Bruceski44
Recycles dryer sheets
- Joined
- Apr 13, 2016
- Messages
- 191
Hi all,
I just got laid off a few months ago and have decided to FIRE. Our passive real estate income pays about 80% of our expenses and the rest will come from savings for 3 years, then a 2.5% SWR from my 401k (current expenses and current value of 401k, AA below).
We just passed the $2M net worth milestone, which really doesn't feel like enough here in SoCal. I also just had my 58th birthday and am in good health.
I'm considering spending about $20k on a sports car which will bump my auto insurance by $1400 per year and add other maintenance costs for tires, oil change, etc. I'll do most of the work myself. My main worry (what me, worry?) is that perhaps I should wait to buy the car. I have another vehicle and mainly drive around our city. No road trips planned, no driving events.
We have about 55% or our assets in real estate yielding about 8% cashflow and this should improve over time. The other 45% is 10% bonds, 60% DGI stocks, 15% index funds and 10% cash. The dividends exceed what's needed to fund my 2.5% SWR, so I don't expect to have to sell anything to fund the distributions.
FIRECalc says there's a 100% chance the money will outlast my 30 year retirement. Even in the worst case, the portfolio value will be larger then than it is now.
So will any of you experienced FIRErs speak some wisdom to me? Should I hold off on the car?
Thanks for sharing any thoughts.
I just got laid off a few months ago and have decided to FIRE. Our passive real estate income pays about 80% of our expenses and the rest will come from savings for 3 years, then a 2.5% SWR from my 401k (current expenses and current value of 401k, AA below).
We just passed the $2M net worth milestone, which really doesn't feel like enough here in SoCal. I also just had my 58th birthday and am in good health.
I'm considering spending about $20k on a sports car which will bump my auto insurance by $1400 per year and add other maintenance costs for tires, oil change, etc. I'll do most of the work myself. My main worry (what me, worry?) is that perhaps I should wait to buy the car. I have another vehicle and mainly drive around our city. No road trips planned, no driving events.
We have about 55% or our assets in real estate yielding about 8% cashflow and this should improve over time. The other 45% is 10% bonds, 60% DGI stocks, 15% index funds and 10% cash. The dividends exceed what's needed to fund my 2.5% SWR, so I don't expect to have to sell anything to fund the distributions.
FIRECalc says there's a 100% chance the money will outlast my 30 year retirement. Even in the worst case, the portfolio value will be larger then than it is now.
So will any of you experienced FIRErs speak some wisdom to me? Should I hold off on the car?
Thanks for sharing any thoughts.
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