Not enough data.Running a scenario here and want some feedback. Currently 39, married with a 1 year old, living in a state with no income tax. Have $140k left on our mortgage at 2.1% for 11 more years.
We do not plan to have more kids and might move in the next 3-5 years which brings this possible scenario into thought. Wife will continue as a fed with her same income, I will change careers that will reduce my income (we have dual income) and might only allow me to further contribute to my Roth IRA only (pending many variables). In that case with the assumptions above (8% growth, etc) does my portfolio gains and possible taxable income look correct?
The underlying is assuming an 8% growth rate, which we can easily change to 5, 6, or 7% to get a range of possibilities for retirement savings in market conditions.
Currently I have $210k in my brokerage, with an 8% growth rate in 25 years (age 65) I will have $1.4m with $1.2 in taxable gains
In my 401k I currently have $100k, with an 8% growth rate in 29 years I will have $931k with $831k in taxable gains
In my Roth IRA I have $70k, with an 8% growth rate in 29 years I will have $1.3m tax free.
Obviously these end balances would change and reduce in the market returned 5, 6, or 7% instead.
Wife is a fed employee with a TSP account and maxing out here Roth IRA and contributing to her a brokerage account as well.
Plan for me is to work until I am 60-65 as well as my wife.
The above is assuming I do not take out any money until the point in time mentioned and no longer contribute to my brokerage or my 401k, just my IRA. In other words, planning for worst possible case in the aforementioned scenario, but this would be the top end of a best case.
This could allow me to take out of my brokerage first, then 401k then Roth IRA in retirement and live pretty damn safely at a 4% withdrawal rate for quite some time, again this would change a bit with lower market returns, and not-factoring in my wife's retirement too.
Thoughts?
Input has to make a lot of assumptions to fill in your missing data.
For example:
Projected annual expenses in retirement?
Current Net income stream?
Current gross income stream?
Gross/Net income if changing jobs? (also fed?)
Current expenses?
If relocating, projected cost of the new home?
Please edit this original first post using the "pencil icon" to include data in this format.
Portfolio Review Request
https://www.bogleheads.org/forum/viewt ... =1&t=6212
thank you
j
Statistics: Posted by Sandtrap — Sun Jun 23, 2024 7:17 am — Replies 11 — Views 971