Hi everyone,
This may be slightly different from your average post; but please don’t criticize us… We’ve saved hard to be in this situation (no inherited money, and started loaded in college debt); and even so, I’m loosing sleep over where to go from here. I need some advice from people who have been in my situation.
Plan:
- Retirement in 7 years (at 40 & 42) completely self-sufficient, and able to contribute to our kids’ education. Additionally, we’ll have a costly hobby that combines expensive equipment and world travelling… adventure racing.
Situation:
- Age 35 & 33, with two kids 7 & 5.
- 2 incomes (about 160K total), including 1 military (retiring in 7 years with about a $40,000/year pension, and health coverage)
- No Debt
Chronic Savers:
- Emergency Savings: $ 70,000 in CD’s (no longer contributing to this)
- Combined $ 300,000 in Stocks (brokerage, retirement, and education): index EFT, and DOW dividend stocks: I thought they were full proof… until recently. The value has decreased by $ 200,000 in the last year!
- $150,000 in additional cash... My biggest question mark.
- Sufficient life insurance until age 55, and 53.
- Living far below our means at about 65K/year; thus saving about $ 95,000/year.
- Yearly, we contribute the maximum limits to the 401K, TSP, Roth IRA (x2), Education IRA (x2)
- We also contribute to 529K plan (1,000/month), and brokerage account ($3,000/month)
- Until now, we’ve been your typical ER investor, mostly with a diversified portfolio in stocks.
- No houses yet, but would like to buy our first (maybe more than one… as investment property) when we get back to the U.S. this spring.
Considerations:
- I’m loosing confidence in the market, and in our gov’t: debt, dept, dept… I don’t live like this, and don’t approve of this behaviour. U.S. credibility only does so far, if countries start loosing confidence in the U.S, then what?
Questions:
- What changes would you make in view of the 7-10 year time horizon for ER?
- Where would you put the $150K? Buy investment property? Dump them in stocks while they are low? Do something else?
Thanks,
John
This may be slightly different from your average post; but please don’t criticize us… We’ve saved hard to be in this situation (no inherited money, and started loaded in college debt); and even so, I’m loosing sleep over where to go from here. I need some advice from people who have been in my situation.
Plan:
- Retirement in 7 years (at 40 & 42) completely self-sufficient, and able to contribute to our kids’ education. Additionally, we’ll have a costly hobby that combines expensive equipment and world travelling… adventure racing.
Situation:
- Age 35 & 33, with two kids 7 & 5.
- 2 incomes (about 160K total), including 1 military (retiring in 7 years with about a $40,000/year pension, and health coverage)
- No Debt
Chronic Savers:
- Emergency Savings: $ 70,000 in CD’s (no longer contributing to this)
- Combined $ 300,000 in Stocks (brokerage, retirement, and education): index EFT, and DOW dividend stocks: I thought they were full proof… until recently. The value has decreased by $ 200,000 in the last year!
- $150,000 in additional cash... My biggest question mark.
- Sufficient life insurance until age 55, and 53.
- Living far below our means at about 65K/year; thus saving about $ 95,000/year.
- Yearly, we contribute the maximum limits to the 401K, TSP, Roth IRA (x2), Education IRA (x2)
- We also contribute to 529K plan (1,000/month), and brokerage account ($3,000/month)
- Until now, we’ve been your typical ER investor, mostly with a diversified portfolio in stocks.
- No houses yet, but would like to buy our first (maybe more than one… as investment property) when we get back to the U.S. this spring.
Considerations:
- I’m loosing confidence in the market, and in our gov’t: debt, dept, dept… I don’t live like this, and don’t approve of this behaviour. U.S. credibility only does so far, if countries start loosing confidence in the U.S, then what?
Questions:
- What changes would you make in view of the 7-10 year time horizon for ER?
- Where would you put the $150K? Buy investment property? Dump them in stocks while they are low? Do something else?
Thanks,
John
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