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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I saw you said the housing spend was $15K per month.  What is your actual cash shortfall per month if you change jobs?  [/quote]

Our projected annual shortfall with my hypothetical job change is about $80K/year (going up to $90K by the time the youngest kid graduates high school, assuming 2% inflation), assuming we both continue to max 401K contributions.  If kids become substantially more expensive as they get older, it's possible that could change. I think our budget estimates $30K for camps, lessons, etc.

I think we'd need to find a house in the $750K range to live within earned income. Not super excited about the prospect of moving further into suburbia. Would happily live EOTP in NWDC if we had a private school option for kids, but $750K seems impossible. (And yes, I am aware of DC crime.). But I realize that these are tradeoffs and that I should perhaps keep my high-paying job if I don't want to move further out.

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PP here and I think the biggest issue with your approach is that you are going to have to adjust your lifestyle when you retire.  An $80K shortfall is more than just your housing it is a lot of spending you would need to cut.  Even if you keep maxing retirement you won't be able to sustain this level of spending in retirement.  I mean an $80K shortfall, what does that translate to in terms of annual expenses when you factor in your net from a $240K income?  [/quote]

We expect about $175K net.   We have about $160K in housing and $100K in non-housing expenses, based on last few years of actual spend. That includes at least $20K for donations and $20K for vacations each year, which obviously can be cut. [/quote]

PP here and that could work.  You said your DH is a fed so I'm going to assume $30K in pension income plus SS plus your retirement accounts plus brokerage.  Let's say 0 from your current house and you use that money to move/downsize and buy a house in cash when your kids are out of the house and you move.  Say your retirement accounts grow to 2 million total that's another $60-$80K per year if you draw down at 3-4% per year.  You'd also have whatever is left in your brokerage accounts as a safety net.

That $100K per year will probably increase with inflation plus you will have taxes/insurance/maintenance on a house so maybe $160K total expenses in future dollars.

The price of your decision will likely be both of you working longer but if you're OK with that the math seems like it could work.

One caution would be that the market is at record highs so what you have in stocks might not reflect longer term growth trends.[/quote]

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