No. of Recommendations: 1
cdavies9954 asks,

Between us both, our pretax income is $174,000. We have minimal debt, and want a house in two years. Sounds like a trip down Pleasantville Road, huh? Not quite yet.... The only savings we have to speak of is 30,000 in a discount broker account from a 401K rollover from my last employer(which I am proud of doing before I ever found this website).

Here is what I am proposing to my wife for the short term investing "game" (She thinks I am a rookie and have no financial savy) that's making our financial discussions edgy.

Our Income 174,000
401K (maxed) + 2 Roths 14,000
Taxable Income 160,000
Taxes (State & Federal) 55,200
Other Expenses (rent/bills/debt 58,800
Net Investible Income 46,000

That's an excellent plan! Saving more than 25% of your income at such a young age should put you well on the path to retiring before age 50.

There's a spreadsheet on the Retire Early Home Page, the Millennium Edition -- Generation-X Retirement Calculator, that can show you the effect of various levels of savings and spending on your retirement date, it's worth a look:

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.