SunsetSail
Recycles dryer sheets
- Joined
- Jul 28, 2010
- Messages
- 255
Hi, I am 37 with a 35 year old spouse and two kids – 3 and 1 years of age. I plan to achieve FIRE in no more than 13 years. My vital statistics are $300K IRAs/401(k) and $100K Taxable savings. We have about $25K in 529 plans for college and contribute addition amounts to where we anticipate the plans covering no less than 90% of college costs for both kids (if one of the kids pick a very high cost school they will be expected to cover the difference with loans). We currently save approximately $38K a year in tax sheltered and non-tax sheltered accounts. The plan is to eliminate the mortgage before ER. I haven’t included much expense information because of our uncertainty around costs for raising children and potential changes to our housing situation, but we are at about $5,500 a month ($2,500 to the mortgage). The plan won’t provide enough $ in 13 years, but I plan to increase savings and hold expenses steady.
My investments are approximately 90% equities 10% bonds. The retirement accounts are in low expense index funds that are rebalanced twice a year between large-cap, small-cap, international and bonds. The non-tax sheltered investment accounts are in various individual stocks that are purchased based partially on a Benjamin Graham type value analysis with a dividend bias.
We currently live in a high cost of living area with an exceptionally horrible public school system. We plan to move to a slightly lower cost of living area with a very good public school system at the cost of a longer commute. We will move to a similarly priced house although it will be larger so there will be a small increase in maintenance costs. I plan to purchase the house with a 30 year mortgage even though I plan to pay it off in 13 years. I will pay less than .25% increased rate for a 30 year vs. 15 year (approx. .15% after tax) for the flexibility of adjusting my payoff schedule (e.g., increasing equity purchases in an under-valued market or increasing mortgage principal payments in an over-valued market). The ability to not have to pay for private school will avoid at least $1,000 a month.
My wife and I had a very aggressive wealth building plan prior to kids (I think it was really a subconscious FIRE plan but I didn’t realize it at the time). Once the kids came along we went from about $300K/year in salary to $150K/year because my wife left her job to care for the kids. She may go back part time when the kids are older, but I am not including that in the plan until it actually happens. Needless to say, the drop in income changed our plan. The positive is that we have a better perspective on the choice of time versus income and some mental preparation for a large income drop.
I have been successful in my career my conventional measures (good reputation, financial rewards, etc.). I have a good job where I run a department with little day to day interference from above, but sufficient resources to avoid anything more than an 8 hour day. I know the grass isn’t greener in another position. There is absolutely no doubt in my mind that if I had the financial resources I would leave today. I went through a long period trying to figure out what was ‘wrong’ with me. I concluded nothing whatsoever – I wish I found this site sooner as it would have saved me some of the substantial effort to come to this conclusion.
I’ve spent a ton of time reading the posts on this site and it seems like a very supportive group. I’ve written way more than I intended. My wife would be absolutely shocked – I’m an INTJ (hardcore I). I know I haven’t given enough expense information as far as my plan is concerned but I’ve mainly written this as an introduction so I don’t feel awkward jumping in and providing my two cents or asking for advice. That being said, feel free to comment on problems/issues with the information I did provide.
My investments are approximately 90% equities 10% bonds. The retirement accounts are in low expense index funds that are rebalanced twice a year between large-cap, small-cap, international and bonds. The non-tax sheltered investment accounts are in various individual stocks that are purchased based partially on a Benjamin Graham type value analysis with a dividend bias.
We currently live in a high cost of living area with an exceptionally horrible public school system. We plan to move to a slightly lower cost of living area with a very good public school system at the cost of a longer commute. We will move to a similarly priced house although it will be larger so there will be a small increase in maintenance costs. I plan to purchase the house with a 30 year mortgage even though I plan to pay it off in 13 years. I will pay less than .25% increased rate for a 30 year vs. 15 year (approx. .15% after tax) for the flexibility of adjusting my payoff schedule (e.g., increasing equity purchases in an under-valued market or increasing mortgage principal payments in an over-valued market). The ability to not have to pay for private school will avoid at least $1,000 a month.
My wife and I had a very aggressive wealth building plan prior to kids (I think it was really a subconscious FIRE plan but I didn’t realize it at the time). Once the kids came along we went from about $300K/year in salary to $150K/year because my wife left her job to care for the kids. She may go back part time when the kids are older, but I am not including that in the plan until it actually happens. Needless to say, the drop in income changed our plan. The positive is that we have a better perspective on the choice of time versus income and some mental preparation for a large income drop.
I have been successful in my career my conventional measures (good reputation, financial rewards, etc.). I have a good job where I run a department with little day to day interference from above, but sufficient resources to avoid anything more than an 8 hour day. I know the grass isn’t greener in another position. There is absolutely no doubt in my mind that if I had the financial resources I would leave today. I went through a long period trying to figure out what was ‘wrong’ with me. I concluded nothing whatsoever – I wish I found this site sooner as it would have saved me some of the substantial effort to come to this conclusion.
I’ve spent a ton of time reading the posts on this site and it seems like a very supportive group. I’ve written way more than I intended. My wife would be absolutely shocked – I’m an INTJ (hardcore I). I know I haven’t given enough expense information as far as my plan is concerned but I’ve mainly written this as an introduction so I don’t feel awkward jumping in and providing my two cents or asking for advice. That being said, feel free to comment on problems/issues with the information I did provide.
