BoredAtWork
Dryer sheet wannabe
- Joined
- Apr 16, 2021
- Messages
- 16
Been lurking reading the great insights and knowledge from this forum. Thanks for providing an amazing resource for this topic. All this reading has really motivated me to assess my situation to try to retire early as soon as possible. Would appreciate any feedback on my current plan:
36 years old. Spouse 36. Two kids (6 and 3). We are planning to leave our current state to relocate closer to family in a slightly lower cost of living state when we are 40. Since that would necessitate leaving my current company of 10+ years and symbolically lines up with 2025 and turning 40 it all seems to indicate we should try to target that time to early retire. I’ve been quite lucky in the career having the following investable assets with these as conservative low end of range estimates by 2025:
$7.5M with fully paid off mortgage. There are a range of outcomes here because have equity that will fluctuate over next few years. I feel confident will at least have this amount though with current savings levels.
90% in taxable investment accounts
10% in tax deferred retirement accounts
No real estate (mortgage will be fully paid off by 2025) besides primary residence.
Problem is our spending is high. Currently $300k after tax. With mortgage paid off but adding significantly higher health insurance, can probably get spending down to $270k if we wanted to maintain same lifestyle, which we do. I estimated health insurance for a family of four at $30k per year.
Not sure state we are relocating to will really be noticeably cheaper.
Running FIRECalc and early retirement now.com excel on safe withdrawal rate, this looks like we would be borderline. With a 50ish year longer time horizon need safe withdrawal rate to be 3.25% or 3.50%.
I’m not opposed to working part-time or going back to work if I must in retirement so that feels like the fallback if we need it. Been grinding 11-12 hours per day for entire work career. The job has gotten pretty boring and uninspiring yet still requires a ton of hours. On call 24/7 for crises that come up, which frequently interrupts weekends and kid activities. Not trying to be a whiner because I make a very lucrative wage and have been extremely fortunate but I want to get out of the rat race sooner rather than later to enjoy the kids growing up more.
Thanks everyone for all that you do providing feedback. Would appreciate any perspective you have!
36 years old. Spouse 36. Two kids (6 and 3). We are planning to leave our current state to relocate closer to family in a slightly lower cost of living state when we are 40. Since that would necessitate leaving my current company of 10+ years and symbolically lines up with 2025 and turning 40 it all seems to indicate we should try to target that time to early retire. I’ve been quite lucky in the career having the following investable assets with these as conservative low end of range estimates by 2025:
$7.5M with fully paid off mortgage. There are a range of outcomes here because have equity that will fluctuate over next few years. I feel confident will at least have this amount though with current savings levels.
90% in taxable investment accounts
10% in tax deferred retirement accounts
No real estate (mortgage will be fully paid off by 2025) besides primary residence.
Problem is our spending is high. Currently $300k after tax. With mortgage paid off but adding significantly higher health insurance, can probably get spending down to $270k if we wanted to maintain same lifestyle, which we do. I estimated health insurance for a family of four at $30k per year.
Not sure state we are relocating to will really be noticeably cheaper.
Running FIRECalc and early retirement now.com excel on safe withdrawal rate, this looks like we would be borderline. With a 50ish year longer time horizon need safe withdrawal rate to be 3.25% or 3.50%.
I’m not opposed to working part-time or going back to work if I must in retirement so that feels like the fallback if we need it. Been grinding 11-12 hours per day for entire work career. The job has gotten pretty boring and uninspiring yet still requires a ton of hours. On call 24/7 for crises that come up, which frequently interrupts weekends and kid activities. Not trying to be a whiner because I make a very lucrative wage and have been extremely fortunate but I want to get out of the rat race sooner rather than later to enjoy the kids growing up more.
Thanks everyone for all that you do providing feedback. Would appreciate any perspective you have!