Hi everyone,
My spouse and I are 40. We want to retire as early as possible to have some adventure while physically fit (extensive camping, hiking, sailing, etc.) I especially want to do some serious prospecting in Alaska, and my wife wants to hunt elk or moose (no, she is not Sarah Palin). We do backpacking hikes of 2 or 3 weeks now and would get into shape for longer trips. Eventually we want to sail around the world, as sailing is our other passion.
Ok, so on to finances. We currently gross about $210K (her income, I am finishing up electrical engineering degree now). Maxing out 401K, doing the Roth trick ($5K into IRA then instant rollover into Roth), and saving everything we can (about $70K a year going into non-retirement savings). The balances now are $320K in 401K, 22K in her Roth, 55K in my Roth (I play around with mine in the stock market a bit more), 110K in taxable account (all in stocks), 35K in Vanguard municipal bond fund, and 40K in cash (waiting out elections and QE2 before deciding where to put it). We have no debt other than home, and owe 180K on house probably worth 400K conservatively.
All in all, I would say our net worth if we sold everything is 900K currently, including retirement accounts. I will most likely start working in about a year or two, and will try to hide as much money as possible by maxing 401K and doing everything else possible (our income is getting up there into the very taxable range). We would like to retire in 5 to 7 years, but it could be a partial retirement (maybe do software, hardware contract work for part of each year) if I determine our finances would not allow a complete retirement.
I estimate our total net worth will be 1.5M to 1.7M in 5 years *if* the market returns 8% or so. It will be hard to give up that good income though, knowing that every year we wait would be another 100K or more into the fund. When would you ER?
My spouse and I are 40. We want to retire as early as possible to have some adventure while physically fit (extensive camping, hiking, sailing, etc.) I especially want to do some serious prospecting in Alaska, and my wife wants to hunt elk or moose (no, she is not Sarah Palin). We do backpacking hikes of 2 or 3 weeks now and would get into shape for longer trips. Eventually we want to sail around the world, as sailing is our other passion.
Ok, so on to finances. We currently gross about $210K (her income, I am finishing up electrical engineering degree now). Maxing out 401K, doing the Roth trick ($5K into IRA then instant rollover into Roth), and saving everything we can (about $70K a year going into non-retirement savings). The balances now are $320K in 401K, 22K in her Roth, 55K in my Roth (I play around with mine in the stock market a bit more), 110K in taxable account (all in stocks), 35K in Vanguard municipal bond fund, and 40K in cash (waiting out elections and QE2 before deciding where to put it). We have no debt other than home, and owe 180K on house probably worth 400K conservatively.
All in all, I would say our net worth if we sold everything is 900K currently, including retirement accounts. I will most likely start working in about a year or two, and will try to hide as much money as possible by maxing 401K and doing everything else possible (our income is getting up there into the very taxable range). We would like to retire in 5 to 7 years, but it could be a partial retirement (maybe do software, hardware contract work for part of each year) if I determine our finances would not allow a complete retirement.
I estimate our total net worth will be 1.5M to 1.7M in 5 years *if* the market returns 8% or so. It will be hard to give up that good income though, knowing that every year we wait would be another 100K or more into the fund. When would you ER?