Hi everyone,
Great site, just started looking at it last month and have learned a lot already. I thought I should join to make things official and introduce myself. I honestly had never thought that much about early retirement until I meandered across this site while researching 529 savings plans, but am now pretty fascinated (and a little addicted).
I work for a local college and my wife works part time for the local government (also 29 years old). We have a one year old with hopefully more to come. We are planning on having two more children each two years apart (although wife is thinking three more children, but I'm not so sure on that My wife working part-time allows us to save some money on childcare as we can stagger our work schedules a little, but its still expensive especially for infant care (about $700/month). We are thinking of when our one year old gets a little older having him go to a daycare where he has more kids to play with and will also be less expensive on our wallet. We are big savers follow a philosophy of LBYM although it hasn't been too hard as we are very comfortable living basically and not needing the fancy toys or other items it seems that everyone "needs." A few of our stats:
Combined annual income: ~$90K
Mortgage: $165K (just refinanced into 15 years at 3.25%
Roth IRAs: $75,000
401k/403b: $80,000
taxable accounts: $95,000
No debts (other than mortgage)
$350k 30 year term life insurance policy for wife
$375k 30 year term life insurance policy for me
If I die my child also still receives tuition benefits through employer
Current Expenses per month
$1,400 mortgage/insurance/property tax payment
$700 child care
~$1,700 utilities/grocery/etc
My wife is on track to receive a small pension (although hasn't worked there long enough to be vested yet). I currently max out my 403b contributions while wife contributes 10% of salary (we need to fix this, but there are some weird rules on changing it that I need to research more through her employer). We also max out Roth IRA contributions, and just started putting money into a 529 savings plan for our child ($200/month). We receive pretty generous benefits from our employers medical, dental, long term care is 100% paid for both us and our child. She receives 6% of salary 401k match plus a small pension, while I receive 10% of salary 403b match. I focus most of my investments in passively managed funds, but play around with a few individual securities.
We both want to retire early, but don't really have an age goal. Its hard because of the long time frame to know what is reasonable given all the unknowns of investment environment/inflation/job security/etc. I also wrestle with the fact that through my work I receive very generous tuition benefits for my children. If I have my final and third child four years from now he/she will not be out of College until I'm 55 or so, which kind of puts an early retirement limit on me if I want/need to take advantage of the benefit. Of course I shouldn't complain if I retire when I'm 55, but I would like to have a bit more flexibility. I should also clarify that I receive significant TUITION benefits, but would still have to pay room and board (hence the 529 contributions). Anyway, I'm impressed if you read this far, I have lots of questions and want to glean as much information from folks as I can as well as contribute, but will leave that to another post. Thank you and look forward to any welcomes thoughts or advice!
Great site, just started looking at it last month and have learned a lot already. I thought I should join to make things official and introduce myself. I honestly had never thought that much about early retirement until I meandered across this site while researching 529 savings plans, but am now pretty fascinated (and a little addicted).
I work for a local college and my wife works part time for the local government (also 29 years old). We have a one year old with hopefully more to come. We are planning on having two more children each two years apart (although wife is thinking three more children, but I'm not so sure on that My wife working part-time allows us to save some money on childcare as we can stagger our work schedules a little, but its still expensive especially for infant care (about $700/month). We are thinking of when our one year old gets a little older having him go to a daycare where he has more kids to play with and will also be less expensive on our wallet. We are big savers follow a philosophy of LBYM although it hasn't been too hard as we are very comfortable living basically and not needing the fancy toys or other items it seems that everyone "needs." A few of our stats:
Combined annual income: ~$90K
Mortgage: $165K (just refinanced into 15 years at 3.25%
Roth IRAs: $75,000
401k/403b: $80,000
taxable accounts: $95,000
No debts (other than mortgage)
$350k 30 year term life insurance policy for wife
$375k 30 year term life insurance policy for me
If I die my child also still receives tuition benefits through employer
Current Expenses per month
$1,400 mortgage/insurance/property tax payment
$700 child care
~$1,700 utilities/grocery/etc
My wife is on track to receive a small pension (although hasn't worked there long enough to be vested yet). I currently max out my 403b contributions while wife contributes 10% of salary (we need to fix this, but there are some weird rules on changing it that I need to research more through her employer). We also max out Roth IRA contributions, and just started putting money into a 529 savings plan for our child ($200/month). We receive pretty generous benefits from our employers medical, dental, long term care is 100% paid for both us and our child. She receives 6% of salary 401k match plus a small pension, while I receive 10% of salary 403b match. I focus most of my investments in passively managed funds, but play around with a few individual securities.
We both want to retire early, but don't really have an age goal. Its hard because of the long time frame to know what is reasonable given all the unknowns of investment environment/inflation/job security/etc. I also wrestle with the fact that through my work I receive very generous tuition benefits for my children. If I have my final and third child four years from now he/she will not be out of College until I'm 55 or so, which kind of puts an early retirement limit on me if I want/need to take advantage of the benefit. Of course I shouldn't complain if I retire when I'm 55, but I would like to have a bit more flexibility. I should also clarify that I receive significant TUITION benefits, but would still have to pay room and board (hence the 529 contributions). Anyway, I'm impressed if you read this far, I have lots of questions and want to glean as much information from folks as I can as well as contribute, but will leave that to another post. Thank you and look forward to any welcomes thoughts or advice!
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