Mid 30s couple with ~10-15 year FIRE goal

[IMD801]

Hello! First thread/post here on this great forum.

DW and I are both medical professionals in our mid 30s. We have one child and maybe a second happening in the near future. We are frugal people who live pretty simply.

1. Current assets (not including home equity): $150k
2. Investing $100k/year in low cost index funds by maxing retirement accounts and some in taxable. Working on getting this up to $125k/year (about 60% savings rate)
3. We are prepaying the mortgage with a goal of an 8 year payoff
4. Anticipate "pretirement" in 10ish years with decreased workload and probably some medical mission work
5. Would probably be more than OK with a retirement income of $60k/year in 2014 dollars

With a 4% SWR on FIREcalc I think we can pull this off.

I hate to say it after only a few years, but I want out of medicine, at least in the capacity I'm currently in - hence the FIRE plan.

One uncertainty I have is how much kids will cost in the future. Another is where to get money from to finance retirement from 45 to whenever we can start pulling from retirement accounts. I guess taxable and 72t are options.

What do you think?

 

[retire2020]

Welcome to forum IMD. 4% in mid 40s would be too optimistic…plan for 3-3.5% as you'll need money to last for good 40-50 years. Just keep saving and investing for now and not worry too much about WR. Ideally…you want to fund your retirement from taxable first, IRA/401K and then Roth IRA at last. With your income, you may not qualify for Roth IRA but there is also a backdoor Roth IRA which you can google and see if you can get by. When you stop working you can also slowly convert IRA-->Roth IRA. Retirement Calculator - Parameter Form can help you figure out how much you should convert every year.
My daughter just got in PharmD program but did not get any scholarship…It'll cost me 200K(100K already in her 529) to pay her six years in state college expense. I'm planning to put 200K/Kid(twin boys who are 10 years old now) in their 529 plan to feel secure during my retirement years.

 

[IMD801]

Welcome to forum IMD. 4% in mid 40s would be too optimistic…plan for 3-3.5% as you'll need money to last for good 40-50 years. Just keep saving and investing for now and not worry too much about WR. Ideally…you want to fund your retirement from taxable first, IRA/401K and then Roth IRA at last. With your income, you may not qualify for Roth IRA but there is also a backdoor Roth IRA which you can google and see if you can get by. When you stop working you can also slowly convert IRA-->Roth IRA. Retirement Calculator - Parameter Form can help you figure out how much you should convert every year.
My daughter just got in PharmD program but did not get any scholarship…It'll cost me 200K(100K already in her 529) to pay her six years in state college expense. I'm planning to put 200K/Kid(twin boys who are 10 years old now) in their 529 plan to feel secure during my retirement years.

We are doing max Backdoor Roths starting this year as well as a 529 for the kid. I cringe at the thought of paying six figure tuition down the line...