Hello Everyone!
My wife and I are both attorneys and run our own small law firm. We are both 42 years old and are hoping to early retire in five years. Our vital stats are as follows:
401Ks: About $500,000 (40% VBMFX (total bond), 40% VIPSX (TIPS) and 10% VGSIX (REIT);
Private (non-tax advantaged account): About $1,100,000 (50% FSTVX (Fidelity Total Mkt), 30% VFWIX (VG World Ex-US), 10% IJS (Small Cap) and 10% VWIUX (Muni-Bonds).
Cash Emergency Fund: $60,000 in ING savings account
We are able to put away an additional $300,000 to $400,000 per year (depending on business/market fluctuations). I get the above figure by totaling our 401Ks ($80,000 per year by maxing plus safe harbor plus profit sharing --we can put this amount away due to owning a small business), $200,000 per year in earnings (this fluctuates depending on business but should be fairly accurate) and I'm assuming about a 5% return on our 1,600,000 already set aside, for another 80K (hopefully the 5% return assumption is not too agressive). We work really hard and would like to hang it up in 2015.
Our magic number is somewhere between $3,000,000 and $4,000,000. The latter would give us alot more cushion and leeway, but not sure if we can make it there in 5 years. Regardless, if we hit the former we are ready to hang it up.
There is also a chance we can sell the practice and make some extra $$ there. If I somehow reach the $4M early, we are out!
We have an 11 year old son and will have put enough away to pay for all of his college by the time he is 18. If he gets scholarships, I'll by a boat with the money and sail away
I've been mostly lurking up until now, but it's nice to meet everyone This is already my 2nd most visited board (after Bogleheads). Hello all!
Hiredgun
My wife and I are both attorneys and run our own small law firm. We are both 42 years old and are hoping to early retire in five years. Our vital stats are as follows:
401Ks: About $500,000 (40% VBMFX (total bond), 40% VIPSX (TIPS) and 10% VGSIX (REIT);
Private (non-tax advantaged account): About $1,100,000 (50% FSTVX (Fidelity Total Mkt), 30% VFWIX (VG World Ex-US), 10% IJS (Small Cap) and 10% VWIUX (Muni-Bonds).
Cash Emergency Fund: $60,000 in ING savings account
We are able to put away an additional $300,000 to $400,000 per year (depending on business/market fluctuations). I get the above figure by totaling our 401Ks ($80,000 per year by maxing plus safe harbor plus profit sharing --we can put this amount away due to owning a small business), $200,000 per year in earnings (this fluctuates depending on business but should be fairly accurate) and I'm assuming about a 5% return on our 1,600,000 already set aside, for another 80K (hopefully the 5% return assumption is not too agressive). We work really hard and would like to hang it up in 2015.
Our magic number is somewhere between $3,000,000 and $4,000,000. The latter would give us alot more cushion and leeway, but not sure if we can make it there in 5 years. Regardless, if we hit the former we are ready to hang it up.
There is also a chance we can sell the practice and make some extra $$ there. If I somehow reach the $4M early, we are out!
We have an 11 year old son and will have put enough away to pay for all of his college by the time he is 18. If he gets scholarships, I'll by a boat with the money and sail away
I've been mostly lurking up until now, but it's nice to meet everyone This is already my 2nd most visited board (after Bogleheads). Hello all!
Hiredgun