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So we've been talking more about the future and ER is not going to happen because my DH won't have it happen. But we are going to take a leap in two years and move without a job no matter what. We are shaking the dirt off our feet and just leave.
One next year my DH gets a month sabbatical so we are going to try and live somewhere for a month and get job interviews. If we get a job offer we move sooner. If not we move summer 2016. Why? Our oldest will be done with kindergarten. I think it's a good time to move kids wise.
Two my DH has acknowledge it's possible he's not going where he needs to be career wise and it's time for a change. 9 years and one promotion isn't exactly climbing the ladder. And while it's well paying job he loves his resume is weak, his words not mine. If he were to get laid off the chances of getting another job in the same field are slim. So we'd be stuck in a city we don't love with potentially more bills than we'd like.
He's decided a career change is probably in order and doing something in business just means more flexibility location job wise and just getting another job. He's always assumed he'll make less money (not necessarily true) and work more hours (again not necessarily true). I may be wrong and people on this board might chime in but how much of a salary increase/promotions during 9 years do most people consider reasonable? He was told a newly minted MBA from the school he graduated from made 70-80k starting out. Now if they worked for 9 years he argues they would be lucky to be making $100k is that reasonable? Would a 30% increase over 10 years be logical? Also he doesn't think he's very marketable and has very low opinion that his previous work experience will count. Again please chime in.
But we were recently approached with a house purchase offer and so we started to look at SFH where we are. Honestly we can't really buy anything we would want for $900k at the top end of our budget. We went to see a house this weekend that was listed for $749k 3bd/3ba 1700 sq ft on 3400 sq ft lot. Bidding war and likely to go for $825k. It just got put on market on Tuesday and had an offer that day, but the owners wanted more so they refused the offer and said they were waiting until 12 noon on Monday after the open houses. Before the open houses they have 3 home inspections and 2 written offers.
Since this is our second weekend of open houses I was willing to concede about not moving out of city but my DH had a strong dose of what we could really afford. And the truth is we'd have to move a lot further out and a lot longer of a commute than 30 minutes (current) to buy a house.
The reality is that our family life will suffer to get a home we want in this city either stress from overbuying or commuting 1-2 hours each way. If we lose a job we could easily face losing our home. So my pointing out that a cheaper COLA "early" retirement is the way to might make sense.
I'm no longer saying ER, rather I'm saying we can take jobs paying as little as $60k/year to survive, what our current burn rate is without savings. However that includes $2500/month on PITI, and the cost of living in general where we are is so high that our $2500/month living expenses might be $2k elsewhere.
And the reality that our current townhouse is being offered for $750k is a little absurb. That we potentially could buy a home cash with the equity from our house. That would mean what we really need to make to live is half of what we do now.
Yes we wouldn't be saving for retirement or college if we make $60k, but I'm banking that we may not need to save more for retirement that what we have since I project we'll have $600k for retirement in 2 years and we don't touch another 25 years. And in theory we could save for retirement if we didn't have a mortgage payment but diverted the $2500/month to savings?
One next year my DH gets a month sabbatical so we are going to try and live somewhere for a month and get job interviews. If we get a job offer we move sooner. If not we move summer 2016. Why? Our oldest will be done with kindergarten. I think it's a good time to move kids wise.
Two my DH has acknowledge it's possible he's not going where he needs to be career wise and it's time for a change. 9 years and one promotion isn't exactly climbing the ladder. And while it's well paying job he loves his resume is weak, his words not mine. If he were to get laid off the chances of getting another job in the same field are slim. So we'd be stuck in a city we don't love with potentially more bills than we'd like.
He's decided a career change is probably in order and doing something in business just means more flexibility location job wise and just getting another job. He's always assumed he'll make less money (not necessarily true) and work more hours (again not necessarily true). I may be wrong and people on this board might chime in but how much of a salary increase/promotions during 9 years do most people consider reasonable? He was told a newly minted MBA from the school he graduated from made 70-80k starting out. Now if they worked for 9 years he argues they would be lucky to be making $100k is that reasonable? Would a 30% increase over 10 years be logical? Also he doesn't think he's very marketable and has very low opinion that his previous work experience will count. Again please chime in.
But we were recently approached with a house purchase offer and so we started to look at SFH where we are. Honestly we can't really buy anything we would want for $900k at the top end of our budget. We went to see a house this weekend that was listed for $749k 3bd/3ba 1700 sq ft on 3400 sq ft lot. Bidding war and likely to go for $825k. It just got put on market on Tuesday and had an offer that day, but the owners wanted more so they refused the offer and said they were waiting until 12 noon on Monday after the open houses. Before the open houses they have 3 home inspections and 2 written offers.
Since this is our second weekend of open houses I was willing to concede about not moving out of city but my DH had a strong dose of what we could really afford. And the truth is we'd have to move a lot further out and a lot longer of a commute than 30 minutes (current) to buy a house.
The reality is that our family life will suffer to get a home we want in this city either stress from overbuying or commuting 1-2 hours each way. If we lose a job we could easily face losing our home. So my pointing out that a cheaper COLA "early" retirement is the way to might make sense.
I'm no longer saying ER, rather I'm saying we can take jobs paying as little as $60k/year to survive, what our current burn rate is without savings. However that includes $2500/month on PITI, and the cost of living in general where we are is so high that our $2500/month living expenses might be $2k elsewhere.
And the reality that our current townhouse is being offered for $750k is a little absurb. That we potentially could buy a home cash with the equity from our house. That would mean what we really need to make to live is half of what we do now.
Yes we wouldn't be saving for retirement or college if we make $60k, but I'm banking that we may not need to save more for retirement that what we have since I project we'll have $600k for retirement in 2 years and we don't touch another 25 years. And in theory we could save for retirement if we didn't have a mortgage payment but diverted the $2500/month to savings?
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