Share your FIRE Milestones - 2013- 2020
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TOOLMAN
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Reducing my fixed cost of living expenses. Sold one luxury car, and one airplane.
Huston55
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You know, that's a great question. I have not finalized the criteria yet. I know that it will be based on market performance but, I can think of two ways to do it, as listed below.
Cash Stash Replenishment Criteria
Market Up /Flat: replenish MMA and CDs
+ Retains more cash stash over time
+ Better ability to ride out bear markets
- More drag on portfolio
Net Worth Up/Flat: replenish MMA and CDs
+ Simpler and more directly relevant to our personal financial condition
+ Slightly increased gains from bull markets
- Consumes part/all of cash stash more frequently
Based on the info above, I think I will use the "Market Flat or Up" criteria. So, if the market (as represented by the S&P 500) is flat or up for the year, I would replenish the MMA and CD ladder. If the market is down, I would not replenish the CD ladder but, rather, consume the first rung of the ladder. I would follow suit each successive year based on the same criteria. To give credit where credit is due, this approach is based on what I learned from Nords and other posters.
I am very much interested in folks' comments on this approach; the pros and cons, as well as other approaches that you all plan to use.
TimSF
Recycles dryer sheets
Last week, passed the milestone of $3 m net worth, including home equity, thanks to a generous new 'Zestimate.'
Net worth briefly passed $4M this morning before pulling back slightly before the close. On my last trip to Europe, I surveyed the parcels of land that I purchased there as a teenager. The price appreciation on those has been phenomenal.
REWahoo
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You still own them?
Oh yes, I do. The contiguous parcels form a beautiful piece of land with southern exposure, good soil, and a water spring running year round. My lifelong dream has been to build - with my own 2 hands- a small alpine chalet on it.
REWahoo
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Hope your dream comes true!
Congrats! but now I'm confused why you said you were pushing FIRE out another year
With $4M you could draw down $160k per year (@4% SWR), if you buy a $1M house you can still draw down $100k-$120k a year. Just curious is all.
NW-Bound
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I can't help but to barge in here.
If you are OK with just $2M, and possibly 1/2 of the chalet, send FIREd a photo, because that's what he will have left once his still working DW finds out.
I would like $4M and an Alpine chalet in Europe. Are you married FIREd?
If you are OK with just $2M, and possibly 1/2 of the chalet, send FIREd a photo, because that's what he will have left once his still working DW finds out.
Congrats! but now I'm confused why you said you were pushing FIRE out another year
First, $4M is our net worth. About $1.5M of it, I consider non-retirement assets - real estate assets, mostly, that I would rather not monetize unless absolutely necessary (back up plan).
Second, we are only 40 years old, so 4% is not going to work. We plan on spending only the income generated by the rest of our assets ($2.5M), which is currently yielding right under 3%.
After doing some house hunting in the San Francisco area, I am pretty put off by the idea of buying here. So the plan is now to have enough cash flow to keep renting. Based on that, our target budget for retirement in this area would be about $120K a year + income taxes. I estimate that we have to pretty much double our current $2.5M in retirement assets to make this work.
Yes, this plan probably screams heresy in this circle. I am fully aware that we could definitely retire on much less. We could move back into our lovely paid-for house in the south for example and immediately cut our expenses by 60%. But we are enjoying the San Francisco area and would like to have the option to stay. And with our current income, it definitely looks doable within a reasonable amount of time.
I would like $4M and an Alpine chalet in Europe. Are you married FIREd?
Yes, married. And no chalet yet.
NW-Bound said:
Not quite. There is significant non-marital property on my side of the ledger...
NW-Bound
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Someone may offer to help you build that chalet. Just sayin'...
Superior memory, I have. Are people all impressed?
Note that I wrote "possibly", because I remember that you have some inherited real estate that were preferably kept in the family name.Not quite. There is significant non-marital property on my side of the ledger...
Superior memory, I have. Are people all impressed?
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Gotcha, thanks for the clarification. There are plenty of areas between Santa Clara and SF that aren't as pricey but I'm sure you're well aware. Personally though I'd move away from the congestion more towards the newer, more spread out areas even as far as out as HWY 52 (near Gilroy etc). Or the coastal areas. Then again I enjoy elbow room and less frantic life
Gotcha, thanks for the clarification. There are plenty of areas between Santa Clara and SF that aren't as pricey but I'm sure you're well aware. Personally though I'd move away from the congestion more towards the newer, more spread out areas even as far as out as HWY 52 (near Gilroy etc). Or the coastal areas. Then again I enjoy elbow room and less frantic life
The whole peninsula looks crazy expensive to me. But I have my eyes set on Marin County, which is hardly more affordable.
robnplunder
Thinks s/he gets paid by the post
Yes, married. And no chalet yet.
Do you need a butler?
Prices come down quite a bit if you move further north to Sonoma county. We've got two places there...one our family home we've had since 1985 which is currently rented, and the other a duplex we've owned since 2011 which we use as a temporary base during home leave.
TimSF
Recycles dryer sheets
You might want to take a look just further North and West in Sonoma County. $500k buys a nice home up here. I moved here from SF when I ER'ed and love it. A bit rural, beautifully so, but SF is a mere 1 hour drive away.
daylatedollarshort
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Sonoma County has a lot to offer. If we don't move to Southern California we have thought of moving there.
But the lower home prices in Southern California for a different but maybe just as nice lifestyle (milder temps and beaches) are looking very attractive these days.
But the lower home prices in Southern California for a different but maybe just as nice lifestyle (milder temps and beaches) are looking very attractive these days.
Thanks, I will have to take a look at Sonoma county. DW would strongly prefer to stay in San Francisco proper. And I want quieter and more natural surroundings. So Marin was a good compromise. It's also our favorite place to go hiking.
Sounds like what I am looking for actually. Not sure if DW would go for it. I should organize a weekend trip to explore that area.
I did not think that home prices in Southern California would be lower. I am surprised!
daylatedollarshort
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I think for what you get in terms of safety, schools, age of housing, etc. Orange County would be less expensive than most closer in, comparable parts of the Bay Area. The boom in tech jobs has kept the housing supply pretty tight here in most areas. Now even the fringe suburbs are starting to bounce back in price.
I took the list of crimes by city and marked the price per square foot for housing and the OC came out looking really good. San Diego has always been a bit less expensive, at least when tech jobs are not in a bust phase up here.
I think Sonoma is a little cheaper than other parts of the Bay for comparable housing because BART does not go up that far, so it would be a good choice for retirement if you don't need to commute to the city each day, especially with the coastal access and all the lovely parks.
We're still deciding. When we go for a walk in the Redwoods it seems hard to give up living here despite the housing costs.
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Huston55
Thinks s/he gets paid by the post
Well, nice to know you all still enjoy the Bay Area. DW and I just semi-FIREd, and will be moving to Marin around the end of this year/beginning of next year. 
Save a spot for us!
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