Reached goal - What happens next?

[Anonymous]

Anonymous wrote:If you want to give more to charity, reduce what you are putting in your 401k

Or stop buying $1500 of company stock per month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$17,091 Gross pay

$4,360 Taxes (Fed, state, FICA)

$3,178 401k's
$600 HSA

$475 Medical/Dental Insurance
$60 Limited Purpose FSA

$1,533 ESPP

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$ 6,885 take home pay

Ok the insurance and ESPP were unexpected. This makes sense.

Nothing wrong with ESPP, but it seems a little silly to say $7000 is your take home pay. Really $8500 is your take home pay but you choose to buy company stock from your paycheck.

You're right. ESPP is brand-new as of April and I kind of forgot about it myself. I was planning to wash it though (sell right away) but it's already budgeted for as spending.

Budget is roughly below:

$1,200 food
$940 prop tax & HOA
$310 insurance (life, auto, prop, umbrella)
$170 gas/parking
$420 utilities (phone, internet, water, electric, gas)

$560 medical out-of-pocket (several health issues)

$870 home repairs and sinking fund for large expenses
$170 auto repairs and sinking fund for large expenses
$200 clothing
$120 entertainment
$100 gifts
$250 household supplies, pet care for lizard

$500 charity
$1,270 extracurricular activities, vacations, fun money for individuals, teen's allowance

$420 college savings
$1,000 Roth savings

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$8,500 spending from take-home pay

Not a ton of wiggle room there to ramp up spending. We don't limi

[Anonymous]

...We don't limit ourselves or really deny ourselves anything. Just wondering what others would do in this situation. Would you really reduce retirement savings? If so, what would you do with it?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Start saying exactly what you think at work.

Love this! I think I already do, unfortunately. I have a big mouth.

Keep doing it. And take a nice vacation when things open up. Life will be good.

Don't quit work unless you have a solid way to spend time. (I've seen relationships go sideways because of this)

[Anonymous]

Your breakdown of your budget is awesome. Best I've ever seen on this forum. Kudos to you for knowing your stuff!

If I were in your shoes, I would retire. Because I'm ready for free time. But that is me.

It really seems like you don't know what to do with your life now that you have "made it." That is what YOU need to figure out. This isn't a money issue.

[Anonymous]

Anonymous wrote:Your breakdown of your budget is awesome. Best I've ever seen on this forum. Kudos to you for knowing your stuff!

If I were in your shoes, I would retire. Because I'm ready for free time. But that is me.

It really seems like you don't know what to do with your life now that you have "made it." That is what YOU need to figure out. This isn't a money issue.

Thank you for the compliment! I am aware this isn't a money issue. That's what makes it so hard--I'm good at the money stuff, less so at the "life" stuff. I am not sure at 48 I'm ready for free time and I want to set an example for my teenager that work is an important (and fulfilling) part of life. My rough plan is to work until kid goes to college and then switch to a low-key position so I can maintain benefits for the family.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Your breakdown of your budget is awesome. Best I've ever seen on this forum. Kudos to you for knowing your stuff!

If I were in your shoes, I would retire. Because I'm ready for free time. But that is me.

It really seems like you don't know what to do with your life now that you have "made it." That is what YOU need to figure out. This isn't a money issue.

Thank you for the compliment! I am aware this isn't a money issue. That's what makes it so hard--I'm good at the money stuff, less so at the "life" stuff. I am not sure at 48 I'm ready for free time and I want to set an example for my teenager that work is an important (and fulfilling) part of life. My rough plan is to work until kid goes to college and then switch to a low-key position so I can maintain benefits for the family.

I think alot of us on this forum have this problem!

Sounds like a good plan to me!

[Anonymous]

Reduce ROTH contributions (or ESPP), increase Vacation fund!

[Anonymous]

Personally I would retire, but I understand how that decision isn’t for everyone.

The mindset switch from saving and accumulating to spending is really difficult. I would take some time to do deep thinking about what you want out of this next phase of life you are about to enter and slowly start to redirect savings towards those goals.

Reduce your savings somewhere- 401k, Roth’s, stock, college savings. Not necessarily eliminate, but reduce.

Redirect that money towards things that are important to you. You mentioned charity. What about more travel, health, a hobby you would like to pick up.

You could also take a step back at work or get a new job at a nonprofit you care about. Set up some sort of charity or foundation yourself? Volunteer? These are still work but a different kind.

Congratulations on your achievement! Make sure you enjoy it, whatever that means to you.

[Anonymous]

Anonymous wrote:Hit $5M invested assets this week, have teenager with fully funded 529 and a paid off home. Two working parents, one making $180k and the other part-time making $20k. Contributing max to 401(k) and Roths and HSA. I can’t figure out if we should be doing anything differently. Would you? If so, what? We are late 40s and not ready to retire.

Tell me what's in there.

[Anonymous]

You won the game, relax and enjoy.

[Anonymous]

If I were in your shoes, OP, I would find my dream job, and do that, even if it was on a volunteer basis. For me, that would be a national park ranger, or an arts administrator (weird choices, I know). That way you still keep busy, but doing something you thoroughly enjoy, may keep some benefits while contributing to something you find worthwhile. I would also take generous amounts of leave and travel, travel, travel while I still have my health and ability. Lastly, I would continue to learn the things I always wanted to learn (a new language, an instrument, or whatever you are interested in). Not to make a living, but to just enjoy. The rest will take care of itself.

[Anonymous]

OP Im in a similar situation. I am going to continue working (at my career, which I am excellent at) until I am 52, which is when my youngest goes to college. I'm a single Mom and get no help from the kids dad and honestly my ego could not abide anyone thinking I lived off of my ex husbands money, I like rocking my lifestyle and knowing I earn every penny. It makes sense for me for health insurance and just lifestyle reasons, my mind is more active when I am working).

I would find a way to increase your giving, continue to work, and consider retiring when the kids go to college

[Anonymous]

Anonymous wrote:

Anonymous wrote:Enjoy your money!

My dad was similar to you. Saved everything. At your age he started to take vacations where he didn't pinch pennies.

Then he saved enough money to set his grandkids up with trust funds and pay for their college tuition.

So, basically: first goal: enjoy your money.

Then, set another savings goal. Maybe give charitably a bit more?

Yes, charitable giving has increased. We now give $500/mo. That feels right to us.

I have an appointment with an estate lawyer in June. I don’t think I’ll be able to easily switch from saving to spending myself, but my spouse may be a different sorry!

$500 is pretty low. We give $22,000 a year now that we've reached $5 million in NW. Plus we need the writeoff, since we have no mortgage

[Anonymous]

Explain to me how someone making 200K a year saves 5M in their 40s without a huge inheritance or something else that OP has not been forthcoming about. I'll wait...