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Old 02-06-2014, 09:38 AM   #21
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Originally Posted by growing_older View Post
This was not my experience. As kids got older, the daycare or afterschool expenses decreased (not a factor for OP with a stay at home parent), but the schools have been cutting back on all kinds of funding. To play sports requires fees, plus uniforms plus equipment. Music lessons and instruments. Fees to be in the Drama Club. Schools have sponsored some excellent educational trips, but kids have to pay to participate. Band trips, Band uniforms, academic competitions, Math events. We did not provide cars or insurance, kids had to pay that themselves, but the other educational and experience spending definitely did rise as the kids got older, especially in middle school and high school.
I got some feedback last night that agreed with your assessement (daycare/afterschool expense going down, then extracurricular expense coming up later). My kids went to public schools, and yes, they had the band trips, uniforms and stuff like that. But they gerrymander the school districts around here so we have a mix of incomes, and the programs are designed to be non-exclusionary on the basis of cost (i.e. pretty cheap to participate). But yeah, if you want your kids to have riding lessons or something like that, budget those separately, hehe. Otherwise the 5% should cover it.
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Old 02-06-2014, 09:38 AM   #22
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Originally Posted by molof View Post
Hermit:
Sorry to hear about your wife... She is insured for $0.5MM, so it would not allow me to quit my job today, but it would cover college expenses and additional miscellaneous that we don't need today due to her taking care of the home and family.
I know it's a morbid subject, but don't forget about Social Security survivor's benefit with small kids.
All kids get it before they turn 18 (19 if still in school) and spouse, if caring for kids before their 16th birthday.
Your Social Security statement (available at ssa.gov) provides the actual amount (for me it was $2k monthly per kid, for the family not to exceed $4700).
Because of this benefit we decided to carry only moderate amounts of term life insurance.
We hope to be FI by the time kids reach this age.
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Old 02-06-2014, 10:12 AM   #23
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My kids went to public schools, and yes, they had the band trips, uniforms and stuff like that. But they gerrymander the school districts around here so we have a mix of incomes, and the programs are designed to be non-exclusionary on the basis of cost (i.e. pretty cheap to participate).
Mine, went to public schools as well. What I found was that the budgets at schools just keep getting tighter, so programs that were set to have only modest costs to participate were partly funded by the school budget and that has only gone down for many years. By the time the youngest was participating in many of these activities, the previously stated school's goal to keep them affordable was no longer part of the equation. They needed 100% funding, and were trying for more than 100% in attempts to subsidize kids who really could not afford it. Also PTA fund raising became a major focus, and the PTA actually paid for many school supplies, some staff positions and even some basic maintenance on the building.
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Old 02-06-2014, 07:45 PM   #24
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Our kids are currently 9, 11, and 12. They go to public school as there really aren't many other options out here in the boonies where we live. I work from a home office and DH has a flexible schedule so we haven't had to pay for day care for 3-4 years, so we are very fortunate. Kids are involved in lots of activities but so far things haven't been too expensive. There are sports fees, band instrument rental, etc. My oldest is in the ski club which is by far the most expensive. I think for us the expenses are gonna come with cars and college. I am not looking forward to paying for auto insurance when we have three teenage drivers. We will see about college...we would like to help pay for as much as possible but time will tell. I know it's early but I don't know if I see all three going to a four year traditional college/university. My boys don't love school by any means. Time will tell!
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Old 02-05-2015, 07:39 PM   #25
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9. ~$230k roth and $300k tIRA. 401(k) $38k (W**rking at new Mega Corp for a little over a year) Maxing out 401(k), roth IRA and stock purchase plan.

Update after one year on the board... Didn't have great returns this last year~5.7%. Stached away a lot and my net worth has gone up... Was hoping to hit two commas before my 40th, but I am $32k short.

~$277k Roth
~$330k tIRA
~$73k 401k
~$32k stock purchase plan after tax
~$80k after tax mutual funds
~$70k cash
~$60k home equity

Putting away about ~$70k annually including employee matching.
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Financial update a little more than a year later from first post
Old 02-27-2015, 09:12 AM   #26
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Financial update a little more than a year later from first post

Hit two commas today (Net worth including house) for the first time, hope to stay above, but will surely drop below since I need to replace my car.

Next goal is two commas liquid assets
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Old 02-27-2015, 10:30 AM   #27
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How did you get so much into a Roth IRA?
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Old 02-27-2015, 01:56 PM   #28
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How did you get so much into a Roth IRA?
My wife worked a little after undergrad and we rolled over her 401k when we were in grad school. We have also contributed for over ten years to Roths. I also just started after tax 401k to Roth 401k conversions. My company allows 9% of my salary to after tax contribution.
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Progress Update Year End 2015
Old 03-03-2016, 01:59 PM   #29
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Progress Update Year End 2015

Quote:
Originally Posted by molof View Post
Update after one year on the board... Didn't have great returns this last year~5.7%. Stached away a lot and my net worth has gone up... Was hoping to hit two commas before my 40th, but I am $32k short.

~$277k Roth
~$330k tIRA
~$73k 401k
~$32k stock purchase plan after tax
~$80k after tax mutual funds
~$70k cash
~$60k home equity

Putting away about ~$70k annually including employee matching.
Another update as another year has passed. Was too busy around the time of my "anniversary" on the board, we just welcomed our fourth major expense, I mean child, to our family so I did not keep track of what my accounts were on that day. Posting end of 2015 numbers instead.
Returns were not great, but I kept buying and I am still in the two comma club, despite the poor markets last year and these initial months of 2016.

We had much higher medical expenses this year, so spending was higher than previous years, bought a minivan to fit everyone in recently, but that is not captured in the numbers below. Bought almost new from private party at great discount, first car purchase in 12 years.
Bought a duplex at an auction that I am renovating, so a lot of the cash has gone into it.

I know that adding another mouth to feed will make it harder to RE, but I am hoping to get some more rentals to give me extra income and enable me to hopefully retire prior to 55.

These are the numbers:

~$320k Roth +$32k
~$299k tIRA -$31k
~$98k 401k +$25k
~$42k ESPP +$10k
~$70k after tax invest -$10k
~$25k cash -$45k
~$100k home equity +$40k Recently appraised
~100k rental property equity +$100k
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Update for 2016
Old 01-04-2017, 09:57 AM   #30
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Update for 2016

Another annual update, 2016 numbers:
Overall a good year, purchased a newish van and finished the renovation of the rental property. Got both units rented, one year leases (25% premium compared to very similar property next door), financed the property and got out all but $2k invested in purchase and renovation and have 35% equity in the property. Keeping proceeds from financing in cash to buy more properties if deals appear.

~$380k Roth +$60k 9% After tax 401k ro + $30k Roth Horse Race
~$297k tIRA -$2k -$30k Roth Horse Race
~$141k 401k +$43k $18k+8% contribution
~$42k ESPP -$6k Started selling off to finance rental reno
~$4k after tax -$66k Sold off to finance rental reno and newish van
~$200k cash +$175k Financed rental property 3.5% 15 year
~$71k home equity -$14k Home Equity Loan to finance rental property
~85k rental equity -$15k Financed the property
~11k HSA +$3k

Total Spend:
$5750/month (about same as previous year) + $24,000 for new vehicle


Net worth

$1.24M (+$178k)
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