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Can we be FI by 45?
Old 07-22-2014, 07:57 AM   #1
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Can we be FI by 45?

DW and I are ~33. Current situation:

$1.0M cash and investments
$0.5 house market value
($0.3M) mortgage
= $1.2M net worth

Our annual cash flow is:
+$53k into our 401ks including employer matched
($90k) spending
+$180k remaining after-tax income, saved

If we keep this up, our investments grow at 2% real, and we get raises equal to COL, we'll be at $4.0M (in 2014 dollars) by 45. At 3%WR, that's $120k/year.

Obviously, job changes or having a kid would change this plan, both the amount we can save per year and required withdrawal. And there could be market fluctuations.

What do you think of this plan?
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Old 07-22-2014, 08:33 AM   #2
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I think every retirement calculator will say this works 100% of the time.

I would just plan on following that path and see where you stand along the way both in regard to your saving/spending and the broader economic realities holding true.
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Old 07-22-2014, 09:24 AM   #3
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Yeah, you're probably good. Run it through FIRECalc and see how it would've done historically. Key for people like you and me (30's, DINK) is the prospect of expenses changing significantly due to acquisition of a kiddo, among many other things that could happen in the next 50-60 yrs. Safe to say you guys will be checking out of the workforce nice and early, if you so desire!
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Old 07-22-2014, 09:31 AM   #4
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You guys are sitting pretty if you ask me.
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Old 07-22-2014, 11:48 AM   #5
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Quote:
Originally Posted by soupcxan View Post
If we keep this up, our investments grow at 2% real, and we get raises equal to COL, we'll be at $4.0M (in 2014 dollars) by 45. At 3%WR, that's $120k/year…. What do you think of this plan?
Several "ifs", but it looks to me that you are well on track.

Quote:
Originally Posted by soupcxan View Post
Obviously, job changes or having a kid would change this plan, both the amount we can save per year and required withdrawal. And there could be will be market fluctuations.
Fixed for you!
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Old 09-11-2014, 08:39 PM   #6
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Kids?


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Old 09-11-2014, 09:06 PM   #7
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IMHO if you remain childfree you will be okay to ER at 45. If you have kid(s), then forget about ER that early. You might be able to ER just not that early.

I say this as someone who is childfree and ER at 45, nearly 6 years ago.

You have a big decision to make - ER at 45, or have kid(s) and don't ER at 45.
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Old 09-12-2014, 06:46 AM   #8
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We'd rather have a kid. But that's out of our hands.
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Old 09-12-2014, 01:25 PM   #9
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We'd rather have a kid. But that's out of our hands.
How is it "out of your hands?"

If you want a kid, use fertility drugs/treatments, in-vitro fertilization, a surrogate, or adopt.

If you don't want a kid, get snipped, get an IUD, use condoms, get Depoprovera, get an abortion.

Parenthood in 2014 - either way - is entirely discretionary. It's a deliberate choice.
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Old 09-12-2014, 02:34 PM   #10
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How is it "out of your hands?"

Parenthood in 2014 - either way - is entirely discretionary. It's a deliberate choice.
Not everyone believes that. DW and I will have kids or not without help.
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Old 09-12-2014, 02:56 PM   #11
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DW and I will have kids or not without help.
Which is of course fine ... but that too is a deliberate choice.
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