This will be a long explanation for a short question. Does anyone know what percent their expenses went down when they became empty nesters? We are struggling to determine how much we think we will need to spend in retirement. I have read many blogs, watched youtube case studies and I'm still wondering what others were able to retire with and if they felt comfortable. We have 3 children and they will each have roughly 15K-20K in 529 plans when they graduate. Our focus is on our retirement contributions and will help when they go to college over the next 3-6 years.
Here are our stats:
48M/42F
200K gross income.
Hoping to retire in 2036 when we are 60/55.
Brokerage = 425K
401K/IRA = 825K
Roth 401K/IRA = 80K
Total: 1.33MM
55K in emergency funds as well.
Just started contributing to Roth 401K and will continue to add 23k/annually to that account. Wife will drop contributions down in her 401K to get the match. So we will add roughly 10K/annually to traditional. At a 7% average return with $2750/month contributions we should be in the 3.4-3.5MM range. Our mix should help us manage our MAGI for ACA subsidies.
After contributions and deductions for taxes/benefits we take home about 10-11K/month. We have had to purchase vehicles for our 2 older children in the last 18 months but the only debt we have is about 200K on our home. Mortgage will continue through about 2042. We plan on having 2 newer vehicles when we retire and we'd probably take 3-4 all inclusive resort vacations each year (5K per trip). Even with that I just don't think our monthly expenses will be overly high?!?!?!?!?
Fidelity's estimate on their retirement planner says we will have 11,300 in a significantly low market which is a shortfall from about 12,050/month needed per their estimate. Those are in today's dollars. I honestly can't imagine us needing more than 8k/month in today's dollars (11K/month 12 years from now). The 4% rule on 3.4 million should cover that and then social security will be a bonus when we start collecting.
Sorry for the long winded rant but I'm hoping someone can give me an example or clarity.
Here are our stats:
48M/42F
200K gross income.
Hoping to retire in 2036 when we are 60/55.
Brokerage = 425K
401K/IRA = 825K
Roth 401K/IRA = 80K
Total: 1.33MM
55K in emergency funds as well.
Just started contributing to Roth 401K and will continue to add 23k/annually to that account. Wife will drop contributions down in her 401K to get the match. So we will add roughly 10K/annually to traditional. At a 7% average return with $2750/month contributions we should be in the 3.4-3.5MM range. Our mix should help us manage our MAGI for ACA subsidies.
After contributions and deductions for taxes/benefits we take home about 10-11K/month. We have had to purchase vehicles for our 2 older children in the last 18 months but the only debt we have is about 200K on our home. Mortgage will continue through about 2042. We plan on having 2 newer vehicles when we retire and we'd probably take 3-4 all inclusive resort vacations each year (5K per trip). Even with that I just don't think our monthly expenses will be overly high?!?!?!?!?
Fidelity's estimate on their retirement planner says we will have 11,300 in a significantly low market which is a shortfall from about 12,050/month needed per their estimate. Those are in today's dollars. I honestly can't imagine us needing more than 8k/month in today's dollars (11K/month 12 years from now). The 4% rule on 3.4 million should cover that and then social security will be a bonus when we start collecting.
Sorry for the long winded rant but I'm hoping someone can give me an example or clarity.