Hello all. I am a new member of the ER community and am looking for some guidance on how to approach the next few years financially in order to reach that ER! I apologize if I don’t include all of the acronyms, but I am learning as I go.
I recently moved from Iowa to Arizona with my new wife, and want to get a grasp on our financials sooner rather than later. I am going to be 28 soon and she is 26. We both have stable jobs and are fairly good about saving money. Our annual income is somewhere between 110k and 130k depending on commission and bonuses. As I have only been focusing on our financials for the past few months, and we have had a cross country move, wedding, and honeymoon, I don’t have our monthly expenses dialed in quite yet. I have been using an online tool the past few months to track and budget our expenses and it is somewhere in the region of 2,500-3,500 per month.
Our current finances as of today are:
My Roth IRA: $13,000
Her Roth IRA: $7,500
My 401k: $17,500 (current contribution is 6% - company matches 50% at 6%)
Her 401k: $12,000 (current contribution is 10% - not sure what her match is. “Already failing at planning”)
High Yield Savings account - $55,000 (1.00% APY just started a few months ago)
Checking and Savings - $8,000 (Branch Bank, very little return)
Brokerage - $5,000 (money market fund) – used to but ETF beginning of every month
7-10 ETF - $2,000 (just started a month ago. 65% stock 35% Bond)
1 Car - $15,000 (fully paid off)
No DEBT!
Our current strategies for investing are:
1.Contribute to our employers 401k (me 6% and her 10%)
2.Monthly contributions to our own Roth IRA that equals the max at end of year $5,500 (Her first year she didn't max out)
3.$1,000 monthly investment in 7-10 ETF (65% stock 35% bond) Through all of my research I started this strategy, but am still not 100% confident.
4. All other money goes to our high yield saving account.
Our goals:
We are planning on purchasing a home within the next year and possible starting a family within the next 2. That being said we are trying to keep some funds liquid for a good down payment.
We would like to retire early, duh that’s why I am on ER, but I don’t know what it attainable. She likes to throw out numbers like 40 years old and I just can’t see it. I have read many articles and forums talking about CD ladders, life insurance (wholesale investment strategy), mutual funds, individual stocks, etc. etc. and I don’t know which direction to go at this point in my life.
What I am looking for in guidance is:
Is our plan on track for ER?
What are some improvements or things we shouldn’t be doing?
How can I figure out what a realistic target retirement date is based upon our current financial state?
Is there a general guideline or rule of thumb to be able to estimate funds once you pull the trigger for retirement?
I appreciate any and all feedback. Thank in advance, and I am so thrilled to find a forum that is supportive towards everybody’s goals. If you have any questions I would be happy to answer for clarification.
I recently moved from Iowa to Arizona with my new wife, and want to get a grasp on our financials sooner rather than later. I am going to be 28 soon and she is 26. We both have stable jobs and are fairly good about saving money. Our annual income is somewhere between 110k and 130k depending on commission and bonuses. As I have only been focusing on our financials for the past few months, and we have had a cross country move, wedding, and honeymoon, I don’t have our monthly expenses dialed in quite yet. I have been using an online tool the past few months to track and budget our expenses and it is somewhere in the region of 2,500-3,500 per month.
Our current finances as of today are:
My Roth IRA: $13,000
Her Roth IRA: $7,500
My 401k: $17,500 (current contribution is 6% - company matches 50% at 6%)
Her 401k: $12,000 (current contribution is 10% - not sure what her match is. “Already failing at planning”)
High Yield Savings account - $55,000 (1.00% APY just started a few months ago)
Checking and Savings - $8,000 (Branch Bank, very little return)
Brokerage - $5,000 (money market fund) – used to but ETF beginning of every month
7-10 ETF - $2,000 (just started a month ago. 65% stock 35% Bond)
1 Car - $15,000 (fully paid off)
No DEBT!
Our current strategies for investing are:
1.Contribute to our employers 401k (me 6% and her 10%)
2.Monthly contributions to our own Roth IRA that equals the max at end of year $5,500 (Her first year she didn't max out)
3.$1,000 monthly investment in 7-10 ETF (65% stock 35% bond) Through all of my research I started this strategy, but am still not 100% confident.
4. All other money goes to our high yield saving account.
Our goals:
We are planning on purchasing a home within the next year and possible starting a family within the next 2. That being said we are trying to keep some funds liquid for a good down payment.
We would like to retire early, duh that’s why I am on ER, but I don’t know what it attainable. She likes to throw out numbers like 40 years old and I just can’t see it. I have read many articles and forums talking about CD ladders, life insurance (wholesale investment strategy), mutual funds, individual stocks, etc. etc. and I don’t know which direction to go at this point in my life.
What I am looking for in guidance is:
Is our plan on track for ER?
What are some improvements or things we shouldn’t be doing?
How can I figure out what a realistic target retirement date is based upon our current financial state?
Is there a general guideline or rule of thumb to be able to estimate funds once you pull the trigger for retirement?
I appreciate any and all feedback. Thank in advance, and I am so thrilled to find a forum that is supportive towards everybody’s goals. If you have any questions I would be happy to answer for clarification.