[USER]

Can I retire? Expenses of about $58,000 a year plus any discretionary vacations of probably up to $15,000 a year. Paid off house and $40,000 away from fully funded college funds for both kids to go to the college of their choice.

Anything left over could be used for grad school or they would finance with student loans and if anything left over after that could be used for grandkids or maybe wedding?

Thanks to an inheritance we have $1.89 million.

Most could probably be withdrawn tax-free because it’s either Roth IRA and much of any other distribution would be up to the standard deduction.

Age 42 with a 40-year-old wife 7-year-old boy 2-year-old girl. Happy healthy thankfully no special needs.

I’m self-employed and planning to reduce workload drastically once I put another $40,000 into the 529.

INFO: Will not sell business because I would like the option to take on projects that I enjoy and in my field selling the business would almost certainly require signing a non-compete.

I would likely FIRE once I put another $40,000 into the 529 so I misspoke because I considered taking it from my savings.

Instead I would earn the $40,000 and keep my savings as is which is $2.12 million but we plan on replacing both of our ancient cars (over 14 years old) updating 2.5 bathrooms and updating our kitchen at an estimated cost of $200,000.

So subject to any gains and losses in the next few months I anticipate $1.93 million

[Jule]

You have enough for the $58,000 but nothing extra without eating into the principal.

[Lee]

I would not with these numbers even it seems barely doable with the 4% rule. Kids are too small and there are so many unknown life events so your yearly 58K expenses can be much higher.

I would take a break for a year or more to enjoy time with kids when they are young but you must have additional income on top of what you currently have.

Not to mention market can be bearish at any moment.

[Mickey]

Need more info.. you say self employed, will you still draw a paycheck/income? Sell the business?

I agree that with 40 more possible years for 2 people and very young children it would be close.

Maybe opt for a long break while the kids are young? Contract work later?

[Katie]

It depends on how much of the $58k in expenses are variable and can be cut back if need be.

Or how able you will be to earn additional income years in the future.

With a paid off house and cars I would think what’s left is mostly lifestyle so you should have enough to cover your needs, but I’d be looking for a way to cover your vacations and other future expenses.

[Ben]

When did you inherit the roth ira? You might have to empty it over 10 years.

[Smith]

Absolutely not. You need to fund 50 years of living and 2 mill is no where near enough.

Retirement at a young age is expensive.
How much do you have saved for college for 2 kids?

You say you are $40k away but I bet you do not have nearly enough.
My daughter is in college now.

$250,000 is the cost and she is in her final year.

In today’s dollars you need $500k. By the time yours get there assume $750k

[Author]

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