I (35M) was laid off in November 2023. Luckily, I received a solid severance in addition to the company repurchasing my vested equity.
I’ve been job searching since Nov, and have made it to two final round interviews for comparable roles, but did not receive the offer. I recently got a tentative job offer for a role with a federal agency that pays $87k, which is significantly less than what I made ($180k base + bonus). My previous job was in management, and required me to be connected during evenings, holidays, and weekends.
The new job is an individual contributor role, and is more flexible with much better work-life balance. Start date will be in July, so I will continue searching for a job similar in pay to my previous one until then, but I honestly wouldn’t mind downshifting my career with the federal job. I also have 4 years of previous military service that would count toward FERS pension if I made it that long.
Wife (38F) makes $130k in her job, and we have insurance through her employer. She contributes the maximum to 401k and Roth IRA, and then any leftover goes to mega backdoor Roth.
We are 60% US equity/40% international equity across our investments. Financial summary below.
His brokerage: 936k
Her brokerage: 113k
His Employer Retirement Accounts: 412k
Her Employer Retirement Accounts: 535k
His Roth IRA: 109k
Her Roth IRA: 111k
His HSA: 16k
Her HSA: 9k
His savings: 33k
Her savings: 35k
Other Assets
Primary Residence: 1125k
Car: 29k
529: 19k
Debt
Mortgage: 951k (2.5% interest)
Car: 16k (1.9% interest)
Household expenses are approximately $150k annually in HCOL area.
Largest annual expenses:
Mortgage: 58k
Daycare: 22k
Food: 14k
Travel: 12k
Car payment (2 years left): 7.8k
We have a 2-year old, and are undecided on additional children. We plan to send our child to public school, so I am thinking the $22k daycare expense is a ceiling on kid-related expenses. We live well, but not overly luxuriously, at least in my opinion.
Can we continue our level of spend if I take the federal job? My plan would be to withdraw $22.5k annually from taxable accounts to maintain our level of spend. I would also contribute 5% of income to get max TSP match, so the net withdrawal would amount to about $15k per year, or about 1% of my portion of investment assets. This amount would decrease to zero as my salary increases.
If I decide to stay in federal employment, my plan would be to retire in 16 years at age 52, and then take a deferred pension at 62. If the federal job isn’t a good fit, I believe I can transition back to the private sector in a less stressful role that at least covers expenses while our portfolio compounds, and then retire once we have 30x expenses.
FIcalc says this plan is fine, but do bogleheads see any issues?
I’ve been job searching since Nov, and have made it to two final round interviews for comparable roles, but did not receive the offer. I recently got a tentative job offer for a role with a federal agency that pays $87k, which is significantly less than what I made ($180k base + bonus). My previous job was in management, and required me to be connected during evenings, holidays, and weekends.
The new job is an individual contributor role, and is more flexible with much better work-life balance. Start date will be in July, so I will continue searching for a job similar in pay to my previous one until then, but I honestly wouldn’t mind downshifting my career with the federal job. I also have 4 years of previous military service that would count toward FERS pension if I made it that long.
Wife (38F) makes $130k in her job, and we have insurance through her employer. She contributes the maximum to 401k and Roth IRA, and then any leftover goes to mega backdoor Roth.
We are 60% US equity/40% international equity across our investments. Financial summary below.
His brokerage: 936k
Her brokerage: 113k
His Employer Retirement Accounts: 412k
Her Employer Retirement Accounts: 535k
His Roth IRA: 109k
Her Roth IRA: 111k
His HSA: 16k
Her HSA: 9k
His savings: 33k
Her savings: 35k
Other Assets
Primary Residence: 1125k
Car: 29k
529: 19k
Debt
Mortgage: 951k (2.5% interest)
Car: 16k (1.9% interest)
Household expenses are approximately $150k annually in HCOL area.
Largest annual expenses:
Mortgage: 58k
Daycare: 22k
Food: 14k
Travel: 12k
Car payment (2 years left): 7.8k
We have a 2-year old, and are undecided on additional children. We plan to send our child to public school, so I am thinking the $22k daycare expense is a ceiling on kid-related expenses. We live well, but not overly luxuriously, at least in my opinion.
Can we continue our level of spend if I take the federal job? My plan would be to withdraw $22.5k annually from taxable accounts to maintain our level of spend. I would also contribute 5% of income to get max TSP match, so the net withdrawal would amount to about $15k per year, or about 1% of my portion of investment assets. This amount would decrease to zero as my salary increases.
If I decide to stay in federal employment, my plan would be to retire in 16 years at age 52, and then take a deferred pension at 62. If the federal job isn’t a good fit, I believe I can transition back to the private sector in a less stressful role that at least covers expenses while our portfolio compounds, and then retire once we have 30x expenses.
FIcalc says this plan is fine, but do bogleheads see any issues?
Statistics: Posted by dkrlz88 — Wed Mar 06, 2024 11:34 pm — Replies 9 — Views 884