As a lurker for a couple of years that is approaching FIRE in our future, I feel compelled to finally make my introduction and join the conversation! I enjoy reading the forums daily, always taking away some education and more importantly motivation!
My wife and I are 40 and have two teenagers. We are starting to really look at what we want to do once the kids enter college. We have a target of retiring at 44, or at least being in position to make decisions about a “reduction in labor.”
I started my own business at a young age and have seen it grow continuously and significantly for two decades, but I am really ready to step away, but the entrepreneur and saver in me may struggle with moving from the saving mode to spending mode. My wife works part-time in a professional office.
We paid off the final $85,000 on our mortgage in 2010 (home value about $250,000 now). The stock market would have provided some pretty nice returns over the last 2 ½ years since we paid it off, but I wouldn’t trade the peace of mind having a paid for home!
Our investments total about $2,200,000. Detailed below. A recent report had 97% in stocks , 3% in REITs. In 2009, we decided to enlist the help of a fee-only registered investment advisor. Holdings include Vanguard funds, ETFs, etc.
Joint Acct: $1,294,000
Simple IRA: $224,000
Her 401k: $89,000
IRAs: $220,000
HSA: $53,000
(we cash flow medical expenses and max out our HSA contribution)
Cash: $77,000
Kids CSP: $115,000
(no longer adding to CSP, will cash flow any additional expenses)
Kids UTMA: $75,000
I’ve read some milestone threads, and may throw these there too, but here are some of our noteworthy milestones along our journey:
$40,000 in investments at age 25
$1m in investments at 34
Paid off mortgage early at 37
$2m in investments at 39
$2.2m in investments currently
We are fortunate to have a large shovel. In 2012, we added $180,000 to our investments, $177k in 2011 and $100k in 2010k (plus $85k to payoff mortgage). In the last 9 years we’ve averaged adding $117k to our investments.
We have been very fortunate, but we’ve also been very good savers. I started investing $50 and $100 per month to a few Vanguard funds and as my salary increased, we added to our level of investing.
In 1998, we were in our mid-20’s and stuck $18k into our retirement and taxable accounts. In 2012, we hit a new personal best by adding $180k to our investments.
Our spending is in the $75,000-$80,000 ballpark.
One scenario I am considering with my business is to reduce my work down to a low stress 4-5 months per year and maintain a salary of about $100,000. My thoughts are leaning towards cutting back the business when I am 43 or 44 and then maintain the remaining business until about age 47-50.
I’ve run FIRECALC with various numbers and usually it shows 100% success rate in 91 cycles. The numbers I’ve entered would be to work 4 more years (investing $100k each year), then I put in a lump sum contribution the next 3 years (reduced work) that would mean we would not tap into investments until 2020 (age 47).
Thanks to everyone that contributes to the forums and provides guidance, ideas & their own experiences for us to consider & learn from.
2017 Hopeful?!
My wife and I are 40 and have two teenagers. We are starting to really look at what we want to do once the kids enter college. We have a target of retiring at 44, or at least being in position to make decisions about a “reduction in labor.”
I started my own business at a young age and have seen it grow continuously and significantly for two decades, but I am really ready to step away, but the entrepreneur and saver in me may struggle with moving from the saving mode to spending mode. My wife works part-time in a professional office.
We paid off the final $85,000 on our mortgage in 2010 (home value about $250,000 now). The stock market would have provided some pretty nice returns over the last 2 ½ years since we paid it off, but I wouldn’t trade the peace of mind having a paid for home!
Our investments total about $2,200,000. Detailed below. A recent report had 97% in stocks , 3% in REITs. In 2009, we decided to enlist the help of a fee-only registered investment advisor. Holdings include Vanguard funds, ETFs, etc.
Joint Acct: $1,294,000
Simple IRA: $224,000
Her 401k: $89,000
IRAs: $220,000
HSA: $53,000
(we cash flow medical expenses and max out our HSA contribution)
Cash: $77,000
Kids CSP: $115,000
(no longer adding to CSP, will cash flow any additional expenses)
Kids UTMA: $75,000
I’ve read some milestone threads, and may throw these there too, but here are some of our noteworthy milestones along our journey:
$40,000 in investments at age 25
$1m in investments at 34
Paid off mortgage early at 37
$2m in investments at 39
$2.2m in investments currently
We are fortunate to have a large shovel. In 2012, we added $180,000 to our investments, $177k in 2011 and $100k in 2010k (plus $85k to payoff mortgage). In the last 9 years we’ve averaged adding $117k to our investments.
We have been very fortunate, but we’ve also been very good savers. I started investing $50 and $100 per month to a few Vanguard funds and as my salary increased, we added to our level of investing.
In 1998, we were in our mid-20’s and stuck $18k into our retirement and taxable accounts. In 2012, we hit a new personal best by adding $180k to our investments.
Our spending is in the $75,000-$80,000 ballpark.
One scenario I am considering with my business is to reduce my work down to a low stress 4-5 months per year and maintain a salary of about $100,000. My thoughts are leaning towards cutting back the business when I am 43 or 44 and then maintain the remaining business until about age 47-50.
I’ve run FIRECALC with various numbers and usually it shows 100% success rate in 91 cycles. The numbers I’ve entered would be to work 4 more years (investing $100k each year), then I put in a lump sum contribution the next 3 years (reduced work) that would mean we would not tap into investments until 2020 (age 47).
Thanks to everyone that contributes to the forums and provides guidance, ideas & their own experiences for us to consider & learn from.
2017 Hopeful?!
