chasedream2002
Recycles dryer sheets
- Joined
- Oct 6, 2018
- Messages
- 64
1. I am 38 and wife is 33. Both working. Two kids 3 and 8.
2. I am making 180k and wife is making 52k. Totally 232k, but my job is not stable. May have to take a lower pay job next spring.
3. Retirement account (IRA and 401k): 300K, taxable 150k, cash 150k, totally 600k savings, all the investment funds are from Vanguard.
4. House is 380k, mortgage balance is 180k, about 200k equity in the house. Currently the mortgage is 15 year, interest rate 3%, but keeping the mortgage may require a higher cash flow and I am afraid I won't be able to generate the cash flow with 1M investment. I am planning to accumulate 1M and pay off mortgage before FIRE.
5. I am contributing 18k into 401K (employer match 7k) and 5.5K into roth IRA, wife is contributing 12k into simple IRA (1k match from her employer). About 50k goes into taxable account each year.
6. My expenses are quite high due to mortgage, property tax and day care cost. Monthly I am spending about 7400 dollars. It can be reduced to less than 3000 after FIRE. I plan to pay off mortgage and won't have day care cost after FIRE.
Current Cost:
Mortgage 1620 (11 years left on mortgage at 3%)
Day Care 1600 (day care cost will be gone in 2 years)
Property Tax 1100
House Repair 50
Medical 200
Gas 250
Toll 100
Car Insurance/Repair 200
Water 100
Gas and Electricity 100
Cable and Phone 150
Grocery 800 (can reduce to 500)
Eat Out 500 (can reduce to 200)
Clothes 100
Vacation 100
Education 200
Gifts 50
Entertainment Toys 50
Electronics 50
Furnitture 50
Other 50
Total 7420
Reduced Cost after FIRE and paying off mortgage
Mortgage 0
Day Care 0
Property Tax 1100
House Repair 50
Medical 200
Gas 100
Toll 20
Car Insurance/Repair 200
Water 100
Gas and Electricity 100
Cable and Phone 90
Grocery 600
Eat Out 0
Clothes 0
Vacation 0
Education 100
Gifts 0
Entertainment Toys 0
Electronics 0
Furnitture 0
Other 0
Total 2660
Currently the job I have is not very stable and I may have to take an 80k job next year, so the total income will decrease to 134K, it will slow down my FIRE process significantly. I had a late start and had 0 networth six years ago. I don’t like the high stress jobs. I really want to achieve FIRE ASAP. Currently I am able to save about 10k per month, but I can only save about 3k per month after changing the job.
Based on my calculation, my total investment and saving can reach 1 million after working at the new job for 3-4 years. I may work for 1-2 years to pay down the mortgage, so totally I need at least 5 years to reach FIRE, around 2023. I will be around 43 years old and wife will be about 38 years old. My wife is on board and she is willing to work for a few additional years to 2028. Hopefully her pay can cover the living expenses between 2023 to 2028. The investment should be able to reach 1.5 M in 2028 and it should be able to generate 60k per year before she retires.
Please provide some input and let me know if any optimization can be done to my FIRE plan. Thank you!
2. I am making 180k and wife is making 52k. Totally 232k, but my job is not stable. May have to take a lower pay job next spring.
3. Retirement account (IRA and 401k): 300K, taxable 150k, cash 150k, totally 600k savings, all the investment funds are from Vanguard.
4. House is 380k, mortgage balance is 180k, about 200k equity in the house. Currently the mortgage is 15 year, interest rate 3%, but keeping the mortgage may require a higher cash flow and I am afraid I won't be able to generate the cash flow with 1M investment. I am planning to accumulate 1M and pay off mortgage before FIRE.
5. I am contributing 18k into 401K (employer match 7k) and 5.5K into roth IRA, wife is contributing 12k into simple IRA (1k match from her employer). About 50k goes into taxable account each year.
6. My expenses are quite high due to mortgage, property tax and day care cost. Monthly I am spending about 7400 dollars. It can be reduced to less than 3000 after FIRE. I plan to pay off mortgage and won't have day care cost after FIRE.
Current Cost:
Mortgage 1620 (11 years left on mortgage at 3%)
Day Care 1600 (day care cost will be gone in 2 years)
Property Tax 1100
House Repair 50
Medical 200
Gas 250
Toll 100
Car Insurance/Repair 200
Water 100
Gas and Electricity 100
Cable and Phone 150
Grocery 800 (can reduce to 500)
Eat Out 500 (can reduce to 200)
Clothes 100
Vacation 100
Education 200
Gifts 50
Entertainment Toys 50
Electronics 50
Furnitture 50
Other 50
Total 7420
Reduced Cost after FIRE and paying off mortgage
Mortgage 0
Day Care 0
Property Tax 1100
House Repair 50
Medical 200
Gas 100
Toll 20
Car Insurance/Repair 200
Water 100
Gas and Electricity 100
Cable and Phone 90
Grocery 600
Eat Out 0
Clothes 0
Vacation 0
Education 100
Gifts 0
Entertainment Toys 0
Electronics 0
Furnitture 0
Other 0
Total 2660
Currently the job I have is not very stable and I may have to take an 80k job next year, so the total income will decrease to 134K, it will slow down my FIRE process significantly. I had a late start and had 0 networth six years ago. I don’t like the high stress jobs. I really want to achieve FIRE ASAP. Currently I am able to save about 10k per month, but I can only save about 3k per month after changing the job.
Based on my calculation, my total investment and saving can reach 1 million after working at the new job for 3-4 years. I may work for 1-2 years to pay down the mortgage, so totally I need at least 5 years to reach FIRE, around 2023. I will be around 43 years old and wife will be about 38 years old. My wife is on board and she is willing to work for a few additional years to 2028. Hopefully her pay can cover the living expenses between 2023 to 2028. The investment should be able to reach 1.5 M in 2028 and it should be able to generate 60k per year before she retires.
Please provide some input and let me know if any optimization can be done to my FIRE plan. Thank you!