38, saving 31% gross, living on 33% gross, looking to be able to retire at 48

[retire48in2018]

We are saving 31% on income - maxing to IRS limits for 401k, and both Roths (DW is SAH), and a regular brokerage account.

Our living expenses (including the 30-year mortgage rate) amounts to 33% of gross income.

We are looking to finish paying off our home at 42 (2012). Currently, that consumes about half of our take-home pay. (We are paying almost triple the amount required on a 30-year mortgage).

We are really intense about saving, trying to make up for time lost. We started with earnest in 2000 to think about future.

Kids start college, when we plan to finish off the mortgage. The 2 kids are 1 year-apart. So 4 years after the 2nd one starts college is 2018.

Hence, our target date.

We are still mulling different options on what we will do with respect to assistance with college costs of our 2 children. But given the mortgage being paid off, we can cash flow the expenses. (With what we are paying now for our mortgage, we are well above the FASFA amount anyway).

Looking to become more informed about our future plans.

 

[innova]

We sound similar, except you've got 10 years or so on me.

If I'm reading your post correctly it sounds like you are making maximum use of tax-deferred space in 401k/roth accounts for yourself and your spouse, and also investing in a taxable brokerage account.

I also have the desire to pay off my house early, but I've struck a balance between taxable investing and paying off my home - I would not do either to the exclusion of the other.

Are you comfortable with your asset allocation and investment choices? That becomes increasingly important as your window narrows. If you haven't really planned this aspect out yet, I'd strongly advise you to get an IPS written (investment policy statement) that lays out your goals and decisions.

Finally, I don't have kids, so this may be hypocritical - but I'd focus on my retirement before their education in the sense that they can borrow for school and you cannot for retirement. When we do have kids, I'll be using 529 plans to cover some of those costs - you don't have quite as ideal of a time window to accumulate.

In any case, your saving plan sounds awesome - make sure you use the FireCalc tool to see where you're at.

 

[retire48in2018]

....duplicated below....

 

[retire48in2018]

At this point I am mostly buy & hold. I am using the overall ultimate buy & hold asset allocation from FundAdvice.com - Home with slight changes, and different actual funds.

For college expenses we will be able to cash flow, as we will have more than the 25% free cash flow that is required from FASFA.

 

[jIMOh]

We are saving 31% on income - maxing to IRS limits for 401k, and both Roths (DW is SAH), and a regular brokerage account.

Our living expenses (including the 30-year mortgage rate) amounts to 33% of gross income.

We are looking to finish paying off our home at 42 (2012). Currently, that consumes about half of our take-home pay. (We are paying almost triple the amount required on a 30-year mortgage).

We are really intense about saving, trying to make up for time lost. We started with earnest in 2000 to think about future.

Kids start college, when we plan to finish off the mortgage. The 2 kids are 1 year-apart. So 4 years after the 2nd one starts college is 2018.

Hence, our target date.

We are still mulling different options on what we will do with respect to assistance with college costs of our 2 children. But given the mortgage being paid off, we can cash flow the expenses. (With what we are paying now for our mortgage, we are well above the FASFA amount anyway).

Looking to become more informed about our future plans.

The savings rate is good. Consider a withdraw strategy from age 48 to age 59.5.

You will either need enough in brokerage account to last 12 years, 72 (t) or something else. You have 10 years to get enough in accounts to make this work correctly.

One possible suggestion is to create a dividend stream to cover expenses, as this tends to keep pace with inflation and also be a lower withdraw rate- both which increase chances of success.