Wife and I are both 27. She is a PGY-2 & due to an inheritance, we are luckily debt-free. Am I saving and allocating correctly?
Background: Currently rent in a HCOL area currently and for the foreseeable future. I am in finance and make ~$100k/yr, she makes ~$60k/yr as a resident.
She will do a fellowship that's on the low end of the salary spectrum - she's expecting to make $180k/yr starting salary. We plan to buy a house after fellowship in an area where median home prices are ~$800k. No kids planned until end of fellowship.
ASSETS:
$100k in brokerage, mostly low risk tax-advantaged funds, targeting 3% post tax annual earnings
$20k in checking/savings
$12k between our ROTH IRAs (started last year)
$10k in my 401k (I have employee match up, her hospital offers a 457/401k with no match)
INCOME/EXPENSES:
income: $160k
taxes: $50k (high tax city & state...)
rent: $38k (we pay median rent fora 1BR)other: $39k (food, utilities, vacations, shopping, etc)
remainder: $33k
How I'm saving so far:
401k contribution: $6k (6% matched of $100k salary = $12k total contribution, I contribute after-tax)
employee stock purchase: $6k (purchase for 11% discount, extremely low beta, dividend aristocrat, 4-5% EPS)
Roth IRA contribution: $11k ($5.5k in each)
savings/brokerage: remaining $10k
Would like to have ~$170k saved for down payment by 2022, have $120k in cash/equity today. Are we saving enough for retirement (currently contributing ~14% of salaries)? I expect to contribute more once we move and buy a house in 5 years...
Background: Currently rent in a HCOL area currently and for the foreseeable future. I am in finance and make ~$100k/yr, she makes ~$60k/yr as a resident.
She will do a fellowship that's on the low end of the salary spectrum - she's expecting to make $180k/yr starting salary. We plan to buy a house after fellowship in an area where median home prices are ~$800k. No kids planned until end of fellowship.
ASSETS:
$100k in brokerage, mostly low risk tax-advantaged funds, targeting 3% post tax annual earnings
$20k in checking/savings
$12k between our ROTH IRAs (started last year)
$10k in my 401k (I have employee match up, her hospital offers a 457/401k with no match)
INCOME/EXPENSES:
income: $160k
taxes: $50k (high tax city & state...)
rent: $38k (we pay median rent fora 1BR)other: $39k (food, utilities, vacations, shopping, etc)
remainder: $33k
How I'm saving so far:
401k contribution: $6k (6% matched of $100k salary = $12k total contribution, I contribute after-tax)
employee stock purchase: $6k (purchase for 11% discount, extremely low beta, dividend aristocrat, 4-5% EPS)
Roth IRA contribution: $11k ($5.5k in each)
savings/brokerage: remaining $10k
Would like to have ~$170k saved for down payment by 2022, have $120k in cash/equity today. Are we saving enough for retirement (currently contributing ~14% of salaries)? I expect to contribute more once we move and buy a house in 5 years...
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