Cincyguy63
Dryer sheet aficionado
I've enjoyed lurking on this site and decided it was time to introduce myself. I'm in a 54 year old professional working for a MegaCorp Tech company. My DW is a part time Nurse and I have 3 boys (ages: 21 -Jr. College, 19 Frosh College and a 16 year Sophomore HS). I've been a big fan of Dave Ramsey and have followed some / parts of his baby step advice although at times I do feel that I might not be a typically follower.
My wife and I have lived a modest lifestyle relative to our income and we are now setting our sights and goals on a day soon when we can focus on "giving back what has been graciously given to us."
My wife and I do not have the blessings of a pension other than SS. Here's a quick snapshot:
Retirement Cash Flow:
-$1.4M Investment and after tax savings
- $900k pre-tax 401-k
College/ 529: $100k
Home: Zillow Value -$500k
-Outstanding Mortgage: $80k
I've been tracking home expense for over the past 12 months and excluding hard costs associated with the kids, here's the projected retirement costs:
Basic Needs: 65k
Wants (Discretionary): 50k
Wishes (Philanthropy, Generational): 25k
We are working towards paying off 2 car leases (big mistake) this year of which we have 65% of that expenses covered in a cash money market and paying off the mortgage in 2019 or sooner. My plan would be to stockpile cash over the final 2-3 years equal to 2 years of " Basic Needs" and walk away from my career when I turn 59.
I do have a couple of questions:
1. This has been a banner year for investments and because of an IPO and other years at MegaCorp tech companies my post tax investments have a material exposure across 3 companies (35%). My financial advisor has been working over the past 2 years to minimize this exposure through a series of Put/ Calls, Donor Fund (charitable) and other transactions. I've been fortunate to realize a return in the 20%'s in 2017. I'm around 65/35 right now and have a meeting next week to review and adjust my exposure. I still feel bullish in 2018 but am concerned about a hit coming either late 2018 or 2019. Given my plan to cash out of work around 4-5 years from now am I carrying too much risk?
2. Pay off the mortgage or not? As a fan of D Ramsey we've been working hard to pay off all debt of which 2 car leases and the balance of the mortgage are left over. We plan to possibly move to the Denver market over the course of the next 5-8 years and will roll the proceeds of our home sale into something a bit smaller but most likely 200-300k more expensive. Should I plunge more cash into paying off the mortgage or should I just let it ride?
Thanks for thoughts/ feedback.
My wife and I have lived a modest lifestyle relative to our income and we are now setting our sights and goals on a day soon when we can focus on "giving back what has been graciously given to us."
My wife and I do not have the blessings of a pension other than SS. Here's a quick snapshot:
Retirement Cash Flow:
-$1.4M Investment and after tax savings
- $900k pre-tax 401-k
College/ 529: $100k
Home: Zillow Value -$500k
-Outstanding Mortgage: $80k
I've been tracking home expense for over the past 12 months and excluding hard costs associated with the kids, here's the projected retirement costs:
Basic Needs: 65k
Wants (Discretionary): 50k
Wishes (Philanthropy, Generational): 25k
We are working towards paying off 2 car leases (big mistake) this year of which we have 65% of that expenses covered in a cash money market and paying off the mortgage in 2019 or sooner. My plan would be to stockpile cash over the final 2-3 years equal to 2 years of " Basic Needs" and walk away from my career when I turn 59.
I do have a couple of questions:
1. This has been a banner year for investments and because of an IPO and other years at MegaCorp tech companies my post tax investments have a material exposure across 3 companies (35%). My financial advisor has been working over the past 2 years to minimize this exposure through a series of Put/ Calls, Donor Fund (charitable) and other transactions. I've been fortunate to realize a return in the 20%'s in 2017. I'm around 65/35 right now and have a meeting next week to review and adjust my exposure. I still feel bullish in 2018 but am concerned about a hit coming either late 2018 or 2019. Given my plan to cash out of work around 4-5 years from now am I carrying too much risk?
2. Pay off the mortgage or not? As a fan of D Ramsey we've been working hard to pay off all debt of which 2 car leases and the balance of the mortgage are left over. We plan to possibly move to the Denver market over the course of the next 5-8 years and will roll the proceeds of our home sale into something a bit smaller but most likely 200-300k more expensive. Should I plunge more cash into paying off the mortgage or should I just let it ride?
Thanks for thoughts/ feedback.