1979dreamer
Dryer sheet wannabe
- Joined
- Mar 21, 2012
- Messages
- 17
Hello!
Long time reader, first time poster.
As I start getting closer to what I believe to be FI, it's becoming harder to believe that I'm almost there. I'm not sure if or when I want to RE, but nevertheless I've been focused for the last several years on FI.
Here's where I currently stand (not including today's market drop due to the government not being able to get their act together):
Age: 33
ANNUAL SPENDING: Approximately $31,000 ($34,000 including mortgage principal)
ASSETS:
Roth IRAs: $97k
Traditional 401ks: $212k
Taxable Accounts (mostly stocks - some kept in cash from time to time): $416k
TOTAL INVESTABLE ASSETS: $725k
EXPENSES NOT INCLUDED ABOVE:
- Newer car: I currently drive a beater with 97,000 miles. It's doing great, but it's been a long time since I've had to purchase a vehicle and pay more in taxes/insurance/car payment/registration. This could add to my expenses.
- Health insurance: Currently 100% covered by employer. ACA may help here.
- Higher rent/mortgage from moving: If I were to decide to RE, I'd likely leave my current area and increase my monthly housing cost by around 500/month
- Travel: I travel a decent amount now, but a lot of it comes from work perks (hotel points, etc). Would need to increase my budget for this -- especially the first few years when I'd like to do more international travel.
- Taxes: My spending level above does not include income taxes. I'd need to pull enough out every year to cover taxes and spending.
ASSETS/INCOME NOT INCLUDED ABOVE:
- House: Zillow says it's worth around $238k, which I believe is accurate +/- $15k. I owe $140k on it. After agent fees, closing costs, etc, I could net ~$75k if I sold it soon (and will probably do so in the next couple of years)
- Social Security: While it's a long way off and probably won't be worth much, I figure I could at least net $5-8k per year after I'm 65.
- Stock purchased in previous employer (private company): There is talk that this company will IPO in the next couple of years, but obviously that's a gamble. I own shares that could be worth anywhere from 0-1M (I was a very early employee). Since it's such an unknown, I don't include it in my assets.
- Stock options in current employer: I'm 1.5 years down in a 5 year vesting period. Likely to IPO in the next couple of years. Price is again unknown, but I estimate that I'll gain somewhere between $50k-250k from this.
- "Side work": I do a bunch of this, mostly teaching. It will dry up some day as laws continue to change that require a PhD to teach, but in the mean time I find it enjoyable, can do it from anywhere, and would likely continue it even if I did RE. In other words, I might not even need to pull everything from savings to hit my spending needs (but would still need to pull at least 75% from there).
I realize that by the 4% SWR standard and Firecalc calculations I'm not there yet. What I'm wondering is whether I'm even close, or dreaming that this is achievable in the next couple of years?
Thanks in advance for any advice!
Long time reader, first time poster.
As I start getting closer to what I believe to be FI, it's becoming harder to believe that I'm almost there. I'm not sure if or when I want to RE, but nevertheless I've been focused for the last several years on FI.
Here's where I currently stand (not including today's market drop due to the government not being able to get their act together):
Age: 33
ANNUAL SPENDING: Approximately $31,000 ($34,000 including mortgage principal)
ASSETS:
Roth IRAs: $97k
Traditional 401ks: $212k
Taxable Accounts (mostly stocks - some kept in cash from time to time): $416k
TOTAL INVESTABLE ASSETS: $725k
EXPENSES NOT INCLUDED ABOVE:
- Newer car: I currently drive a beater with 97,000 miles. It's doing great, but it's been a long time since I've had to purchase a vehicle and pay more in taxes/insurance/car payment/registration. This could add to my expenses.
- Health insurance: Currently 100% covered by employer. ACA may help here.
- Higher rent/mortgage from moving: If I were to decide to RE, I'd likely leave my current area and increase my monthly housing cost by around 500/month
- Travel: I travel a decent amount now, but a lot of it comes from work perks (hotel points, etc). Would need to increase my budget for this -- especially the first few years when I'd like to do more international travel.
- Taxes: My spending level above does not include income taxes. I'd need to pull enough out every year to cover taxes and spending.
ASSETS/INCOME NOT INCLUDED ABOVE:
- House: Zillow says it's worth around $238k, which I believe is accurate +/- $15k. I owe $140k on it. After agent fees, closing costs, etc, I could net ~$75k if I sold it soon (and will probably do so in the next couple of years)
- Social Security: While it's a long way off and probably won't be worth much, I figure I could at least net $5-8k per year after I'm 65.
- Stock purchased in previous employer (private company): There is talk that this company will IPO in the next couple of years, but obviously that's a gamble. I own shares that could be worth anywhere from 0-1M (I was a very early employee). Since it's such an unknown, I don't include it in my assets.
- Stock options in current employer: I'm 1.5 years down in a 5 year vesting period. Likely to IPO in the next couple of years. Price is again unknown, but I estimate that I'll gain somewhere between $50k-250k from this.
- "Side work": I do a bunch of this, mostly teaching. It will dry up some day as laws continue to change that require a PhD to teach, but in the mean time I find it enjoyable, can do it from anywhere, and would likely continue it even if I did RE. In other words, I might not even need to pull everything from savings to hit my spending needs (but would still need to pull at least 75% from there).
I realize that by the 4% SWR standard and Firecalc calculations I'm not there yet. What I'm wondering is whether I'm even close, or dreaming that this is achievable in the next couple of years?
Thanks in advance for any advice!
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