My wife and I, both in our early 50s, would really appreciate some feedback on our financial situation. Our goal is to retire in the next ~8-10 years, possibly sooner, and do some consulting on the side.
Combined salaries – $400k
Combined 401ks – 1M
Brokerage accounts – $650k
Savings- $75k
HSA – $70k
Primary home paid off, worth $300k
Rental paid off, worth $300k, brings in ~$1400 profit each month
Monthly expenses – $10k (includes food, travel, gas, internet, etc…everything)
We live in Minneapolis (as reference for cost of living)
Know major expenses in 2 years is kid’s college.
What would you do differently/adjust?
Thank you and happy holidays!
Edit: Added salaries and expenses.
Would appreciate some feedback on our financial journey
byu/MrSkagen infinancialindependence
Posted by MrSkagen
3 Comments
I mean, this didn’t say anything about your expenses. I’d be retired yesterday if I were you and had $40K of expenses a year
You need a budget, or you need to share it with us. You could be set or doomed depending on lifestyle.
$10k/month seems like a lot for monthly expenses, even with a high school-aged child. Is there anything that jumps out as a large expense?
For reference, DH and I are nearly 50 (no kids, pay cash for cars, and paid off house) and we average half that in monthly expenses in a similar COL area.
If you want to maintain your standard of living (and assuming your profits from the rental are after tax) in retirement, you would need roughly $2.6 MM at a 4% withdrawal rate. Which may be hard to get to in 10 years while also paying for college.