qwertyguy123
Confused about dryer sheets
- Joined
- Dec 23, 2020
- Messages
- 5
First time poster here. Spent a while reading through here and other forums/websites. But couldn't find anything that's kinda specific to our situation so looking for some friendly advice.
- Wife and I are nearing 40 (just 1-2 years away)
- Wife is stay at home mom; we have 3 kids
- I work in Corporate America with a base pay $200K. With variable bonus, total Comp has been roughly $260K-$300K.
- We live on the East Coast and also send our oldest two to private school for the last few years ($26K annually for two ($13K x 2), otherwise we’d have much more in assets
Financial Profile
- $213K in my company’s 401K
- $20K in legacy company pension (no longer funded but I got in at the tail-end right before they stopped offering this – but it’ll continue to grow with annual 4% interest credits)
- $390K in a traditional Betterment IRA
- $35K in taxable Betterment account invested in index funds
- $10K in taxable Ameritrade account invested in a couple stocks
- $100K in three separate college 529 funds ($45k, $45k, and $10K)
- $50K in student loan debt (3.19% interest rate) – should finish paying this off over the next few years unless I decide to pay-off early
- Currently rent
Long story short we’re selling a home and will walk away with $1.4mm cash. We’re ready for a lifestyle change.
The Change
- Going to relocate to a MUCH lower cost country, for privacy reasons, not divulging but essentially is where our parents are from and we have many relatives around
- We’ve realized how important family is (takes a village to raise a kid) and we want to spend time with our kids, immediate and extended family members, and escaping the rat race
- The country has national healthcare coverage, so essentially even if we don’t work we will have virtually free / cheap healthcare coverage
- Cost wise – the biggest expense will be enrolling in private American school there, $20k times 2 kids = $40K. We have 3 kids (youngest is pre-school, oldest two are in elementary and middle school). There will be 4 years of overlap where all 3 kids overlap (so $60K). We don’t have any local school choice as our oldest 2 kids can’t read or write the local language and would take years to acclimate, so they need an English speaking school
- We’ll also likely purchase a home and spend $3K a year on mortgage ($36K)
- All in living costs are going to be $100K annually is my guess
Why
Like others here, Corporate America has sucked the life out of me. I’m done with it. My health has been terrible over the last 2 years, both mentally and physically – with anxiety attacks and panic attacks. I know it’s time for me to leave and to no longer ignore that still small voice.
I’m hoping to negotiate a voluntary layoff package given the company has headcount reduction targets. So I’d like to raise my hand for that, rather than someone else who really needs the job. Any severance money there would be a nice bonus prior to us relocating later this year (once covid restrictions ease) – it looks to be 24 weeks of pay, which would be close to $90K pre-tax. If no severance, I’m ok with that as well, as our minds are made up.
What Will We Do
I’ll take half a year to a year off to settle in and be a dad to my kids and emotionally be there for them as they adjust to new life. My wife started an online business recently and will look to scale that up and I’ll help out there. Her revenues in 2020 for about 4 months was around $10K, so I think with more focus and time we can scale this to be a $50K revenue business (after expenses and tax, maybe take home $20K).
I also plan to look into consulting, education, or administration type jobs – something that’s less stress and allows me to take my education / work training and invest it in a way that I find meaningful. I don’t need a 6 figure salary at all. If I’m fortunate enough to land a job at the private school in administration/operations, the kids’ tuition would even be free.
Financial Projections
I plan to rollover my 401K into my existing Betterment IRA which would be a combined $600K. Then I’ll contribute $12K annually into this now much larger traditional IRA. I’ll also add $30K annually into the taxable Betterment account. Both of which I would start withdrawing down at 59.5 or 20 years away. Betterment forecasts that I’ll have $1.8mm (most likely outcome) by then.
What are some drawdown / investment strategies with the $1.4mm to bridge the 20 year gap between now and 59.5 (and then we'd also have SS kick in during the 60's).
Keep in mind we’re retaining our American citizenship and will continue to file and pay US taxes on our worldwide income (hence means we can take advantage of SS when it’s our time).
I’ve looked at an absolute worst case scenario which means the money runs out in ~13 years (assumes no investment growth, no other income, we sit around all day and do nothing and my kids never graduate from private school and we keep paying there LOL). I don’t mine drawing down on the principal $1.4mm to fund our life, knowing that ultimately if I can get tuition free private schooling, my wife’s business scales greatly, or I find a job – then whatever we make can certainly cover half, most, or all our projected living expenses.
Thanks for your help in advance. It was quite cathartic to write this all out as I’ve been wrestling with admittedly first class world “problem” on what to do for a while now.
- Wife and I are nearing 40 (just 1-2 years away)
- Wife is stay at home mom; we have 3 kids
- I work in Corporate America with a base pay $200K. With variable bonus, total Comp has been roughly $260K-$300K.
- We live on the East Coast and also send our oldest two to private school for the last few years ($26K annually for two ($13K x 2), otherwise we’d have much more in assets
Financial Profile
- $213K in my company’s 401K
- $20K in legacy company pension (no longer funded but I got in at the tail-end right before they stopped offering this – but it’ll continue to grow with annual 4% interest credits)
- $390K in a traditional Betterment IRA
- $35K in taxable Betterment account invested in index funds
- $10K in taxable Ameritrade account invested in a couple stocks
- $100K in three separate college 529 funds ($45k, $45k, and $10K)
- $50K in student loan debt (3.19% interest rate) – should finish paying this off over the next few years unless I decide to pay-off early
- Currently rent
Long story short we’re selling a home and will walk away with $1.4mm cash. We’re ready for a lifestyle change.
The Change
- Going to relocate to a MUCH lower cost country, for privacy reasons, not divulging but essentially is where our parents are from and we have many relatives around
- We’ve realized how important family is (takes a village to raise a kid) and we want to spend time with our kids, immediate and extended family members, and escaping the rat race
- The country has national healthcare coverage, so essentially even if we don’t work we will have virtually free / cheap healthcare coverage
- Cost wise – the biggest expense will be enrolling in private American school there, $20k times 2 kids = $40K. We have 3 kids (youngest is pre-school, oldest two are in elementary and middle school). There will be 4 years of overlap where all 3 kids overlap (so $60K). We don’t have any local school choice as our oldest 2 kids can’t read or write the local language and would take years to acclimate, so they need an English speaking school
- We’ll also likely purchase a home and spend $3K a year on mortgage ($36K)
- All in living costs are going to be $100K annually is my guess
Why
Like others here, Corporate America has sucked the life out of me. I’m done with it. My health has been terrible over the last 2 years, both mentally and physically – with anxiety attacks and panic attacks. I know it’s time for me to leave and to no longer ignore that still small voice.
I’m hoping to negotiate a voluntary layoff package given the company has headcount reduction targets. So I’d like to raise my hand for that, rather than someone else who really needs the job. Any severance money there would be a nice bonus prior to us relocating later this year (once covid restrictions ease) – it looks to be 24 weeks of pay, which would be close to $90K pre-tax. If no severance, I’m ok with that as well, as our minds are made up.
What Will We Do
I’ll take half a year to a year off to settle in and be a dad to my kids and emotionally be there for them as they adjust to new life. My wife started an online business recently and will look to scale that up and I’ll help out there. Her revenues in 2020 for about 4 months was around $10K, so I think with more focus and time we can scale this to be a $50K revenue business (after expenses and tax, maybe take home $20K).
I also plan to look into consulting, education, or administration type jobs – something that’s less stress and allows me to take my education / work training and invest it in a way that I find meaningful. I don’t need a 6 figure salary at all. If I’m fortunate enough to land a job at the private school in administration/operations, the kids’ tuition would even be free.
Financial Projections
I plan to rollover my 401K into my existing Betterment IRA which would be a combined $600K. Then I’ll contribute $12K annually into this now much larger traditional IRA. I’ll also add $30K annually into the taxable Betterment account. Both of which I would start withdrawing down at 59.5 or 20 years away. Betterment forecasts that I’ll have $1.8mm (most likely outcome) by then.
What are some drawdown / investment strategies with the $1.4mm to bridge the 20 year gap between now and 59.5 (and then we'd also have SS kick in during the 60's).
Keep in mind we’re retaining our American citizenship and will continue to file and pay US taxes on our worldwide income (hence means we can take advantage of SS when it’s our time).
I’ve looked at an absolute worst case scenario which means the money runs out in ~13 years (assumes no investment growth, no other income, we sit around all day and do nothing and my kids never graduate from private school and we keep paying there LOL). I don’t mine drawing down on the principal $1.4mm to fund our life, knowing that ultimately if I can get tuition free private schooling, my wife’s business scales greatly, or I find a job – then whatever we make can certainly cover half, most, or all our projected living expenses.
Thanks for your help in advance. It was quite cathartic to write this all out as I’ve been wrestling with admittedly first class world “problem” on what to do for a while now.
