Hello Everyone ,
Goal: To retire in 5 years (December 2026)
Age: 45 (Husband) & 44 (Wife). Three kids (5,5, & 14)
Occupation: Engineer & Nurse
Household income including rental: $276K (257K-salary and 19K-rental)
We have 2 properties; between our primary residence and rental property we have about $753K of equity. Our remaining loan balance is $393K.
Our retirement balance on deferred account is $930K. Our current contribution is $160 per month. We have $515K in stocks (17 individual stocks), and $17K in cryptocurrency these funds will supplement to our retirement income. We contribute about $3,000 monthly towards the stocks and cryptocurrency.
We have $116K in college funds (ESA & 529). The first few years of college expenses of our eldest child will be cashed flow since we are still going to be working. We are not planning to touch the college till we retire.
Current total net worth is about $2.3M.
Our investments allocations on our retirement accounts, stocks, and college funds are invested 97% equity and 3% bonds. I will gradually increase my position in cash/bonds as we get closer to retirement, by the time we retire our allocations will be 56% equity & 44% cash/bonds. Our average investments return since we started in 2002 has been about 11%.
We both work for government agencies and have a defined pension benefit when we retire. Our approximate retirement income will be 62% of our pre-retirement income; 28% will be from defined pension and the other 34% will be generated from our retirement and stocks account. My withdrawal rate will be 4%. The 62% of our pre-retirement income will generate about $13,500 gross per month. Rental income is excluded on our retirement income, this will be our safety net. I’m also fortunate that our healthcare insurance for the whole family is a benefit I’ll be receiving if I retire with my current employer, my wife and I will have healthcare coverage till we turn 65 years old and our children will be covered till they turn 26. Based on FIRECALC calculator we have 99.2% success rate.
Anticipated monthly expenses during retirement is $13,500:
· Mortgage: $3,400
· Rental property expenses: $800
· Utilities: $1,300
· Car: $1,500
· Taxes: $2,000 (based on federal & state tax brackets with child tax credit, $2,500 w/o)
· Disposable income: $4,500 (food, gas, vacation, entertainment, misc.)
Please advise:
· Is our goal reasonable? Is our current allocation too aggressive? Is there anything you would do differently? How to minimize tax during retirement?
Goal: To retire in 5 years (December 2026)
Age: 45 (Husband) & 44 (Wife). Three kids (5,5, & 14)
Occupation: Engineer & Nurse
Household income including rental: $276K (257K-salary and 19K-rental)
We have 2 properties; between our primary residence and rental property we have about $753K of equity. Our remaining loan balance is $393K.
Our retirement balance on deferred account is $930K. Our current contribution is $160 per month. We have $515K in stocks (17 individual stocks), and $17K in cryptocurrency these funds will supplement to our retirement income. We contribute about $3,000 monthly towards the stocks and cryptocurrency.
We have $116K in college funds (ESA & 529). The first few years of college expenses of our eldest child will be cashed flow since we are still going to be working. We are not planning to touch the college till we retire.
Current total net worth is about $2.3M.
Our investments allocations on our retirement accounts, stocks, and college funds are invested 97% equity and 3% bonds. I will gradually increase my position in cash/bonds as we get closer to retirement, by the time we retire our allocations will be 56% equity & 44% cash/bonds. Our average investments return since we started in 2002 has been about 11%.
We both work for government agencies and have a defined pension benefit when we retire. Our approximate retirement income will be 62% of our pre-retirement income; 28% will be from defined pension and the other 34% will be generated from our retirement and stocks account. My withdrawal rate will be 4%. The 62% of our pre-retirement income will generate about $13,500 gross per month. Rental income is excluded on our retirement income, this will be our safety net. I’m also fortunate that our healthcare insurance for the whole family is a benefit I’ll be receiving if I retire with my current employer, my wife and I will have healthcare coverage till we turn 65 years old and our children will be covered till they turn 26. Based on FIRECALC calculator we have 99.2% success rate.
Anticipated monthly expenses during retirement is $13,500:
· Mortgage: $3,400
· Rental property expenses: $800
· Utilities: $1,300
· Car: $1,500
· Taxes: $2,000 (based on federal & state tax brackets with child tax credit, $2,500 w/o)
· Disposable income: $4,500 (food, gas, vacation, entertainment, misc.)
Please advise:
· Is our goal reasonable? Is our current allocation too aggressive? Is there anything you would do differently? How to minimize tax during retirement?