been a while since i posted and couldn’t find one of our initial post when we first joined for peer review back in 2012 or so. since we are on our subconscious ‘home stretch’ thought would post our current situation for peer review again.
our plan was always to be FI by at least 55 and RE by 58 (at least me). DW and me are 51. DW works for megacorp and i for local gov’t. 2 daughters 13 and 11.5. we both enjoy our jobs, but given the last year with Covid and 4 politically has made the notion of doing more than ‘work’ has set it bit more and definitely more appealing.
retirement eligibility for me is at 57 w/ some negatives on pension benefits explained below.
DW can stop whenever, but she likes her job and to work.
taxes fed: 33%+/yr; state 6.5%+/yr
income pre-tax:
DW
Me
Tax deferred contributions:
Taxable contributions.
Brokerage:
Investments:
our allocation across all our accounts has been ~65/35 stock/bonds w/ a ~5% rebalance threshold
Tax deferred (all invested in index funds S&P 500, Total Bond, Total Int’l type)
Taxable:
Pensions:
Social Security:
both of us planning on taking it at least at 67 and beyond depending on numbers when we get there.
Healthcare:
We are on my insurance plan and plan on staying on it after we pull the trigger which we are eligible to be on at current employ rate, which can be at my 57 eligibility day. right now it’s around ~$500/month.
Expenses:
Education:
our plan was always to be FI by at least 55 and RE by 58 (at least me). DW and me are 51. DW works for megacorp and i for local gov’t. 2 daughters 13 and 11.5. we both enjoy our jobs, but given the last year with Covid and 4 politically has made the notion of doing more than ‘work’ has set it bit more and definitely more appealing.
retirement eligibility for me is at 57 w/ some negatives on pension benefits explained below.
DW can stop whenever, but she likes her job and to work.
taxes fed: 33%+/yr; state 6.5%+/yr
income pre-tax:
DW
- salary: ~$250,000/yr
- bonus: ~$50,000/yr (we have never considered her bonus as part of our annual income since it varies and if the does get it we consider it gravy and usually split it up 50% to pay down mortgage, 25% for daughters college fund, and 25% for trip or two. most years it has been in the range noted + or - $5,000, but this past year megacorp forwent giving a cash bonus.
- ESOP and RSU: varies on megacorp performance; as DW bonus we also treat this portion of our overall income as gravy if we are in a position to take advantage of any gains upon liquidating.
- RSU vest 3yrs after granted and we have sold them after they vest and reach LTG status.
- ESOP start vesting in 1/3 increments after 1 yr from grant date w/ expiration at 10 yrs.
- if we had to sell the vested ESOP/RSU on monday we should net approx ~$350,000
Me
- salary: ~$85,000/yr
Tax deferred contributions:
- we both have always maxed out 401k: $19,500 (x2) into Trad-401k; $6,500(x2) catch up into Roth-401k
- 401k match of salary: DW 6% ~$15,000/yr; Me 5% ~$4,250/yr
- Me backdoor Roth IRA $7,000/yr
Taxable contributions.
Brokerage:
- $~18,000/yr split in 1/3 - FXAIX (S&P 500)/FTABX (Tax Free Bond)/Cash
Investments:
our allocation across all our accounts has been ~65/35 stock/bonds w/ a ~5% rebalance threshold
Tax deferred (all invested in index funds S&P 500, Total Bond, Total Int’l type)
- DW 401k: ~$685,000
- DW Trad IRA: ~$930,000
- DW Roth IRA: ~$85,500
- Me 401k: ~$605,000
- Me Trad IRA: 0 (us it for Backdoor every year)
- Me Roth IRA: ~$80,500
Taxable:
- Cash: Checking/Savings: ~$100,000
- Brokerage: ~$675,000; w/in our brokerage accounts we consider/have set aside ~$300,000 as our Oh! Crap! money which consist of the 2 mutual we invest monthly as noted above in FXAIX/FTABX + any cash. DW did go though a downsize 10+ yrs ago before joining megacorp so we have made sure we have enough to carry us along several years if that were to happen again. There remaining taxable investments are held mostly in index and sector ETF and basket of about 30-35 blue chip individual stocks.
Pensions:
- Me: at 62 pre-tax est ~$18,000/yr or at 57 pre-tax est ~$13,500 (if leave when eligible but before age of 62 there is a 5% hit per year). COLA adjusted.
- DW: at 62 pre-tax est ~$30,000/yr if megacorp doesn’t evaporate it before hand.
Social Security:
both of us planning on taking it at least at 67 and beyond depending on numbers when we get there.
- DW est: ~$2,800/yr at 67
- Me est: ~$2,300/yr at 67
Healthcare:
We are on my insurance plan and plan on staying on it after we pull the trigger which we are eligible to be on at current employ rate, which can be at my 57 eligibility day. right now it’s around ~$500/month.
Expenses:
- I have kept pretty consistent expenses since forever and had approx 20+ yrs worth until quicken quasi folded which we lost and have been since using personal capital, mint. have a really good idea of monthly expenses our expenses have run around ~$150,000/yr, which includes everything under the sun (mortgage, utilities, food, travel, insurance, taxable savings, college savings, etc).
- we are in the process of finishing up a whole house remodel and ‘foreverish’ home for now, which will keep our expenses at around that level prob for another 10 yrs or so. once the dust settles it will be worth in the neighborhood of ~$2 million (based on bank appraisals) w/ about ~$1 million in equity. we have used some ESOP grants for the remodel this past year. as noted above, we have in the past used bonus and ESOP/RSU $’s to pay down our mortgage and we pretty much paid off more than1/2 of our last house in about 7 yrs which we sold for ~$1 million before purchasing the new house under remodel and plan on doing so once our builder gives us the keys and we can move in.
- our home is our only debt and have not carried a CC balance or had a car payment in 25+ yrs
- as noted above given our yearly avg expenses of ~$150,000 we have ~2.5 yrs to cover expenses w/o taking into account my salary.
Education:
- have ~$60,000/daughter in 529 and UTMA accounts and contribute monthly and yearly if grandparents gift some extra $, bonus is available, etc.
- once both girls get to college age our plan is to offset any expenses outside 529, UTMA, w/ ESOP/RSU if possible and potentially grandparent scholarships which have been discussed, but we are not planning on grandparent assistance as part of our overall plan until any $ is handed out.
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