DK's journal
Posted: Fri Jun 11, 2021 10:23 am
What am I missing?
Short version of current state & future plans:
I turn 40 next month and have been working towards retiring before 45 however the more I look at the numbers I think i can retire in 36 months. My wife(teacher) took this last year off to stay with our 2 kids and avoid dealing with covid in the schools. She was just hired and will be starting at a new school in Aug. She likes teaching and plans to keep her job. I do plan on working part time doing something I enjoy (target of making $500/month avg)
Between passive income, social security, house downsizing, and retirement portfolio I'll have plenty once I hit 62 so the goal is to get from where I am now to 62.
Down to the numbers - in 36 months this is where I expect things to stand:
non-retirement portfolio - $750k-$800k
Wife's income: (take home will be about $2600 after taxes/insure)
Passive income: $3000/month (2 rental properties, some dividends)
My income: $500/month
Avg monthly spend: $8500 (this includes mortgage, setting aside a few hundred a month for future car replacement, large medical expenses, etc)
Avg monthly draw down once I retire = $2400/month
I've run this through cFIREsim with all sort of different combos as well as some homemade spreadsheets and most scenarios put me at a portfolio balance the same or higher than my starting balance.
Things I've thought about -
Inflation: Definitely a big topic now but rental properties should hold up well here and our mortgage is fixed (3.25%). Dividends could of course go down but this is a smaller portion of passive income and if needed I can reallocate.
College: both kids have a 529 account not included in the above numbers. our goal is to provide $40k per kid for education and without adding any more the current balance should hit that by the time they turn 18
Car: Above plan includes a new (well, actually used) car every 10 years at a cost of $24k. Typically 10 years is the minimum we've kept vehicles.
Insurance: Wife will carry the family - current plan has a max out of pocket expense of $10k. (only time we've come close to that were the years the kids were born)
Family: Parents are retired and will not need any financial assistance
Data: Been tracking our monthly spending for over 4 years, one rental property I've had for 13 years (the other is newer) so I feel I have accurate data
So... what am I missing, or, do I really only have 36 more months of the corporate world?
Short version of current state & future plans:
I turn 40 next month and have been working towards retiring before 45 however the more I look at the numbers I think i can retire in 36 months. My wife(teacher) took this last year off to stay with our 2 kids and avoid dealing with covid in the schools. She was just hired and will be starting at a new school in Aug. She likes teaching and plans to keep her job. I do plan on working part time doing something I enjoy (target of making $500/month avg)
Between passive income, social security, house downsizing, and retirement portfolio I'll have plenty once I hit 62 so the goal is to get from where I am now to 62.
Down to the numbers - in 36 months this is where I expect things to stand:
non-retirement portfolio - $750k-$800k
Wife's income: (take home will be about $2600 after taxes/insure)
Passive income: $3000/month (2 rental properties, some dividends)
My income: $500/month
Avg monthly spend: $8500 (this includes mortgage, setting aside a few hundred a month for future car replacement, large medical expenses, etc)
Avg monthly draw down once I retire = $2400/month
I've run this through cFIREsim with all sort of different combos as well as some homemade spreadsheets and most scenarios put me at a portfolio balance the same or higher than my starting balance.
Things I've thought about -
Inflation: Definitely a big topic now but rental properties should hold up well here and our mortgage is fixed (3.25%). Dividends could of course go down but this is a smaller portion of passive income and if needed I can reallocate.
College: both kids have a 529 account not included in the above numbers. our goal is to provide $40k per kid for education and without adding any more the current balance should hit that by the time they turn 18
Car: Above plan includes a new (well, actually used) car every 10 years at a cost of $24k. Typically 10 years is the minimum we've kept vehicles.
Insurance: Wife will carry the family - current plan has a max out of pocket expense of $10k. (only time we've come close to that were the years the kids were born)
Family: Parents are retired and will not need any financial assistance
Data: Been tracking our monthly spending for over 4 years, one rental property I've had for 13 years (the other is newer) so I feel I have accurate data
So... what am I missing, or, do I really only have 36 more months of the corporate world?