32M/27F preparing for big changes - a mini "FIRE" maybe?

[federicadn]

https://imgur.com/a/y6PoMj2

Hi all! Me and my wife (somewhere around $450k income combined) have been investing very aggressively (see attached image) while we work in our high stress jobs in order to prepare for financial security (and hopefully still a somewhat early retirement) through big upcoming changes that I expect to be happening in the next 5 or so years:

• Having kids
• My wife leaving her job to be a SAHM and/or change careers (with a significant paycut, she's the big breadwinner in our relationship making 2x what I make) and/or go full time on her tiny side business
• Me leaving my job for a passion job (that is actually related to my PhD that I slaved away for.. haha)

We live in a fairly high COL area, and I imagine that to not change much during these life changes. My question is, do you see any better ways we can invest our money and prepare for the future? Or is this plan with the the expected annual contributions pretty solid?

Thank you for your advice!!

Backdoor Roth IRA	$107,023.00	$14,000.00	40% US large cap, 18% international large cap, 10% US mid cap, 4% US small cap, 4% International small and mid cap, 4% emerging market, 14% bonds, 6% other	21%
401k	$244,134.00	$61,410.00	56% Vanguard target fund 2060, 44% Vanguard target fund 2055 35% Roth, 40% Pretax, 25% Employer Match Pretax	10%
HSA	$20,345.00	$8,300.00	9% emerging market, 15% real estate, 10% growth, 15% materials, 9% mid cap, 9% small cap, 8% international bonds, 8% short term, 9% international stock, 8% ultra short term	10%
ETFs	$30,859.00	$52,000.00	70% VOO 30% VXUS	20%
RSUs	$169,327.00	$108,166.00	92% GOOG, 8% private	23%
I Bonds	$42,776.00	$20,000.00	100% Bonds	5%
Annuity (Inheritance)	$104,000.00	$0.00	100% Annuity	5%
Brokerage (Inheritance)	$11,279.00	$0.00	4% FDRXX, 40% Apple, 2% ABBV, 1% FV, 3% IBM, 50% JPM	28%
HYSA	$357,000.00	N/A	100% Savings Account	5%
House	$332,000.00	$32,000.00	100% Real Estate	6%
Totals:	$1,418,743.00	$295,876.00

Account
Value
Annual Contribution
Breakdown (on contribution)
Average Annual Return

 

[argon]

@federicadn FIRE is certainly possible but it would probably be a pretty drastic life change. I think your first steps would be to come up with a “bare bones” budget that you and your spouse can agree on. Then divide that amount by your net worth (less home value). Would you need 2-5% of your portfolio each year? You’re probably good. But if you need 10%+, you have some mate saving to do.

At first glance you look heavy in cash (HYSA) for somebody who wants to live off the portfolio for 60+ years.

 

[federicadn]

@argon Thanks for your advice!! This is a fantastic idea, we'll try to sit down soon and put that budget together to see what it might look like. As for the HYSA - haha yeah that's only temporary, we just sold a large chunk of my wife's RSUs so I'm still figuring out where to put it - maybe more ETFs?

 

[argon]

@federicadn ETFs, Munis, dividend equities, there are lots of good options for an income portfolio with low tax implications… assuming you are in the US.

 

[federicadn]

@argon Yup! US here. Thank you!!