My FIRE Game Plan

[RubberDucky]

Hi everyone,

I’ve been lurking around here for about a year or more now and really dig this site. I am 31 and my wife is 32. She and I have been dreaming and planning the road to FIRE for a few years now. We have a 2 year old child and our careers are just now starting to really get off the ground so the going has been slow. But at least we have a solid game plan and are socking money away as best we can.

I work for the Federal Government and my lady works for a public school district – yup, two more Guv’mint workers. We make good money together and have secure jobs, but we live in a really high cost of living area – coastal Southern California. However, we are proud homeowners and live comfortably, but not extravagantly. We definitely live below our means and are saving now around 20% of our gross income in retirement accounts. This should go up to ~30% in another year or so after all debt is paid off, except the mortgage.

As far as FIRE, here is my overall game plan:

- Have NO debt (except 30 year fixed mortgage at 5.7% interest)
- Pay cash for everything
- Continue to put the maximum in our two Roth IRA’s, invested in low-cost index funds at Vanguard.
- Put maximum annual contribution in TSP (401k for Feds) each year with an aggressive and diversified allocation.
- Possibly start wife’s 457 or 403b, or consider taxable investing as income continues to rise.

We both have pensions. We both have Social Security (if it’s around when we retire). Plus we have great health insurance benefits after I retire. We will own our home. I believe that should cover it, right? Our goal is to both retire around mid-50’s, give or take five years depending on the situation and opportunities. We are flexible. We want to do a lot of travel internationally and possibly live for a few months each year in exotic, but relatively low-cost locations. We are both adventurers. 8)

Anyway, thanks for letting me introduce myself. I am still relatively young and have much to learn from many of you in here.

Thank you all for sharing your wealth of knowledge.

Cheers,
RubberDucky

[donheff]

Quote:

Originally Posted by RubberDucky We both have pensions. We both have Social Security (if it’s around when we retire). Plus we have great health insurance benefits after I retire. We will own our home. I believe that should cover it, right? Our goal is to both retire around mid-50’s, give or take five years depending on the situation and opportunities. We are flexible. We want to do a lot of travel internationally and possibly live for a few months each year in exotic, but relatively low-cost locations. We are both adventurers. 8)

You are well set on the path. Remember to keep LingBYM. It is easy to over expand your lifestyle as your income rises. Also, start a saving plan for the baby's education so you don't find yourself worrying about "to pay or to retire." When the kid heads off to college it is nice to ahve a separate, sacrosanct nest egg to cover those expenses.

Oh-- and social security will still be here. Us aging baby boomers will make sure of that.

[uncledrz]

You're on the right path. Keep an eye on your pension, especially if you move jobs which you may well do as you're young. Social security will be there in some form or another, but probably not what it is now, but you seem to have it planned pretty well so whatever happens, it'll be icing on the cake.

Raise and educate your children well, and live your life!!!

Welcome to the Board.

Tio z

[RubberDucky]

Thanks for the replies, don and tio. I think you two are right. The key is to resist the temptation to increase my spending with each pay increase.

Actually my wife and I are pretty comfortable with our current standard of living, so I don't see our expenses creeping up substantially. Or, at least not as fast as our incomes. We're cool with where we're at and how we live.

I actually enjoy killing off my debt with my pay raises. How sick is that? :P To the average American that sounds pretty warped, as does anything FIRE topic-related. That's why I keep these plans/thoughts to myself and my wife, and now this message board.

Good call on the 529 for my little boy. I do have one in place already that the Grandparents put money into for his birthday each year. I'm too poor to contribute to this account right now. I need to fully fund my retirement funds first! But as that investment goal is reached in the couple years, I will begin regular contributions to the 529 as well.

Sheesh, does the saving/investing never end? I can only hope I reach my targets as stated...and then I can begin blowing all my extra cash on nothing but 100% pure concentrated FUN and not feel one bit guilty about it.

If others here can do it, I can too.