kingfisher
Dryer sheet wannabe
- Joined
- Dec 4, 2020
- Messages
- 15
45yrs old, Looking to retire in 5 years
hi,
I have been browsing the forum for a few months, I want to get some inputs on my plan. We want to target retirement by end of 2025, so about 4-5 years from now.
We are a single income family, wife is about the same age and 2 kids at 13 and 11. I have 529 setup for them, combined there are about 270k in them. I am hoping that's enough so do not plan to put more money into it. If it's not enough, we'll probably cash flow the rest.
Excluding 529, the rest of the assets:
Primary home: no mortgage, worth ~1.4M, property tax is 18k/year
Emergency Fund: 70k
Investments: mostly vanguard index funds, total: 2.25M, breakdown
taxable: 900k (basis around 600k)
tax-free (Roth & HSA): 600k
401k and IRA: 750k
overall asset allocation:
US stock: 53%
Intl Stock: 19%
Alternative: (REITs): 11%
US Bonds: 15%
Intl Bonds: 2%
Debt: none
New contribution each year until retirement:
* 30k in 401k (contribution + match)
* 6k in ROTH (I have IRA, can't do backdoor ROTH, so that's just for wife)
* 80-90k in taxable
Our target expanse would be around 90k/year after tax, but include health care. It does not including the kids college cost though, so if kids are to go to expansive schools and the 529 fund isn't enough, that will probably delay our plan to retire.
I think we can keep our income pretty low for the early retirement years (not planning to take SS until age 70) by mostly withdrawing from taxable until age 60. And we will do some ROTH conversion if tax rates are favorable.
So what do you think, does that seem like doable? Any holes in the plan?
ps. putting 110k/year spending into FireCal give me 99% success rate
hi,
I have been browsing the forum for a few months, I want to get some inputs on my plan. We want to target retirement by end of 2025, so about 4-5 years from now.
We are a single income family, wife is about the same age and 2 kids at 13 and 11. I have 529 setup for them, combined there are about 270k in them. I am hoping that's enough so do not plan to put more money into it. If it's not enough, we'll probably cash flow the rest.
Excluding 529, the rest of the assets:
Primary home: no mortgage, worth ~1.4M, property tax is 18k/year
Emergency Fund: 70k
Investments: mostly vanguard index funds, total: 2.25M, breakdown
taxable: 900k (basis around 600k)
tax-free (Roth & HSA): 600k
401k and IRA: 750k
overall asset allocation:
US stock: 53%
Intl Stock: 19%
Alternative: (REITs): 11%
US Bonds: 15%
Intl Bonds: 2%
Debt: none
New contribution each year until retirement:
* 30k in 401k (contribution + match)
* 6k in ROTH (I have IRA, can't do backdoor ROTH, so that's just for wife)
* 80-90k in taxable
Our target expanse would be around 90k/year after tax, but include health care. It does not including the kids college cost though, so if kids are to go to expansive schools and the 529 fund isn't enough, that will probably delay our plan to retire.
I think we can keep our income pretty low for the early retirement years (not planning to take SS until age 70) by mostly withdrawing from taxable until age 60. And we will do some ROTH conversion if tax rates are favorable.
So what do you think, does that seem like doable? Any holes in the plan?
ps. putting 110k/year spending into FireCal give me 99% success rate
Last edited: