A few thoughts regarding the above.A bit of an update.
My wife and I (age 36) just crossed the $500,000 retirement savings threshold. The 5,000 foot overview of our finances are as follows:
Cash (most of it in 4.25% savings account): $88,000
Retirement Savings: $500,000
House (New Construction): $375,000
Mortgage (6.25%): $275,000
Student Loans (5.6% Average): $46,000
Annual Expense: $78,000
My City Job Income: $91,000/year (got a nice raise this year)
Private Practice Four-Year Average: $67,000/year
Wife Income: $12,000/year
Of the retirement savings, $122,000 is in my 457 Deferred Comp account. That account is immediately accessible upon leaving the city job.
Of the $78,000 annual spend, roughly $9,600 of that is for my son's therapies. I don't know how long he will need those but it certainly won't be forever.
As of right now my plan is to:
1. Pay off the student loans when the construction is done (next month)
2. Continue maxing 457 account and try to get it to $200,000
3. Pay down mortgage aggressively with extra savings, and re-finance when I decide to leave the City job.
In my mind I anticipate leaving the City job two years from now. Retirement should be about 10x expense; private practice and wife's income should pay expenses, as I assume private practice income will increase when I do it full time.
1) Congrats on the raise.
2) What are your expenses when debt free?
3) I don’t remember all the details of this thread, but what will your health insurance expenses be once out of the city job and on your own?
4) In 2 years you will start hitting the OMY (One More Year) syndrome. One more year accomplishes so much. It gives you an extra year of portfolio growth and contributions.
5) Although 10x and semi-retire is doable, wouldn’t 12.5x or 15x provide a bit more assurance. Plus it would allow for a bit of lifestyle inflation as you continue semi-retirement even after you hit your number. I say this because personally I waited only 20x before semiretirement and I am glad we did that. Our portfolio has surpassed our original 25x and we have chosen to increase our spending. It has been a slow and enjoyable lifestyle creep all throughout our career and continues deep into semi-retirement.
Statistics: Posted by EnjoyIt — Thu May 23, 2024 11:09 pm — Replies 129 — Views 17235