Hello community. So I'll start with some background but the crux of this post is: Am I in a position to throttle back my work/income.
Background: 40m, wife 36f, 3 kids, 9 is the oldest.
We're a single income household, making roughly $225k gross.
Career field: Insurance Education: Masters
Net worth: $1.6M Retirement: $1.1M Non-retirement: $145k Home: worth about $525k, owe $225k. Rate 2.675 No debt outside of mortgage.
Monthly expenses: $10k on average.
What I would like to do is transition away from my salaried position into a 1099 role where I can better set my hours and ultimately work less, primarily in the summer. In terms of retiring my goal is to really dial it back at say 55, but until then I would like to have more available time in the summer to spend with my kids, but am good working otherwise.
What I'm really struggling with is when to pull this trigger.
In my mind I really would like for my non-retirement accounts to exceed what I owe on the home. I think this might take another 12-18 months. But I'm not sure I really need this extra cushion.
I think I could pull fairly comfortably $160k gross doing the 1099 - this assumes 40 productive weeks worth of work. However, with our current spend I feel like that's going to be pretty tight after factoring in taxes and health insurance.
Maybe this is just a case of I really need to crunch the numbers...but I guess I'm just curious what others think in the more broad sense of things ...is this a move you would make now? Would you wait a few more years until I had more of a non-retirement cash cushion? More than a few years?
I realize doing this move will mean I put much less into retirement and 529s moving forward but I feel pretty good about where those accounts are.
Appreciate any thoughts/insight. submitted by /u/FIRE_Science
[link] [comments]
Background: 40m, wife 36f, 3 kids, 9 is the oldest.
We're a single income household, making roughly $225k gross.
Career field: Insurance Education: Masters
Net worth: $1.6M Retirement: $1.1M Non-retirement: $145k Home: worth about $525k, owe $225k. Rate 2.675 No debt outside of mortgage.
Monthly expenses: $10k on average.
What I would like to do is transition away from my salaried position into a 1099 role where I can better set my hours and ultimately work less, primarily in the summer. In terms of retiring my goal is to really dial it back at say 55, but until then I would like to have more available time in the summer to spend with my kids, but am good working otherwise.
What I'm really struggling with is when to pull this trigger.
In my mind I really would like for my non-retirement accounts to exceed what I owe on the home. I think this might take another 12-18 months. But I'm not sure I really need this extra cushion.
I think I could pull fairly comfortably $160k gross doing the 1099 - this assumes 40 productive weeks worth of work. However, with our current spend I feel like that's going to be pretty tight after factoring in taxes and health insurance.
Maybe this is just a case of I really need to crunch the numbers...but I guess I'm just curious what others think in the more broad sense of things ...is this a move you would make now? Would you wait a few more years until I had more of a non-retirement cash cushion? More than a few years?
I realize doing this move will mean I put much less into retirement and 529s moving forward but I feel pretty good about where those accounts are.
Appreciate any thoughts/insight. submitted by /u/FIRE_Science
[link] [comments]