sirsavesalot
Dryer sheet aficionado
- Joined
- Apr 24, 2013
- Messages
- 40
I found this board last week and love it. Figured I'd post my info and see what you guys think about where I'm at and if I'm crazy:
Married with 2 children, ages 2 and 3, in Columbus Ohio. Wife and I are 32. Wife was a teacher but stays home with the kids. She's sick of teaching and may not go back (grrr). We'll just focus on my income and our savings for now. For most of my working life I did the 5% employer match but stepped it up last year and this year so far and started a Roth IRA last year. I just got a very nice promotion and decided to run the numbers in Excel to see how we'll fare this year.
Current 401k and Roth IRA: $80,000
Checking and Savings: $20,000
Income:$90,000 pre tax
Retirement Savings Slated for 2013:
Maxing 401k at $17,500
Maxing both Roth IRAs at $11,000
Pension from work: $8000
Total of $36,500 going into retirement savings in 2013
After all expenses (mortgage, cars, food, insurance, 401k, Roth, kids activities, you name it) we will have an additional $25,000 left this year, after taxes. House is worth $160,000 and we owe $105,000 on a 15 year 2.75% I refied last year. I was thinking of dumping a good chunk on the mortgage just to get rid of it or maybe in some taxable investment accounts...who knows. I would love to be mortgage free but the 2.75% ain't bad.
The house we have is rather small and we would both love to get a much nicer house but then that cuts into our retire early plan. We both grew up on land and now sit here in a 1400ft2 house on 0.25 acres and we really wish our kids had more room to play and get us away from neighbors, but again, that would push our retirement date back about 2 years. We can't figure if it's worth it to do that to enjoy life more the next 20 years and have to slap on 2 more or just suck it up and live it out here. We would love to be retired at 50 when the kids are out of the house and I think we can make that happen if I threw the extra $25k into savings each year. If my wife went back to teaching you can add at least another $35-$40,000 after taxes to that.
So what do you guys think? Are we kicking ass already and we should let ourselves enjoy a bigger house with a bigger yard?
I did run a FIRECalc with just my working contributions without the additional $25k and when I'm 50 we'll have 1.4 million with a 5% return. FIRECALC says with a $40k/year withdrawal for 40 years we'll have a 100% chance of success, so we'll be able to live to 90 no prob. I know, I'll have to get medical for those years in between but I'm sure I'll get some pay raises and my wife will earn some money to good money.
Married with 2 children, ages 2 and 3, in Columbus Ohio. Wife and I are 32. Wife was a teacher but stays home with the kids. She's sick of teaching and may not go back (grrr). We'll just focus on my income and our savings for now. For most of my working life I did the 5% employer match but stepped it up last year and this year so far and started a Roth IRA last year. I just got a very nice promotion and decided to run the numbers in Excel to see how we'll fare this year.
Current 401k and Roth IRA: $80,000
Checking and Savings: $20,000
Income:$90,000 pre tax
Retirement Savings Slated for 2013:
Maxing 401k at $17,500
Maxing both Roth IRAs at $11,000
Pension from work: $8000
Total of $36,500 going into retirement savings in 2013
After all expenses (mortgage, cars, food, insurance, 401k, Roth, kids activities, you name it) we will have an additional $25,000 left this year, after taxes. House is worth $160,000 and we owe $105,000 on a 15 year 2.75% I refied last year. I was thinking of dumping a good chunk on the mortgage just to get rid of it or maybe in some taxable investment accounts...who knows. I would love to be mortgage free but the 2.75% ain't bad.
The house we have is rather small and we would both love to get a much nicer house but then that cuts into our retire early plan. We both grew up on land and now sit here in a 1400ft2 house on 0.25 acres and we really wish our kids had more room to play and get us away from neighbors, but again, that would push our retirement date back about 2 years. We can't figure if it's worth it to do that to enjoy life more the next 20 years and have to slap on 2 more or just suck it up and live it out here. We would love to be retired at 50 when the kids are out of the house and I think we can make that happen if I threw the extra $25k into savings each year. If my wife went back to teaching you can add at least another $35-$40,000 after taxes to that.
So what do you guys think? Are we kicking ass already and we should let ourselves enjoy a bigger house with a bigger yard?
I did run a FIRECalc with just my working contributions without the additional $25k and when I'm 50 we'll have 1.4 million with a 5% return. FIRECALC says with a $40k/year withdrawal for 40 years we'll have a 100% chance of success, so we'll be able to live to 90 no prob. I know, I'll have to get medical for those years in between but I'm sure I'll get some pay raises and my wife will earn some money to good money.