Topic Title: Would like to have $600k in invested assets by Age 36, 9 years from now.
Why? I'd like to semi-retire/start working part-time around that age if I can, to pursue creative interests, side businesses, hobbies, slow travel with a fam. I'm already pursuing these things to some extent now.
Life Situation: IRS filing status- Single
number & ages of dependents: none - would like to have a wife and a family of a couple kids one day.
SE USA, 27
Gross Salary/Wages: 80,000
Assets: Current Employer 401k Plan (invested in Passively Managed S&P 500-tracking fund, at Total Annual ER of 0.05%) = $56k
Former Employer 401k Plan (invested in Vanguard Target Retirement Trust 2055 at ER of 0.06%) = $32k
Roth IRA (VTSAX) = $25k
Traditional IRA (VMFXX) (Deciding what to do with this money - thinking of moving towards an asset allocation like the "Golden Butterfly" from PortfolioCharts.com, so would need to buy some Small Cap value, Bonds, and Gold) = $7.8k
Vanguard Brokerage: (VTSAX) = $25k
Payflex Direct HSA investment account: (not invested, just sitting there) = $0.2k (200 dollars)
Payflex HSA (regular, non investment account): $2.5k
Emergency Fund: $5kTotal Assets: $152.5k
Liabilities: none, other than my credit card amount for each month's current expenses, which I pay off every month
Specific Question(s): At a high level, I'm looking at it like this:
Goal: $600k NW
Current: $150k NW
Gap: $450k
time to goal: Age 36 - Age 27 = 9 years
Amount I need to 'save'/increase my NW by each year: $50k
Amount I generally increase my NW by each year since I've started working:
2017 = $57k
2016 = $30k
2015= $23k
So if I can keep this $50k+ thing going, I'm pretty much on track, without too much "stretch" required. But honestly, I think my expenses could come down a lot when I see people posting "sub $200 month Grocery bill", and mine's higher than that, and I'm only feeding one person..me.
To some extent, you gotta get out there and eat at some restaurants with friends, take trips with friends, pursue things your interested in (hobbies).
I should probably come up with a stretch goal of $800k by 36, or $1m by 40, or more in line with this forum's way of thinking (more money does not equal more happiness, but earlier money does)... $600k by 34. oooh
I'm obviously having some struggles/trouble with the spreadsheet too, so some help on those would be great. See my attachment.
1) My
Federal withholding box (starts in F57 of Calculations tab) says my expected refund this year is going to be $3,906. (I don't think that's right, but can't figure out why)
2) My
"After tax investable" shows as $118 each month, and yet I'm able to throw an extra $300 into my Brokerage account each month. That doesn't seem right..like my expenses are off or something up in the boxes A1:D20 are off. Let me know what you think.
3) I don't understand how to use the
"Total Tax Rate vs 401k Contribution Table" at all. Can someone interpret the current results it is showing? then maybe I can understand it and fiddle with it.
4) The
Progress to FI table shows me as Financially Independent right now. I think because of the estimate I put in for SS income (which I pulled down from Personal Capital's website). That can't be right. Especially when this sheet doesn't even consider my current investments/NW. Do you see anything wrong with what I have as the inputs?
| Paycheck frequency: | 2X/Month | Annual | |
| Paycheck Items | Earner #1 | Earner #2 | Annual |
Gross Salary/Wages | $3,333 | $0 | $80,000 |
| Pretax Health/Dental/Vision Ins. | $15 | $0 | $351 |
| Employer-sponsored HSA | $144 | $0 | $3,450 |
FICA base salary/wages | $3,175 | $0 | $76,199 |
|
| 401(k) / 403(b) / TSP / etc. | $800 | $0 | $19,200 |
W-2 Box 1 | $2,375 | $0 | $56,999 |
|
| ESPP/After-tax 401k | $255 | $0 | $6,126 |
| Employer Match | $200 | $0 | $4,800 |
| Net paycheck before tax | $2,120 | $0 | $50,873 |
|
| Non-paycheck income | Annual | Annual | Annual |
| Qualified dividends | $238 | | $238 |
|
| $57,237 | $0 | $57,237 |
|
| Subtractions for AGI | 2X/Month | Annual | Annual |
| Personal HSA | $144 | $0 | $3,450 |
| Traditional IRA | $229 | $0 | $5,500 |
1040 AGI | | | $48,287 |
|
|
| Payroll Taxes | 2X/Month | Annual | Annual |
| Social Security | $197 | $0 | $4,724 |
| Medicare | $46 | $0 | $1,105 |
| Income Taxes | | | |
| Federal tax | $172 | 2018, S, std. | $4,135 |
| State+local tax | $100 | GA state calc'n | $2,407 |
| Total income taxes | $515 | | $12,372 |
|
| Monthly | | |
| Income before other expenses | $2,482 | | $29,789 |
|
| Monthly Average Expenses | | Comments | |
| Rent | $450 | | $5,400 |
| Home/Rent Insurance | $10 | | $120 |
| Bicycle Maintenance | $4 | | $52 |
| Car Insurance | $86 | | $1,035 |
| Car Maintenance, Registration, etc. | $21 | | $258 |
| Charitable contributions | $596 | Input to Item. Ded. | $7,155 |
| Christmas/Holidays | $40 | | $474 |
| Clothing/Shoes | $16 | | $195 |
| Credit card fees | $0 | | $3 |
| Dining (Lunch/Dinner/Etc.) | $113 | | $1,350 |
| Dry Cleaning | $2 | | $18 |
| Electricity | $23 | | $274 |
| Entertainment | $9 | | $103 |
| Financial Fees | $3 | | $30 |
| Fuel/Public Transport | $131 | | $1,573 |
| Gas/Oil for heating | $15 | | $180 |
| Groceries | $256 | | $3,066 |
| Hair Care | $15 | | $174 |
| Household; Maintenance | $15 | | $180 |
| Internet | $17 | | $203 |
| Life/LTD Insurance | $5 | | $63 |
| Medical (Doctor, Hospital, etc.) | $82 | Input to Item. Ded. | $981 |
| Phone (cell) | $78 | | $932 |
| Sports/Recreation | $142 | | $1,702 |
| Travel/Vacation | $230 | | $2,755 |
| Work/Professional fees | $8 | | $100 |
Non-mortgage total | $2,365 | | $28,375 |
|
| |
|
Total Expense | $2,365 | | $28,375 |
|
| Total to invest | $118 | | $1,414 |
|
| Summary: | | | |
| "Gross" income | $6,686 | | $80,238 |
| Income taxes | $1,031 | | $12,372 |
| After-tax income | $5,656 | | $67,866 |
|
| IRA+401k/403b/TSP/457 | $2,058 | $0 | $24,700 |
| HSA | $575 | $0 | $6,900 |
| ESPP | $511 | $0 | $6,126 |
| Living expenses | $2,394 | | $28,726 |
| After-tax investable | $118 | | $1,414 |
|
|
|
|
|
| Time to FI?: | | | |
| Extra income after RE (pension, SS, etc.) | 28000 | /year | |
| Guess at time to FI | 9.9 | years | |
| Safe Withdrawal Rate | 4.00% | percent | |
| Real return on tax-deferred investments | 5.00% | percent | |
| Real, after tax, return on taxable investments | 4.25% | percent | |
|
| Current Savings | | | |
| Projected Savings at Retirement | | | |
| Taxable | $90,464 | | |
| Tax-deferred (e.g. trad. IRA/401k) | $366,370 | | |
| Roth + HSA | $85,693 | | |
| Total projected stash | $542,527 | | |
| | | |
| Projected Expenses in Retirement | | | |
| Non-loan, non-work expenses | $28,275 | | |
| Annual non-tax retirement expense | $28,275 | | |
| Total | $28,275 | | |
| | | |
| Stash needed for retirement @4.0% SWR | $6,884 | | |
| Have $535,643 extra. | | |
| Filing Status | 1 | 1=S, 2=MFJ, 3=HOH | |
| Adult #1 | | |
| Age | 27 | | |
| Full-time student? | 0 | 0 | |
|
| AGI | $48,287 | | |
| Std. Deduct. | $12,000 | | |
| Act. Deduct. | $12,000 | | |
| Exemption | $0 | | |
|
| Taxable | $36,287 | | |
| 1040 Tax | $4,135 | | |
| Tax after n-r credit | $4,135 | | |
| Net Tax | $4,135 | | |
|
| State tax | $2,407 | GA | |
| Charity | $7,155 | | |
| Item. Deduct. | $9,562 | | |
| Version | V11.11 | | |
