Age 41, wife age 39. Both of us are in high paying professions and our yearly compensation is around 1 million. We live in Scarsdale NY. I am in software and she is in investment banking. We have one two year old child.
https://www.networthiq.com/people/kmt is our link for net worth.
As of Jan 1 2013. We have
401K: 700K
House: 650K
529: 35K
Various assets: 2.6 million
Both of us are in stressful jobs and both want to make as much as we can over the next 4 years and move to retirement or semi-retirement.
Our plans are to get to mid 2018 (in 2013 dollars)
401k: 1 million
House: 700K
529: 88K
Various assets: 5.3 million
At that stage we will retire or go into semi-retirement around the time our child goes to elementary school. Both of us might just go to our respective company and say something like
"look, I am not sure I can sustain the work/life balance of my current role, I want a much more junior role where I can work 8:30am to 2:30pm that way I can see my kid off to school and be back at home when he comes back from school. I will be glad to take a pay cut for this junior role."
We will do this mostly to get medical care coverage. This then can continue for a few years for me to transition our assets in a way that the taxable income generated is below the threshold so we qualify for subsidies for Obamacare. Then we will just retire and get Obamacare to pay for the high cost of health insurance.
One major decision point eventually will be:
1) Stay in Scarsdale paying high real estate and NY state taxes but have our kid go to a very good school and then move to PA (where social security, 401k are not taxed, as well as much lower state income taxes) when our child goes to college
or
2) Move to fairly good school district in PA when our child is about to go to junior high.
2) might make sense as my asset might be so high that I can no longer to stay below the threshold for Obamacare subsides. In which case PA health insurance is a lot cheaper than NY health care insurance. Of course the entire cost structure of healthcare might be different in 2014 so we will see.
Future assumptions I am making is
1) We will draw on 401K at age 59.5
2) We will draw social security at 62 and I assume we will get 75% of the predicted value as I suspect there will be haircuts there
3) We assume we cannot start medicare until we are 67
https://www.networthiq.com/people/kmt is our link for net worth.
As of Jan 1 2013. We have
401K: 700K
House: 650K
529: 35K
Various assets: 2.6 million
Both of us are in stressful jobs and both want to make as much as we can over the next 4 years and move to retirement or semi-retirement.
Our plans are to get to mid 2018 (in 2013 dollars)
401k: 1 million
House: 700K
529: 88K
Various assets: 5.3 million
At that stage we will retire or go into semi-retirement around the time our child goes to elementary school. Both of us might just go to our respective company and say something like
"look, I am not sure I can sustain the work/life balance of my current role, I want a much more junior role where I can work 8:30am to 2:30pm that way I can see my kid off to school and be back at home when he comes back from school. I will be glad to take a pay cut for this junior role."
We will do this mostly to get medical care coverage. This then can continue for a few years for me to transition our assets in a way that the taxable income generated is below the threshold so we qualify for subsidies for Obamacare. Then we will just retire and get Obamacare to pay for the high cost of health insurance.
One major decision point eventually will be:
1) Stay in Scarsdale paying high real estate and NY state taxes but have our kid go to a very good school and then move to PA (where social security, 401k are not taxed, as well as much lower state income taxes) when our child goes to college
or
2) Move to fairly good school district in PA when our child is about to go to junior high.
2) might make sense as my asset might be so high that I can no longer to stay below the threshold for Obamacare subsides. In which case PA health insurance is a lot cheaper than NY health care insurance. Of course the entire cost structure of healthcare might be different in 2014 so we will see.
Future assumptions I am making is
1) We will draw on 401K at age 59.5
2) We will draw social security at 62 and I assume we will get 75% of the predicted value as I suspect there will be haircuts there
3) We assume we cannot start medicare until we are 67
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