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AA and planning advice for 45 yo FIRE wannabe
Old 04-29-2019, 09:46 PM   #1
Confused about dryer sheets
 
Join Date: Apr 2019
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AA and planning advice for 45 yo FIRE wannabe

I am moving this post from an incorrect forum.

I have been a lurker for years and this is my first post. I am 45 and single without kids. I read the FAQs before posting as well as numerous posts but haven't seen one that has a situation similar to mine, so here it goes:

Annual comp: $1.1M (all cash)
Non Tax Qualified: $3.1M ($800K cash, rest in brokerage (60/25/15 stock/bond/Alt Assets))
Tax Qualified (IRA, Simple IRA): $6.0M ($100K RMD per year currently)
Real Estate: two properties, each values about $850K ($90K mortgage left on one), no rental income
Annual Expenses: $160K to $180K (including HOA, property taxes and other fixed expenses, and excluding health care and long term insurance costs that will be relevant when ER begins)

All the calculators suggest that ER is an easy yes. The job is becoming a drag and with a 53% effective tax rate, there is not much incentive for me to keep going even though it's a lot of cash to give up. I am also not attached to the houses and the HCOL area I am living in right now (CA). In fact, I have relatives in Europe who will be more than happy to have me stay six months out of the year. I think I am ready to pull the trigger this year but not sure how in terms of AA after retirement and healthcare, etc. Any advice from the good folks here would be appreciated. I learned so much from this forum over the years and everyone's story has been the main driver for my crazy saving rate.... Thanks in advance.
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Old 04-30-2019, 06:15 AM   #2
Full time employment: Posting here.
cooch96's Avatar
 
Join Date: May 2014
Location: Lakewood
Posts: 766
AA is a personal ratio based on your tolerance for volatility. I can’t help you there, but there’s a wide range assets that are appropriate for your position.

I’d sell at least one of your properties. That’d reduce your costs and real estate is at a relative high right now. Also, if you’re going to be spending months abroad, just how convenient is it to maintain two places? Seems like more of a headache than luxury to me.

Congratulations though, you’ve achieved what I consider “good problems” to have.
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Old 04-30-2019, 09:04 AM   #3
Dryer sheet wannabe
 
Join Date: Apr 2019
Location: Midwest
Posts: 11
You have won the game, congratulations!! To perpetually forever sustain annual expenses of $180k, you only need about $6M. And you have over $10M of net worth. You can pick any AA you wish.
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