Just 10 more years and be ready to FIRE at 55

[targatom2019]

WOW! good to be part of the community of ER peeps.

Came to this great nation as a refugee in my early 20s with ZERO $, learned the language, went to school, started a family and got a job at 26 and have been working hard and smart the last 20 years, and planning to FIRE in 10 years or at the age of 55.

1. ZERO debt
2. 2.8 million in real state with positive income of $5,000 per month.
3. Annual salary is 120K per year
4. 700k in 401k with an aggressive portfolio and still maxing it out
5. 80k in roth IRA
6. 300k in Blue chip Stock with 5K per year dividend.
7. 350K in Muni bonds with 17K per year return.
8. 200K emergency $$$ in CD
9. annual spending is round 36K

the real question is after reaching 55, should I still be aggressive in the equity market ?

Thanks

Tom

 

[mystang52]

Bravo to you! Stories such as yours are very inspiring. Welcome to the Forum.

 

[Totoro]

Depends on your emotional fortitude and goals.

Simply put, at 36k spending and total net worth of >4M for yourself you have already reached the threshold of "winning the game" (congrats!). That's a solid 120+ years of living you have saved up .. so no need to go aggressive with equities.

If on the other hand you want to maximize your inheritance and can handle the volatility, staying high and aggressive in equities might be an option.

 

[Golden sunsets]

Wow. Good job. May I ask what type of muni's return that kind of income-5%?

 

[DrRoy]

Fantastic story. You are the picture of the American dream. I would say that in the condition you will be when you FIRE, you would no longer need to be aggressive in equities. 50-60% would be fine.

 

[tmm99]

Congratulations! I wonder why you are planning to wo*k another 10 years?

 

[Markola]

It is doubly-impressive to me that people can come to this country, learn how things work and succeed wildly with our own system, while most who grew up here, even the highly-educated with lots of advantages, are basically financially-incompetent. My friends' kids are headed to college and I see most of their parents having to work into their 70s or until they drop because "Woops! We never planned ahead.". You have planned ahead, and Bravo. You are very inspiring. You need no advice from me but, if I were you and planning to have a salary for the next ten years, I would put to work more of that $550,000 you have in low-yield bonds and cash.

 

[VFK57]

Welcome to the Forum. Your numbers are impressive so your plans are fully funded. In regards to equities we have many different points of view here while majority advocate larger portion of the portfolio in stocks. I think that stocks / real estate/ CDs-Bonds should be equally split.

 

[targatom2019]

Wow. Good job. May I ask what type of muni's return that kind of income-5%?

I only buy Premium Muni bonds at least A rated and must be insured. The average Coupon rate is 4.5%.

Congratulations! I wonder why you are planning to wo*k another 10 years?

The two owners of my company will retire in ten years and they had asked me to stick around until they reach retirement age. I am loyal to them since they gave me a chance to prove my self 20 years ago and working helps me exercise my brain but I don't think my lovely wife is ready to see around me 24hr everyday yet.

 

[targatom2019]

Just reached another mile stone this week one of my industrial buildings got paid off this month and it will generate another $1,500 per month income for me. My goal is to have $10,000 coming in every month with out ever touching my principals in my stock or bond account.