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Old 01-16-2016, 09:55 PM   #21
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, 20 years is a long time. There is no guarantee that this level of income can be sustained for the next 20 years. My wife had a highly stress / high pay career and the burnout came out of nowhere.

+1. Had similar for myself. At 45 I hit the wall and said f%#^ this. My bullshit bucket suddenly was overflowing.

As we age, especially in our 40's (as kids grow up and parents become less independent age /die) our life priorities can change rather suddenly.

Bank as much as you can now. Live below your means. No one cares what car I drove or what I drive now...not even me !
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35, and on track to retire by 50
Old 01-16-2016, 11:42 PM   #22
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35, and on track to retire by 50

With your high income, is it conceivable to at least delay the move, save up 575,000 over a few hears and pay cash for the next house after selling your current one? Then you would be free to ride the gravy train at work for as long as it lasts without stress and cost of a mortgage while dumping lots of cash into investments. When the kids are out of school, sell the house and move to the lower cost area. Seems you'd have the $3 million or so available in that scenario. Good luck!


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Old 01-17-2016, 06:32 AM   #23
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Regarding whether the financials work out for the plan - my spreadsheets say yes. We can continue to save 90K/year for retirement, 30K/year for college and have the nicer house. And once daycare is out of the way, we'll have a bigger cushion to save for retirement. The big gotcha is keeping the high income.
No offense, but the big gotcha is keeping the marriage going. Be sure to have a fall back plan. If you quit work, and things go sour, often it is a financially devastating blow. You need enough cushion for that too.

If you quit work with barely enough, it means back to work. If you leave with enough of a cushion, it just means a smaller lifestyle.
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35, and on track to retire by 50
Old 01-17-2016, 09:16 AM   #24
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35, and on track to retire by 50

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No offense, but the big gotcha is keeping the marriage going. Be sure to have a fall back plan. If you quit work, and things go sour, often it is a financially devastating blow. You need enough cushion for that too.



If you quit work with barely enough, it means back to work. If you leave with enough of a cushion, it just means a smaller lifestyle.

Interesting comment, Senator. I have watched colleagues go through what I call the great asset divide late in life and at a surprise by many. It is somewhat morbid to build a plan around it, but even in my ER plan I contemplated if it could weather that type of storm if it came up. Probably more contingency than most, but part of me says understand risks and mitigation plans even if you feel they are low.
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Old 01-03-2017, 08:13 PM   #25
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New Year's update: things are on track, and we had a good income and investing year:

Net worth: 1.9M (up > $300k from 1 year ago)
House equity: $950k
Tax deferred: $550k
Roth: $120k
After tax: $100k
529: $135k
Emergency fund: $40k

Expenses look ok - no new house, 3rd kid, or divorce in sight
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Old 01-03-2017, 08:52 PM   #26
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New Year's update: things are on track, and we had a good income and investing year:

Net worth: 1.9M (up > $300k from 1 year ago)
House equity: $950k
Tax deferred: $550k
Roth: $120k
After tax: $100k
529: $135k
Emergency fund: $40k

Expenses look ok - no new house, 3rd kid, or divorce in sight
Lots of funds in the house, no?
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Old 01-03-2017, 09:01 PM   #27
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Yeah, I agree, we're over allocated in the house. This is due to better than expected appreciation (which we didn't quite realize had happened in the first few years of owning) and general conservatism about home ownership/wanting to buy a more expensive house. The plan at this point is to limit our equity in our housing to what we have now or less going forward.
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Old 01-04-2017, 12:36 PM   #28
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Thanks, Markola, lots to think about from someone who's been there.

I'm not too worried about lifestyle inflation triggered by the house - the new one will be a few blocks away so we'll have the same neighbors. Of course, I wouldn't be the first to be wrong about how much money I will spend in the future

Regarding whether the financials work out for the plan - my spreadsheets say yes. We can continue to save 90K/year for retirement, 30K/year for college and have the nicer house. And once daycare is out of the way, we'll have a bigger cushion to save for retirement. The big gotcha is keeping the high income.


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I'm always skeptical of people that plan to save more, just not right now, but when X happens. I suspect a lot of time X happens and then Y comes up which is another excuse not to save more.
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Old 01-04-2017, 04:19 PM   #29
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We'll always need a place to stay and 529 is to pay for Kids' education so I exclude 529 and house equity from my net worth calculation. This makes me feel and plan better.
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