And another young dreamer intro

[meekie]

Hi all,
Another young dreamer here, I'm 32, DH 36, DINK, living in expensive So Cal. Luckily bought a house in 99 thanks to my work's stock going up with the tech bubble - it wasn't a ton, but at least it got me a 10% down payment when I was 24. Been saving in 401k's, started ROTH's a few years ago, and am realizing that I don't want to keep doing what I'm doing now for 30 more years.

So, we're starting to look into what else to do to save, we are pretty frugal to begin with (our first date was cause I got some free tickets and asked him out).

I'd be pretty happy working part time with flexible vacation hours, so I'm trying to figure out a way to do that, DH doesn't know what he wants to do, but he hates his job, so hopefully we can make some changes there soon as well.

Looking forward to participating more. Seems like we've got all the first steps done (only mortgage debt, 401ks and Roth's maxed) and are going to need help in figuring out what to do next!

 

[meekie]

Decided to add more detail - still not used to sharing this info.
Have about $310k in 401k, $29k in roth. $115k in my company stock (this is one of the things we're trying to diversify soon) and about $50k in cash/CD ladder/emergency fund/money we're deciding where to invest. Owe about $200k on the house, worth about $650k, but plan on living in it or renting it out.

Expenses are about $70,000 per year, combined base salary is $150k, but with OT and bonuses, we got really close to $200k, so not sure if we can do Roth's this year, or will have problems with AMT.

 

[Rambler]

Welcome Meekie
Hope you'll enjoy the forum. By all means continue to put enough in 401k to get full employer matching contributions, but if you want to ER you are going to want to have a little more in something easier to draw on before 59 1/2. Put some away in a taxable account, and add more to it if the Roth doesn't work.
You didn't really say if you are more interested in ER, or just interested in slowing down...smelling the roses along the path of this thing called life. With your salaries and ability to save, you probably could ER in a few more years. Best of luck to you either way.

R

 

[Sandy]

Welcome. There are a lot of moving parts to your current situation. Also, do you think you will want kids (I was in the "no way" camp until I was about 37 , so there is room to change your mind.). Check out the "best of" and the FAQ forums. Whether you decide to RE or slow down, the information here will be helpful.

 

[Gazingus]

Rambler, when you say "easier to draw on" are you referring to the hassle of getting an employer plan to administer an SEPP? I have just begun to research, but my first thought is to roll my 401k into my Fidelity IRA at resignation, and take SEPP from that account. I have already rolled out company stocks(employer match), so the tax issues shouldn't change. Does this make sense?

 

[Gazingus]

Welcome, Meekie. That 650k of house could get you a nice ranch house on 100 acres in Texas! We got internet, too.

 

[REWahoo]

That 650k of house could get you a nice ranch house on 100 acres in Texas! We got internet, too.

And in the interest of full disclosure, we've also got...scorpions, rattlesnakes, fire ants, cockroaches on steroids, killer bees, mosquitoes, ticks, chiggers, tarantulas, brown recluse spiders, copperheads, cottonmouths, rabid skunks, wild hogs, alligators, oppressive heat & humidity, bleak desolate scenery, dirty beaches, polluted air, drought, wildfires, water shortages, recurring floods, tornadoes, hurricanes, rednecks, huge piles of flaming mulch, spontaneously combusting playgrounds, the stench of natural and unnatural gasses, amoebic meningitis lurking in area lakes, recurring ebola virus outbreaks, flesh eating bacteria, staggering homeowner insurance rates, unbelievably high property taxes, mandatory death sentences for DUI convictions, and Orchidflower’s testimonial of how Texans treat “Yankees”.

 

[martyb]

and black mold!

 

[REWahoo]

Yep. One of the reasons behind the staggering homeowner insurance rates...along with tornadoes and hurricanes.

 

[Rambler]

Rambler, when you say "easier to draw on" are you referring to the hassle of getting an employer plan to administer an SEPP? I have just begun to research, but my first thought is to roll my 401k into my Fidelity IRA at resignation, and take SEPP from that account. I have already rolled out company stocks(employer match), so the tax issues shouldn't change. Does this make sense?

Sorry Gazingus, I just haven't gotten my arms around the SEPP thing yet. I just think it would be simpler and perhaps maybe more tax effective to have both a deferred account and a taxable account, giving you more options before age 59 1/2. However, if you are already near the FIRE point with not much in taxable accts, but a load in deferreds, I guess the SEPP may be necessary...sorry, not informed enough yet...I promise I will study!
R