Hi,
I’ve been ‘stalking’ this site for quite some time now but have never posted. I am interested in early retirement but am apprehensive. I’ll give you some stats; if I’ve left out anything pertinent, please let me know…
I’m 46 years old, and live in Harrison Township, MI; I would like to retire at 50 years old. I am married; my wife is 39 years old. We have a son; he is 7 years old.
We have been saving for years. We currently have the following assets with Vanguard, allocated at 70% stocks, 30% bonds:
- Roth Ira: 400,000
- 401k: 550,000
- Brokerage: 400,000
I earn 90,000/year; my wife is a stay at home mom. We have no credit cards, auto loans, student loans, etc.
We do, however, have 2 houses; one in Michigan, one in Texas. Both houses have a mortgage (Michigan – 220,000@4.625%, Texas – 130,000@3.125%). Our expenses are 3,400/month (roughly 40,000/year).
Our plan would be to continue living in Michigan, then possibly move to Texas when our son graduates High School & goes to College.
I guess what I’m worried about are the unknown expenses that may arise. I had done a little bit of research regarding health insurance & have found it to be a little daunting.
Is anyone in a similar situation? Does anyone have experience with retiring early while still raising minor children? If we were to sell the house in Texas (equity of 160,000) would you suggest investing the proceeds, or would it make more sense to use the proceeds (and 65,000 of our retirement money) to pay off the mortgage on Michigan house?
I greatly appreciate any experience or advice you could offer.
Thanks.
I’ve been ‘stalking’ this site for quite some time now but have never posted. I am interested in early retirement but am apprehensive. I’ll give you some stats; if I’ve left out anything pertinent, please let me know…
I’m 46 years old, and live in Harrison Township, MI; I would like to retire at 50 years old. I am married; my wife is 39 years old. We have a son; he is 7 years old.
We have been saving for years. We currently have the following assets with Vanguard, allocated at 70% stocks, 30% bonds:
- Roth Ira: 400,000
- 401k: 550,000
- Brokerage: 400,000
I earn 90,000/year; my wife is a stay at home mom. We have no credit cards, auto loans, student loans, etc.
We do, however, have 2 houses; one in Michigan, one in Texas. Both houses have a mortgage (Michigan – 220,000@4.625%, Texas – 130,000@3.125%). Our expenses are 3,400/month (roughly 40,000/year).
Our plan would be to continue living in Michigan, then possibly move to Texas when our son graduates High School & goes to College.
I guess what I’m worried about are the unknown expenses that may arise. I had done a little bit of research regarding health insurance & have found it to be a little daunting.
Is anyone in a similar situation? Does anyone have experience with retiring early while still raising minor children? If we were to sell the house in Texas (equity of 160,000) would you suggest investing the proceeds, or would it make more sense to use the proceeds (and 65,000 of our retirement money) to pay off the mortgage on Michigan house?
I greatly appreciate any experience or advice you could offer.
Thanks.