I’m in a bit of a pickle and could really use your help with some money stuff. I’m thinking about retiring early and maybe changing up my career, so I need some advice on where we stand financially. Here’s the lowdown:
Family Deets
- Me (36M), wife (35F), and two little kiddos under 10.
- I’m in tech, and wifey used to teach preschool but is now stay-at-home.
Cash Flow and Spending
- We bring in about $400k a year.
- Our monthly costs are between $5k-$8k, covering all the usual: mortgage, bills, groceries, etc.
Our Stash
- Home worth around $700k – $800k.
- We’ve got about $500k in VTI, $60k in an emergency fund.
- Retirement accounts:
- My Roth IRA: ~$200k (VTI)
- Wifey’s Roth IRA: ~$40k (VTI)
- 401k: ~$60k (S&P 500)
- 529 accounts: $136k (3-year-old), $130k (7-year-old)
- And some crypto: ~700 ETH (staked, currently worth ~$2M)
Debts
- Mortgage: ~$350k at 2.5% interest
- Student loan: ~$4k at 2.5% interest
- Cars are all paid off
Insurance
- I have a $2M term life insurance policy.
- Wifey’s got a $1M term life insurance policy.
Current Situation and Goals
- I’m feeling burned out in tech and thinking about making a big change.
- Thinking of going back to school for Math and maybe even a PhD in academia.
- Wifey might go back to work in a few years when the kids are a bit older.
- We’re open to the idea of retiring early if we can make it work financially.
Stuff Keeping Me Up at Night
- Job security in the tech world right now
- What to do about taxes on our staked ETH (making about $5k a month before taxes)
- How to balance my career shift with financial security
- Figuring out if we’ve got enough saved up for early retirement
- Smart moves to improve our financial game
I’d love your input on:
- If we can afford my career change and early retirement dream
- How to handle our crypto stash
- Tweaks we can make to our investment strategy
- Anything big we might be missing
Also, a few extra Q’s:
- Social Security: Will my career change affect our future benefits?
- Healthcare Costs: What happens to our coverage if I retire early or switch to academia?
- Kid Expenses: Any major costs for the little ones we should prep for besides education?
- Roth Conversion Ladder: Is setting one up smart for early retirement access to funds without penalties?
- Long-Term Care Insurance: When should we start thinking about it?
Thanks a million for your help and advice!
Later, Seekin’ Solution
Response from HELP ME RETIRE:
Hello There,
Hello,
First of all, it’s great that you’re thinking ahead and seeking advice to ensure your family’s financial well-being. Your detailed overview provides a clear picture of your current financial status, goals, and concerns. It’s understandable to feel burnt out in your current tech career and to consider a change. Pursuing a Math graduate degree and potentially transitioning to academia sound like fulfilling paths for you. With a healthy income, substantial assets, and sound financial planning, your early retirement goals and potential career change seem feasible.
In terms of your specific concerns and questions, job security in the tech industry can be uncertain, so it’s wise to explore other options that align with your interests. Regarding your staked ETH and potential tax implications, consulting a financial advisor can help you navigate the complexities of cryptocurrency investments. Balancing a career change with financial security is crucial, and ensuring your current savings and investments are on track for early retirement is a prudent step.
Maximizing investment strategies, considering Social Security impacts, planning for healthcare costs, anticipating future expenses for your children, setting up a Roth conversion ladder for early retirement access, and evaluating long-term care insurance are all essential aspects to consider in your financial planning.
Ultimately, taking a realistic and practical approach to your financial goals, ensuring diversified investments, and consulting with financial professionals can help you make informed decisions. It’s commendable that you’re proactively seeking advice to optimize your financial situation. Remember to regularly review and adjust your financial plan as needed to stay on track towards your early retirement and career change goals.
Best of luck in your financial journey!
Warm regards,
HELP ME RETIRE
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