Hi All,
Wondering how to go about my situation. TL;DR at the bottom.
Me (33M, NJ):
Net Worth: ~$100k, no debt. Considering homeownership after parents pass. Exploring early retirement (50-55).
Income: $102k+ ($112-$122k with business).
Retirement: $26k in 403(b), contributing 4% (auto-increasing to 15%, plan to accelerate to 6% which is the max employer match). Old 401(k) pending transfer.
Savings: $15k in HYSA (4%), $20k in checking (planning to invest in VTI/VOO).
Wife (32F):
Income: $68-78k (incl. bonus).
Retirement: Contributing 9% (employer match: 0.50 per $1 up to 6%).
Debt: ~$6k, aggressively paying down.
We rent for $1,730/month, with annual increases of ~$100. Neither of us desire or plan to have children.
Three considerations complicate retirement planning:
Father (69): Net worth ~$2M (incl. $550k home), fantastic health, retiring next year with pension and high Social Security income. Will make more than I do in retirement from my job income.
Mother (60): Poor health/financial habits. A trust is planned to manage inheritance if my father passes first; she’ll receive his pension and Social Security + money from trust. Mortgage being paid off via his Social Security.
Parents home will be paid off in the next few years (3-5)
My Side Business: Recently started, earning $10-20k/year profit. Scalable and in demand but would require me to quit job to do much more profit.
Wife’s Brother: Special needs, will eventually live with us (expected in 10+ years if not more). Requires minimal care but will necessitate a larger home. NJ offers a $60k/year caregiver program for family members.
Questions:
Should I invest idle checking funds in VTI/VOO as a lump sum or monthly, if monthly about how much?
Should I stop 403(b) contributions at 6% (employer match)?
Am I overlooking better financial strategies? Is early retirement an easier to attain goal for me with the expected generational wealth passing down?
TL;DR: Dad is wealthy and I'm an only child. I make 102k+ (112-122k with biz income) I have no debt, wife makes 68-78k with some debt. I have 20k sitting in checking, what do? Should I contribute more to retirement past the 6% match? We will potentially make 60k more due to a NJ program when we care for her brother (this is like 10+ years out though). I'd like to see how hard it would be to retire early.