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 |
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 😀