We are currently 31 and soon to be 35 those ages are the projected retirement ages[emoji12]
Gotcha, not far off from our projected ages of 50 and 54.
We are currently 31 and soon to be 35 those ages are the projected retirement ages[emoji12]
Congrats cyber888! great progress in 7-8 months. Is your target $1M at 57 before FIRE?
I had that problem too. When I was in college and knew nothing about finance, I thought $1 million was a lot and a cool round number. Then I realized you have to actually pay taxes, so I thought $1.3 million would do it. Then I graduated, went on to professional school, bought a house and a car. Thought I really needed $3 million to maintain the lifestyle and have some cushion. As I entered my peak earning years, I sensed that my colleagues would consider that amount the minimum savings they would consider retiring on, that $5 million was more the normal (without any pension or other benefits).
So I finally said I need to stop these financial mind games, stop comparing myself to my wealthier colleagues, and determine what I and DH need to retire comfortably with a sufficient cushion for unexpected expenses. And that time is this year end.
I have two possibilities to my number:
1) FIRE in 2-3 years with at least 1.5M after selling the house. Then live abroad (Mexico, probably) for about 7 years at 2.5% WR. After living on a low WR for several years, then potentially moving back to the states and bumping to around a 4.5% WR until age 70 when SS kicks in.
2) Stay where we are and FIRE in 6 years (+/- a year) around 1.8M plus paid off house. DW may continue to work p/t for a few years in that case, until youngest out of the home.
Currently at around 850k plus 300k equity and adding 60k/yr in savings and 20k/yr in equity. We expect around 75-80k/yr at age 70 in SS and we also have a 12k/yr pension at 65. Safety net includes living abroad longer and also very strong possibility of 200-500k in inheritance.
I have two possibilities to my number:
1) FIRE in 2-3 years with at least 1.5M after selling the house. Then live abroad (Mexico, probably) for about 7 years at 2.5% WR. After living on a low WR for several years, then potentially moving back to the states and bumping to around a 4.5% WR until age 70 when SS kicks in.
2) Stay where we are and FIRE in 6 years (+/- a year) around 1.8M plus paid off house. DW may continue to work p/t for a few years in that case, until youngest out of the home.
Currently at around 850k plus 300k equity and adding 60k/yr in savings and 20k/yr in equity. We expect around 75-80k/yr at age 70 in SS and we also have a 12k/yr pension at 65. Safety net includes living abroad longer and also very strong possibility of 200-500k in inheritance.
80k social security? I hope you are talking about inflated dollars. Max is ~2600 today pp.
FIRE in 2-3 years with at least 1.5M after selling the house. Then live abroad (Mexico, probably) for about 7 years at 2.5% WR. After living on a low WR for several years, then potentially moving back to the states and bumping to around a 4.5% WR until age 70 when SS kicks in.
How were those 2 years? Any valuable lessons learned that you would like to share?It's uncanny how close we are to the exact circumstances. We gave Mexico a test run for a couple years and returned 2 years ago. I would highly recommend doing something like that.