Hello

[DA1947]

Hello everyone,

35 year old guy here from a southern metro in the US. My wife is 33. We have a 4 year old kid. We make close to 300K per year together and below is our financial situation.

Savings Account - $50K
401k - $350K
After Tax - $30K
Home - 360K purchase price. May be worth close to 400K.
529 - 20K
Investment in a startup - 20K (Not really sure how much it is worth now but hoping the principal is preserved).

Mortgage- $260K

We have some property in Asia that's worth close to $200K. It's some land and an apartment, where parents currently live.

We don't need to retire soon but FIRE is appealing whenever the job becomes painful as it does sometimes for all of us. As you can see, we have not invested much in After Tax accounts and that's going to be the goal for next 3 years. We would like to see the After Tax grow to 200K atleast and 529 to 80K. We max out the 401Ks, i.e. contribute 36K together.

 

[HI Bill]

Welcome!

Lots of missing info here. Sounds like a great dual income, and a low mortgage. Other debt? What's your overall savings rate? With a $300K income, I'm hoping it's at least 50%! Any idea about when you'd like to retire, and what you'd like to do in retirement? Budgets now and then, can help you start to determine how much you'll need! My goal was to retire at age 50, but I've missed that by 3 years, after getting married unexpectedly. My retirement budget includes 50% for travel.

 

[omni550]

Welcome, DA1947.

You've come to the right place for answers to retirement questions/ planning. Lots of knowledgeable folks here.

omni

 

[Human]

Welcome

 

[Dtail]

Welcome DA1947 to this wonderful site. It is great you discovered it early in life.

 

[Bryan Barnfellow]

Welcome!

In your shoes I would make a detailed budget and refine it each year. Also, set an early retirement date and goal (in terms of a future inflation adjusted yearly living budget), even if you don't have a specific plan right now. Then save like you mean it. When/if you do decide you need to exit the w*rk highway, you will be glad for that early discipline and then reap its rewards! You will likely never really miss the money you put aside. And, l would agree with HNL Bill (with the caveat that we don't know anything else about your situation beyond what you wrote): look to save 50% of your income.

-BB

 

[cooch96]

Greetings!

Sounds like you’re doing great. You’ve visited this site, so you’re likely interested in FIRE. But how are you doing now? Do both you and DW like your jobs and career tracks? Are you burning to drop out of the rat race as soon as possible as a winner?

 

[DA1947]

Thank you everyone for the warm welcome. I do dream of a day to drop out of the race. Of course, the question my wife asked was "what would you do?", the answer to which, I don't know yet. But I enjoy cooking, photography, reading, and just talking to my son and playing with him. I am not the party types. So don't spend too much time or money on socializing.

The 300K is gross income, So our net after taxes and 401K is close to 145K. We plan to save close to $80K per year between the After Tax accounts and the 529. This is in addition to the $36K we contribute to 401k.

Our typical expenses:
Child care- 800
All other expenses (Groceries, car insurance, etc..) - 1500
Mortgage + HOA - 2100

My immediate plan is to build up after tax savings over the next 3 years so that I have FI even if IRE or not.

Thanks again for all your input and I look forward to being a part of this community.

 

[DA1947]

3 month update:

Everything is almost same except

After tax savings up to 45k from 30k
529 up to 27k from 20k
401k up to 392k from 350k

The ever increasing market definitely helped.