I'm getting close and looking at this summer for my FIRE date (unless offered part time in which case I may stick around to help with transition/pad my cash stash). I will probably earn a little bit having fun in FIRE (bar-tending, leading tours, brewery assistant) but not planning on it. I'd appreciate any insights/advice/rocks you'd like to throw at my situation:
47 Male, Single, Own home outright (HOA responsible for exterior M&R)
My plan is to live off of cash for the balance of 2021 and 2022. Starting in 2023 I will withdraw from my Taxable Investments until they reach about 5X expenses (projected in 2025 if I earn no fun money). At that point, I will start SEPP withdrawals from TSP using expected life expectancy as my payout should increase with my portfolio and mortality. This should also help mitigate excessive RMDs later (if my portfolio does well, this could exceed my expenses in which case I would probably reinvest in my taxable account or Roth if I have any earned income). Shortfalls would be made up with my remaining taxable/cash balance as makes sense at the time, my Roth contributions would be available too if needed. I will take a deferred annuity which will pay about $25K/yr pretax in then-year money starting on my 60th birthday which will be inflation adjusted after age 62. I projected this out in a spreadsheet assuming a 30% market drop the day I FIRE and only 2.5% real returns thereafter (linear but I think 2.5% after a 30% drop is fairly conservative).
Expenses:
2020 Real $35,620 (includes mine and employer paid portion of HI and a sinking fund for auto/HH Maintenance)
2022 Projected $44,900 (Includes full cost of HI on marketplace, projected income taxes, and sinking fund for auto/HH Maintenance; probably conservative)
Off Balance Sheet: HSA ~$40K that I expect to fund in FIRE, Value of home ~$300K realizable
I feel like I'm good but I don't feel good (Nerves). Big decision and not easily reversible. Appreciate the peer review, insights, and encouragement (I hear the water is fine)!
FLSunFIRE
47 Male, Single, Own home outright (HOA responsible for exterior M&R)
My plan is to live off of cash for the balance of 2021 and 2022. Starting in 2023 I will withdraw from my Taxable Investments until they reach about 5X expenses (projected in 2025 if I earn no fun money). At that point, I will start SEPP withdrawals from TSP using expected life expectancy as my payout should increase with my portfolio and mortality. This should also help mitigate excessive RMDs later (if my portfolio does well, this could exceed my expenses in which case I would probably reinvest in my taxable account or Roth if I have any earned income). Shortfalls would be made up with my remaining taxable/cash balance as makes sense at the time, my Roth contributions would be available too if needed. I will take a deferred annuity which will pay about $25K/yr pretax in then-year money starting on my 60th birthday which will be inflation adjusted after age 62. I projected this out in a spreadsheet assuming a 30% market drop the day I FIRE and only 2.5% real returns thereafter (linear but I think 2.5% after a 30% drop is fairly conservative).
Expenses:
2020 Real $35,620 (includes mine and employer paid portion of HI and a sinking fund for auto/HH Maintenance)
2022 Projected $44,900 (Includes full cost of HI on marketplace, projected income taxes, and sinking fund for auto/HH Maintenance; probably conservative)
Assets (Current balances): |
TSP (42%C/42%S/16%I): $1,141,250 |
Roth IRA (Small Cap): $332,430 |
Non-Ded IRA (Small Cap): $5,290 |
Taxable (Total Market): $291,530 |
Cash: $61,214 (will increase by $30K with savings/vacation pay out) |
Total: 1,831,700 |
I feel like I'm good but I don't feel good (Nerves). Big decision and not easily reversible. Appreciate the peer review, insights, and encouragement (I hear the water is fine)!
FLSunFIRE
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