*3 Year Update
Life Situation: MFJ, 3 kids (7,5,3), MCOL WI; DH-39, DW-37
Gross Salary/Wages: 2021 = ~$292,000
Individual amounts of each Pre-tax deductions: 401k=$39,000 HSA= $3,600 FSA= $1,200 Backdoor Roth- $6,000
Other Ordinary Income: None
Qualified Dividends & Long Term Capital Gains: $30,000- employer stock option exercised- total effective tax rate for 2021 = 20% state/federal
Rental Income, Actual Expenses, and Depreciation: N/A
Current expenses: I use personal capital for tracking our averages. My intent with this post is not to get face punches on our budget items as I'm a believer that if you avoid the big problems, the extra $500/month in luxury items isn't significant long term vs. increasing earnings.
Average monthly spend: $7,000
Mortgage: $2,698.67 (P-$1,305.73, I-$560.48, T-$741.63, Ins.-$90.83) Value ~600k, 244k remaining
Assets:
PreTax: $1.23musd (401k, roth ira, ira)
PostTax: $450k (brokerage)
529: 82.5k
50% ownership family cabin: 100k
Saving/checking: 50k
Other items:
No consumer debt
Cars paid for
Mortgage is only liability
Current Savings Plan:
Maxing pretax vehicles (401k, HSA, Backdoor Roth, etc.)- ~$50,000/yr + employer match of ~$20,000
Refied 2.75% 15 year mortgage to have done by time oldest in college
529- Funding each kid at $3,330 annually- ~10k
After Tax- ~$50,000/yr to mix of Vanguard Index Funds + Individual stocks (80/20)
Question- On current track stache will reach 1.9musd at 45. Am I missing risk factors for DW downshifting now that would impact our ability to reach the above goals?
*Update- Stache reached 1.8musd in Dec '21 (age 39) prior to current pullback and is still at ~$1.7musd w/upcoming inflows in late Q1. We pulled trigger to downshift DW 3 years ago and have seen income go up due to promotions, merit increases, bonuses, etc. I'm starting to realize that 2008 scarred me pretty bad and I'm often running fire calcs from a mindset of fear vs. a mindset of abundance. Long way to say, pulling back for DW to downshift has had no impact to our plans.
Specific Question(s): DW would like to downshift from 100% FTE to 80% with Friday's off. Rationale is to provide relief to family who provide daycare for kids at no cost and increase time with family. Impact would be to salary only, no loss of benefits/bonus calc. Effective gross reduction from 98k to 78.5k. Our goal is to have the option to continue downshifting in career intensity at 45 if desired. DW would stay home tomorrow, DH likes job/industry and both plan to full FR at 55.
*Update- We are basically on coast fire at this point and DW pulling back to 80% and seeing no impact to cashflow/savings/investment gains has given us confidence to be more aggressive in plans. We'll continue to coast as we both mostly like our careers and have ample time off until the kids are through high school. I mostly lurk here but appreciate the few comments as they are helpful in taking the more optimistic view of what can be accomplished.