DW and I are ~33. Current situation:
$1.0M cash and investments
$0.5 house market value
($0.3M) mortgage
= $1.2M net worth
Our annual cash flow is:
+$53k into our 401ks including employer matched
($90k) spending
+$180k remaining after-tax income, saved
If we keep this up, our investments grow at 2% real, and we get raises equal to COL, we'll be at $4.0M (in 2014 dollars) by 45. At 3%WR, that's $120k/year.
Obviously, job changes or having a kid would change this plan, both the amount we can save per year and required withdrawal. And there could be market fluctuations.
What do you think of this plan?
$1.0M cash and investments
$0.5 house market value
($0.3M) mortgage
= $1.2M net worth
Our annual cash flow is:
+$53k into our 401ks including employer matched
($90k) spending
+$180k remaining after-tax income, saved
If we keep this up, our investments grow at 2% real, and we get raises equal to COL, we'll be at $4.0M (in 2014 dollars) by 45. At 3%WR, that's $120k/year.
Obviously, job changes or having a kid would change this plan, both the amount we can save per year and required withdrawal. And there could be market fluctuations.
What do you think of this plan?