NW: $1.5M TC next year: $630k (L5 Seattle). TC after cliff: ~$400k Current yearly expenses: ~$70k/year. Age: 38 Family of 3, planning for one more baby. No primary residence (looking to buy ~$1.8M soon). I plan to save for my kids’ college expenses and also give my kids ~$500k each (by saving $1k /month for each child) when they are 22 as I don’t want them to start from $0. What do you think about the outlined retirement plan? Too relaxed? Too conservative? Any ideas? Still TBD on how I should reach that number (eg if I need to find a higher paying job).
Did u include university expenses
I529 may be enough?
If its 20 years out and they goto private schools in the US, if you pay, could be as much as $100K a year per kid by then.
Don’t give your kids anything apart from education and good moral values
He's not gonna have anything left to give with the current inflation
Those were my thouhts, as well. Also OP compares expenses in today's value of money with some future goal. Realistically they should extrapolate the NW goal by an expected inflation rate and the time they expect to get to than number.
Dont tell your kids you’re giving them anything. And let them try to start from nothing. Otherwise keep it as long as possible.
Won’t tell them in advance. I also know how hard it is to start from $0. So want to give them a push
Agreed on leaving them something well before they are old. Starting from 0 is no fun
Why is health insurance 24k/year?
I have no idea but I heard it could be that expensive for top of the line health insurance?
Yea at market rate, but ACA subsidies might pull that down a lot. Also, who knows what healthcare laws are by the time you retire
Looks good. But your one time expenses seem low. Only one house? And no other toys for the rest of your life? I’d up that to 1M but it is your lifestyle so you know best. The 30% margin is optional in a way. Don’t worry about that now, if you ask me. Also, your house may appreciate so you can always calculate with that. Sell this one and move to a different region, if that’s the plan. The assume half is confusing but that might be just me. The first part about house payment and assume half esp didn’t make sense. Food + plus seems low. If it is 2k now, model 4% inflation to it. Some idea about retirement age range and life expectancy will help too. Don’t share it with us but for your own calc, it can do wonders. Good luck
Boring people
Thanks. $48k annual at 4% means that I need an instant $1.2M to be invested, or I can use that $1.2M to pay off mortgage instantly so seems reasonable. I had no better way to compensate for the fact that this payment is going to stop after 30 years (and is also constant, despite that the 4% rule accounts for inflation).
Diversify .. for sure add Real estate in portfolio and it shall be more than one property ..
What was your nw when you were 30 ? I am comparing mine to yours. I have nw of around 400k. Am I doing good ?
OMG, change your attitude — still that same old mentality
What change ? I want to learn from blind gods like this post
Looks good. I think best to hire a fiduciary who can assess this Most financial brokers(vanguard, fidelity etc) give you a free assessment based on your goals and target retirement date including SS and any health care incidents and support in old age assuming you don't intend to burden your kids in your later years What are your ideas for passive income? I think relying on stocks/ bonds alone seems risky. Perhaps you can consider real estate or other asset class that can produce equity and cash flow while someone else pays in down and bank help you make money. Depends on your risk tolerance though Good luck I wish I was this smart
I think the plan sounds okay at the moment but you will only get a clear picture and confidence when you get there and it depends on the market and inflation conditions when you get there.
1.5M net worth but no real estate? Is that all RSUs?
RSUs, 401k, IRAs and cash.
You did good. 1.5M is a lot of money already and you are planning to be safe and invest now on. It’s a good plan.