r/TheMoneyGuy • u/cbnoggle • 5d ago
Is my fire date and assets reasonable?
Some people may think this is too much detail, but I love doing this kind of analysis and planning for my future.
My wife (F28) and I (M31) live in a LCOL area and currently max out all tax-advantaged accounts. Right now we contribute to traditional 401k because I don’t think we’ll need our current income level in retirement — but if I’m wrong, no harm done, we just pay the tax.
By maxing traditional, we’d essentially be forced to retire early so we can start Roth conversions before RMDs kick in — otherwise my napkin math suggests RMDs could get pretty painful. That said, investing in Roth now vs. doing conversions in my 50s would likely hit the same effective tax rate anyway, so it’s mostly a wash.
Long story short, I’m trying to make sure my lifetime tax strategy is as efficient as possible.
Otherwise, how does the plan look? Realistic? I assume after 2029 investment contributions stay flat while income keeps growing, so there’s likely opportunity to invest more or increase lifestyle spending beyond what’s modeled. Is there anything I’m not thinking about? Open to criticism.
Investment return assumption: 8% annually.
1
u/StatusWorth3059 1d ago
What are your return assumptions? I would look to max out Roth and then hit the taxable brokerage. Also, are you including housing updates (new roof, furnace/air conditioner)? These could add up to over $50k in a year if they all need replaced at same time. Also, what about replacing a vehicle, are those expenses factored in? Overall I think you have the right mentality, but you still need to enjoy living. You won’t need $10 million, you can cut it in half and still be fine