Hello everyone
30 year old FIRE hopeful here. Had thought about early retirement way before I found this site but it’s very refreshing to see there are others with the same goals. Not sure if this belongs in the young dreamers section so mods feel free to move this if necessary. Onto my stats:
* Age: 30 and married, DW also 30
* Household income: 210k - 230k, the 20k difference is because DW is working 6 days a week but will likely scale it down to 5 over the next few years when we have kids. This also doesn’t include variable comp (cash bonus and equity) which can vary significantly year over year but generally around 10k conservatively.
* Total current net worth: 270k broken down as follows:
- 50k cash of which about half is in CapitalOne360 MM fund at 1.5% and the other half in a FCU at 1%
- 140k in 401k
- 14k in vanguard brokerage account
- 26k Roth IRA
- 10k in tIRA
- 11k in HSA
- 19k between company’s ESPP and equity grants
* Bought a house last year. 15 year mortgage at 3.125%. 386k left. House worth about 540k.
* Never did a complete budget of our expenses but would estimate around 80k/year.
Current annual contributions to 401k is roughly $35,700 which includes own contributions as well as company match. Have been maxing out the hsa at $6,900 but will probably stop when we have kids. Also contributing 11k to Roth IRA through the Backdoor. With the $4k monthly mortgage payments which includes property tax and insurance, it’s a bit tough to add to the vanguard brokerage account but we try to add whatever excess we have in our MM accounts. I also get annual equity awards at my company but those are too hard to estimate as they can vary widely
My plan is to retire at age 50 with $2M net worth not including the house. I’ve been told this is a bit aggressive but that’s the goal and if I miss it by a couple of years no big deal. Ran my numbers into a spreadsheet with a very conservative 3% growth rate and other conservative assumptions (left out annual equity grants which could be between 10-20k, no pay raises or increases in 401k federal limit, no additional contributions to vanguard account, etc) and landed at about $1.6 million at 50.
I figure if I could invest the $2M in a 3% - 5% CD by the time we’re 50, we could live off of the interest. DW works in the medical profession and has flexibility in her work hours. She could pick up a day (20k) or two (40k) and make up any shortfalls in our income. One more thing to mention is that I’m fortunate in that my parents were frugal throughout their working careers and should be able to cover potential college costs for our kids.
Not sure if I’m missing anything but wanted to see if anyone had any advice/comments. Appreciate all comments.
30 year old FIRE hopeful here. Had thought about early retirement way before I found this site but it’s very refreshing to see there are others with the same goals. Not sure if this belongs in the young dreamers section so mods feel free to move this if necessary. Onto my stats:
* Age: 30 and married, DW also 30
* Household income: 210k - 230k, the 20k difference is because DW is working 6 days a week but will likely scale it down to 5 over the next few years when we have kids. This also doesn’t include variable comp (cash bonus and equity) which can vary significantly year over year but generally around 10k conservatively.
* Total current net worth: 270k broken down as follows:
- 50k cash of which about half is in CapitalOne360 MM fund at 1.5% and the other half in a FCU at 1%
- 140k in 401k
- 14k in vanguard brokerage account
- 26k Roth IRA
- 10k in tIRA
- 11k in HSA
- 19k between company’s ESPP and equity grants
* Bought a house last year. 15 year mortgage at 3.125%. 386k left. House worth about 540k.
* Never did a complete budget of our expenses but would estimate around 80k/year.
Current annual contributions to 401k is roughly $35,700 which includes own contributions as well as company match. Have been maxing out the hsa at $6,900 but will probably stop when we have kids. Also contributing 11k to Roth IRA through the Backdoor. With the $4k monthly mortgage payments which includes property tax and insurance, it’s a bit tough to add to the vanguard brokerage account but we try to add whatever excess we have in our MM accounts. I also get annual equity awards at my company but those are too hard to estimate as they can vary widely
My plan is to retire at age 50 with $2M net worth not including the house. I’ve been told this is a bit aggressive but that’s the goal and if I miss it by a couple of years no big deal. Ran my numbers into a spreadsheet with a very conservative 3% growth rate and other conservative assumptions (left out annual equity grants which could be between 10-20k, no pay raises or increases in 401k federal limit, no additional contributions to vanguard account, etc) and landed at about $1.6 million at 50.
I figure if I could invest the $2M in a 3% - 5% CD by the time we’re 50, we could live off of the interest. DW works in the medical profession and has flexibility in her work hours. She could pick up a day (20k) or two (40k) and make up any shortfalls in our income. One more thing to mention is that I’m fortunate in that my parents were frugal throughout their working careers and should be able to cover potential college costs for our kids.
Not sure if I’m missing anything but wanted to see if anyone had any advice/comments. Appreciate all comments.