married with two kids i’m 41 wife is 44 my TC 736k and hers around 170k = 906k TC We save $35k a month = 420k savings a year across traditional 401k, mega backdoor roth 401k, college 529, regular brokerage, wealthfront investment account Own a nice 2M house with 850k mortgage left. payment is around $4200 a month with 26 years left. My total networth is around 2.65M: 2M house ~600k in taxable brokerage (mostly on individual high tech stocks) ~130k in roth ira ~900k in tradition 401k ~50k cash minus $850k mortgage $100k car loans My monthly spending feels more on the high side: there are months where its in the 15-18k range...but i would say average is around 13k a month. We dont live below our means. We drive two nice cars, throw a lot of parties at home and i drink $60 bottle wines. According to wealthfront it predicts that i can retire as early as 48 with 6.8M, or 50 with 8.2M, or 53 at 10M. While 6.8M is a lot of money but i dont think you can retire super comfortably in the bay area. And no I dont want to move out of the bay area because i want to be close to my kids when they grow up. would like to hear what others think. if im doing so well with my current income now, maybe i should just milk it for as long as i can and not worry about trying to retire as early as possible? AMA
Okay, it’s your life after all and if I were in your place I’d plan for retirement by 50 and try to enjoy the remaining days of my life rather than being a wage slave. HOWEVER, Blind being Blind, most people here will suggest you to work to your grave. There’s more to life than working at FAANG, however if you think you can’t do anything meaningful in life else except work in tech than stick with where you are and just coast to the sunset.
If I were in this position I’d take up a easier job, may be at a startup where I get stocks. And try and build something that can have big potential. I wouldn’t invest my money in startups though. Safe investments only lol.
Finding a stress free job sound interesting. I expect by 50 years old I’ll be much older than others and slower. Who is gonna hire me? Haha
Thanks for sharing your finances. It’s inspiring. I think you can retire anytime after 55.
736 k 🙏 I would highly encourage you to start a AMA thread. Lot of folks like me are curious to learn but don’t want to hijack the thread.
Lol it says AMA at the end ?
Didnot read anything after 736 🤣
Can you adopt me?
What’s your TC?
400k! I still want you to adopt me 😂
You're doing great but your net worth is what it is above before taxes. Once all is said and done, taxes, AMT, and very high property taxes for the rest of your life, you will probably end up with less than 50%. Have you(or you already may have) considered establishing a passive income generator? I'm all for retirement provided that you have set aside funds for other obligations. As another said above, I'm myself looking into enjoying the rest of my life instead of working my way to my grave with much less net worth. If I were you, my first priority would be my health. Best of luck to you.
Yeah I did the math and I feel initially I need to try to make around 200k income off of my net worth per year to pay for expenses. Although my house is worth 2M now my property tax is only 14k a year. The part I need to gain more clarity on is how much of the 200k will be taxable - because for example if I withdraw $ from my original contribution in my Roth IRA - I do not believe that’s taxable. Does that count as my income that year or not? I’m hoping I can keep my tax bracket low during retirement phase...
Roth withdrawals don't count as income but social security payments and 401k withdrawals will be taxed. Your problem will be how to lower your long term capital gains taxes. This requires careful planning with a tax advisor.
You may not want to move out of Bay Area but your kids could when they grow up. Just sayin’.
So if you spend 13k/month, its 156k/year. With a 4% withdrawl rate, you need 4M. Sounds like you just need to keep investing for a few more years and pay off mortgage. You would be good to go.
I don't get it. Too much income, too low networth. Seems you spent a lot of money in your early days..
My massive income didn’t start until two years ago. Our home TC was closer to 350k before. But working at Facebook has made me feel rich.
Advice for a 23 year old. Where should I save ? Where should I invest ?
My advice is to live your first 5 years as frugal as possible. I lived with my parents during my first four years after college and so I didn’t have to pay rent. I maxed it all in 401k, Roth IRA, and brokerage as much as possible and start learning how to invest and read lots of books.
Nice. Any recommendations on where to start learning to invest ? Also, I think you can retire at 50, but I’d get bored, that’s why I’d recommend switching to an easy job with a potential of future return through stocks. Not sure how health insurance and stuff works after retirement but that can get expensive