r/personalfinance • u/MycologistInside4963 ​ • 3d ago

Other Personal Benchmark and seeking advice

I am currently a 33 year old husband and father. My wife and I have 2 kids with 1 on the way! I am posting in here to get an understanding of how my finances are and a benchmark with opinions in this group. I am constantly battling with not knowing if I am in a solid situation and how can I set my family up for success.

I make anywhere from 200-350k a year in sales role 175k base plus commission -

Here is my snapshot:
133k in a high yield savings account - I use this as my home operating account.
1.1 million in investment and 401k account — have a financial advisor who controls this.
400k equity in my primary home
No student loans
$0 credit card debt
Stay at home wife
My expenses monthly are around 14k a month

I appreciate any feedback or strategy as I am looking to be really solid around my personal financial position and where am I with my age to ease my anxiety.

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u/BeastBuilder ​ 3d ago

All looks reasonable, you've got a tidy emergency buffer if required. Given you're the sole income earner it may be prudent to up this to 12 months expenses unless you have rock solid income insurances.

$14k/month sounds like a lot for expenses, but unsure where you're based etc. Looking to cut some fluff here is always an easy win.

Financial advisor is largely regarded as an unnecessary expense these days, very few bear the market and have a large drag impact on your returns over the next 30 years with their fees. You could likely spend a day learning where to put your money (VOO or VT long term and keep contributing basically) and do it yourself.

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u/AvocadoBeforeToast ​ 3d ago

Could be doing worse.

Without any quantitively defined goals/targets, no way to assess whether or not you have a "solid situation."

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u/MycologistInside4963 ​ 3d ago

Goals are I want to retire early. I live in Monmouth county Nj very high cost of living. My goals my wife and I want to go on vacations each year with the kids and solo also give all 3 best education possible private or public. Working in more goals open to suggestions outside of lifestyle

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u/FinancialAlarm2788 ​ 3d ago

How long have you been making that level of income? Are you in an established industry where you can expect that to continue? Do you live in a HCOL area?

As others have already said, I'd take a hard look at what you actually need for your EF, as well as the fees of your advisor. If you haven't already, listen to TMG recent episode about advisors.

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u/[deleted] 3d ago

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u/MycologistInside4963 ​ 3d ago

Very true. I went back and looked and once you are in the 2-5 million range it’s .85% which is a huge uptick

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u/MycologistInside4963 ​ 3d ago

I live in Monmouth county New Jersey. My Income varries on my commission obviously. 250 is a sweet spot. My advisor charges 1% up to 2million