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48 with wife and 2 kids
Old 01-24-2017, 05:23 PM   #1
Confused about dryer sheets
 
Join Date: Jan 2017
Location: knoxville
Posts: 8
48 with wife and 2 kids

Hello everyone. I got serious about saving only about 10 years ago, but I am hopefully retiring in about 5 years. Here is my financial situation in a nutshell.

Income:
Primary employment=100k +10K into retirement fund /yr
Oil royalties = 3-20k /yr
Consulting = 3-20k /yr
wife = no income, but she saves me lots of money and is very frugal

Savings:
Currently saving a minimum of 40k/yr (including 10K from employer) plus any oil and consulting money that comes in.
Total of 975k saved. 400k in taxable accounts, the rest in retirement accounts. Approximately 150k in either Roth or initial basis taxable accounts.

Home Life
Have a wife and 2 kids (11 and 13). We own our house (value=300k). My only debt is 65K on a sailboat (4.25% interest rate).

Spending
I currently spend about 52k per year including the 7k/yr for the mortgage on my boat. BTW, I love my boat! Retirement = more time on the water...among other things. Sailing to Cuba is on the list!

Plan
I can formally retire from work in 4.5 years, which gives me health benefits from 55-65 (I would be 53 upon retirement), and also half tuition for my children at college. My primary employment is as a professor. I am currently limited in the amount I can consult as I have a 12 month appointment (work year round). I'm hoping I can do more consulting after retirement to replace some of the lost income.

I am assuming an additional cost (above my 52k/yr) of 50K for each child's college (100k total extra cost for two kids college). This seems a little light, but I teach at a good public school and with the half tuition (from 12k to 6k per yr) and including what I'm already spending on them, the offset seems OK?? Plus at least one of them will almost surely receive lots of scholarship money.

Modeling
I started modeling my savings and forecasting growth about 6 years ago, and only recently went out and searched the other programs online like firecalc. It gave me more confidence that these other programs were more optimistic (97% success) than my own modeling (93%)....assumes no oil or consulting income, so reality is probably a bit better.

I am now thinking of trying to move to a 9 month appointment at work (from a 12 month). This would cost me 20-25k/yr, but I'd have my summers off. My thinking is that the time now (with kids at home) is more valuable than time later (after they are gone). Basically if I have to work an extra yr or so to make up the lost income it would be worth it to have summers with them now..... And in the end, it still the same total number of months to work. My problem is, I am having a very hard time pulling the trigger. I've lived most of my life in delayed gratification mode (with the exception of buying my boat a few years ago).

Can anybody see any reason why I should not move to a 9-month appointment, or any other glaring problems with what I've described?
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Old 01-24-2017, 06:17 PM   #2
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I negotiated an early out to enable me to have time with my kids. One was in college, the other in high school. It was precious.

Subsequently I was recruited back into the workforce by NIKE and my then college student kids loved to come home and explore the employee store.

Spend summers with your children. You are blessed to have that option as most of us are 100% or none at all.
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Old 01-24-2017, 07:28 PM   #3
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One of the main benefits of being financially independent is the ability to make choices based on what matters most to you and not just what pays the most. And it sounds like the extra time with your kids is what matters most to you.
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Old 02-03-2017, 07:13 PM   #4
Confused about dryer sheets
 
Join Date: Jan 2017
Location: knoxville
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I applied for the 9-month appointment this week. I really hope I'm able to get it as it was a little costly to ask. Lots of people will judge negatively. On the other hand, I'm getting kind of short either way and I would really enjoy moving into retirement a bit slower...starting with just the summers.

Thanks for the comments!
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Old 02-06-2017, 07:37 PM   #5
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Quote:
Originally Posted by ICanSeeTheBeginning View Post
I applied for the 9-month appointment this week. I really hope I'm able to get it as it was a little costly to ask. Lots of people will judge negatively. On the other hand, I'm getting kind of short either way and I would really enjoy moving into retirement a bit slower...starting with just the summers.

Thanks for the comments!
You can't your time back with your kids. Hope the 9-month appointment works out for you.
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Old 02-06-2017, 09:29 PM   #6
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Go for it. Your kids will be grown in the blink of an eye.

As you sail down the TN River, come wave at us at MM 261, south side of the river.
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Old 02-07-2017, 04:12 AM   #7
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Just be prepared to walk into the office and quit the first day back from your 3 month "vacation". Haha!
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Old 02-07-2017, 04:45 PM   #8
Confused about dryer sheets
 
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Quote:
Originally Posted by Bamaman View Post
Go for it. Your kids will be grown in the blink of an eye.

As you sail down the TN River, come wave at us at MM 261, south side of the river.

Will do! I just got on Navionics and found your location....just above the dam. I bet it's beautiful.
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Old 02-07-2017, 04:47 PM   #9
Confused about dryer sheets
 
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Originally Posted by brucethebroker View Post
Just be prepared to walk into the office and quit the first day back from your 3 month "vacation". Haha!
I have considered the difficulty of that moment. I guess I'll have to muscle through it!
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