10years away
Confused about dryer sheets
- Joined
- Dec 27, 2011
- Messages
- 8
Hi! Although I haven't been active posting I've enjoyed all of your stories and insights. I've learned a lot from the community. Copied below is my original post.
I realized shortly after creating my handle "10years away" that it was probably accurate (at least for the short term)...as time moves forward I'm still 10 years out. Hopefully, I'm closer to 10 years as of today. My job stress level has slightly dropped. I truly am challenged and feel like I add value to my company, but one thing remains the same: I look to financial independence as a way to buy myself more time.
Probably the biggest challenge I face is trying to gain alignment from my DW. DW is a stay at home mom and realizes I have a demanding job. But she doesn't feel the same urgency that I do. She thinks we should ease up a bit on the savings and "go with the flow" -- which I interpret as, "what's the rush, things are just fine for the majority of the family." A point I always bring up is that we still live an upper middle class lifestyle complete with many vacations, cleaning services, and plenty of other conveniences to make our lives easier. I'm hoping when our youngest reaches kindergarten in 2 years the gentle nudge to return to the corporate world will get her on the same page. Fingers crossed. Any thoughts on the topic are appreciated.
Here's the update:
Income: $255k.
Taxable investments: $329K
Tax exempt investments: $550k
529 plan (omitted in initial post - 3 kids): $68k
*AA is all in index funds: 47% S&P, 20% Int'l, 22% bonds, 6% REITS, 5% cash.
Home equity (home value is $510k): $223k
Net worth, less 529 plans: $1,102,000.
Annual investment plan:
$91,000 to invest - here is the breakdown -
*401k / small match: $21k
*Overpayment on Mortgage: $21k. Will be paid off 4/2020
*taxable accounts: $35k
*529's: $14k. Plan is for each child (3) to have 100k for college.
Once our mortgage is paid off it will allow a lot of money to be allocated to taxable accounts ($21k overpayment plus $26k in current payment).
Thanks for listening. Take Care.
36 yr old father of 3 wants to be FI in 10 years
Hi,
I'm happy to join the group and get your opinions on financial matters. I'd like to walk away from my high stress (high pay) job in 10 years and do something more fulfilling. I daydream about leaving corporate america non stop and have done so at a very young age. I'm sure people at my company would be very surprised. Am I on track and should I allocate my savings differently? Annually I have $75,000 to save or pay down my mortgage. Here's where I currently stand: $625,000 in savings (15% cash, 20% bonds, 65% stocks / index funds). About half of the money is in IRA's / 401(k)'s, but much of the new savings is going into non taxable accounts due to maxing out my 401 (k). I recently refi'd to a 15 yr (3.5%) and owe $346,000 on my mortgage. There is no other debt.
Of the $75,000 annual saving surplus I'm allocating $15,000 to overpay my mortgage. It should be paid off in 8 years. The difference in surplus ($60,000) goes to 15% cash, 20% bonds, 65% multiple index funds.
In 10 years I'm expecting my family's monthly expenses to be $5,500. My family is very happy where we live and I don't plan on moving. Our primary expenses will be property tax, all things children (tuition, activities), and somewhat maintaining my wife & kids' lifestyle which is still relatively frugal.
Any advice on where to put my additional money or thoughts on if the timeline is feasible are greatly welcome.
I realized shortly after creating my handle "10years away" that it was probably accurate (at least for the short term)...as time moves forward I'm still 10 years out. Hopefully, I'm closer to 10 years as of today. My job stress level has slightly dropped. I truly am challenged and feel like I add value to my company, but one thing remains the same: I look to financial independence as a way to buy myself more time.
Probably the biggest challenge I face is trying to gain alignment from my DW. DW is a stay at home mom and realizes I have a demanding job. But she doesn't feel the same urgency that I do. She thinks we should ease up a bit on the savings and "go with the flow" -- which I interpret as, "what's the rush, things are just fine for the majority of the family." A point I always bring up is that we still live an upper middle class lifestyle complete with many vacations, cleaning services, and plenty of other conveniences to make our lives easier. I'm hoping when our youngest reaches kindergarten in 2 years the gentle nudge to return to the corporate world will get her on the same page. Fingers crossed. Any thoughts on the topic are appreciated.
Here's the update:
Income: $255k.
Taxable investments: $329K
Tax exempt investments: $550k
529 plan (omitted in initial post - 3 kids): $68k
*AA is all in index funds: 47% S&P, 20% Int'l, 22% bonds, 6% REITS, 5% cash.
Home equity (home value is $510k): $223k
Net worth, less 529 plans: $1,102,000.
Annual investment plan:
$91,000 to invest - here is the breakdown -
*401k / small match: $21k
*Overpayment on Mortgage: $21k. Will be paid off 4/2020
*taxable accounts: $35k
*529's: $14k. Plan is for each child (3) to have 100k for college.
Once our mortgage is paid off it will allow a lot of money to be allocated to taxable accounts ($21k overpayment plus $26k in current payment).
Thanks for listening. Take Care.
36 yr old father of 3 wants to be FI in 10 years
Hi,
I'm happy to join the group and get your opinions on financial matters. I'd like to walk away from my high stress (high pay) job in 10 years and do something more fulfilling. I daydream about leaving corporate america non stop and have done so at a very young age. I'm sure people at my company would be very surprised. Am I on track and should I allocate my savings differently? Annually I have $75,000 to save or pay down my mortgage. Here's where I currently stand: $625,000 in savings (15% cash, 20% bonds, 65% stocks / index funds). About half of the money is in IRA's / 401(k)'s, but much of the new savings is going into non taxable accounts due to maxing out my 401 (k). I recently refi'd to a 15 yr (3.5%) and owe $346,000 on my mortgage. There is no other debt.
Of the $75,000 annual saving surplus I'm allocating $15,000 to overpay my mortgage. It should be paid off in 8 years. The difference in surplus ($60,000) goes to 15% cash, 20% bonds, 65% multiple index funds.
In 10 years I'm expecting my family's monthly expenses to be $5,500. My family is very happy where we live and I don't plan on moving. Our primary expenses will be property tax, all things children (tuition, activities), and somewhat maintaining my wife & kids' lifestyle which is still relatively frugal.
Any advice on where to put my additional money or thoughts on if the timeline is feasible are greatly welcome.