ERdream
Confused about dryer sheets
A little background on the DW and the family:
I am 36 and the DW is 32, 3 kids under the age of 5. I just finished my training ( felt like forever) after a change in careers and feel very behind on the journey to ER. I enjoy 80% of the time on my job and never thought that I would want stop working before 60. However the more time I work and spend less time with my family, the more ER is what I want.
We made a big mistake earlier this year that I regret and now my DW does also, we bought her dream home for 650k. It was new construction, custom built and we over paid for it compared to other comps in the area. DW loves the house and that is enough for me to sleep at night but it will be one of the main reasons I do wont retire before 50.
The other reason for not being able to reach ER until 50 is my HUGE student debt. 270k for medical school loans. Now I have no one to blame for them but myself. I just refied at 3.35% for 15 years from 6.8% from Uncle Sam who was compounding the interest while I made 50k in training. Looking back I could have lived on less and probably game out with 190k but I was to stupid to realize it when I was in school ( and ER was never on my mind)
DW is the most supportive person in my life and great partner. I often fall into the trap of being unable to say no to anything that she wants and she has be raising our 3 children almost by herself during training and I feel that she should be rewarded with the "nicer" things in life. With that being said we have both been committed to living well below our means after buying the money pit. I am more towards to MMM life style, but the wife leans a bit more towards "living life" so we plan on saving 50-60% of our income and still leaves plenty for 2-3 nice vacations and allotted money every month for her to spend.
So onto the ugly financial state of our family.
Mortgage: 638K @ 3.5%, monthly payment of 3090$
Student Loans: 370 @ 3.35% , monthly payment of 1980$
Total Assets: 72K in Roth IRA's, 53k in my old 403B (which will be moved into my new 401k this summer when I become eligible for it). 8k in a taxable vanguard account. 3k in ally saving for a meager emergency fund. ( this will slowly climb throughout the years but we both feel that my job/income is safe enough that investing our money is more important at this time)
NET WORTH: - 780k!!!!!!!!!!!!!!
Yes thats NEGATIVE.
Our plan to dig ourselves out of this HOLE and into ER is the following:
1. Save 70k in taxable accounts for the next 2 years, at that time my salary will rise and push that to 150K until ER.
2. Max ROTH IRA every year until ER for 11k a year.
3. MAX 401k starting this year for 53k a year. I contribute 32k and my work does the rest.
4. We were putting an extra 1k towards the mortgage every month, but we feel that we can get more out of investing that money right now and let it compound. Have mortgage paid off before ER.
5. Students loans will be paid off at the start of ER, no extra payments on this either.
6. 529 for the kiddos, plan on 150k for each kid for undergraduate school.
7. 3M in taxable acount, IRA, 401k by ER estimated to be 50-51 yo.
8. Live off 90k a year in ER, by then our youngest will be starting colllege (hopefully).
It is just utterly depressing looking at these numbers and the only solace is that I am lucky enough to make a very comfortable living and will be able to save as much as we have planned. Thanks for reading and welcome to my very uphill journey to ER, any advice or tomato throwing welcome!
I am 36 and the DW is 32, 3 kids under the age of 5. I just finished my training ( felt like forever) after a change in careers and feel very behind on the journey to ER. I enjoy 80% of the time on my job and never thought that I would want stop working before 60. However the more time I work and spend less time with my family, the more ER is what I want.
We made a big mistake earlier this year that I regret and now my DW does also, we bought her dream home for 650k. It was new construction, custom built and we over paid for it compared to other comps in the area. DW loves the house and that is enough for me to sleep at night but it will be one of the main reasons I do wont retire before 50.
The other reason for not being able to reach ER until 50 is my HUGE student debt. 270k for medical school loans. Now I have no one to blame for them but myself. I just refied at 3.35% for 15 years from 6.8% from Uncle Sam who was compounding the interest while I made 50k in training. Looking back I could have lived on less and probably game out with 190k but I was to stupid to realize it when I was in school ( and ER was never on my mind)
DW is the most supportive person in my life and great partner. I often fall into the trap of being unable to say no to anything that she wants and she has be raising our 3 children almost by herself during training and I feel that she should be rewarded with the "nicer" things in life. With that being said we have both been committed to living well below our means after buying the money pit. I am more towards to MMM life style, but the wife leans a bit more towards "living life" so we plan on saving 50-60% of our income and still leaves plenty for 2-3 nice vacations and allotted money every month for her to spend.
So onto the ugly financial state of our family.
Mortgage: 638K @ 3.5%, monthly payment of 3090$
Student Loans: 370 @ 3.35% , monthly payment of 1980$
Total Assets: 72K in Roth IRA's, 53k in my old 403B (which will be moved into my new 401k this summer when I become eligible for it). 8k in a taxable vanguard account. 3k in ally saving for a meager emergency fund. ( this will slowly climb throughout the years but we both feel that my job/income is safe enough that investing our money is more important at this time)
NET WORTH: - 780k!!!!!!!!!!!!!!
Yes thats NEGATIVE.
Our plan to dig ourselves out of this HOLE and into ER is the following:
1. Save 70k in taxable accounts for the next 2 years, at that time my salary will rise and push that to 150K until ER.
2. Max ROTH IRA every year until ER for 11k a year.
3. MAX 401k starting this year for 53k a year. I contribute 32k and my work does the rest.
4. We were putting an extra 1k towards the mortgage every month, but we feel that we can get more out of investing that money right now and let it compound. Have mortgage paid off before ER.
5. Students loans will be paid off at the start of ER, no extra payments on this either.
6. 529 for the kiddos, plan on 150k for each kid for undergraduate school.
7. 3M in taxable acount, IRA, 401k by ER estimated to be 50-51 yo.
8. Live off 90k a year in ER, by then our youngest will be starting colllege (hopefully).
It is just utterly depressing looking at these numbers and the only solace is that I am lucky enough to make a very comfortable living and will be able to save as much as we have planned. Thanks for reading and welcome to my very uphill journey to ER, any advice or tomato throwing welcome!