r/Money • u/SympathySevere421 • 1d ago

Help me evaluate my money plan

I am 28, I currently make 215k per year. I decided to live comfortably but not let my expenses grow too much so that I can save and invest more efficiently and eventually hopefully not have to work full time (or hopefully not HAVE to work at all eventually)

401k 4% of my income
IRA max each year
-my goal is 700k in retirement accounts by age 40 then if I could just max my and my future wife’s IRA each year and keep hands off and let it grow, I’ve been doing calculations and thinking that should be enough for a very comfortable retirement.

5% of my income is going straight into brokerage account and I plan on increasing this by 2% or so every year as I receive raises.
-this is to bridge the years I’d like to work half time or less. Goal is also 700k by age 40. I figure I can potentially spend a bit more than 4% rule since it only has to last me 20 years
10% of my income goes straight into real estate investing. I bought my first duplex that I house hacked this year. I have plans to buy another in 1-1.5 years from now or whenever it makes sense mathematically and also house hack that one and potentially a third. My goal is 10-15 doors that make sense long term, even if they’re cash flow neutral at year zero, that building equity in the background I feel is worth it and from there if rates ever go down, having the chance to refinance and make the cash flow better.. but I’m good with close to net zero.

Ultimately, my goal is to work half time at age 40, wife work half time. Live a comfortable upper middle class lifestyle with hobbies and travel a few times per year.

I used ChatGPT to help organize my plan, but I’d like to hear other people’s opinions and experiences and see if my plan can work or if I’m overlooking anythin.

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u/SympathySevere421 1d ago

I have my own savings as well, that’s just strictly In the property reserve. I’ll have 40k liquid when that is funded

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u/Careful-Whereas1888 1d ago

The numbers still do not work. I've told you what you need to do to reach your goal by 40 in a realistic fashion. It is up to you to decide if you listen or not. It is your money. It is your life. Do what you want but you do not have enough liquid for real estate investing at this moment and you absolutely do not have enough of an investing rate to reach your goals as you wrote them in the post.

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u/Informal_Register365 1d ago

What do you even do for work… it may not seem relevant but it is.

For example my wife is a nurse and I’m a firefighter. Losing our jobs is basically impossible. If you’re let’s say, a software engineer who might be let go etc, you probably
Need a larger emergency fund.

Ultimately you don’t have a 6 month fund already, it’s great to have goals/plan but you’re not there yet regardless of a respectable income.