jvmarathon
Confused about dryer sheets
- Joined
- Oct 22, 2017
- Messages
- 8
Wow! It’s been a minute since I visited and posted on this website, 9 years ago I posted our plan to retire by 50. Life has certainly changed since then. I wanted to share progress to hopefully 1) provide encouragement that shows folks just how much an early start and compounding can do a lot and 2) sanity check our plan.
My husband just “retired” at the age of not quite 41 after a nearly two decade run in his career. Our nanny has a desire to work much more part time and ease into “retirement”. We have a special needs child that is non verbal, not potty trained, and I travel a lot for my work, so since we were financially stable, we decided that it was a good time for him to step back.
Over the years, we have maxed out our 401ks, in some cases doing after tax Roth contributions on top of the pre tax max. We have maxed our HSA. We have built an after tax brokerage. Oh, and we had a COVID baby! So there’s now another little one in the mix.
By the numbers-
Spouse 401k - $1.85M invested in various domestic and international index funds
My 401k - $2.76M, invested in index funds, and one very high performing sector fund called FSELX
Spouse HSa - $116,000 invested in FXAIX
My HSA - $3,300 in FXAIX, just started contributing, plan to not spend out of it and just use as retirement account
Joint brokerage stock - $416,000 in everything from tech names to consumer defensive names/funds
Joint treasury notes SGOV - $151,000
Checking $130,000
my RSUs (unvested) - $145,000
Child 1 529 - $259,000
Child 2 special needs
Child 3 529 - $21,800 (just began one for this kiddo this year)
My cash balance pension $286,000
Value of home approx $1.3M
Mortgage remaining at 3% - $125,000
All in all, we’ve made great progress and this has allowed my spouse to pivot to taking care of the family. I plan to work until 50 when I qualify for retiree medical, so a little less than 10 years from now.
My salary and bonus can vary, but averages around $330k per year. RSUs each year add an additional $50k to $80k, net shares tax. We plan to pay cash on a shed/shop space we are building and then will likely pay off our mortgage within a few years, our annual budget, with vacations and discretionary spending, is around $120k, we are figuring.
We are going thru estate planning now. We plan to do Roth conversions as soon as I retire and our tax bracket drops, as our large 401k balances are mostly pre tax (maybe $170k in Roth contributions total). We plan to live off the brokerage as a bridge to 59 1/2. We add money to the brokerage in the amount of $30k to $45k per year, and plan to add to child 3 529 plan at 20k per year for the next few years, then let the market and compound interest do the rest of the work. I am torn on what to do with pension. The estimated cash balance value at age 50 will be just shy of $1M. I could take the lump sum, or take an annuity at around $5k per month, 100% joint and survivor, no COLA.
I think our plan works, but we are going to work with a CPA on mapping out a plan to minimize taxes over the long term. Any feedback or suggestions the community has would be appreciated and welcomed.
We have came along way from 2017! We were blessed with high paying careers, but we also were very dedicated and aggressive savers. It paid off.
My husband just “retired” at the age of not quite 41 after a nearly two decade run in his career. Our nanny has a desire to work much more part time and ease into “retirement”. We have a special needs child that is non verbal, not potty trained, and I travel a lot for my work, so since we were financially stable, we decided that it was a good time for him to step back.
Over the years, we have maxed out our 401ks, in some cases doing after tax Roth contributions on top of the pre tax max. We have maxed our HSA. We have built an after tax brokerage. Oh, and we had a COVID baby! So there’s now another little one in the mix.
By the numbers-
Spouse 401k - $1.85M invested in various domestic and international index funds
My 401k - $2.76M, invested in index funds, and one very high performing sector fund called FSELX
Spouse HSa - $116,000 invested in FXAIX
My HSA - $3,300 in FXAIX, just started contributing, plan to not spend out of it and just use as retirement account
Joint brokerage stock - $416,000 in everything from tech names to consumer defensive names/funds
Joint treasury notes SGOV - $151,000
Checking $130,000
my RSUs (unvested) - $145,000
Child 1 529 - $259,000
Child 2 special needs
Child 3 529 - $21,800 (just began one for this kiddo this year)
My cash balance pension $286,000
Value of home approx $1.3M
Mortgage remaining at 3% - $125,000
All in all, we’ve made great progress and this has allowed my spouse to pivot to taking care of the family. I plan to work until 50 when I qualify for retiree medical, so a little less than 10 years from now.
My salary and bonus can vary, but averages around $330k per year. RSUs each year add an additional $50k to $80k, net shares tax. We plan to pay cash on a shed/shop space we are building and then will likely pay off our mortgage within a few years, our annual budget, with vacations and discretionary spending, is around $120k, we are figuring.
We are going thru estate planning now. We plan to do Roth conversions as soon as I retire and our tax bracket drops, as our large 401k balances are mostly pre tax (maybe $170k in Roth contributions total). We plan to live off the brokerage as a bridge to 59 1/2. We add money to the brokerage in the amount of $30k to $45k per year, and plan to add to child 3 529 plan at 20k per year for the next few years, then let the market and compound interest do the rest of the work. I am torn on what to do with pension. The estimated cash balance value at age 50 will be just shy of $1M. I could take the lump sum, or take an annuity at around $5k per month, 100% joint and survivor, no COLA.
I think our plan works, but we are going to work with a CPA on mapping out a plan to minimize taxes over the long term. Any feedback or suggestions the community has would be appreciated and welcomed.
We have came along way from 2017! We were blessed with high paying careers, but we also were very dedicated and aggressive savers. It paid off.
