Race to 2024 - please join :)

[NgineER]

Quote:

Originally Posted by NgineER 20190101 Nasty fourth quarter - but good to be buying cheaper 38.8% - investments and cash only 62.4% of target when including cash flow from properties.

44% - investments and cash only
68.5% of target when including cash flow from properties.

[Exit 2024]

Finished Q1 and 51.1%, yey!!! Finally crossed half way mark

[chasedream2002]

1. I am 38 and wife is 33. Both working. Two kids 3 and 8. Networth:860K
2. I am making 180k and wife is making 52k. Totally 232k, but my job is not stable. May have to take a lower pay job next year.
3. Retirement account (IRA and 401k): 340K, taxable 210k, cash 110k, totally 660k savings, all the investment funds are from Vanguard.
4. House is 380k, mortgage balance is 180k, about 200k equity in the house. Currently the mortgage is 15 year, interest rate 3%
5. I am contributing 18k into 401K (employer match 7k) and 6K into roth IRA, wife is contributing 12k into simple IRA (1k match from her employer). On top of the retirement contributions, about 60k goes into taxable account each year. Total saving is 110k per year.
6. My expenses are quite high due to mortgage, property tax and day care cost. Monthly I am spending about 5200 dollars. It can be reduced to less than 3000 after FIRE. I plan to pay off mortgage and won't have day care cost after FIRE.
7. Current estimated FIRE date is 2024 and I hope to reach it quicker. Is there anything I can improve to meet the goal quicker?

Quote:

Originally Posted by Exit 2024 Is there anyone who is targeting FIRE for 2024 ? That is our planned date, actually fall of 2024, but I feel that we are falling slightly behind of the projections. Thought may be someone here on the same path to the same date as us and we all can post our results as % of $$$ target at least quarterly , or even monthly if you want, to compare our achievements and encourage each other, and may be even compete a little I will start : we are family for 3 with child in college, both will turn 47 this year and plan to fire at age 55 - which will be in 2024. Current total net worth target is $3 mil, that will include paid off RE. I have more details in that topic if anyone interested http://www.early-retirement.org/foru...4-a-78384.html As of March 31, 2016 we are at 31.8% of our target, have a lot of heavy lifting to do in order to get ready for 2024 FIRE We have very good income, but having child in college definitely have an impact on our saving rate. We still managed to save more than 50% of last year income less taxes, and we are looking finally to join 2 comma club this year - getting very close anyone next ?

[pjigar]

Now at 50% of investment target. On track but firecalc says 2026!

[Love This Community]

Quote:

Originally Posted by Exit 2024 Finished Q1 and 51.1%, yey!!! Finally crossed half way mark

Way to go....keep going and at some point it’ll all be downhill.

[exnavynuke]

Quote:

Originally Posted by chasedream2002 1. I am 38 and wife is 33. Both working. Two kids 3 and 8. Networth:860K 2. I am making 180k and wife is making 52k. Totally 232k, but my job is not stable. May have to take a lower pay job next year. 3. Retirement account (IRA and 401k): 340K, taxable 210k, cash 110k, totally 660k savings, all the investment funds are from Vanguard. 4. House is 380k, mortgage balance is 180k, about 200k equity in the house. Currently the mortgage is 15 year, interest rate 3% 5. I am contributing 18k into 401K (employer match 7k) and 6K into roth IRA, wife is contributing 12k into simple IRA (1k match from her employer). On top of the retirement contributions, about 60k goes into taxable account each year. Total saving is 110k per year. 6. My expenses are quite high due to mortgage, property tax and day care cost. Monthly I am spending about 5200 dollars. It can be reduced to less than 3000 after FIRE. I plan to pay off mortgage and won't have day care cost after FIRE. 7. Current estimated FIRE date is 2024 and I hope to reach it quicker. Is there anything I can improve to meet the goal quicker?

You're doing well overall. Obviously you could reduce spending and increase savings to meet the goal quicker, but we would need a much more detailed budget to pick places where you might be able to do that. You might want to re-evaluate retirement costs by looking into what medical will run you without an employer subsidizing insurance costs though.

[Exit 2024]

chasedream2002, you are doing very well actually but talking about target - what investible amount you plan to have by FIRE, not including paid off house? Planned spending is $3k/month or $36k/year for family of 4 including health insurance and taxes? If that is correct?

401k limit for 2019 is $19k, you may want to max it out.
Wife does not contribute to Roth IRA, correct?
Do you have access to HSA? That is a great FIRE vehicle, you save on taxes now and can use money without paying taxes for medical expenses that you will have when FIREd. Other then that I ha e no suggestions, you are already doing great!!!

[MoneyChic]

ChaseDream- Yes, I second the recommendation to up your 401k to 19k. Also, the Simple IRA limit is now 13k, so have your wife increase that as well. HSA would be beneficial if you are eligible. You didn’t say she was, so I’m assuming she’s not, but your wife can’t make back-door Roth contributions since she has a Simple IRA. You made another post elsewhere I believe that said you had a previous job. Just want to make sure you didn’t roll that old 401k to an IRA, because if you did, you can’t make back-door Roth contributions either. (Not without paying taxes on a chunk of the conversion anyway.)

[chasedream2002]

You are right. My wife has Simple IRA, so she cannot back door roth IRA.

I rolled all the old 401K into new company's 401K a few years ago, so I have been able to back door roth IRA.

My main challenge is the current job is unstable and I don't know how long it can last. My Plan B is to move to Malaysia to have a lower cost for a few years. My post-FIRE cost in the US will be about 50-60k and moving to Malaysia can lower it to 20-30k easily. I will see how things go.

Quote:

Originally Posted by MoneyChic ChaseDream- Yes, I second the recommendation to up your 401k to 19k. Also, the Simple IRA limit is now 13k, so have your wife increase that as well. HSA would be beneficial if you are eligible. You didn’t say she was, so I’m assuming she’s not, but your wife can’t make back-door Roth contributions since she has a Simple IRA. You made another post elsewhere I believe that said you had a previous job. Just want to make sure you didn’t roll that old 401k to an IRA, because if you did, you can’t make back-door Roth contributions either. (Not without paying taxes on a chunk of the conversion anyway.)

[chasedream2002]

Thank you. I plan to have 1.2M-1.5M before FIRE. My main challenge is my current job is very unstable and I am so F tired of it. I don't know how long it can last. If I can stay on it for a few more years, I will be very comfortable with my number. If I get laid off and cannot locate a well paid job, then my plan B is to move to Malaysia to lower my overall cost. My post FIRE cost in the US will be 5-6k per month for a family of 4. I can easily lower it to 2-3k in Malaysia. I am totally burned out by the job and really want to retire ASAP.

Quote:

Originally Posted by Exit 2024 chasedream2002, you are doing very well actually but talking about target - what investible amount you plan to have by FIRE, not including paid off house? Planned spending is $3k/month or $36k/year for family of 4 including health insurance and taxes? If that is correct? 401k limit for 2019 is $19k, you may want to max it out. Wife does not contribute to Roth IRA, correct? Do you have access to HSA? That is a great FIRE vehicle, you save on taxes now and can use money without paying taxes for medical expenses that you will have when FIREd. Other then that I ha e no suggestions, you are already doing great!!!

[chasedream2002]

I am spending 5200 per month, but the mortgage is 1700 and it should go away once I pay it off. I can also squeeze a little more once my day care cost is gone next year. I checked the Obama Care in my city and I can get one with 200 per month after FIRE.

Quote:

Originally Posted by exnavynuke You're doing well overall. Obviously you could reduce spending and increase savings to meet the goal quicker, but we would need a much more detailed budget to pick places where you might be able to do that. You might want to re-evaluate retirement costs by looking into what medical will run you without an employer subsidizing insurance costs though.

[MoneyChic]

A bit late for a Q1 update, so I'll update as of today:


$109,458 in IRAs and 401(k)
$675,497 in Brokerage Account and Taxable Investments
$36,742 in cash
_________________________
$821,697


So we're at 51.35% of a target of $1.6M, or 48.51% of a target of $1.7M. Still not 100% decided on what the target is....keep having changing thoughts on what desired lifestyle is for retirement. As of now, I love my job and feel I could happily work past 2024, but would really love for DH to retire in 2024.

[chasedream2002]

Good job! I think the second half should go faster!

I am wondering why your taxable account has a much higher number than your retirement account.

Quote:

Originally Posted by MoneyChic A bit late for a Q1 update, so I'll update as of today: $109,458 in IRAs and 401(k) $675,497 in Brokerage Account and Taxable Investments $36,742 in cash _________________________ $821,697 So we're at 51.35% of a target of $1.6M, or 48.51% of a target of $1.7M. Still not 100% decided on what the target is....keep having changing thoughts on what desired lifestyle is for retirement. As of now, I love my job and feel I could happily work past 2024, but would really love for DH to retire in 2024.

[MoneyChic]

Quote:

Originally Posted by chasedream2002 Good job! I think the second half should go faster! I am wondering why your taxable account has a much higher number than your retirement account.

We spent first part of our careers paying off debt including our house. Now we are saving heavily for retirement, but are limited in how much we can put in the retirement accounts, so taxable is where the bulk of our savings goes. Benefit is, in retirement our income will be in a bracket where capital gains will be taxed at 0%. Plus, the bulk of our money will be in an account that we don’t have to wait until 59.5 to tap in to.

[chasedream2002]

I agree. I think paying down debt first is a great approach. I still have 170k mortgage and plan to pay it off early. I think it can give me a peace of mind.

Hope we can reach our goals ASAP!

Quote:

Originally Posted by MoneyChic We spent first part of our careers paying off debt including our house. Now we are saving heavily for retirement, but are limited in how much we can put in the retirement accounts, so taxable is where the bulk of our savings goes. Benefit is, in retirement our income will be in a bracket where capital gains will be taxed at 0%. Plus, the bulk of our money will be in an account that we don’t have to wait until 59.5 to tap in to.

[brokrken]

Quote:

Originally Posted by chasedream2002 I am spending 5200 per month, but the mortgage is 1700 and it should go away once I pay it off. I can also squeeze a little more once my day care cost is gone next year. I checked the Obama Care in my city and I can get one with 200 per month after FIRE.

You can get a plan for a family of 4 for $200/month? I've never heard of anyone getting such a deal. What plan is it and how much is the deductible?

Also, will you have enough taxable money to bridge the gap between your FIRE date and 59.5, when you can take out of the IRAs?

[chasedream2002]

I searched in the market place website. Based on the projected income level, the cost of plans range from 200-800 in my area. Deductible is high for these plans. In order to reach this level of cost, the income level needs to stay low.

I have more than 300k in cash and taxable and hope to get to 600k in the next few years.

Quote:

Originally Posted by brokrken You can get a plan for a family of 4 for $200/month? I've never heard of anyone getting such a deal. What plan is it and how much is the deductible? Also, will you have enough taxable money to bridge the gap between your FIRE date and 59.5, when you can take out of the IRAs?

[MoneyChic]

Quote:

Originally Posted by brokrken You can get a plan for a family of 4 for $200/month? I've never heard of anyone getting such a deal. What plan is it and how much is the deductible? Also, will you have enough taxable money to bridge the gap between your FIRE date and 59.5, when you can take out of the IRAs?

Can’t speak for Chasedream, but I know it depends on your state, and maybe even your zip code. I looked into options for a plan for my husband and myself in one of the states on our list of possible retirement locations (can’t remember which one at the moment) and with the subsidies for keeping income in a certain range, our premiums were going to be rediculously cheap- like less than $50 a month combined for the two of us. All of this assumes that the subsidies stay in place, and I really have no predictions on that front.

[brokrken]

Quote:

Originally Posted by MoneyChic Can’t speak for Chasedream, but I know it depends on your state, and maybe even your zip code. I looked into options for a plan for my husband and myself in one of the states on our list of possible retirement locations (can’t remember which one at the moment) and with the subsidies for keeping income in a certain range, our premiums were going to be rediculously cheap- like less than $50 a month combined for the two of us. All of this assumes that the subsidies stay in place, and I really have no predictions on that front.

Wow, these are encouraging messages. I currently have $2k per month in my FIRE budget for healthcare

[chasedream2002]

I even found 0 dollar premium coverage in my area. The key is to keep income low. I input 30k-40k income range and got very cheap quotes. Of course it can be over 1000 per month if the subsidy is gone. Hope the subsidy can stay!

Quote:

Originally Posted by brokrken Wow, these are encouraging messages. I currently have $2k per month in my FIRE budget for healthcare