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Old 06-05-2015, 10:33 PM   #21
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Do you have a detailed spending budget? I notice you use a lot of round numbers..are you saying that you spend an average of 40 grand a year on 2 children and will do so for the next 26 years?
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Old 06-06-2015, 07:21 AM   #22
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yes - spending budget is managed through quicken and adjusted annually as we learn more. Also, as you saw above, retirement assumptions use stochastic and deterministic evaluations - I need to remodel and plug in my stochastic numbers for this year. Finally, you are right that I am rounding to the nearest $5k-$10k as I wrote my numbers. As for the children spend comment, that is incremental spend and does not include education, partially includes basic needs (e.g. food staples) and does include events, camps, travel they participate in. Not sure if you feel I am high or low, but I tend to be conservative, so I am hoping you feel I am over estimating
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Old 06-06-2015, 08:00 AM   #23
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yes - spending budget is managed through quicken and adjusted annually as we learn more. Also, as you saw above, retirement assumptions use stochastic and deterministic evaluations - I need to remodel and plug in my stochastic numbers for this year. Finally, you are right that I am rounding to the nearest $5k-$10k as I wrote my numbers. As for the children spend comment, that is incremental spend and does not include education, partially includes basic needs (e.g. food staples) and does include events, camps, travel they participate in. Not sure if you feel I am high or low, but I tend to be conservative, so I am hoping you feel I am over estimating
No, I'm just wondering what type of life style adjustments you would need to make to get the spend down by one-half in about 25 years. At a budget of 150K for 4 people, even including your house payment, you a living a life with quite a few "extras". It might be harder then you think to give up and change some of them after another 25 years. Now, you should spend whatever you want to, it's your money, I'm just wondering if you have underestimated what you need in 25 years. You treat your children very nicely, will you want to help pay for big weddings, or a down payment on their first house?

I don't know how much this will change your numbers, or if you want to log another year or 2 at work, or trim what goes to your youngsters, you have all options open at this point. Now is the time to figure out what works for your family. Good Luck
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Old 05-30-2016, 10:20 PM   #24
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Another year, another "bump" to this thread to update folks on current progress towards our goal.

It was 3 years ago I found this site and, in reading the advice from many, we have learned a lot. I have scaled back in my participation on the site, but am glad to know the group is here when I am ready.

Ok, now for our current financial update....

Well, our two kids (9, 7), DW (41) and I (47) have aged another year. We are still on the retirement glide path to 50 (me) and 48 (DW).

As you most likely saw from other threads, our goal is to retire before our kids head to college and, through our savings, reduced retirement income, and different college financial packages, the kids college expenses will be addressed.

From a portfolio perspective, over the past year, we have tread water with the market:
- 529: $64k current value
o 60% US Equity; 40% international
o investing $6k/year split evenly for each child until I retire

- 401k & Deferred (combined): $653k current value
o 70% Large cap; 20% Small Cap; 10% international
o Investing $35k/year until I retire then ~$18k until DW retires


- Retirement & IRA: $876k current value
o 70% Large cap; 20% Small Cap; 6% international; bonds 4%
o Hoping to use this and other assets to bridge to 59.5

- Cash / short term stocks: $10k

From an income / expense perspective, we have:
- 2nd Property bringing in $2,100 / month with recurring monthly expenses of $1,600. This rental has been rented to 5 different tenants over the past 11 years with only 1 month of non-rental income. $1400 / month expense is mortgage which will be completed before I retire.
- Current mortgage of $3500; higher than we want, but it is in a good middle school & high school district for our kids
- Quicken modeled in expected retirement expenses are between $90k - $115k; taking into account healthcare ($25k/year), rental expenses ($2k/year but will need to raise based on this blog), additional college expenses, wedding expenses, etc
- Fidelity Retirement Income Planner, at 71% confidence, suggests we cannot retire when we are targeting yet. The goal would be to track this and drive the confidence level higher
- Since our initial post, we have a better model of expenses with our first 10 years of my retirement being ~$150k with some of the years being offset by DW's income, the 2nd 10 years being reduced by ~$30k per year as we eliminate mortgage payments, and the last 30 years of retirement being half the initial retirement expense, and closer to Quicken's model, as we age.

I hope this post helps others in some way....
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Old 05-31-2016, 07:42 AM   #25
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You haven't mentioned how much work stress you feel or if your job is secure.

In IMO you are going to have to take a good look at your child expenses, do you live in the Mid-West. If so 3500 bucks a month for house payments is very much on the high side. I imagine it's a pretty nice house. Now you can live wherever you want, I don't care,but one thing that always bugs me is when someone says, their house payment is "higher then we want" but it's "for the children". If you want the house and to give your kids every camp, sports, travel, college and wedding expense..and then throw in a car and maybe down payment help on a home..you are going to need to work past 50....

I'll refer you over to "Root of Good" where a board member here is giving his kids a great childhood without most of the myriad child expenses you have listed here, Mom and Dad are giving the kids their time 24/7. It's a personal choice and no one size fits all and depends on what's important to you.
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Old 05-31-2016, 08:50 AM   #26
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CU; A confidence rating of 71% is lower than most would feel comfortable with. Most on this board would want to see 95% if not 100+. What is the "$number" that you are aiming on reaching for your in portfolio? Also your 529 funds seem light with your contributions of only $6,000/yr unlikely to increase the total during the next 8-10 years to a level sufficient to fund two college educations. Are you planning on tapping your personal assets or have them take out significant school debt?
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Old 06-06-2016, 07:52 PM   #27
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CUinFl, thanx for the annual updates. It is interesting following you. Wishing you the best.
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