BumblingtoFI
Confused about dryer sheets
Hello ER forum,
It's nice to get to know this community! Looks like there is a lot of great information here.
I'm 33 and live in NYC, getting ready to retire in the next couple of years. I'm interested in a sense check on my numbers and assumptions. The basics are that I got a fantastic job in finance right out of college and have been working there ever since. DH is a freelance architect. We are expecting our first baby at the end of May and DH plans to be a stay at home dad after the baby is born. Our net worth is $1.5M, which breaks down to $350K in 401K, and the rest invested 90/10 into taxable stocks/bonds.
We spend ~64K per year now, which includes $2,100 / month in rent ($25K /year). We save around $150K per year after taxes.
The FIRE calcs say we can retire forever by the end of 2015 with something like a 98% success rate, but I'm making a whole lot of assumptions:
1) We will move out of NYC and buy a $200K house in cash. The house will cost $3,600 / year in maintenance and property taxes.
2) A high deductible health insurance plan will cost $300 / month
3) Our kid will cost $400 / month
4) We will buy a car for 10K and it'll cost $250 / month for insurance and gas
5) We will see a 10% cost of living decrease by moving to a lower cost area and retiring.
Questions:
1) Do any of these spending assumptions seem crazy?
2) Anything missing? I've done both an itemized budget and a "top down" estimate by adding/subtracting retirement costs from current spending. The "top down" estimate is higher so I'm going with that, but it has a huge amount of excess for silly expenses we pay for living in NYC (like car rentals to go hiking, occasional $14 cocktails, etc.)
We have a lot of uncertainty in our lives given baby on the way and there are a lot of unknowns in this plan (for example, we haven't decided on where we want to move). For now it seems sensible to keep working/accumulating, settle in with the new baby, and keep working on the ER plan.
Any feedback is very much appreciated!
It's nice to get to know this community! Looks like there is a lot of great information here.
I'm 33 and live in NYC, getting ready to retire in the next couple of years. I'm interested in a sense check on my numbers and assumptions. The basics are that I got a fantastic job in finance right out of college and have been working there ever since. DH is a freelance architect. We are expecting our first baby at the end of May and DH plans to be a stay at home dad after the baby is born. Our net worth is $1.5M, which breaks down to $350K in 401K, and the rest invested 90/10 into taxable stocks/bonds.
We spend ~64K per year now, which includes $2,100 / month in rent ($25K /year). We save around $150K per year after taxes.
The FIRE calcs say we can retire forever by the end of 2015 with something like a 98% success rate, but I'm making a whole lot of assumptions:
1) We will move out of NYC and buy a $200K house in cash. The house will cost $3,600 / year in maintenance and property taxes.
2) A high deductible health insurance plan will cost $300 / month
3) Our kid will cost $400 / month
4) We will buy a car for 10K and it'll cost $250 / month for insurance and gas
5) We will see a 10% cost of living decrease by moving to a lower cost area and retiring.
Questions:
1) Do any of these spending assumptions seem crazy?
2) Anything missing? I've done both an itemized budget and a "top down" estimate by adding/subtracting retirement costs from current spending. The "top down" estimate is higher so I'm going with that, but it has a huge amount of excess for silly expenses we pay for living in NYC (like car rentals to go hiking, occasional $14 cocktails, etc.)
We have a lot of uncertainty in our lives given baby on the way and there are a lot of unknowns in this plan (for example, we haven't decided on where we want to move). For now it seems sensible to keep working/accumulating, settle in with the new baby, and keep working on the ER plan.
Any feedback is very much appreciated!