Reply to If we moved somewhere cheaper, could we live off principle?

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[quote=Anonymous]I think the first problem is retirement.  Given that you have the condo, I think you could get away with aiming for having $1.5M at retirement.  You have $200K in savings.  Assuming you sell the house and use $300K of the equity to buy something in a less expensive part of the country, that gives you another $500K towards retirement.  I don't think $700K is going to grow to $1.5M in 15 years when your DH will be 65, so you're going to have to find a way to add at least several hundred thousand to your 401K over the next 15 years.  If you set aside 30K in retirement per year for 15 years ($450K), you may be getting there.  (I'm just doing off the cuff estimates here - you need to fiddle with calculators.)

The other issue is college.  You didn't say if you have anything saved, or whether you're aiming for public or private.  Let's say you want to do public - you probably should aim to have $150K set aside.  Off the cuff again, I'd say that means saving $8K/year in a 529.

So I think it can be done if you think you can pull in around $100K/year between the two of you, $40K to go towards savings, $40K for living expenses, and $20K for taxes.  [/quote]

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