Hi all,
I’ve been lurking for awhile and finally realized that I’m within arms reach of RE. Below is our financial picture, any comments or advice are appreciated.
I’m a 48 y.o. geeky engineer living in SoCal. My wife is a stay at home mom to two college bound boys, 14 and 17.
Assets
401k 523K
Wife’s IRA 31K
Stock 780K (index funds and teck stocks)
ESSP 723K
Co Stock Options 271K (after taxes)
Cash 64K
College 529’s 50K
Total 2.442M
Salary = 130K/yr
Rental income = 10.8K/yr
No debt! Yahoo!
House and cars are paid for. We just completed a major remodel and this is our “forever” house. We live within our means and drive our cars into the ground.
We’re still working on our retirement budget, but so far we’re thinking it will be around 95K/yr, NOT including college expenses. This does include 15K/yr for health ins., hobby $, and a new $40K vehicle every 10yrs.
Most withdrawl calculators give 100% success at a 4% SWR for 40yrs. We’re hoping to keep the budget <95K/yr, so I think we’re close.
I realize we're way overly weighted in company stock, but we're comfortable with the risk at the moment. I'll have to cash out the stock options once I retire, then I'll reallocate according to...not sure yet to be honest, but something like 60% equities/30%bonds/10% cash?....not sure yet. I need to read alot more on AA.
Questions:
1. Is 15K/yr realistic health ins for a family of four used to getting top notch care? No medical conditions except for me (daily meds for ulcerative colitis and a re-herniated disc with no pain).
2. How much should we add for dental ins? One kid currently has paid for braces, the other most likely will not need them.
3. College expenses…still need to figure out best way to cover this without major impact (as most parents do). I guess I have no question here…just thinking out loud. The oldest will most likely go to Cal Poly SLO or a UC school next year. Even though my wife and I had to work, scrape, borrow, and financial aid ourselves thru college (we both were “po” growing up), we’ll assist as much as it takes here.
4. What are techniques for actually generating cash to live on once you retire? i.e., sell a year's living expense worth of stock at the beginning of each year and place in laddered CD’s (whatever their earning), or sell on a as-needed basis, or?
Thanks!
erinsd
I’ve been lurking for awhile and finally realized that I’m within arms reach of RE. Below is our financial picture, any comments or advice are appreciated.
I’m a 48 y.o. geeky engineer living in SoCal. My wife is a stay at home mom to two college bound boys, 14 and 17.
Assets
401k 523K
Wife’s IRA 31K
Stock 780K (index funds and teck stocks)
ESSP 723K
Co Stock Options 271K (after taxes)
Cash 64K
College 529’s 50K
Total 2.442M
Salary = 130K/yr
Rental income = 10.8K/yr
No debt! Yahoo!
House and cars are paid for. We just completed a major remodel and this is our “forever” house. We live within our means and drive our cars into the ground.
We’re still working on our retirement budget, but so far we’re thinking it will be around 95K/yr, NOT including college expenses. This does include 15K/yr for health ins., hobby $, and a new $40K vehicle every 10yrs.
Most withdrawl calculators give 100% success at a 4% SWR for 40yrs. We’re hoping to keep the budget <95K/yr, so I think we’re close.
I realize we're way overly weighted in company stock, but we're comfortable with the risk at the moment. I'll have to cash out the stock options once I retire, then I'll reallocate according to...not sure yet to be honest, but something like 60% equities/30%bonds/10% cash?....not sure yet. I need to read alot more on AA.
Questions:
1. Is 15K/yr realistic health ins for a family of four used to getting top notch care? No medical conditions except for me (daily meds for ulcerative colitis and a re-herniated disc with no pain).
2. How much should we add for dental ins? One kid currently has paid for braces, the other most likely will not need them.
3. College expenses…still need to figure out best way to cover this without major impact (as most parents do). I guess I have no question here…just thinking out loud. The oldest will most likely go to Cal Poly SLO or a UC school next year. Even though my wife and I had to work, scrape, borrow, and financial aid ourselves thru college (we both were “po” growing up), we’ll assist as much as it takes here.
4. What are techniques for actually generating cash to live on once you retire? i.e., sell a year's living expense worth of stock at the beginning of each year and place in laddered CD’s (whatever their earning), or sell on a as-needed basis, or?
Thanks!
erinsd