Looking to be FI in 5 yrs and RE in 10

[hitnuggs]

Greetings from the great state of Nevada and thanks to everyone who has posted in this forum as it has inspired me and the DW to seriously consider FIRE. We are DINKWADs with great incomes (250,000 combined) and we have been methodically knocking out all debt for the last 10 years including 2 houses (Challenge completed last year).

After we max out all available "tax advantaged" accounts we have some serious cash to invest. Right now, we've been throwing it into Vanguard or, when we see an opportunity, we throw some in individual stocks. Based on our nifty spreadsheet work (we're both engineers), we've determined that we can be FI in 5 years but neither feel like we want to retire in 5 years so we are looking to RE in 10 years. I suspect that we may change our minds as we get close. Anyway.... We feel pretty confident on the money aspect of FIRE but will be looking to this forum for guidance on the social, mental and other non financial issues FIREs have to deal with. So... thanks again and I'll be seeing you later.

 

[RetireBy90]

Greetings hitnuggs ! Welcome from a native Nevadan, 3rd generation from Washoe county/Reno. Enlisted in the Army and now call Virginia home, but still lots of Nevada in my heart.


One thing you didn't mention your ages. I think this will affect the responses and any advice.


I also struggle to plan for post retirement life. I have found I don't have that many interests you can do here like we could in Reno, but I'm working on new ones. One thing I have found is that my need to have plenty to do every day has slowly mellowed as I get older. I work from the house today, most days alone in the house. This has helped me to get used to a slower pace. I still get out of the house when ever I can but not as urgent as it was. I'll be watching to see how others reply to your question or concerns.

 

[hitnuggs]

I'm 40 and the DW is 37. We are in the southern part of the state and we have interests that we "think" we would enjoy if we didn't have to go to work. I guess you would never know until you do it. Work keeps us busy and connected to others. Once that's gone, we will need to figure out a way to keep connected.


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[RetireBy90]

The age is a little younger than I and DW are, I'm 58 and DW is 61. The draw down from type A to a type B personality and needing to be busy/active has slowed in last 2 years or so, so it may not be the same for you at this point. My final take on what to do when you don't have to work every day is that we'll figure it out as we have other bumps along the way. Change isn't always easy, but we get to control this one, not react to others forcing it on us.

 

[2B]

Welcome.

Keep saving but enjoy life. The world (and your view of it) will change greatly in the next 5 to 10 years. I can assure you that whatever assumptions you've put in your spread sheets will be wrong - either positively or negatively. You need to focus on doing the "right thing" day by day. The years will take care of themselves.

If you haven't read much financial information, I suggest you read William Bernstein's Investor Manifesto. It highlights low cost index fund investing. Maybe it will get you out of most/all of your individual stocks.

Once you decide you are FI, you will definitely start looking at what you do for money more critically. It's not called "work" for nothing. Of course, I've been a OMY-er (one more year) for almost a decade. I've enjoyed doing what I've been doing and get paid piles of money for doing very little. It's now just getting a bit stale. I'm about ready to stick a fork in me because I'm pretty sure I'm ready to be done.

I've got 9 more "in-office" days before resigning/retiring on 5 Jan 2015.

 

[MBAustin]

Welcome!

The great thing about getting to FI is the options it gives you and frankly, the power should you choose to use it. Say a year past FI you are still enjoying your w*rk but you have an opportunity to travel / help a nonprofit / pursue a time-intensive hobby. You can go to your boss and negotiate extended time off / reduced hours / telecommuting, knowing that if you can't reach an agreement, you can walk. How great is that??

Lots of great experiences here, enjoy looking forward to FI and RE and don't hesitate to ask questions!


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[hitnuggs]

Thanks 2B for the reference, I'll check it out as I tend to agree with you. DW likes to play around with individual stocks and they are a low percentage of the overall amount.

 

[RetireBy90]

One more option, I keep a small amount in a separate account I use to buy individual stocks. It does ok, and allows me to gamble/invest in what looks like good opportunities. Think Pan AM and Dome Petroleum - both of which went to 0. However, it allows me an outlet for my desire to tinker, and I don't tinker in the rest of the funds.

 

[hitnuggs]

That's essentially what we are doing and that's our approach. They are in different accounts and they don't come-mingle. There's less risk of us thinking we are smarter than we actually are.


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[hitnuggs]

If you haven't read much financial information, I suggest you read William Bernstein's Investor Manifesto. It highlights low cost index fund investing. Maybe it will get you out of most/all of your individual stocks.

I've scoped this out at the local library and will try to pick it up and give it a shot. Thanks for the recommendation.

 

[Car-Guy]

You'll find a lot of people on this forum worked a number of years after they were FI, like you are planning. Often called the OMY(s) syndrome. I'll included myself in that statement.

Living in Vegas, all I can say is, best of "luck" to you.

 

[hitnuggs]

You'll find a lot of people on this forum worked a number of years after they were FI, like you are planning. Often called the OMY(s) syndrome. I'll included myself in that statement.

Living in Vegas, all I can say is, best of "luck" to you.

I've noticed this and me and the DW have discussed this. There are many different scenarios and we both agree that OMY is a likely scenario. We are also laser focused on being FI. They are independent of each other in our minds.

Thanks for the Lucky wishes!!!

 

[growing_older]

I've scoped this out at the local library and will try to pick it up and give it a shot. Thanks for the recommendation.

So, that this is your approach is likely one more data point indicating that you will be successful in your plan to become FI.

I have been concerned that if I ride a big stock market upswing into FI, that I am essentially guaranteeing that there will be a big downswing just as I ER. I like the idea of having some time after FI to build a bit of cushion and be better prepared for market fluctuations. Also, sometimes there are other timing considerations such as qualifying for retiree health coverage or getting kids through college. Your general plan sounds very good to me and once you reach your FI goals, then you can take your time to evaluate how that affects both possible ER and what kind of work you might want to do or not do. Downshifting or going part-time become viable options.