GTFO? - only banking 260k in SEA

Jun 17, 2018 25 Comments

.....

My wife and I are comfortable but by no means extravagant. We will be adding a new kid this year. Since we don’t live near family and neither of us are passionate about our work - we are wondering if this rat race is worth it, especially at the low numbers we pull.

My brother’s family (1 kid, stay at home wife) makes do as a programmer in Missouri for 80k total. They have the same life standards as we do (though perhaps not the same savings rate....since we max out all retirement accounts right now. My wife has a
her ROTH IRA, 401k, and a pension.).

We came here hoping to retire early and move back to the Midwest. But since prices keep climbing faster then our salaries - it’s hard to say if we can do this.

We pull in 260k (before taxes). Pay out 114k. Breakdown below.

Is it just me (or is it Blind TCGFO?) that makes me feel like this is not enough?

....

Income:

TC - 150k. (50k is RSUs - SDET role - age mid-30’s. Good bonuses are mostly over for me).

Wife TC - 110k. (Govt. no stocks...decent pension if she holds out longer.)

Total (before taxes): 260k

Savings:

Retirement : 400k (between us both, not including her pension.)

Equity: ~200-300k (value - mortgage. Mostly based on what the psycho SEA real estate marketing is pricing us as this week, and some improvements we’ve made).

Investments / Rainy Day: 70k (mostly vested stock)

Annual costs:

20k - Toddler Daycare

24k - Soon to be Infant Daycare

25k - Mortgage + Taxes + Insurance

5-20k - Home Improvement costs (Furnace is next - making this a 20k year. 🤑).

10k - Travel/Car costs. All trips to see family - cars are fully paid for junkers.

15k - Food/Diapers/House cleaners. We range from 800-1200 monthly on food costs (depends on us going out for takeout and various family visiting scenarios). House cleaners come every 3 weeks for 115.

Total: 114k costs

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TOP 25 Comments
  • Google / Eng
    himom

    Go to company page Google Eng

    PRE
    LinkedIn, Facebook
    himom
    First of all, congrats on the upcoming baby! Also, looks like you guys are doing well financially as well.

    Other than financials, is there anything else keeping you in Seattle? There's no doubt that you will be able to build more wealth living in Seattle than the Midwest.

    And perhaps the cost of that is this feeling that you're in a rat race. The reality is that you're not. You have a net worth of almost 1M--and if you continue to save and invest with that 260k income it will definitely be much larger. The first million is the hardest to make, it gets much easier after that.

    Unless you and your wife really hate your current lifestyle, I wouldn't move. Financially, you guys are doing an amazing job! Keep it up
    Jun 17, 2018 0
  • This post sounds a bit like a humble brag - just the 400k in retirement accounts will grow over 30 years (assuming you're 35) to become 2.3million in today dollars if you invest in low cost passive index funds or a target date fund. So at 65 you can safely withdraw about 90k per year in retirement without eating into your nest egg. So you're pretty much set with retirement on that alone not to mention a pension, other assets, or 20k or so from social security. So you can leave the rat race and just focus on covering your yearly expenses (114k combined) living wherever and doing whatever makes you happy.
    Jun 17, 2018 10
    • Historical returns for US equities are around 6.5% so keep investing
      Jun 18, 2018
    • Microsoft / Eng
      Harmar

      Go to company page Microsoft Eng

      Harmar
      There's a fudge factor if you can deduct your mortgage interest (less likely under the new tax plan), and you have to factor in risk (paying off mortgage is a zero risk return). But yeah, current rates favor paying as slowly as allowed.
      Jun 18, 2018
  • These 4-5 years are the most expensive of your life. It will get better and your needs will go down over time. Tough it out.
    Jun 17, 2018 3
    • Google
      ipue10

      Go to company page Google

      ipue10
      You can actually retire early and get need based aid at some schools
      Jun 17, 2018
    • Apple
      Techjunke

      Go to company page Apple

      Techjunke
      By the time kids go to school, assuming one is in his 40s, early retirement will be real early. And then what? Kids will say my parents have no employment and colleges will give them scholarship that they do not offer to families who still have private company income? What if you are super rich and don’t need to work?
      Jun 17, 2018
  • Microsoft / Eng
    Notmsft

    Go to company page Microsoft Eng

    Notmsft
    If your motivation to be in Seattle is purely financial, then I’d recommend switching companies every 4 years so you can continuously cash in on on-hire stocks and sign on bonuses. Carousel-ing between google, Facebook, amazon and msft, as well as some of the smaller companies, can easily bump your individual TC significantly. The only thing is whether you’d be open to traditional software dev, not sure how the sdet market is.
    Jun 17, 2018 1
  • You’re doing better than 90% of Seattle, FWIW.
    Jun 17, 2018 0