Hi everyone. I’m looking for some feedback here with my situation. Also just want to say I appreciate the community here as I haven’t posted much (mostly due to lack of experience and wisdom) but feel like I have learned a good bit by reading some of these threads.
I am 36 and DW is 38. Currently I make $75K/year and my DW makes $83K/year. We have 4 and 2 yr old daughters. For several reasons, my DW and I have decided it would be better for me to stay home with our kiddos and for me to leave the corporate world behind. My DW will continue to work and expects to generate the same income with future increases that keep up with inflation.
DW’s income alone will support our current budget of 65K/yr (this includes the cost of ACA coverage which we will have to purchase and a buffer amount to savings for one-time purchases and unexpected expenses); however, I do plan on some “gig” jobs like DoorDash and Instacart when I have free time, perhaps adding $5-10K per year in additional income to operate as a safety net. We’ll also be eligible for $600/mo child tax credit, though I’m not positive how long that will last.
I’ve run our numbers through Firecalc using our current “grand total” listed below as the “Portfolio” amount. I’ve put conservative amounts for SS (we have MySSA accounts and I’m factoring in all the low-dollar earnings ahead of me between now and claiming).
My hope is that we will both be able to completely cease work no later than 2041, at which point we would begin taking withdrawals from our portfolio.
Firecalc tells me this is likely, ranging as low as 85% success rate and 100% success rate depending on a slightly lower/slightly higher budget amount and our ability/inability to contribute 5K/yr between now and 2041.
I should also add that I am not opposed to working more substantial hours should future circumstances dictate. Likely I would not return to the Megacorp world (short of DW dying prematurely), but would work anywhere from part-time to full-time if necessary. How do our numbers and plan sound? Are we leaving too much to chance? Am I thinking about this decision correctly?
Here are our current assets:
Roth Total (Roth 401ks and Roth IRAs) = $190K
Tax Deferred Total (Traditional 401ks and Traditional IRAs) = $280K
Taxable Total = $48K
Cash Total = $20K (will be padding this over the next few months and will add around 12K in severance from accrued PTO)
Grand Total*: $538K
*Excludes 20K inside 529 plans
Current AA = 98% Stocks and 2% Bonds but will gradually shift to 75/25 as we get closer to needing $ from portfolio.
Misc Info = We currently live in DW’s family home valued at $580K, paying $1,419/mo in rent. DW is only child and will inherit this paid off home upon parents’ passing at which point rent will cease and be replaced by property taxes, insurance, and repairs.
I am 36 and DW is 38. Currently I make $75K/year and my DW makes $83K/year. We have 4 and 2 yr old daughters. For several reasons, my DW and I have decided it would be better for me to stay home with our kiddos and for me to leave the corporate world behind. My DW will continue to work and expects to generate the same income with future increases that keep up with inflation.
DW’s income alone will support our current budget of 65K/yr (this includes the cost of ACA coverage which we will have to purchase and a buffer amount to savings for one-time purchases and unexpected expenses); however, I do plan on some “gig” jobs like DoorDash and Instacart when I have free time, perhaps adding $5-10K per year in additional income to operate as a safety net. We’ll also be eligible for $600/mo child tax credit, though I’m not positive how long that will last.
I’ve run our numbers through Firecalc using our current “grand total” listed below as the “Portfolio” amount. I’ve put conservative amounts for SS (we have MySSA accounts and I’m factoring in all the low-dollar earnings ahead of me between now and claiming).
My hope is that we will both be able to completely cease work no later than 2041, at which point we would begin taking withdrawals from our portfolio.
Firecalc tells me this is likely, ranging as low as 85% success rate and 100% success rate depending on a slightly lower/slightly higher budget amount and our ability/inability to contribute 5K/yr between now and 2041.
I should also add that I am not opposed to working more substantial hours should future circumstances dictate. Likely I would not return to the Megacorp world (short of DW dying prematurely), but would work anywhere from part-time to full-time if necessary. How do our numbers and plan sound? Are we leaving too much to chance? Am I thinking about this decision correctly?
Here are our current assets:
Roth Total (Roth 401ks and Roth IRAs) = $190K
Tax Deferred Total (Traditional 401ks and Traditional IRAs) = $280K
Taxable Total = $48K
Cash Total = $20K (will be padding this over the next few months and will add around 12K in severance from accrued PTO)
Grand Total*: $538K
*Excludes 20K inside 529 plans
Current AA = 98% Stocks and 2% Bonds but will gradually shift to 75/25 as we get closer to needing $ from portfolio.
Misc Info = We currently live in DW’s family home valued at $580K, paying $1,419/mo in rent. DW is only child and will inherit this paid off home upon parents’ passing at which point rent will cease and be replaced by property taxes, insurance, and repairs.
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