Newbie

[RubyRed]

Hi Everyone,
I'm a newbie and trying to convince myself that I (we - my wife and I) have reached FI in order to RE.

We're 49 and have a net worth of around $4.5M of which $3M is liquid with the remainder in real estate (rentals and a vacation house).

FIRE calc says we'd be in decent shape if we lived on $110k/year (adjusted) and it had to last for 45 years.

Scares the crap out of me to RE.

Thanks for listening and look forward to reading about everyone!

Ruby

[gayl]

Welcome, yes it's a strange feeling to realize you can FIRE

[rodi]

Welcome Ruby Red!

Your proposal is a 3.6% withdrawal rate of your investable assets (non real estate) - which most of us would consider very safe.

Do you get rental income from your rental properties? Any pensions or SS coming in the future? Firecalc allows for this on the "other income" tab.

Make sure you are confident in your spending. Does it include healthcare? Taxes? Periodic car replacements? etc... Firecalc considers an "all-in" or "gross" spending... not net, after taxes.

The other consideration is your length of retirement. You're pretty young (although only 4 years younger than I was when I pulled the trigger AND you have more assets than I do.) When you put in the length of retirement consider that if you put in a really long number (like 50 years) you are eliminating some of the worst cycles for back testing.

At first glance you look good to go.

[HI Bill]

Congrats! $110K is 3.66% of $3M. So, it looks about right, assuming you've planned for travel, unexpected expenses, health insurance (e.g., have a proper retirement budget set up), and have a proper asset allocation. Sounds like a back-up plan could be selling the vacation house if the unexpected occurs. What's your AA, and how much is in tax deferred vs. taxable accounts? Have you calculated taxes?

[MichaelB]

Welcome aboard, RubyRed. Take a look at this thread, you may find it helpful http://www.early-retirement.org/foru...ire-69999.html

[RubyRed]

Quote:

Originally Posted by rodi Welcome Ruby Red! Your proposal is a 3.6% withdrawal rate of your investable assets (non real estate) - which most of us would consider very safe. Do you get rental income from your rental properties? Any pensions or SS coming in the future? Firecalc allows for this on the "other income" tab. Make sure you are confident in your spending. Does it include healthcare? Taxes? Periodic car replacements? etc... Firecalc considers an "all-in" or "gross" spending... not net, after taxes. The other consideration is your length of retirement. You're pretty young (although only 4 years younger than I was when I pulled the trigger AND you have more assets than I do.) When you put in the length of retirement consider that if you put in a really long number (like 50 years) you are eliminating some of the worst cycles for back testing. At first glance you look good to go.

Thanks for the input! We bring in around $30k/yr in net rental income. I didn't add that in to the calc. I'm also not counting on SS, so it's a conservative estimate. I'm planning on the rental income to cover most of the taxes and netting it all down to spending around $100k per year and of course less if it feels comfortable.

[Dtail]

Looks like you are good to go. Not including any SS for retirement calculations is ultra conservative.

[RubyRed]

Quote:

Originally Posted by HNL Bill Congrats! $110K is 3.66% of $3M. So, it looks about right, assuming you've planned for travel, unexpected expenses, health insurance (e.g., have a proper retirement budget set up), and have a proper asset allocation. Sounds like a back-up plan could be selling the vacation house if the unexpected occurs. What's your AA, and how much is in tax deferred vs. taxable accounts? Have you calculated taxes?

Our AA is approx 70% stocks (mutual and index funds), 20% bonds, and 10% cash. $1.4M is in available whenever we want it and $1.6M is in 401K/IRA acounts.

[hilltide]

I don't have anything to add but nice work!! Seems like a good plan plus a few extras on top.

[hopeisnotaplan]

Well, I certainly hope you’re good because I could have just about written your post. Almost the same stats across the board just a slightly different mix. Age, asset total, spend levels, etc all same. Pulled the plug in April myself.