Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next
Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5068  
Subject: Re: I'm a FIRE wannabe... Date: 7/25/2007 7:51 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
I'm looking at medium-term wants/needs to buy my first house and replace both my car and my wife's car -- all this hopefully within the next 7 or 8 years. We are planning on having 1 or 2 kids, probably during our 30s to the extent that you can plan such things. How will all this effect my ability to stay on track for retirement at 50?

With respect to the kids and the decision to buy a home......If there is any chance that one of you will want to be a stay-at-home-parent, be sure to buy a house that you can afford on only the other's salary at the time you buy it. In fact, if possible now, you may want to try living on one income and banking the entire 2nd income.

Ideally, to keep on track for a retirement at 50, you would buy a home that was inexpensive enough so that even with children and a stay-at-home-parent, the working spouse would still bring in enough income to max out any retirement accounts at work, max out IRAs, and still save some in taxable accounts, in addition to paying for all the expenses during the year. The more expensive the house is, the less likely the ideal scenario will occur.

AJ
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Mylan Transitioning from Generics
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement