35M $4.5M NW Looking for Advice
35M, Wife 34F
LCOL Area in Southeast
2 kids: 3.5 yr/1yr
Household Income: $360k
W2 Combined $330K W2 Jobs in Med Tech/Human Resources
Rental properties $30k annually
Annual expense is $90k
Assets:
Cash: $100k,
401(k): $700k
Roth IRA: $250k
Taxable Brokerage (Stocks/VTI/VOO): $2.5M,
Investment Real Estate Equity: $650k,
529 Plan: $47k
Personal Residence Equity: $300k (Worth $395k owe $95k @ 3.8%)
Only Debt $26k Vehicle (5.4% interest $600 month) currently paid by company reimbursement
FIRE GOAL
Wife is not interested in working her job anymore ($150k of the total combined Income above). She is having to put in long hours, not allowing enough time with kids. She wants to stay home full-time. I would like to change roles in next 2-3 years and pursue a career that fits my true passion, would lead to a big pay cut (New Role pay $60-75k annually) would include health benefits.
My current fear is due to the age of our children I am underestimating future costs. I want to support them financially via college tuition, weddings etc. Also, with the real estate/stock market on a huge bull run, a potential market reset is a real risk. I don't want to touch the money in retirement accounts, which leaves around $3million in non-retirement investments to draw off of. My current calculation ($3.1 million x 3.5%) = $110k plus $30k in rental income ($140k annual income that wouldn't impact investment principle).
We have always been very frugal but have already noticed a sizeable bump in expenses with children mainly from daycare costs.
I would love any suggestions on if you think we are in a position to make this move, and any other things to consider.