I've been lurking for a while and finally thought I would join in on some conversation. My DW and I are both 28 with no kids, although we plan on having 1 or 2. We both just hate having to get up and go to w*rk everyday. We are very, very frugal and live in a very low cost of living area. Our current monthly expenses are between $800 - $900. Our income is a little above $90,000 with both of us having regular jobs and running a couple minor small businesses on the side. Our goal is to have $800,000 -$1,000,000 in investments by the time were 38-40. It's not about being rich to us it's about being free. At that point in time we plan on pursuing our small businesses(nothing major just some part time things) to help pay the bills. If we need to use the interest of the investments we could just do that as well.
Assets
401K - $21,000
Roth - $28,000
Emergency - $5,000
Other Investments(Mainly Index Funds) - $90,000
Both new cars were paid for with cash!
No Debt, Never have had any!
We do not own a home, we have an extremely low rent of $275 and I see no point in buying a home when I can stash all the extra money away and buy a home with the interest of the investments 10-15 years down the road.
I have one major dilemma that hopefully someone could help me out with. We currently max out both of our Roths but not our 401k's, we just put in up to the company match. We can max out our 401k's(or close to it), but we take around $3,000 every month and put it into index funds. My original thought for doing this is when we do decide to leave the workplace we may need to rely on the money/interest that is not in the 401k to live off of. But of course there is the 72T rule, it just concerns me that something might not go as planned, government changes ect.. How has everyone's experiences been with the 72T rule? Do you think it would be in our best interest to max out the 401k instead of the taxable accounts? Sorry for Rambling!
Thanks in advance.
Assets
401K - $21,000
Roth - $28,000
Emergency - $5,000
Other Investments(Mainly Index Funds) - $90,000
Both new cars were paid for with cash!
No Debt, Never have had any!
We do not own a home, we have an extremely low rent of $275 and I see no point in buying a home when I can stash all the extra money away and buy a home with the interest of the investments 10-15 years down the road.
I have one major dilemma that hopefully someone could help me out with. We currently max out both of our Roths but not our 401k's, we just put in up to the company match. We can max out our 401k's(or close to it), but we take around $3,000 every month and put it into index funds. My original thought for doing this is when we do decide to leave the workplace we may need to rely on the money/interest that is not in the 401k to live off of. But of course there is the 72T rule, it just concerns me that something might not go as planned, government changes ect.. How has everyone's experiences been with the 72T rule? Do you think it would be in our best interest to max out the 401k instead of the taxable accounts? Sorry for Rambling!
Thanks in advance.