Hello,
With our two year anniversary of being FIRE'd this past month, I wanted to share our experience in the event it provides any help to others. This post is also a reflection of the insights I have learned from this supportive and highly informative community.
Background
55yo / DW 53yo - 2 Kids with one entering college this fall and the other having graduated college last year and off the payroll
I left my 50+ hours a/week job at the end of December 2021 but have been working three days a month just as a transitionary step. I did have some anxiety of not receiving a bi-weekly W2 paycheck after 30 years and still having some work related income was beneficial in this regard.
Fast forward to today, we are preparing to focus more on volunteering and live off our portfolio until social security becomes an option.
Three takeaways from our journey:
• Investment Policy Statement (IPS)
○ Having our plan documented provides a tremendous sense of focus and mitigates any impetuous decision making during the market up and downs
• Part Time Work
○ Working part time for the past few years significantly reduced our anxiety during the FIRE transition and allowed us to test our estimated annual budgets and spending with less worry
• Three Year Cash Moat
○ For us, having the security of three years cash provides a psychological benefit and allows us to sleep at night. Currently using a three year CD ladder for the cash.
For 2024, our withdrawal rate is targeted at 2.40% but we are comfortable moving up to 3%+ if desired.
Overall, our FIRE experience has been everything and more! We could not have made the jump without the insights provided via this community so "Thank You" to all!
With our two year anniversary of being FIRE'd this past month, I wanted to share our experience in the event it provides any help to others. This post is also a reflection of the insights I have learned from this supportive and highly informative community.
Background
55yo / DW 53yo - 2 Kids with one entering college this fall and the other having graduated college last year and off the payroll
I left my 50+ hours a/week job at the end of December 2021 but have been working three days a month just as a transitionary step. I did have some anxiety of not receiving a bi-weekly W2 paycheck after 30 years and still having some work related income was beneficial in this regard.
Fast forward to today, we are preparing to focus more on volunteering and live off our portfolio until social security becomes an option.
Three takeaways from our journey:
• Investment Policy Statement (IPS)
○ Having our plan documented provides a tremendous sense of focus and mitigates any impetuous decision making during the market up and downs
• Part Time Work
○ Working part time for the past few years significantly reduced our anxiety during the FIRE transition and allowed us to test our estimated annual budgets and spending with less worry
• Three Year Cash Moat
○ For us, having the security of three years cash provides a psychological benefit and allows us to sleep at night. Currently using a three year CD ladder for the cash.
For 2024, our withdrawal rate is targeted at 2.40% but we are comfortable moving up to 3%+ if desired.
Overall, our FIRE experience has been everything and more! We could not have made the jump without the insights provided via this community so "Thank You" to all!
