k, Post 1986 After-Tax: $3.6k, Roth: $21.2k, SSF Roth: $300, Company Contribution: $82k, QNEC: $8)
I maximize my "traditional" contribution every year and my company matches 5%.
Personal IRA (Wells Fargo): $103k
Brokerage (Wells Fargo): $51.3k
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TOTAL: $317k
INCOME
Income before taxes: $126k/yr
Take-home-pay: $6700/m (after taxes, healthcare, 401k, unemployment benefit, etc)
EXPENSES (MONTHLY)
AT&T Cell Service: $90.00
Car Insurance: $150.00
Electricity: $100.00
Utilities: $125.00
Church Tithing: $600.00
Netflix: $15.00
Hulu: $9.00
Dollar Shave Club: $3.00
Supplemental Life Insurance: $60.00
Internet: $77.00
Brokerage Contribution: $2000
Fitness: $265
Eating Out: $100.00
Miscellaneous: $200.00
Groceries: $300.00
Gas: $300.00
Vehicle: $530.00 [$24k loan @ 6%...I know, I know this is definitely anti-FIRE]
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TOTAL: $4924.00
MONTHLY LEFTOVER (AVG): ~$1776.00
Over the last 3 years we made some really good moves toward the FI part; paid off all our loans, started investing more, etc. But also made some not so great financial, but great personal moves, like vacations with the family and some just the wife and I. Over the last year and a half or so I think we've scratched those itches and are ready to strap back in and buckle down.
I've made a few promotional moves at work, all in preparation for a management position in the next few years, but was just recently put into a position that I'm not overly enthusiastic about. My wife currently stays at home with the kids and we love it. She is a licensed SLP and I've been trying to convince her to take on some part-time work. I would love for both of us to be home "part-time" with out kids but as a lot of people trying to make these moves on these threads, am reluctant to do it. I make great money and we live an awesome life with very little stress. But there's a part of both of us that just wants us to be together all the time.
The biggest question of all is "can we make it work?" Which I'm sure we can, we would just need to make some lifestyle changes. But then as we talk about it more and more other questions begin cropping up that we haven't really been focused on...health insurance, college tuition, unforeseen expenses, etc.
Sort of looking for both side of the advice coin with this one. Financially, are we in a good spot; and personally what are your guys' recommendations?
Also some other sort of opinion questions...
Should I pay off the truck now with what I have in the bank? Sell it and get something used? Ride it out to 2023 payoff?
Should I reduce my company 401k contribution, bring that money home post-tax and invest in the brokerage for liquid assets versus retirement money that I can't touch without penalty until 59.5?
Currently don't have home or windstorm insurance since the house is paid off. Should I?
Thanks in advance