Nerdjenni
Dryer sheet wannabe
Hola! Been following this site for years as I've been working towards financial independence. Thinking of hiring a financial advisor to get a professional second opinion, but I thought I'd ask you guys in the ERE forums for some advice first.
I am getting laid off from my employer of 12 years. I have been working towards FI for last decade, with the goal of taking some time off and then transitioning to a (much, much) lower-paying job or self employment.
Some general info about me:
* 37 y/o and sole breadwinner in major tech company, spouse is 40 y/o and stay-at-home parent (previously social worker), we have two young children (6 months and 3 y/o)
* $2.4m net worth (excluding house and excluding 529s for kids)
* Cash (checking/savings and CDs): $200K
* Investment accounts:
* 60% in taxable account, 40% in tax-advantaged (401k/403b, IRAs);
* 42% domestic equity, 18% int’l equity, 9% alternatives (mostly REIT), 27% bonds, 4% cash
* ~7% in employer stock, rest is almost all invested in index funds
* We own house (~$1m+); This is our lifetime house so we do not expect to ever sell
* Annual expenses excluding tax is ~$100K
* Kid’s college funds are largely funded already ($100K/each in 529s); Only foreseeable major expense outside of retirement is $200K house remodel which we hope to do in next ~2 years
* Life insurance $1m policy for myself, none for my spouse
* I expect a generous severance (~$250K) given my tenure, but I will have some big expenses as I am currently working in Europe and need to relocate my family back home to US
* My goal is take ~2 years off to spend with my family. I expect to earn income again at some point, but may be as little as $50k/yr (huge drop from current income of $400k/yr) as I consider to switch careers. I want to be able to maintain current lifestyle of $100k/yr expenses (ex tax).
* If I am way too off from my goal, I still have an opportunity to take a different role with my employer to save more money at the high income. However, this not my preference as we would have to relocate to undesired location and my job satisfaction is very low.
Some questions for you folks out here:
1) Can I achieve my goal already under current savings, or should I take the other role and get through a few more years to save more? Or, if I decide to leave my employer:
-Under current savings if I want to permanently retire, how much can I comfortably spend per year?
-If to maintain $100K/yr expenses, what is minimum I need to earn per year?
2) Should I make any changes to my current asset allocation?
3. How do I manage cash flow once the pay checks stop coming, and how can I minimise taxes?
Sorry for the long post, but I appreciate any and all of your thoughts and advice! THANK YOU!
I am getting laid off from my employer of 12 years. I have been working towards FI for last decade, with the goal of taking some time off and then transitioning to a (much, much) lower-paying job or self employment.
Some general info about me:
* 37 y/o and sole breadwinner in major tech company, spouse is 40 y/o and stay-at-home parent (previously social worker), we have two young children (6 months and 3 y/o)
* $2.4m net worth (excluding house and excluding 529s for kids)
* Cash (checking/savings and CDs): $200K
* Investment accounts:
* 60% in taxable account, 40% in tax-advantaged (401k/403b, IRAs);
* 42% domestic equity, 18% int’l equity, 9% alternatives (mostly REIT), 27% bonds, 4% cash
* ~7% in employer stock, rest is almost all invested in index funds
* We own house (~$1m+); This is our lifetime house so we do not expect to ever sell
* Annual expenses excluding tax is ~$100K
* Kid’s college funds are largely funded already ($100K/each in 529s); Only foreseeable major expense outside of retirement is $200K house remodel which we hope to do in next ~2 years
* Life insurance $1m policy for myself, none for my spouse
* I expect a generous severance (~$250K) given my tenure, but I will have some big expenses as I am currently working in Europe and need to relocate my family back home to US
* My goal is take ~2 years off to spend with my family. I expect to earn income again at some point, but may be as little as $50k/yr (huge drop from current income of $400k/yr) as I consider to switch careers. I want to be able to maintain current lifestyle of $100k/yr expenses (ex tax).
* If I am way too off from my goal, I still have an opportunity to take a different role with my employer to save more money at the high income. However, this not my preference as we would have to relocate to undesired location and my job satisfaction is very low.
Some questions for you folks out here:
1) Can I achieve my goal already under current savings, or should I take the other role and get through a few more years to save more? Or, if I decide to leave my employer:
-Under current savings if I want to permanently retire, how much can I comfortably spend per year?
-If to maintain $100K/yr expenses, what is minimum I need to earn per year?
2) Should I make any changes to my current asset allocation?
3. How do I manage cash flow once the pay checks stop coming, and how can I minimise taxes?
Sorry for the long post, but I appreciate any and all of your thoughts and advice! THANK YOU!