I've been reading this forum on and off for the last couple of months and decided to join in the discussion. As I noted in the thread title, my lifestyle has a notable disadvantage compared to some here who have chosen a different path to reach their retirement goals. I am married with a wife and son with more to come, living on one income but still dreaming of FIRE.
I am in my late twenties, and work for an Insurance Megacorp, with an average salary, but the potential for steady raises over the course of my career.
Before we were married, my wife made some smart financial decisions (including marrying me
). Those decisions allowed us to buy our home outright, and quickly pay down my student loans. We are living completely debt free.
Here is a breakdown of my current situation (annually):
401K: $22,000 (9% my contribution + 4.5% company match)
Roth IRA: $6,500 (opened last year and max contributions every year)
Home Equity: $150,000
Utilities, Food, Gas, etc.: $10,000
Taxes: $6,600 (income, property, etc.)
Insurance $6,000 (My health contributions and property)
So far I am able to max out my Roth IRA contributions, and increase my 401K contributions by 1% annually. Still, there are a few things I know I can be doing and I have a to do
list I'm working on completing in the near future:
- Increase Life Insurance Coverage (Currently $86,000 but hoping for $500,000)
- Open a spousal Roth IRA within 5 years when my salary allows me to contribute
My target retirement date is 2041.
I've done some projections, and I believe that with a conservative 5% growth in my 401K and 4% in my Roth IRA, I will have enough to live until about 90 (which I'm not banking on). All of this assuming a disciplined, simple lifestyle with no more living expenses besides what inflation forces upon us.
So what do you all think? Is my goal realistic? Is there anything else I can be doing to ensure I've got the best shot possible at hitting that goal?