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Started By
Message
Review my personal finances
Posted on 2/27/25 at 9:35 am
Posted on 2/27/25 at 9:35 am
Tell me how you would direct your money given my situation. Here’s a few facts summarizing my current finances.
-Mid 30s married with kids.
-Combined income is right at 200k.
-typical monthly expenses average 4k-5k
-currently put a total of 40k/year in retirement which that figure includes employer matches
-contributes 4k/year in kids 529
-900k in retirement savings (s&p index funds) and 50k in brokerage/savings account (s&p index fund)
-10k currently in HSA invested in s&p index
-both cars (both good condition and age) and house are paid off
-based on our contributions and retirement savings it looks like I can safely retire at 55 with roughly 5mil saved by that age. Assuming a 4% withdrawal that will be more than enough to live based on our lifestyle.
Looking for advice in what to do with our extra monthly cash flow we have available.
-Mid 30s married with kids.
-Combined income is right at 200k.
-typical monthly expenses average 4k-5k
-currently put a total of 40k/year in retirement which that figure includes employer matches
-contributes 4k/year in kids 529
-900k in retirement savings (s&p index funds) and 50k in brokerage/savings account (s&p index fund)
-10k currently in HSA invested in s&p index
-both cars (both good condition and age) and house are paid off
-based on our contributions and retirement savings it looks like I can safely retire at 55 with roughly 5mil saved by that age. Assuming a 4% withdrawal that will be more than enough to live based on our lifestyle.
Looking for advice in what to do with our extra monthly cash flow we have available.
This post was edited on 2/27/25 at 9:43 am
22
Posted on 2/27/25 at 9:40 am to Redstickbaw
quote:
Looking for advice in what to do with extra cash flow.
why would you not enjoy it? If you cant pick a point to be happy you'll never be happy. You'll never have enough. You can always find reasons to shoot for more.
Break the cycle.
Posted on 2/27/25 at 9:49 am to Redstickbaw
Your doing great
Only suggestion would be to not mix your savings (assuming that is emergency fund) with brokerage
Carve out your 3 to 6 months of living in your emergency fund And have that totally separate from your brokerage
Only suggestion would be to not mix your savings (assuming that is emergency fund) with brokerage
Carve out your 3 to 6 months of living in your emergency fund And have that totally separate from your brokerage
Posted on 2/27/25 at 10:04 am to Redstickbaw
quote:Must be nice.
Redstickbaw
Your income is great, but it actually seems low based on this:
-900k in retirement savings (s&p index funds) and 50k in brokerage/savings account (s&p index fund)
-both cars (both good condition and age) and house are paid off
Unless you started investing a shite ton by age 20, congrats on the wind falls.
Posted on 2/27/25 at 10:05 am to Redstickbaw
quote:
Looking for advice in what to do with our extra monthly cash flow we have available.
Either give it to your church or find a nonprofit you can support.
Posted on 2/27/25 at 10:19 am to Redstickbaw
You need to find a way to create more income.
You have zero debt, huge retirement savings. Find a way to bring in more active income (real estate, business investment, stocks, etc).
You have zero debt, huge retirement savings. Find a way to bring in more active income (real estate, business investment, stocks, etc).
Posted on 2/27/25 at 10:21 am to Redstickbaw
How much extra cash flow are we talking about?
I’d probably save the extra money for your next car purchase. I’d want a little more savings for that and potential costly repairs such as a new roof or A/C. But thats just me.
I’d probably save the extra money for your next car purchase. I’d want a little more savings for that and potential costly repairs such as a new roof or A/C. But thats just me.
Posted on 2/27/25 at 10:26 am to Suntiger
3-4k a month
Posted on 2/27/25 at 10:33 am to Redstickbaw
I wouldn't include 529 or savings accounts in your retirement figures.
It doesn't look like your maxing the 401k. Assuming you have good, low-cost funds to choose from you should be. There's a good chance you're in a higher tax bracket now than you will be in retirement, so you'll get more benefit now.
It doesn't look like your maxing the 401k. Assuming you have good, low-cost funds to choose from you should be. There's a good chance you're in a higher tax bracket now than you will be in retirement, so you'll get more benefit now.
Posted on 2/27/25 at 10:59 am to GEAUXT
The 900k is strictly 401k and ira accounts. You’re right we fully max 1 401k but don’t quote max the other . I’ll consider increasing so we hit the pretax limit on both accounts. Thanks
Posted on 2/27/25 at 11:14 am to Redstickbaw
LARP post
No one who is - mid 30s, married with kids, $1 mil saved, monthly expenses of 4k, paid off house and cars - would give a single frick about advice given on this board
if all that is true, you have it figured out, stop looking for pats on the back on an anonymous message board and go enjoy some of your extra cash
No one who is - mid 30s, married with kids, $1 mil saved, monthly expenses of 4k, paid off house and cars - would give a single frick about advice given on this board
if all that is true, you have it figured out, stop looking for pats on the back on an anonymous message board and go enjoy some of your extra cash
Posted on 2/27/25 at 11:15 am to Redstickbaw
$5M = $200k/yr withdrawal at 4% rule. Firecalc! See if can withstand worst market conditions over 40yrs (55-95yo).
If deferring taxes in 401k, u will be facing good problem (but problem nonetheless re RMDs at 75yo = chit load of taxes). Therefore, if extra to invest, mega back door Roth is my 2 cents. And Tax efficiency strategy planning will be important for you as you near retirement. Estate planning as well.
Keep up the great work!
Don’t forget to enjoy some as you go. Enough is magic word. Time is precious is magic approaching
Good luck!
If deferring taxes in 401k, u will be facing good problem (but problem nonetheless re RMDs at 75yo = chit load of taxes). Therefore, if extra to invest, mega back door Roth is my 2 cents. And Tax efficiency strategy planning will be important for you as you near retirement. Estate planning as well.
Keep up the great work!
Don’t forget to enjoy some as you go. Enough is magic word. Time is precious is magic approaching
Good luck!
Posted on 2/27/25 at 11:51 am to Sir Saint
quote:
No one who is - mid 30s, married with kids, $1 mil saved, monthly expenses of 4k, paid off house and cars - would give a single frick about advice given on this board
This seems like a ridiculous post.
There are a lot of smart folks on this website. Everyone’s situation is different.
ETA: FWIW I’m impressed with how low your expenses are with kids, even without a mortgage.
This post was edited on 2/27/25 at 11:57 am
Posted on 2/27/25 at 12:00 pm to Lazy But Talented
quote:
This seems like a ridiculous post.
There are a lot of smart folks on this website. Everyone’s situation is different.
So the guy is well-versed enough in personal finance to max his 401k, save in an HSA, pay off his house and cars in mid 30s. But he can't figure out what to do with an extra 3-4k? Guy never heard of a taxable brokerage acct? I just can't see this not being a humblebrag post.
Posted on 2/27/25 at 12:05 pm to Sir Saint
Could he just be asking the group what they would do if there were in his situation: taxable brokerage, real estate, etc?
Posted on 2/27/25 at 12:18 pm to Lazy But Talented
quote:
Could he just be asking the group what they would do if there were in his situation: taxable brokerage, real estate, etc?
maybe, guess I'm just cynical. Well to answer OP and not be a total turd, What I'd do is put aside 1-2k/month of your extra cash into a "fun" account (travel/vacation, bring kids to disney, do fun shite) and put the rest into a taxable brokerage acct, VTI or VOO
Posted on 2/27/25 at 12:35 pm to Redstickbaw
How do you have 900k in retirement savings when only making 200k at 30? Seems off unless you bought some lotto options and it hit big.
Posted on 2/27/25 at 12:41 pm to Redstickbaw
I'm opposite of a financial advisor, but would like to point out to make sure to include private school tuitions, eventual modes of transportation for your children, and loans to cover their drivers insurance with liabilities.
Then, of course factor in legal expenses with your eventual divorce.
Then, of course factor in legal expenses with your eventual divorce.
Posted on 2/27/25 at 12:48 pm to fareplay
quote:
How do you have 900k in retirement savings when only making 200k at 30? Seems off unless you bought some lotto options and it hit big.
nevermind "married with kids" and spends 4k per month with 1mil net worth. I'm calling horseshite but w/e
Posted on 2/27/25 at 1:05 pm to Sir Saint
Would love to see the spending break down as well.
No debt helps, but yeah, that's living like a pauper given the investments and income.
No debt helps, but yeah, that's living like a pauper given the investments and income.
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