My Goal: $500k Networth Before Kids

I’m terrified of having children before some sort of financial stability. While $500k networth does not mean financial independence, I think I’ll start to relax a bit once I hit this major life goal (the others are 2 kids, 1 house, + $1M by 40 and $3.5M by 65 all while being able to travel and see the world on occasion.)

This chart assumes that each year I can make an average 5% off my existing networth (figure shown below = the networth at the beginning of the year.) I reduce my monthly savings in 2017, at age 33, assuming some of that money will be going towards my first child!

Year Age interest 401k invest Networth
2014 30 $12500 $17,500 $36,000 $250000
2015 31 $15,800 $17,500 $36,000 $316,000
2016 32 $19,265 $17,500 $36,000 $385,300
2017 33 $22,903 $17,500 $30,000 $458,065
2018 34 $26,423 $17,500 $30,000 $528,468
2019 35 $30,120 $17,500 $30,000 $602,392
2020 36 $34,001 $17,500 $30,000 $680,011
2021 37 $38,076 $17,500 $30,000 $761,512
2022 38 $42,354 $17,500 $30,000 $847,087
2023 39 $46,847 $17,500 $30,000 $936,942
2024 40 $51,564 $17,500 $30,000 $1,031,289

This chart offers the same savings plan but at a better rate of return: 10%. Here I reach my $1M goal early by 38.

Year Age interest 401k invest Networth
2014 30 $25,000 $17,500 $36,000 $250000
2015 31 $32,850 $17,500 $36,000 $328,500
2016 32 $41,485 $17,500 $36,000 $414,850
2017 33 $50,984 $17,500 $30,000 $509,835
2018 34 $60,832 $17,500 $30,000 $608,319
2019 35 $71,665 $17,500 $30,000 $716,650
2020 36 $83,582 $17,500 $30,000 $835,815
2021 37 $96,690 $17,500 $30,000 $966,897
2022 38 $111,109 $17,500 $30,000 $1,111,087
2023 39 $126,970 $17,500 $30,000 $1,269,695
2024 40 $144,416 $17,500 $30,000 $1,444,165

Furthermore, if I see 10% returns year-over-year, I’d hit my $3.5M retirement goal early at age 48…

2025 41 $163,608 $17,500 $30,000 $1,636,081
2026 42 $184,719 $17,500 $30,000 $1,847,189
2027 43 $207,941 $17,500 $30,000 $2,079,408
2028 44 $233,485 $17,500 $30,000 $2,334,849
2029 45 $261,583 $17,500 $30,000 $2,615,834
2030 46 $292,492 $17,500 $30,000 $2,924,918
2031 47 $326,491 $17,500 $30,000 $3,264,909
2032 48 $363,890 $17,500 $30,000 $3,638,900

Or, if my investments only return 5% year over year, I’d get to $3.5M by 57…

2025 41 $56,518 $17,500 $30,000 $1,130,353
2026 42 $61,719 $17,500 $30,000 $1,234,371
2027 43 $67,179 $17,500 $30,000 $1,343,590
2028 44 $72,913 $17,500 $30,000 $1,458,269
2029 45 $78,934 $17,500 $30,000 $1,578,682
2030 46 $85,256 $17,500 $30,000 $1,705,117
2031 47 $91,894 $17,500 $30,000 $1,837,872
2032 48 $98,863 $17,500 $30,000 $1,977,266
2033 49 $106,181 $17,500 $30,000 $2,123,629
2034 50 $113,866 $17,500 $30,000 $2,277,311
2035 51 $121,934 $17,500 $30,000 $2,438,676
2036 52 $130,406 $17,500 $30,000 $2,608,110
2037 53 $139,301 $17,500 $30,000 $2,786,016
2038 54 $148,641 $17,500 $30,000 $2,972,816
2039 55 $158,448 $17,500 $30,000 $3,168,957
2040 56 $168,745 $17,500 $30,000 $3,374,905
2041 57 $179,558 $17,500 $30,000 $3,591,150

Of course, this assumes I’ll be able to continue putting this much money away year over year. And it also assumes that I do not buy a house!

This is probably what the next 10 years will look like. Phew. I need to also add in the costs to actually HAVE a kid (yeay expensive fertility treatments.)

Year Age life event interest 401k invest Networth
2014 30 $12500 $17,500 $36,000 $250000
2015 31 wedding $15,800 $17,500 $36,000 $316,000
2016 32 pregnant $19,265 $17,500 $36,000 $385,300
2017 33 kid #1 $22,903 $17,500 $30,000 $458,065
2018 34 $26,423 $17,500 $30,000 $528,468
2019 35 pregnant $30,120 $17,500 $30,000 $602,392
2020 36 kid #2 $34,001 $17,500 $30,000 $680,011
2021 37 $38,076 $17,500 $30,000 $761,512
2022 38 $42,354 $17,500 $30,000 $847,087
2023 39 $46,847 $17,500 $30,000 $936,942
2024 40 $51,564 $17,500 $30,000 $1,031,289
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One thought on “My Goal: $500k Networth Before Kids”

  1. I like how detailed your future plan is, including when to have kid #2 🙂 Sometimes life can throw curve balls though so it’s good to have some wiggle room for unexpected events, like having twins for example. A $500K cushion will certainly help with that 😀

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