Just be really, really, really sure you have future healthcare expenditures nailed down. Problem is ....you can't. No one can.
You and your wife have 20 years before MEdicare kicks in....if it is still there. Plus your children will need insurance for at least another 10 years.
To give you a little perspective, I spoke with a rep from our state exchange who told me that the info he received is that most carriers next year will have a 10-15% increase in premiums with higher deductibles and OOP maximums. This is because many states with their own healthcare exchange will lose subsidies from the Gov't as was planned under the ACA. The reason many have dropped state exchanges. My wife and I are ten years older than you guys with a NW of $4.5M of which $4.3 is invested at an allocation of 50/50. Our expenses approximate $50,000/year. I am retired ....my wife not yet. I ran the numbers until we both qualify for MEdicare with 15% increases in premiums every year and assuming the worst case scenario that we would max out deductibles every year. For the next 9 years this would cost us $300,000 for medical expenses alone. And that doesn't even include dental. CAn we still afford it? Sure but my wife will probably now work until age 60 ( 5 more years) bringing us closer to MEdicare eligibility....not for the money ... but for the excellent plan she has at work.
With the money you are making, unless you cannot stand your job, I would probably continue working until the youngest child entered college. This only puts you and your wife in your early 50's with still decades ahead to enjoy retirement. Unless consulting work or some other endeavor would provide some steady part time income. I just think future healthcare expenses will be higher than even projected. Anyway good luck to you.
