Join Early Retirement Today
Reply
 
Thread Tools Display Modes
FI Progress
Old 02-17-2016, 04:18 AM   #1
Confused about dryer sheets
 
Join Date: Feb 2016
Posts: 7
FI Progress

Hey guys,

Wanted to post an update to FI progress and maybe use this as 'blog' to update each year toward my progress.

28 years old

Taxable: 345k
401k: 145K
Roth IRA: 3.5K
Trad IRA: 24K
Condo: Approx 250K with 135K mortgage

Current salary: 90K, bonus 20-40K

Between 401K, employer match, and taxable contributions, I'm saving about 30-35K annually. Expenses are ~60K.

Hoping to be FI around 2027, which would mean a target of ~2MM. Right now I'd like to RE to a low COLA country (southeast asia, central america), but we'll see what I feel like doing once I'm FI.

My savings rate is probably lower, at least percentage wise, compared to a lot of people on this board. I could definitely be saving more and cutting out another 15-20k of expenses a year, but I enjoy traveling and other expensive hobbies and have been trying to balance savings vs. enjoying today.
fish13 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-17-2016, 06:19 AM   #2
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
Keep going, you will be Fi before too long. Often it happens quickly and you suddenly realize you no longer need a j*b.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 02-17-2016, 06:38 AM   #3
Moderator Emeritus
Ronstar's Avatar
 
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,543
Great job, Fish! You have a hunk of retirement $ for a 28 year old. Stay focused and you'll get there sooner than you think.
Ronstar is offline   Reply With Quote
Old 02-20-2016, 12:51 AM   #4
Dryer sheet aficionado
 
Join Date: Jun 2014
Posts: 25
Are you sure you've only been saving 30 or 35k a year?? Your net worth of what looks to be about 650k vs age (6 year of FT work experience?) would point to a much higher amount than that even with solid investment returns. Congrats on the progress though!
Trueace is offline   Reply With Quote
Old 02-20-2016, 04:16 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Oct 2011
Location: Philadelphia
Posts: 1,372
You're way ahead of the game. Way to go.
__________________
Luck is when Preparation meets Opportunity.
FIRE'd 1/1/24
Closet_Gamer is offline   Reply With Quote
Old 02-20-2016, 08:39 AM   #6
Confused about dryer sheets
 
Join Date: Feb 2016
Posts: 7
Quote:
Originally Posted by Trueace View Post
Are you sure you've only been saving 30 or 35k a year?? Your net worth of what looks to be about 650k vs age (6 year of FT work experience?) would point to a much higher amount than that even with solid investment returns. Congrats on the progress though!
I received a small inheritance of 50k about 20 years ago that was put in VTI, so it isn't 100% hard work.
fish13 is offline   Reply With Quote
Old 02-20-2016, 09:55 AM   #7
Thinks s/he gets paid by the post
RetireAge50's Avatar
 
Join Date: Aug 2013
Posts: 1,660
Excellent, you are nailing it!! Great balance, enjoy life now and later.
RetireAge50 is offline   Reply With Quote
Old 02-20-2016, 10:19 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
Quote:
Originally Posted by fish13 View Post
....Hoping to be FI around 2027, which would mean a target of ~2MM. ...
Have you done any projections using Quicken Lifetime Planner or some similar tool?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 02-20-2016, 11:11 AM   #9
Confused about dryer sheets
 
Join Date: Feb 2016
Posts: 7
Quote:
Originally Posted by pb4uski View Post
Have you done any projections using Quicken Lifetime Planner or some similar tool?
I should be there assuming a 6% avg return with my current savings going forward. I will likely have a higher income/bonus target over the next several years, of which all incremental will go toward savings. I would like to get to 50k/year savings. I think my lifestyle inflation has hit a ceiling at this point so anything extra will end up saved. Running through a bunch of calculators, at this point its seems future contributions start to matter marginally compared to investment return.
fish13 is offline   Reply With Quote
Old 02-20-2016, 10:17 PM   #10
Dryer sheet aficionado
 
Join Date: Jun 2014
Posts: 25
Quote:
Originally Posted by fish13 View Post
I received a small inheritance of 50k about 20 years ago that was put in VTI, so it isn't 100% hard work.
Nice.. that makes sense then. I was going to say how in the world are you getting those returns?!
Trueace is offline   Reply With Quote
Old 02-21-2016, 04:49 AM   #11
Recycles dryer sheets
 
Join Date: Dec 2013
Location: Kansas
Posts: 107
Quote:
Originally Posted by fish13 View Post
I should be there assuming a 6% avg return with my current savings going forward. I will likely have a higher income/bonus target over the next several years, of which all incremental will go toward savings. I would like to get to 50k/year savings. I think my lifestyle inflation has hit a ceiling at this point so anything extra will end up saved. Running through a bunch of calculators, at this point its seems future contributions start to matter marginally compared to investment return.

Have you run any scenarios with a range of returns and savings? I know you have a lot of time, but you are making some pretty high assumptions. Returns may be less and you may have periods of time that you won't be able to save that much. There could by layoffs. What if you get married or have kids?

You are doing great for your age. Keep it up! Just know life happens and be ready to adjust the plan.
Sasset is offline   Reply With Quote
Old 02-21-2016, 08:48 AM   #12
Confused about dryer sheets
 
Join Date: Feb 2016
Posts: 7
Quote:
Originally Posted by Sasset View Post
Have you run any scenarios with a range of returns and savings? I know you have a lot of time, but you are making some pretty high assumptions. Returns may be less and you may have periods of time that you won't be able to save that much. There could by layoffs. What if you get married or have kids?

You are doing great for your age. Keep it up! Just know life happens and be ready to adjust the plan.
I've done some monte carlo simulations but honestly I don't find much value in them. It's interesting to see that you have XX% probability given Y average return and Z standard deviation of reaching your goal, but as you point out who knows what will actually happen. I think a 6% return expectation is probably reasonable, and as you model future portfolio growth, incremental contributions become a lot less meaningful (ie saving 35k vs 45k a year ends up making very little difference when the portfolio is 15x your annual savings, but a 1% annualized return difference is huge).

Zero chance of getting married or having kids. I can see the layoff risk, and this is a large part of the reason I want to become FI as the trend is definitely very little loyalty from employers or employees
fish13 is offline   Reply With Quote
FI Progress
Old 02-21-2016, 01:19 PM   #13
Thinks s/he gets paid by the post
Markola's Avatar
 
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,930
FI Progress

I think Mr. Money Mustache FIRED at 30 with $600K taxable with a family of three (and a rental house and paid-off personal house, occasional carpentry work, a DW with a real estate license and, later, a lucrative blog.). Still, they only spend $24K/year so, point is, if you want to live overseas, you are getting close to being able to now. Maybe you should experience it, given your flexible situation, and, if you don't like it, you have plenty of time to get a j*b later. You'd probably pick up some uber-low cost living skills along the way of living your travel dream. On the other hand, don't listen to me as you are doing fine on your own! Bravo.
Markola is offline   Reply With Quote
Old 02-21-2016, 05:20 PM   #14
Confused about dryer sheets
 
Join Date: Feb 2016
Posts: 7
Quote:
Originally Posted by Markola View Post
I think Mr. Money Mustache FIRED at 30 with $600K taxable with a family of three (and a rental house and paid-off personal house, occasional carpentry work, a DW with a real estate license and, later, a lucrative blog.). Still, they only spend $24K/year so, point is, if you want to live overseas, you are getting close to being able to now. Maybe you should experience it, given your flexible situation, and, if you don't like it, you have plenty of time to get a j*b later. You'd probably pick up some uber-low cost living skills along the way of living your travel dream. On the other hand, don't listen to me as you are doing fine on your own! Bravo.
I like my job and I'm in a pretty good maximizing pay-to-effort ratio situation right now, so I'm inclined save up while the gettin's good. I have some very good friends in SE asia who have very detailed budgets and get on quite well with 25k/year spend. Perhaps years from now if things weren't favorable I'd dip my toes in the water of trying to FIRE at a higher SWR or a lower COLA. But my goal isn't to quit working, it's just to have the option to do so as early as possible.
fish13 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hello and ER progress report luthier john Hi, I am... 10 03-20-2007 07:23 AM
Progress Cut-Throat Other topics 1 08-16-2006 01:08 PM
Major Vulture Attack in Progress OldAgePensioner FIRE and Money 98 03-31-2006 04:25 PM
Progress Paradox Interview dimwit FIRE and Money 3 07-13-2005 12:10 AM
Good book - The Progress Paradox Telly Other topics 18 09-07-2004 04:03 PM

» Quick Links

 
All times are GMT -6. The time now is 09:52 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.