bo_knows
Recycles dryer sheets
As the title says, I am 30 years old, and my wife and I just had our first child about a month ago (he's a cute little guy ). We've always been fairly frugal minded, with the occasional "consumerist" purchase, and we've been lucky to have fairly good careers up until this point. After browsing many Early Retirement sites, including this one, for the last 6 months... I am very excited when I run the number regarding retirement.
Here is a rough rundown of what our situation is:
Income: $181k (down to $147k as of next month, as the wife will be going part time for the foreseeable future as to get rid of the need for childcare)
Liabilities
Mortgage: $280k @ 4.75% (refi'ed last year)
Student Loan: $4k (Let me tell you, I cannot wait to pay this off over the summer)
Assets
Home: ~$400k
401k: ~$130k (Wife and I both contribute 10+% of our salary, and get employer matches)
Roth IRA: ~$60k (Wife and I fully fund these over the course of a year on a monthly basis)
Taxable Accounts: $20k (really this is just an extension of our "emergency fund")
Emergency Savings: $15k
In the near future, I will have a large chunk of monthly savings open up when I pay off my student loans. We're planning on pushing that money into a combination of a 529 plan for the little one, more 401k funding, and paying down the mortgage.
I would say that without the mortgage, our monthly expenses only run about 2-3k, so I think that getting by on that amount post-retirement would be fine, since our costs would drop even more (we'd lose a car for sure, among other things related to working).
One thing I'm finding hard to put into the equation is Social Security and both mine and my wifes employer pension (wow, these still exist?). My pension will be meager, from working for a company for 7 years. My wife on the other hand is still working for the same company (going on 9 years) and probably doesn't plan on leaving as they are very flexible about work schedules (allowing her to go part time).
Theoretically, we might be able to retire earlier than expected, if we were to retire with the knowledge that after Age 62 we'd had more income coming in. Also, we're not afraid of working part time during "retirement" for maybe some minimal income and/or healthcare.
This site is a great place. Keep up the good work!
Here is a rough rundown of what our situation is:
Income: $181k (down to $147k as of next month, as the wife will be going part time for the foreseeable future as to get rid of the need for childcare)
Liabilities
Mortgage: $280k @ 4.75% (refi'ed last year)
Student Loan: $4k (Let me tell you, I cannot wait to pay this off over the summer)
Assets
Home: ~$400k
401k: ~$130k (Wife and I both contribute 10+% of our salary, and get employer matches)
Roth IRA: ~$60k (Wife and I fully fund these over the course of a year on a monthly basis)
Taxable Accounts: $20k (really this is just an extension of our "emergency fund")
Emergency Savings: $15k
In the near future, I will have a large chunk of monthly savings open up when I pay off my student loans. We're planning on pushing that money into a combination of a 529 plan for the little one, more 401k funding, and paying down the mortgage.
I would say that without the mortgage, our monthly expenses only run about 2-3k, so I think that getting by on that amount post-retirement would be fine, since our costs would drop even more (we'd lose a car for sure, among other things related to working).
One thing I'm finding hard to put into the equation is Social Security and both mine and my wifes employer pension (wow, these still exist?). My pension will be meager, from working for a company for 7 years. My wife on the other hand is still working for the same company (going on 9 years) and probably doesn't plan on leaving as they are very flexible about work schedules (allowing her to go part time).
Theoretically, we might be able to retire earlier than expected, if we were to retire with the knowledge that after Age 62 we'd had more income coming in. Also, we're not afraid of working part time during "retirement" for maybe some minimal income and/or healthcare.
This site is a great place. Keep up the good work!