We are young couple (33M, 33F) with a 3 year old hoping to get advice from the community on our investment portfolio and financial independence strategy.
Our combined household income is $300k in a MCOL city in the Midwest (only base, not accounting for bonuses – bonus would be close to $30k – $50k pre tax). We just hit $1M net worth with the following split:
Assets:
- 401k: total of $396k
- Brokerage Investment account: $350k
- Cash: $60k
- Home equity: $225k (home value =$775k, mortgage balance = $550k at 5.625% for 28 years remaining)
- 529 account for kid: $33k
Debts (other than mortgage which is already accounted for in the home equity):
- Student loan: $30k (3% interest)
We both contribute 6% to our 401k, with an employer match of 4%. Additionally we put in ~$40k per year in our brokerage account (plan to grow this by 3-5% every year) and $6k annually in the 529 account.
All our investments are split across VTI, QQQ, VIG
Our monthly all in expenses are ~9k-10k on a take home net pay of $16k/month
We want to retire around 45-50, with ~$8-10M
Looking for advice on what we can do more to achieve this goal.
Thank You!
Young couple looking for FI advice – just achieved 1M net worth 🙂
byu/SleepyGreenPenguin infinancialindependence
Posted by SleepyGreenPenguin
3 Comments
Why only 6% to your 401ks?
Seems like you’re doing pretty well so far!
Why do you think you need 10 million for retirement though? If I did the math correctly at a very conservative 3% withdrawal rate, you’d only need 4 million for a 120k a year spend.
Why do you need 8-10M when you only spend 9-10k/mo? That seems excessive. You should max your tax advantaged accounts before brokerage. 401k and backdoor Roth.