Fellow Bogleheads, looking for feedback and any suggestions for things I might be overlooking.
(Apologies for the brain dump below, I've been processing this for the past two days and wanted to get it all down).![:D]( "Very Happy")
My wife (35F) and I (36M) have a daughter about to turn 2 and we just found out we’re expecting twins. We found out extremely early (almost 6 weeks) because of fertility treatments; am also aware of heightened risk with twins, and at this early state of gestation. We’ve been trying for another child, but twins are a bit of a surprise and sent me back to the drawing board re: both financial and logistical planning.
His income: $163,200 base + Holiday Bonus + Annual Bonus (30% of base) = ~$218,500
Her income: $73,000 base + Holiday Bonus + Annual Bonus (15% of base) + $2,500 childcare reimbursement = ~$89,260
Emergency funds: 6 months
State of Residence: Texas
Debt: $327,000 left on a 30 year mortgage at 2.625%; house is likely worth around $585,000-$600,000. We also owe $27,500 on a 2022 VW Atlas at 3.29%; other car is a fully paid off 2017 Subaru Outback. No other debts.
Joint Taxable Brokerage: $76,000
His current 401k: $245,000
His old 401k: $85,000
His Roth IRA: $87,000
His (family) HSA: $40,500
Her current 401k: $171,500
Her old 401k: $49,000
Her Roth IRA: $69,000
Her HSA: $14,500
His Cash Balance Pension: $23,000
Her Cash Balance Pension: $10,500
His old pension: ~$350/month starting at age 62
Net worth including home equity (but excluding e-fund): approx. $1,144,000
While not specifically seeking asset allocation advice, our approximate current allocation is 54% US / 36% International / 10% Bonds.
In addition to the above, we also have both a 529 and an UTMA account for our daughter; plan on opening up these for the twins when they arrive.
Contributions: We max out both our traditional 401k and Roth IRA accounts, plus we contribute an additional 4% of total comp each as a “mega backdoor” Roth to the 401k (max allowed by our plan). Our employer provides an 8% match on total comp to the 401k and also funds a cash balance pension plan at 3% of our annual comp (though the growth on the pension is pretty anemic). I also max out our our HSA every year, which is invested, and cashflow our actual medical expenses.
We’ve also been contributing $500 per paycheck into a taxable account split between ITOT and IXUS.
I also have a 30 year, $2,000,000 term life policy and my wife has a 30 year $1,000,000 policy; we recently purchased new policies to replace older ones we’d purchased many years ago when we first started on our fertility journey . . . it took us much longer than anticipated to have our daughter and we wanted to flexibility of longer term durations.
Current Plan:
Working with an attorney on estate planning—something we should have taken care of years ago but neglected to do.
Contemplating paying off the VW early next year using a portion of annual bonus—want to free up some additional cash-flow for daycare. Am also contemplating stopping the $500 biweekly taxable investment once daycare starts though unsure if this will be necessary.
Daycare expense is $800/month for our daughter (currently). Infants will be $825/month each; once they’re enrolled, daughter’s rate will also be discounted 5% due to these additions; for context, these are full time costs at a non-profit, church based daycare. As noted in the income info above, employer also provides my wife with $2,500 per year in childcare reimbursement.
We also contribute $100 biweekly to our daughter’s 529 (don’t want to overfund) and would do the same for the twins.
Wife and I both get 12 weeks paid parental leave + my wife will get 8 weeks STD. We intend to replicate the approach we took with our daughter: wife took 20 weeks off from birth and then I took the next 12 weeks off—allowed us to delay daycare by several months. Given the higher risk of complications and premature birth with twins, this plan may have to be readjusted. My in-laws recently moved nearby so we do have close family help as needed.
Our house size should be fine for 3 kids for the foreseeable future. Wife’s VW Atlas should be fine to handle three car seats; I’m less certain if the arrangement will fit with my Outback, though have seen some videos where parents can make this work. Long term plan would be to buy a minivan . . . we wanted one instead of the Atlas but availability and price gouging on minivans was extreme in our area 2 years ago. However, my Outback has relatively low miles and I’d like to keep it around for as long as possible.
On the budget front, plan is to tighten our belts to maintain current savings rate if possible. Despite how much we save every year, we have not historically closely tracked to a budget . . . though we’re not exceedingly “spendy” either.
To further simplify things, I'm thinking about rolling over the old 401ks into current ones so there's less to track. Am also thinking about simplifying our credit card set-up for the next couple years as I don't think I'll have the time to focus on the churning/bonuses/etc.
Overall, hoping you guys could spot-check our current situation and provide any advice/input. Part of me thinks we should be fine financially, just have to think though logistical issues (double stroller, extra crib, etc.) and focus on my wife’s health, but wanted folks to double-check my work and line of thinking.
Appreciate any input!
KT785
(Apologies for the brain dump below, I've been processing this for the past two days and wanted to get it all down).
My wife (35F) and I (36M) have a daughter about to turn 2 and we just found out we’re expecting twins. We found out extremely early (almost 6 weeks) because of fertility treatments; am also aware of heightened risk with twins, and at this early state of gestation. We’ve been trying for another child, but twins are a bit of a surprise and sent me back to the drawing board re: both financial and logistical planning.
His income: $163,200 base + Holiday Bonus + Annual Bonus (30% of base) = ~$218,500
Her income: $73,000 base + Holiday Bonus + Annual Bonus (15% of base) + $2,500 childcare reimbursement = ~$89,260
Emergency funds: 6 months
State of Residence: Texas
Debt: $327,000 left on a 30 year mortgage at 2.625%; house is likely worth around $585,000-$600,000. We also owe $27,500 on a 2022 VW Atlas at 3.29%; other car is a fully paid off 2017 Subaru Outback. No other debts.
Joint Taxable Brokerage: $76,000
His current 401k: $245,000
His old 401k: $85,000
His Roth IRA: $87,000
His (family) HSA: $40,500
Her current 401k: $171,500
Her old 401k: $49,000
Her Roth IRA: $69,000
Her HSA: $14,500
His Cash Balance Pension: $23,000
Her Cash Balance Pension: $10,500
His old pension: ~$350/month starting at age 62
Net worth including home equity (but excluding e-fund): approx. $1,144,000
While not specifically seeking asset allocation advice, our approximate current allocation is 54% US / 36% International / 10% Bonds.
In addition to the above, we also have both a 529 and an UTMA account for our daughter; plan on opening up these for the twins when they arrive.
Contributions: We max out both our traditional 401k and Roth IRA accounts, plus we contribute an additional 4% of total comp each as a “mega backdoor” Roth to the 401k (max allowed by our plan). Our employer provides an 8% match on total comp to the 401k and also funds a cash balance pension plan at 3% of our annual comp (though the growth on the pension is pretty anemic). I also max out our our HSA every year, which is invested, and cashflow our actual medical expenses.
We’ve also been contributing $500 per paycheck into a taxable account split between ITOT and IXUS.
I also have a 30 year, $2,000,000 term life policy and my wife has a 30 year $1,000,000 policy; we recently purchased new policies to replace older ones we’d purchased many years ago when we first started on our fertility journey . . . it took us much longer than anticipated to have our daughter and we wanted to flexibility of longer term durations.
Current Plan:
Working with an attorney on estate planning—something we should have taken care of years ago but neglected to do.
Contemplating paying off the VW early next year using a portion of annual bonus—want to free up some additional cash-flow for daycare. Am also contemplating stopping the $500 biweekly taxable investment once daycare starts though unsure if this will be necessary.
Daycare expense is $800/month for our daughter (currently). Infants will be $825/month each; once they’re enrolled, daughter’s rate will also be discounted 5% due to these additions; for context, these are full time costs at a non-profit, church based daycare. As noted in the income info above, employer also provides my wife with $2,500 per year in childcare reimbursement.
We also contribute $100 biweekly to our daughter’s 529 (don’t want to overfund) and would do the same for the twins.
Wife and I both get 12 weeks paid parental leave + my wife will get 8 weeks STD. We intend to replicate the approach we took with our daughter: wife took 20 weeks off from birth and then I took the next 12 weeks off—allowed us to delay daycare by several months. Given the higher risk of complications and premature birth with twins, this plan may have to be readjusted. My in-laws recently moved nearby so we do have close family help as needed.
Our house size should be fine for 3 kids for the foreseeable future. Wife’s VW Atlas should be fine to handle three car seats; I’m less certain if the arrangement will fit with my Outback, though have seen some videos where parents can make this work. Long term plan would be to buy a minivan . . . we wanted one instead of the Atlas but availability and price gouging on minivans was extreme in our area 2 years ago. However, my Outback has relatively low miles and I’d like to keep it around for as long as possible.
On the budget front, plan is to tighten our belts to maintain current savings rate if possible. Despite how much we save every year, we have not historically closely tracked to a budget . . . though we’re not exceedingly “spendy” either.
To further simplify things, I'm thinking about rolling over the old 401ks into current ones so there's less to track. Am also thinking about simplifying our credit card set-up for the next couple years as I don't think I'll have the time to focus on the churning/bonuses/etc.
Overall, hoping you guys could spot-check our current situation and provide any advice/input. Part of me thinks we should be fine financially, just have to think though logistical issues (double stroller, extra crib, etc.) and focus on my wife’s health, but wanted folks to double-check my work and line of thinking.
Appreciate any input!
KT785
Statistics: Posted by KT785 — Thu Apr 11, 2024 12:15 pm — Replies 9 — Views 512