Hi, I am a newbie to this forum and followed the suggestion of the admin to say hello to everyone here. Here is something that I've been thinking/researching for a while but still puzzled.
My wife and I are both 35, have combined income before tax $150K/year, 2 kids(3 yrs and 1yr old girls), a 30yr, 5.625% fixed rate $300K mortgage($2500 monthly payment including property tax and insurance), no other debts, using credit card for the sake of convinience and pay the bill in full every month.
we max out our 401K from this year($15K for each starting in 2008) with combined balance of $90K(80% stock 20%bond), started a Roth IRA in 2005 and max out each year(combined balance of $32K), started 529plan this year for both kids and contribute $500 to each of them monthly. and after all the spending, we manage to save about $1500 every month. Oh, we also have the emergency fund of 4 months of spending in a CD.
our goal is to retire in 20 years at age of 55 and pay for both kids' colleage. (wedding is on their own, for now )
so my question is:
1. Is this something doable by just earning paychecks and save? any real life example or story here?
2. Do we need to start a side business to boost earning power? what kind of side business worked for you? if it applies.
3. what investment strategy we should follow? any investment portfolio example?
I still have tons of questions to ask but like to get started from high level viewpoint. sorry for the long posting. hope I provide enough information for you to evaluate our situation and give targeted suggestions.
Thanks,
Jack from New Hampshire
My wife and I are both 35, have combined income before tax $150K/year, 2 kids(3 yrs and 1yr old girls), a 30yr, 5.625% fixed rate $300K mortgage($2500 monthly payment including property tax and insurance), no other debts, using credit card for the sake of convinience and pay the bill in full every month.
we max out our 401K from this year($15K for each starting in 2008) with combined balance of $90K(80% stock 20%bond), started a Roth IRA in 2005 and max out each year(combined balance of $32K), started 529plan this year for both kids and contribute $500 to each of them monthly. and after all the spending, we manage to save about $1500 every month. Oh, we also have the emergency fund of 4 months of spending in a CD.
our goal is to retire in 20 years at age of 55 and pay for both kids' colleage. (wedding is on their own, for now )
so my question is:
1. Is this something doable by just earning paychecks and save? any real life example or story here?
2. Do we need to start a side business to boost earning power? what kind of side business worked for you? if it applies.
3. what investment strategy we should follow? any investment portfolio example?
I still have tons of questions to ask but like to get started from high level viewpoint. sorry for the long posting. hope I provide enough information for you to evaluate our situation and give targeted suggestions.
Thanks,
Jack from New Hampshire