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Old 02-20-2021, 09:22 PM   #41
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With your wife earning $130K until 60s and you earning $100K from your side hustle, sure you can step back. Your time and freedom is more valuable than money.
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Old 02-21-2021, 01:26 AM   #42
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Originally Posted by YakGrl View Post
If you expect to continue $100K yearly in side hustle and wife's salary is $130K, your stated expenses are $90K a year, why would you need to access 401K funds before 59.5?
**More just asking the "what if" question as 18 years is a long time and a lot could happen between here and then....
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Old 02-21-2021, 01:29 AM   #43
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Originally Posted by LarryMelman View Post
A $100K "side hustle" is not a hobby, it's a new career. If your wife intends to keep working and provide health insurance, then your only decision is whether you want to change careers with the corresponding cut in your income.



Your first post said you are the CEO. So that comment doesn't make any sense. Did I miss something?

Although you have tabulated your expenses carefully, some of them just don't look right. $125 a month on "haircuts" and $800 a month "dining out"? There's a lot of fat you could trim.

I also don't understand why you own an annuity.
I am the CEO however we now have Private Equity involved and it is just "different"....The old culture was one of a source of pride and is partly what attracted the PE in the first place but it is clear that that was the old way and the new way will be different

And the Haircut budget includes DW haircuts every 6-8 weeks along with son and me, so that number is not that high...

Agreed 100% on the dining out number, we could easily cut that back (if need be-but we enjoy it right now)
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Old 02-21-2021, 01:30 AM   #44
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Originally Posted by Music Lover View Post
Plus $500 a month on clothes. Even if you have to look nice for your job that's $60,000 in 10 years.
That includes all clothes, dry cleaning, sports equip, professional clothes and misc things for the family not just 1 person....
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Old 02-21-2021, 05:37 AM   #45
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Do you have a budget for Travel, plus how are your taxes factored in?
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Old 02-21-2021, 07:35 AM   #46
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That includes all clothes, dry cleaning, sports equip, professional clothes and misc things for the family not just 1 person....
Don't worry about defending that for now. I think a lot of us don't well remember what that stuff really costs, especially for a young family with both partners in management roles.

All that matters now you know where your money is going, and you're ok with it.
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Old 02-21-2021, 12:24 PM   #47
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Do you have a budget for Travel, plus how are your taxes factored in?
Yes we have travel and taxes accounted for.....
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Old 02-21-2021, 01:55 PM   #48
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Don't worry about defending that for now. I think a lot of us don't well remember what that stuff really costs, especially for a young family with both partners in management roles.

All that matters now you know where your money is going, and you're ok with it.
Most of us know what that stuff costs. But they said $500 a month for clothes, not $500 a month for clothes, dry cleaning, sporting goods, and "miscellaneous"....which could be anything.
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Old 02-21-2021, 04:39 PM   #49
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A good haircut (i.e. tailored to her, not "great clips") for a woman is in the neighborhood of $75.00 and up. And if she wants a color job, that adds hundreds.

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I
And the Haircut budget includes DW haircuts every 6-8 weeks along with son and me, )
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Old 02-21-2021, 06:42 PM   #50
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A good haircut (i.e. tailored to her, not "great clips") for a woman is in the neighborhood of $75.00 and up. And if she wants a color job, that adds hundreds.
I learned early on in marriage not to question that one
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Old 02-22-2021, 06:01 AM   #51
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Congrats on the workplace success of both you and your wife, JD.

I'll just add this to the discussion about expenses. It's really hard to truly understand how much you're spending and where you're spending it without closely tracking every dollar of outflow for an extended period. I have a checklist with my monthly expenses similar to the one you posted, and it shows that I spend $3000 per month. But in 2020 I tracked every dollar we spent, and the real number was closer to $5000 per month. This was in part due to some unexpected house and vehicle repair expenses, but also just because it's hard to know what I'm spending on "stuff" when it doesn't fit into one of the big categories or it doesn't come with a monthly bill.

So one thing you might consider is trying to track every penny you and your wife spend over a year just verify that $90K number is correct. It was kind of a pain to do it, but I felt it was data I NEEDED to gather before I could make an informed decision about my ability to retire.
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Old 02-22-2021, 08:33 AM   #52
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Originally Posted by Errollyn View Post
I'll just add this to the discussion about expenses. It's really hard to truly understand how much you're spending and where you're spending it without closely tracking every dollar of outflow for an extended period. I have a checklist with my monthly expenses similar to the one you posted, and it shows that I spend $3000 per month. But in 2020 I tracked every dollar we spent, and the real number was closer to $5000 per month. This was in part due to some unexpected house and vehicle repair expenses, but also just because it's hard to know what I'm spending on "stuff" when it doesn't fit into one of the big categories or it doesn't come with a monthly bill.

So one thing you might consider is trying to track every penny you and your wife spend over a year just verify that $90K number is correct. It was kind of a pain to do it, but I felt it was data I NEEDED to gather before I could make an informed decision about my ability to retire.
If all the money goes in and out of one account it's easy to keep track of expenses. I don't track my spending but I can know exactly how much I spend down to the penny over any time period if required because all the money goes into one account and all the bills and expenses come out of that same account.

Of course a spreadsheet helps if you want to break down spending by category, but I don't need that information.
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Old 02-22-2021, 10:00 AM   #53
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Agreed guys on the expense tracking point---to that end we have put everything going in and out thru 1 joint card so we can track all of those expenses that don't fit Into one of those buckets....it is a great exercise and sometimes an eye opener as to what you actually spend your money on...
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Old 02-22-2021, 11:48 AM   #54
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Great Feedback so far--I appreciate it. It seems a lot focused on the expense side (which is a good point) we have been tracking this for some time here are some averages...

Mortgage 2200
Car 1 0
Car 2 350
Auto Ins 150
Auto Gas 500
Electric 300
Gas House 125
Internet 70
Cable 250
Groceries 500
Dining Out 800
Haircuts 125
Lawn Care 125
Pool Care 75
Ent. 500
Clothes 500
Land Pay 225
cell phone 200
Kid School 100
Animals 50
Health Ins 300

Monthly 7445

Annually 89340
Home insurance ?
Home taxes ?
Auto taxes ?
Vacation ?
Other ?
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Old 02-22-2021, 11:59 AM   #55
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Home insurance ?
Home taxes ?
Auto taxes ?
Vacation ?
Other ?

Property Taxes and Insurance are built into the Mortgage cost, we have a separate Vacation/Entertainment fund allocated, but Auto Property tax is overlooked and needs to be included---around $500/year.
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