Freddie780
New Member
Cash: $ 1.25
Posts: 4
Joined: 30 Jul 2006
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At a loss at what to do next. I am 39 and my wife is 33. Together we have $525k in 401k's - we have 25k in IRA, we have $25k in 529's for our two boys (7 and 5) - we have $30k in liquid emergency funds. No credit card debt, no car debt - we owe $340k on a home worth about $450k. I make $135k and am tired of the corporate rat race - Wife makes $95k and absolutely loves her job.
If I were to change direction in my career and attempt to start my own business, are we in a good position to forego any future savings for the next couple of years and do the Dave Ramsey (beans and rice - rice and beans) and possibly live off one salary?
Additionally, at what point in time does future contributions to a 401k not really make a difference once you have an established nest egg to earn the interest against?
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Sun Apr 18, 2010 2:17 am |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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That all sounded really great until I read the last sentence. Interest earned on a nest egg NEVER makes up for contributions, past present or future.
That being said, which I think you probably know and just worded that statement in a way that would confuse me  I think this is just a matter of convincing the rest of the family that pursuing your dream should be a part of their dream as well. If you can get everybody on board 100% then I say "go for it" because you're very well positioned to be reasonably secure with the following provisos:
1) backup plan in case wife loses job
2) continuation of mortgage payments
3) continued college contributions
4) new career/new business doesn't require any of the funds you listed as capital
Best wishes and good luck!!
~Tim~
Eye Candy : Why Whimsy
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Mon Apr 19, 2010 6:28 am |
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