Share your FIRE Milestones - 2013- 2020

[G8tr]

What's your FI goal? Seems like that might be plenty, but I can understand if you're earning large and want to make hay while the sun shines....

Quote:

Originally Posted by anothercog Just added everything up, accounts (excluding 529 plans) plus home equity crossed the $6M mark. If the markets keep up this pace for a few more years I'll hit my FI goal. However, if past is prelude, whenever I start marveling at my account performance the markets tank soon thereafter.

[anothercog]

Quote:

Originally Posted by G8tr What's your FI goal? Seems like that might be plenty, but I can understand if you're earning large and want to make hay while the sun shines....

FI goal is $6M in investible assets. Right now I'm at around $4.4M, the rest is home equity. SF Bay Area is expensive but DW and the kids don't want to move. Also, I want to travel a lot in retirement and I can't really do that until my kids are done with school. Youngest is in 6th grade now so not much point in calling it quits for another 6-7 years.

[G8tr]

Quote:

Originally Posted by anothercog FI goal is $6M in investible assets. Right now I'm at around $4.4M, the rest is home equity. SF Bay Area is expensive but DW and the kids don't want to move. Also, I want to travel a lot in retirement and I can't really do that until my kids are done with school. Youngest is in 6th grade now so not much point in calling it quits for another 6-7 years.

In a similar boat as you (kids are a little younger) and we're in our prime earning years. DW and I also want to travel extensively and enjoy adult-level activities, such as wine, museums, tours, etc... These things aren't really appropriate (or enjoyable) with young kids in tow. Did a trial run of some last year and it took all of 30 minutes for the complaining to begin. Need the kids to go off to sleep away camp (Covid-19 kiboshed this year) to try again.

[RxMan]

Not really a milestone but looking at my most recent paystub online I realized I’ve maxed out the 401k individual contribution limit for 2020. Feels good to take full advantage of that savings opportunity. I’ve also had my last Roth IRA contribution for the year transferred from my bank account so I’ve now officially maxed out my Roth IRA for the year.

I do wonder if I need to start shifting more towards taxable contributions. I’m concerned about access to my money if I can manage to retire prior to 59.5 years old. If I can retire at say 52-55 years old I’ve got to figure out where living expenses will come from for those years I won’t have access to my retirement savings.

[Lawrencewendall]

Quote:

Originally Posted by RxMan Not really a milestone but looking at my most recent paystub online I realized I’ve maxed out the 401k individual contribution limit for 2020. Feels good to take full advantage of that savings opportunity. I’ve also had my last Roth IRA contribution for the year transferred from my bank account so I’ve now officially maxed out my Roth IRA for the year. I do wonder if I need to start shifting more towards taxable contributions. I’m concerned about access to my money if I can manage to retire prior to 59.5 years old. If I can retire at say 52-55 years old I’ve got to figure out where living expenses will come from for those years I won’t have access to my retirement savings.

You need to check with HR and see if your 401k has the "Rule of 55". If it does, you don't have to wait until 59.5. You can retire in the year you turn 55 and start drawing from it penalty free.

[RxMan]

Quote:

Originally Posted by Lawrencewendall You need to check with HR and see if your 401k has the "Rule of 55". If it does, you don't have to wait until 59.5. You can retire in the year you turn 55 and start drawing from it penalty free.

I’ve read through the plan materials and it doesn’t mention this but you’re right. I should call HR to ask if my plan has the Rule of 55 provision.

[Huston55]

Quote:

Originally Posted by RxMan Not really a milestone but looking at my most recent paystub online I realized I’ve maxed out the 401k individual contribution limit for 2020. Feels good to take full advantage of that savings opportunity. I’ve also had my last Roth IRA contribution for the year transferred from my bank account so I’ve now officially maxed out my Roth IRA for the year. I do wonder if I need to start shifting more towards taxable contributions. I’m concerned about access to my money if I can manage to retire prior to 59.5 years old. If I can retire at say 52-55 years old I’ve got to figure out where living expenses will come from for those years I won’t have access to my retirement savings.

“Yes” is the answer. Asset ‘location’ is almost as important as asset ‘allocation.’ Having a solid mix of tax deferred (401k/403b, Trad IRA, SEP IRA, etc), tax free (Roth IRA, Roth 401k), and taxable (brokerage accounts) assets provides a lot of flexibility regarding withdrawal timing and tax management. Additionally, if you’re like most folks, you’re currently in your highest earning years. So, it should be possible for you to sock away big $$$ in a brokerage account.

Edit: when rereading your post, I noticed that you said “...start shifting more towards taxable contributions.” If you mean instead of tax advantaged contributions, I think not. But, if you mean after maxing out annual tax advantaged contributions, I think so. This is what I recommend, given that you seem to be able to do so based on your post.

[ugeauxgirl]

Quote:

Originally Posted by Lawrencewendall You need to check with HR and see if your 401k has the "Rule of 55". If it does, you don't have to wait until 59.5. You can retire in the year you turn 55 and start drawing from it penalty free.

The rule of 55 is an IRS provision, not a plan feature.

[Bigdawg]

Quote:

Originally Posted by ugeauxgirl The rule of 55 is an IRS provision, not a plan feature.

True, but a plan isn't required to support that IRS rule. My plan does, but it is an all or nothing draw once you stop working. Have to check the SPD (summary plan description).

[Lawrencewendall]

Quote:

Originally Posted by ugeauxgirl The rule of 55 is an IRS provision, not a plan feature.

Not from my understanding. Each 401k can be set up differently and how they report distributions to the IRS is what matters. Code 7, if I remember correctly.

[Vincenzo Corleone]

New personal high today. And I'm sure I'm in good company. Congratulations to all!

[Retch The Grate]

Well, it is kind of an anti-milestone since it moved us a further from being FIREd even though our net worth is still the same, but we got the keys to our first house last night.

Pro: Wife gets to nest and we have a lot of space in a fantastic location (technically a suburb of SF, the city line is at the end of our block) that should be perfect for parties, board game nights, etc. and even nicer than our current place for work from home, cooking, and having houseguests.

Con: That's a million dollars not invested productively and the first long term debt I've ever had, a maxed out conforming loan which is $765,600 in the bay area. And COVID means no entertaining yet so we won't really get to put it to use for all the things we want for a while...

I'm definitely feeling a bit mixed, I'm excited about the house but it is weird to look at my Vanguard account and see a tiny amount of money in the after-tax investments when that used to be the largest. I'll need to focus on refilling that.

[retired1]

Quote:

Originally Posted by racy We paid off the mortgage yesterday! We started making big extra payments January 2010 on our 5.25% loan to get rid of the mortgage at my retirement. We didn't reduce our monthly expenses however: we've lost the mortgage payment but replaced it with a health care premium that's the same amount of money....

Congratulations. It's a good feeling to have no mortgage ! we did the same and knocked off mortgage last year. Feels great to have no debt.

[G8tr]

Just out of curiosity, why didn't you refinance at a lower interest rate during that time?

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Originally Posted by retired1 Congratulations. It's a good feeling to have no mortgage ! we did the same and knocked off mortgage last year. Feels great to have no debt.

[old medic]

Paid off my 401K loan, pushing its balance over 100K
Set my retirement date so my check will be about $3k a month.
Just 166 more shifts to go...

[thatguy]

I just got the notice. My adjustable rate mortgage mortgage will be 2.625% for the following year.

[cyber888]

1) Firecalc says if I retire at the start of 2021 for 40 years, Firecalc says I'm at 100% with 0 additional savings contribution, 70/30 allocation. 2) Fidelity says score is 106 - with money left 3) Approved for a 2.24% home equity line, closing January ( zero closing cost). Am I "FI" .. I don't feel like it - Aiming for 2 more years of work.

[The Cosmic Avenger]

Quote:

Originally Posted by The Cosmic Avenger Hit $3M in investments, $3.5M NW again. I knew we would reach it again, but we had just barely hit it Sept. 2, and that was our high point until now. This has me thinking maybe I shouldn't go back to work....or at least definitely take my time looking.

Well, that was fast....now at $3.2M and $3.7M, respectively!

[almosttime]

Hit a nice milestone today. Paid off our interest free car loan yesterday. Retiring in three months!! Happy Dance at our house!

[The Cosmic Avenger]

Quote:

Originally Posted by almosttime Hit a nice milestone today. Paid off our interest free car loan yesterday. Retiring in three months!! Happy Dance at our house!

Congrats on both! Next month is our last payment on our 0% loan, too, so I can imagine how good that feels, I've been looking forward to this for months now!