I've been lurking here for a while and really like the wealth of information on this forum. I decided to create a login and post our plan. Appreciate any advice to help us improve it.
Current status
Current status
- Husband is 46, wife 41. Two 9-year-old kids.
- No debt (house/cars paid for by cash)
- Base gross income is $360K combined. Bonus is up to $50K on a good year, $15K on a bad year. We either use it on a big ticket furniture, extra vacation or extra contribution to the Vanguard portfolio.
- Total annual spending is $70K
- $1mil in combined 401Ks; yearly contribution is $60K including company matches
- 2 year of emergency fund in a saving account
- $100K in Vanguard fund, 80% stock 20% bond. Contribution is bi-monthly totaling $70K a year. We just started this last year after getting out of rental properties business and consolidating our assets.
- $30K in 529s. Yearly contribution is $6K (we just moved to a state with no income tax so no obvious benefits to contribute more to 529s. Maybe we're wrong?). Plan to fund kids college from other assets.
- Hoping to accumulate at least $2.5mil in the 401K and Vanguard portfolios. Target withdrawal rate is 2.5% or less.
- Downsize the house ($675K to $400K or less in today's dollars)
- Keep annual spending the same or less. How realistic is this? We won't be spending as much on kids and house but will have to fund kids' college.
- Would like to relocate to a retirement friendly state/city/town financially and culturally. Any place that you recommend?
- Wife can continue working (or both part time) to help fund college and graduate schools if needed. One kid aspires to be an astrophysicist and the other a surgeon. They are still young and their aspirations likely change. We don't plan to pay for all of graduate schools but do want to help as much as possible. Luckily, we don't hate working yet . We just want the freedom of being able to retire early.
- We both have aging parents who are likely to rely on our financial, physical and emotional support if they get sick. They have small pensions and do okay for now. But none has much savings to speak of.
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