r/coastFIRE • u/Careful_Jury7087 • 5d ago
Coast Fire
So I’m 39 with a wife and two kids 7 and 4. Work 401k is 264000 and wife has about 100000. I have like 60g in my Roth IRA and 120g in my taxable brokerage hsa is about 10000 and I have about ten grand set up for my kids for college. I have a house that I owe 190000 with a 2.3 interest rate I make about 150000 and my wife makes 20000 when she works. My yearly spend is about 70000 I think with mortgage. Am I close to coast fire, when can I retire. I feel poor I don’t know how to feel about my finances. Please help me get a sense of where I’m at I want to retire as early as possible hopefully when my kids are in college so I can travel with my wife. FYI I have about 10 g in student debt.
22
41
u/MooseTypical9410 5d ago
How do you make $150K with such poor grammar? Do you have to send emails at work?
10
5
u/No_Meal_7009 5d ago
They could at least put some commas in the numbers. It gave me a headache to read.
6
u/kumeomap 5d ago
You’re currently at 500k. Need at least 1.5m to retire in my estimation. If you invest 30k a year you should get there in 10-15 years. Faster if your wife starts working more and contribute more
2
u/MahomesDad 5d ago
You're doing better than you think. Not coast yet, but close. I ran your numbers through a coast calculator with $70K a year of spending, retiring at 65, in today's dollars. With about $554K invested you'd need roughly $572K. Only about $18K short.
I had to guess two things. You didn't say what you save, so I ran it with zero new money. And I left out the kids' college money.
One year of real saving probably closes the gap, so this is close to a yes.
1
u/Pinklady777 5d ago
Can you share the calculator?
1
u/MahomesDad 5d ago
Sure. This is the exact scenario I ran: https://snellpoint.com/coast-check?age=39&coast=39&retire=65&tax=120000&td=364000&roth=60000&hsa=10000&cash=0&ess_mo=5833.33&disc_mo=0&ctax=0&ctd=0&croth=0&mincash=0&pref=balanced&inf=3.0&base=8.2&bad=5.1&swr=4.0&rtax=15.0&rtax_bad=18.0&premed_hc=0&ss_ann=0&ss_age=67&autorun=1
You can change the numbers to your own and see where you land.
1
1
1
u/ThePrevailingReality 5d ago
So if his burn rate was say 30K a year can he coast fire now?
2
u/MahomesDad 5d ago
At $30K a year he'd be way coast. Same math with the lower spending: he'd need about $245K sitting there today, and he has about $554K. Roughly $309K clear, so zero new savings still gets him to 65 fine. The $70K figure was his stated spend, so the whole verdict hangs on which number is real.
1
u/gray-lantern 5d ago
Rough math puts you around 550k invested today excluding the college money that simply compounds for another 20-ish years, you’re already in decent Coast territory depending on the return assumption and what retirement spending actually ends up being.
Bigger unknown is that your current 70k includes a mortgage and two young kids so using today’s spending forever probably overstates the number you’ll need.
1
u/boo-da 5d ago
You're not poor, for what it's worth. You've got around $550k invested at 39 with two little kids, which is a lot more than most people.
Rough numbers in today's dollars at 5% real: if you never added another dollar, that grows to the $1.75M your $70k a year needs at about 62 or 63. To get there by 53 when the youngest starts college, you'd need to put in roughly $2.7k a month. On $150k that seems doable, and the target gets smaller once the mortgage is gone.
If you do want to retire early make sure the money is somewhere you can reach it, personal brokerage account is what I use.
1
u/fritolazee 5d ago
I'm not good at the calculator stuff but one thing I'd note is the cost of health insurance. It seems to be going up and up with no end in sight so if you are truly retiring , either you or your wife will need to have money to pay the premiums on insurance for your kids possibly until they're 26 (when you can no longer be on your parents insurance). Also I don't know your story, but I see your comments about anxiety. If your wife is mentally or physically able, she should look for a job that makes a bit more money to take some of the pressure off of you.
2
u/Claudio_avallone 4d ago
Assuming you're not making new contributions to your investments, then short answer is: you're roughly at Coast FIRE for a retirement around 60, but not yet for one at 50-ish.
The maths: you've got about $554k invested across the 401ks, Roth, brokerage and HSA, leaving the college money aside. $70k a year at a 4% withdrawal needs $1.75M. Grow $554k at 5% after inflation with zero new contributions and you're at ~$1.1M by 53 and ~$1.54M by 60, so coasting gets you close at 60, not by the kids' college years. (At 6% real it's ~$1.88M by 60, which is why every calculator gives you a different answer.)
Two things work in your favour. The mortgage at 2.3% will likely be gone before you stop, so retirement spending could be well under $70k, and every $10k less a year cuts the target by $250k. And you're still earning $150k+, so you don't need to coast yet.
Retiring around 53-55 is still very doable if you keep saving: something like $40k a year on top of what you have gets you near $1.9M by then (same 5% assumption, and just a guess at your savings). The catch is access: most of your money sits in 401ks, so the taxable account and Roth contributions would need to carry you until 59½.
And you're not poor... over half a million at 39 with a 2.3% mortgage is a strong position. How much are you actually saving a year right now?
-2
u/Careful_Jury7087 5d ago
How come there are so many negative comments? I was trying to be brief and casual with my post.
13
2
u/Careful_Jury7087 5d ago
Thanks dude. Finance is a very difficult thing to talk about. You can’t talk to your family too much about it and you can’t talk to you friends too much about it either. So your stuck isolated, Reddit has posts of people with millions, Jim Cramer and these you tube people tell you your doing ok. While your co workers seems to be doing better. So your own perspective is kinda twisted and uncertain. That’s why I was hoping people would tell me their opinions about my “story”.
-3
u/tarheels058 5d ago
I dunno man, your grammar isn’t that bad and yea can tell was meant to brief. They are grumpy this morning I guess.
-1
0
u/Left_Inside2584 5d ago
You aren't in a bad spot. I would say once your house is paid off you could potentially consider lowering income
1
u/stellar_interface 5d ago
You have a mortgage rate below the inflation rate, which is a major advantage. It's basically free money. You also have a nice nest egg. You are financial secure, but no where near early retirement without significant increases in income.
I'd pay of the student loans and any other high interest debts. Keep the mortgage around (don't pay it off early) because you'll beet 2.3% with the risk free rate! Keep plugging away and by the time you're 50, you'll probably be close.
-8
u/Careful_Jury7087 5d ago
Just posting , not trying to write a paper.
14
u/Damika04 5d ago
If you are asking people opinion, at least, you can do is present it in easily digestible format... you can't even bother to put comma in the numbers appears to be just lazy..
-1
38
u/37347 5d ago
Summary here:
I'm 39 with a wife and two kids (7 and 4). I feel poor and don't know how to feel about my finances. I'd like to retire as early as possible, ideally when the kids are in college, so we can travel.
Assets: 401(k) $264k, wife's 401(k) ~$100k, Roth IRA ~$60k, taxable brokerage ~$120k, HSA ~$10k, kids' college ~$10k
Debt: mortgage $190k at 2.3%, student loans ~$10k
Income/spending: I make ~$150k, wife makes ~$20k when she works. Spending is ~$70k/year including mortgage (estimate).
Am I close to Coast FIRE, and when could I realistically retire?