30RetireIn40s
Confused about dryer sheets
- Joined
- Oct 28, 2010
- Messages
- 2
Hi all, I recently turned 30 years old, and I'd like to retire in my 40's, preferably as early in my 40's as possible... I'm not sure retire is really the right word. I'd like to work at a simpler pace, possibly for myself or as a contractor part time or something. What I really want is the financial freedom to do that if I so choose.
I save a decent amount of my income, although I don't keep track of exactly what % gets saved. My fiancee (who is 28) also is good about saving, albeit on a smaller income. Both of us being on the same page financially will be a huge plus, I imagine.
ASSETS:
My IRA & 401k: $140,000
My non-retirement stocks: $50,000
Fiancee's IRA & 401k: $6,000
Fiancee's non-retirement stocks: $9,000
Combined cash & equivalents: $20,000
Conservative Home Value: $120,000
DEBT:
Mortgage: $70,000 (13 years remaining at 4.875%)
Credit Card: $2,500
Total assets are therefore approximately $272,500 including home equity or $222,500 without.
We have more revolving debt, but none gets carried over from month to month and is really just our standard expenses. The $2,500 listed is actual debt that I got at 3% interest for life so I took a cash advance and added it to my non-retirement brokerage account. I don't plan to pay off the house early at only 4.875% (tax-deductible) interest. We don't currently have any car payments, but that will probably change soon since her car is starting to act up. Plus, we don't want to save so much that we don't enjoy life. We just try to really consider if spending money will actually bring us any benefit before doing so. Usually the answer is no.
Our combined income is around $110,000 gross but after taxes and 401k contributions and such take home is about $75,000 (it's amazing how much different those 2 numbers are!) On top of that we've been putting about $15,000 a year towards IRAs and non-retirement investments. Assuming we spend everything else that leaves us with around $60,000 in expenses.
Our current annual savings are (approximately & including employer contributions)
My 401k: $16,000
Fiancee 401k: $3,600
My IRA: $5,000
Other stock investments: $7,000
Cash savings: $3,000
TOTAL: $34,600
She isn't currently doing an IRA, she tends to save in her bank account.
Looking at it now it seems pretty good. It doesn't feel like we have to struggle to save, but we're generally frugal: moderate housing that meets our needs but no more, fully paid for cars, etc. We eat out often because it increases our quality of life, etc.
That's quite a lot more info than I was expecting. Any thoughts on me being financially secure at some time in my 40's? My house should be paid off by that time. Kids could also result in a large change in the equation, but we haven't really decided on that yet. A big problem is accessing the large % of money that will be in retirement accounts so early.
I save a decent amount of my income, although I don't keep track of exactly what % gets saved. My fiancee (who is 28) also is good about saving, albeit on a smaller income. Both of us being on the same page financially will be a huge plus, I imagine.
ASSETS:
My IRA & 401k: $140,000
My non-retirement stocks: $50,000
Fiancee's IRA & 401k: $6,000
Fiancee's non-retirement stocks: $9,000
Combined cash & equivalents: $20,000
Conservative Home Value: $120,000
DEBT:
Mortgage: $70,000 (13 years remaining at 4.875%)
Credit Card: $2,500
Total assets are therefore approximately $272,500 including home equity or $222,500 without.
We have more revolving debt, but none gets carried over from month to month and is really just our standard expenses. The $2,500 listed is actual debt that I got at 3% interest for life so I took a cash advance and added it to my non-retirement brokerage account. I don't plan to pay off the house early at only 4.875% (tax-deductible) interest. We don't currently have any car payments, but that will probably change soon since her car is starting to act up. Plus, we don't want to save so much that we don't enjoy life. We just try to really consider if spending money will actually bring us any benefit before doing so. Usually the answer is no.
Our combined income is around $110,000 gross but after taxes and 401k contributions and such take home is about $75,000 (it's amazing how much different those 2 numbers are!) On top of that we've been putting about $15,000 a year towards IRAs and non-retirement investments. Assuming we spend everything else that leaves us with around $60,000 in expenses.
Our current annual savings are (approximately & including employer contributions)
My 401k: $16,000
Fiancee 401k: $3,600
My IRA: $5,000
Other stock investments: $7,000
Cash savings: $3,000
TOTAL: $34,600
She isn't currently doing an IRA, she tends to save in her bank account.
Looking at it now it seems pretty good. It doesn't feel like we have to struggle to save, but we're generally frugal: moderate housing that meets our needs but no more, fully paid for cars, etc. We eat out often because it increases our quality of life, etc.
That's quite a lot more info than I was expecting. Any thoughts on me being financially secure at some time in my 40's? My house should be paid off by that time. Kids could also result in a large change in the equation, but we haven't really decided on that yet. A big problem is accessing the large % of money that will be in retirement accounts so early.