36 and Running Hard at FIRE

[jesa]

Hi All,
Found this spectacular site a couple nights ago and have been like an addict reading. Some really great people and information. I am 36 with my long-term (for life) girlfriend being 47. We are very lucky to be well on our way to FIRE. Of course, we are accumulating as much as possible. Currently, own a business that has some great income due to the housing market being so strong. Of course, that can change if and when a downturn happens.

As of now:
Income (combined) - 800k
401k (mine) - 250k
401k (hers) - 40k
Stocks - 125k
Cash - 25k
No Debt

Investment Property - no mortgage (175k)
I also have a whole life insurance policy that will stop being funded at 50. I plan on taking loans out (80k a year) when around 65 (tax deferred). I know some are against these policies. I am currently maxing out 401k at 53k a year and saving in taxable accounts also. I felt the whole life would be a good way to diversify. Biggest concern is making it from 50-65. Once 65, with SS and the whole life, we should be in really great shape.

The goal is to retire at 50 or sooner (girlfriend 61). Looking at having 3 million in the portfolio including investment properties.

I am sure my thoughts on many things could change the more I read and learn from everyone's experiences. Thanks in advance!

 

[Katiek]

Welcome. You certainly are doing well with income and savings. The other side of the equation is spending, and just to be careful to watch out for lifestyle creep that will make FIRE harder.

I look forward to hearing more from you.

 

[broadway]

You may want to read 8 Reasons to Avoid Whole Life Insurance | The White Coat Investor - Investing And Personal Finance Information For Physicians, Dentists, Residents, Students, And Other Highly-Educated Busy Professionals about the pros and cons of whole life. It is generally a bad idea.

 

[pjigar]

Have you read: Some Important Questions to Answer Before Asking - Can I Retire?

 

[Bryan Barnfellow]

Welcome, Jesa! You may find that like it does for many of us the addiction will remain strong over the years, even after you are FI'ed and RE'ed. It would be nice to learn more about your road to the $3M and how you plan to finance your long retirement. As a somewhat recent early retiree I am pleased to say that these last 21 months have been among the best of my life so far. My wife says that the stress has literally drained from my face, I look younger, and I feel so much happier. This forum is especially helpful on those days when the light at the end of the tunnel seems to be obscured by too much work/stress. Here you will find the community that will sustain you.

Best of luck with your plan.

-BB

 

[exnavynuke]

My primary concern with your post is a desired nest egg of $3M and a current income of $800k. A $3M portfolio with at 3.5% withdrawal rate is only $105k/year. With your current investment balances vs. income, I'm concerned that your lifestyle may currently cost significantly more than what that portfolio would provide for you. Do you have a good estimate of your current expenses?