35 year old looking to ER in 10 yrs

[gomo]

Hi all. I am 35 and my wife is 32. We would like to walk away in 10 years. We currently live in Ohio in a house that is paid for and are not planning on having children. We currently have approx $400,000 in stock accounts and about $110,000 in 401k's. Our current monthly out flow for the past 12 months averaged $2650. We currently are able to invest about $48,000 in stocks per year and $12,000 in our 401k's. Our current income from dividends is $26,500 per year. I do use margin to purchase stock, but I only purchase conservative dividend paying stocks. We have not pin pointed a desired ER location, but we know it probably will not be Ohio.

[sirion]

Congrats on a great start to your future! Have you thought about what you will do for health insurance? You've got at least 20 years before you'll be eligible for Medicare.

[jimnjana]

Doing Great! What abuot a Roth? Is the 400K net of Margined funds? I'd ween myself off of using margin, but if you are comfortable with it...

[gomo]

Health care is definitly a wild card.

As for the the stock account, that is the liquid account value. We are approx 65% equity at the moment.

I will post our portfolio holdings on the stock forum.

[kybec29]

Good Luck gomo. Thats an interesting name, does it refer to "go MO", as in Altria? If so I'm assuming you must have a lot of faith in tobacco stocks. I do as well, but make sure you are not putting all of your eggs into one basket...especially if you are on margin.

Oh ya, and get a Roth too while you can!

good luck and welcome to the forum.

[gomo]

Good eye, it does refer to MO. Don't worry I am diversified, I also have PM.
My coworker keeps telling me to go with a Roth also. It's probably a good idea. I could use the 72t rule if we needed the cash after ER.

[walkinwood]

10 years is too far into the future to plan your exact moves. But, you're doing some of the right things already - saving a lot and investing it in a balanced portfolio. Consider a ROTH only if you've exhausted all the other pre-tax retirement options. Your tax rate will be quite low after ER, so think about moving assets from the TIRA to the Roth at that time.

Pay attention to your health, your marriage and develop interests and friendships outside of work.