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Pushing 40 and Need a Plan
Old 06-15-2020, 11:35 AM   #1
Confused about dryer sheets
 
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Pushing 40 and Need a Plan

I've recently started reading about the FIRE movement. I enjoy reading in this community and would welcome ideas. My stats below

39 Y/O and live in NYC suburbs
Just over $3mm in net worth; over $2mm sitting in cash in taxable account
$120k mortgage on a home for parents
Rent and live well below my means

I believe I could retire now given my standard of living, but am doing well in my career and will continue to work until at least 45. I expect I should save another $2-$3mm during that time, not including any appreciation on current investments. Depending on how my career and life progresses I could continue working well beyond then, but see that time as the next marker.

Biggest issue I have is getting capital deployed. I've sat on the sideline for way too long and have not been comfortable with entry points. I did deploy a couple hundred thousand at the bottom in March but know that my money is not doing anything for me.

Open to ideas and feedback. I don't think I would look at situations where I'd work less or start a business. When the time comes I plan to be out and will not worry about work ever again.
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Old 06-15-2020, 11:52 AM   #2
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Welcome,

You sound like you are in great shape.

Considering you have approximately 50 yrs of life left, you are correct in thinking your investments seem too conservative, with approx 25% in stocks

Good move investing a couple hundred K at the low, obviously if we get another, that would be a good move to follow up upon.

Otherwise, I'd suggest invest $20K each month, regardless of the market, put into something broad like VTI (an etf).

You do seem like you need an investment schedule to get over the anxiety of committing to the market.
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Old 06-15-2020, 02:49 PM   #3
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It's impossible to tell how good shape you're in without knowing your expenses. Evidently you are quite well compensated. If this means your lifestyle expectations have grown accordingly then $3-5mm may not be enough to ER at 45. It all depends on a detailed expense estimate.
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Old 06-15-2020, 02:53 PM   #4
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Originally Posted by Sunset View Post
Otherwise, I'd suggest invest $20K each month, regardless of the market, put into something broad like VTI (an etf).
At your age, I'd move $50K/month into the markets; even at that rate, it would take you 40 months to be fully invested; but along the way, if the market tanks, you could put much more in! If you go with this approach, invest the first $50K, then move the rest to 80% bond ETF, and 20% high-rate CD or money market account.
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Old 06-15-2020, 04:29 PM   #5
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It's impossible to tell how good shape you're in without knowing your expenses. Evidently you are quite well compensated. If this means your lifestyle expectations have grown accordingly then $3-5mm may not be enough to ER at 45. It all depends on a detailed expense estimate.
Very good point. Current expenses (including mortgage) are ~$5,000 per month. That encompasses rent, utilities and any form of entertainment. Medical once retired would be incremental and I will likely retire the mortgage in the next two years. I'm undecided about buying a primary residence and have continued to rent
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Old 06-15-2020, 04:50 PM   #6
Confused about dryer sheets
 
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Originally Posted by HNL Bill View Post
At your age, I'd move $50K/month into the markets; even at that rate, it would take you 40 months to be fully invested; but along the way, if the market tanks, you could put much more in! If you go with this approach, invest the first $50K, then move the rest to 80% bond ETF, and 20% high-rate CD or money market account.
Thank you. I'm just starting to research bond ETFs and am open to any suggestion.
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Old 06-17-2020, 07:35 PM   #7
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You are in good shape with $60k annual expenses and $3M. Congratulations as that is a success! You also didn't say how the $1M is invested. Would need to earn 6% to cover expenses or you are cutting into principal. Also, risk of assets losing battle with inflation if sitting in cash. Money market accounts now close to zero. You should educate on CD's, bonds, stocks. Maybe read the Boglehead (Vanguard fan forum) 3 fund portfolio book for a quick starter.
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Old 06-18-2020, 03:58 AM   #8
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FIRECalc Results
Looking for a spending level that will result in 95% success rate . . . . . . . . . . . . . . . [done]

A spending level of $78,061 provided a success rate of 95.6% (90 total cycles, of which 4 failed). This spending level is 2.71% of your starting portfolio.
Based on $2,880,000 retirement nestegg ($3m less $120k mortgage paid off), 60 year time horizon and 30% in equities.
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