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38, Recently Divorced, Planning for myself now
Old 11-21-2014, 07:39 PM   #1
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38, Recently Divorced, Planning for myself now

Been here before, but my situation has changed dramatically in the past year. Divorced in June of this year, and planning my early retirement for one now.

Currently here is my situation, let me know what you think:

Roughly 700k in taxable investments
Around 400k in IRA/Roth/401k
Have some phantom options from the startup i work for, but not really counting on that at all.

Contribute about 5k a month to taxable account, all in vanguard index funds.
Contribute max to 401k, no match.

Currently I am saving about 50% of my pre-tax income, but some of the balance is from inheritance from my mom who passed away this year.

Looking to FIRE in about 5 years if possible. Pie in the sky is to retire abroad, Spain is where I have my sights set.

Am I crazy to think that I can do it by 44?
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Old 11-21-2014, 10:06 PM   #2
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I haven't been divorced, but I have a brother who has been -- thrice -- so I know it's painful. I am sorry for what you've been through, but Wow! You have that much left after a divorce, and you are only 38? Way to go! Others should be so lucky.

Many here should be able to give you way better feedback than I can, but I think, hey, you get a do-over. Good luck on the next phase. You're young yet!
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Old 11-21-2014, 10:23 PM   #3
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I am very fortunate in that I and my ex have had pretty well paying jobs for some time and I made sure we saved diligently while we were married, additionally the recent inheritance/insurance I received after my mother passed has helped bump that number up a bit.

Also, i am considering simplifying my asset allocation from a host of index funds right now to possibly 60/40 or 50/50 S&P 500/Total Bond Index. I am willing to accept a bit lower return for less volatility and risk given that I aim to unplug in 5 years or so.
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Old 11-22-2014, 03:07 AM   #4
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What are your monthly expenses now, and what do you expect they will be in retirement? Can't answer any question about whether you can do it or not, or in what timeframe, without knowing those two things.
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Old 11-22-2014, 08:31 AM   #5
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If you get married and divorced again, plan on an extra 20 years. Unless the next one is rich.

And sure, the next one will last...

Without expense information, it's hard to say. You need to make sure you have picked the lifestyle you are satisfied with, before you retire, because it will likely be permanent (or less) once you stop working.
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Old 11-22-2014, 11:38 AM   #6
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Quote:
Originally Posted by feelan View Post
Been here before, but my situation has changed dramatically in the past year. Divorced in June of this year, and planning my early retirement for one now.

Currently here is my situation, let me know what you think:

Roughly 700k in taxable investments
Around 400k in IRA/Roth/401k
Have some phantom options from the startup i work for, but not really counting on that at all.

Contribute about 5k a month to taxable account, all in vanguard index funds.
Contribute max to 401k, no match.

Currently I am saving about 50% of my pre-tax income, but some of the balance is from inheritance from my mom who passed away this year.

Looking to FIRE in about 5 years if possible. Pie in the sky is to retire abroad, Spain is where I have my sights set.

Am I crazy to think that I can do it by 44?
If the stock market continues to cooperate you will be in great shape in 5 years.

Definitely get a prenup if you get married again to protect your assets.

Is Spain expensive? It does sound like a cool place to retire.

If you can get your taxable accounts to 1mil and let that 500k(in 5 years) 401k ride to age 591/2 it sounds possible.

If you could wait to age 50 to retire you would be golden and never have to worry. Easy for me to say.
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Old 11-22-2014, 12:43 PM   #7
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What about contributing to a roth as well (post-tax $), will add to your flexibility later, I don't see it mentioned.

Don't make any sudden big changes, as usually divorce is very emotional and changes a lot of stuff. One person I know said after 5 yrs, it was all getting better.

Why Spain ?
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