Hi folks! This is an awesome community.
I have a couple questions:
My wife and I are in our late 20's. In five years, our financial situation should resemble:
$600k in retirement savings
$150k in home equity
With this, we're thinking of moving to a cheap area of California (Sierra foothills) and retiring on a 4% draw of $600k (annual budget of $24,000). We also plan to have 1-2 kids.
Once we hit 65, we would likely start to slowly draw on our home equity with a reverse mortgage as well.
Living frugal, and having a big vegetable garden, these are my estimated expenses:
Is my outlook realistic? What am I missing?
Note: FIREcalc gives me a 82% success rate of making it to 65 years with my 600k. Also, I expect to occasionally do part-time consulting work over the years, which will be additional cushioning if there periods with a down-market.
I appreciate any advice! Thanks!
I have a couple questions:
My wife and I are in our late 20's. In five years, our financial situation should resemble:
$600k in retirement savings
$150k in home equity
With this, we're thinking of moving to a cheap area of California (Sierra foothills) and retiring on a 4% draw of $600k (annual budget of $24,000). We also plan to have 1-2 kids.
Once we hit 65, we would likely start to slowly draw on our home equity with a reverse mortgage as well.
Living frugal, and having a big vegetable garden, these are my estimated expenses:
Annual Cost of Living | |
Property Taxes: | $3,000 |
Food | $2,400 |
Electricity/Gas/Water/Sewer | $2,400 |
Internet/Entertainment | $1,800 |
Health insurance | $8,000 |
Car and house maintenance | $2,000 |
Miscellanious | $3,000 |
Home and car insurance | $1,200 |
Total | $23,800 |
Is my outlook realistic? What am I missing?
Note: FIREcalc gives me a 82% success rate of making it to 65 years with my 600k. Also, I expect to occasionally do part-time consulting work over the years, which will be additional cushioning if there periods with a down-market.
I appreciate any advice! Thanks!