Wanting Some Feedback
50M. $1.4M in 401k, $250K in brokerage, $60K in cash. 2 kids (12 and 9) and live in a HCOL area that I like. We are fortunate that we relocated from a VHCOL area where we got into the real estate market early and walked away with a healthy downpayment on our current house after 13 years. $1M house with a $250K mortgage (just refinanced into 15-year fixed at 4.75%). $150K in 529s for the kids. $180K annual salary. Wife used to make about the same as me but wanted to step away to be with kids. I wish she was still working in some capacity, but it does make life easier. Not sure what her 401K is like, but let's say $900K for the sake of argument on top of the numbers above.
Very little debt on top of the mortgage. $15K remaining on student loans at 3.25%, one car (2020) with $740 (2 payments) left at 0% and one (2022) with $8800 left (34 payments left) at 5.4%.
Right now, we are just about treading water in terms of expenses and income that includes some 401K and 529 contributions. Not much added to cash savings. If wife goes back to work, we will be golden although I feel like the investments themselves are doing most of the work now which is somewhat comforting.
First, I want to celebrate that I just passed $1M in a single account (401K with a really good match and profit sharing from a job I was at from 35 - 47). I stared at that for a long time trying to think about how that made me feel. I don't think $1M is enough for me to live on forever (could work for some people with different plans for retirement), but that's more money than 20-year me thought I ever thought I would ever need.
My parents both retired at 60 which is my goal. May have kids in college from 56-64 so that may not be in the cards. Parents had their last kid out of college by 58/55.
Will likely inherit some money, not sure when or the amount and most likely to use for college and then set aside for the kids.
My back of the envelope goal is $6.25M not including equity in the house. That gives me $250k annually at a 4% SWR and leaves the principal untouched. Have not sat down to figure out what my actual expenses will be in retirement and no I have not figured in the impact of inflation. Probably overestimating, but that's the number I think about when I think about a goal. With a 10% total return, we *could* hit that number in 15 years (I hope) - Rule of 72 / 10% total return times 2 equals 2 doublings in 15 years.
I see a lot of postings on here about folks with $2.5M at 35 and planning to ride off into the sunset at 40 or making $350k per year. Missed that boat, but I am OK with that. My goal is to do the things in retirement I am not doing now like finally visit Australia or build the off-grid empty next house that I have been turning over in my mind for a decade, not lighting cigars with $100 bills. It would be nice to have a plan that I can measure myself against annually so that I know when I can walk away.
Welcome any thoughts in general but curious if my goal is realistically achievable and is it practical?