Vagabond2020
Recycles dryer sheets
- Joined
- Mar 8, 2014
- Messages
- 53
Investable assets just cracked $313k
+$100k in the last 12 months.
+$100k in the last 12 months.
Investable assets just cracked $313k
+$100k in the last 12 months.
Maybe I am missing it, and if so I am sorry, but don't you have your assets in pre tax accounts? If so, how will you access the money if you retire before 59.5 for roth IRA or 55 if you stay on the job for your 401k? But you are doing great. Way ahead of me when I was your age. Your killing it, Keep it up. However, to retire really early you will need significant taxable accounts or you could use the equal periodic payments for Roth IRA, but for the 401k I don't know if there is a loop hole.Broke through this goal last month!
Investable assets are now up to ~$220k, which at a 4% SWR means income of ~$730/month......covers my rent/utilities & a frugal monthly grocery budget.
Slowly but surely getting there!!
Your path is eerily similar to mine, got my first corporate job at 26, retail with Home Depot, and said to myself that I would retire by 40. I put my nose to the grinding wheel and made dept manager in 4 months, Max'd out the stock purchase plan and walked out with $80k in stock in 4 years. I hated school, never went to college and graduated HS with a D- average, suffice to say I did manage to fire 9 years ago at 39 years old
Why did you get banned on the other site you used to frequent?
Nice, congrats! you're doing great...
Congrats and thanks for the updates.
Maybe I am missing it, and if so I am sorry, but don't you have your assets in pre tax accounts? If so, how will you access the money if you retire before 59.5 for roth IRA or 55 if you stay on the job for your 401k? But you are doing great. Way ahead of me when I was your age. Your killing it, Keep it up. However, to retire really early you will need significant taxable accounts or you could use the equal periodic payments for Roth IRA, but for the 401k I don't know if there is a loop hole.
Your path is eerily similar to mine, got my first corporate job at 26, retail with Home Depot, and said to myself that I would retire by 40. I put my nose to the grinding wheel and made dept manager in 4 months, Max'd out the stock purchase plan and walked out with $80k in stock in 4 years. I hated school, never went to college and graduated HS with a D- average, suffice to say I did manage to fire 9 years ago at 39 years old
Why did you get banned on the other site you used to frequent?
I posted a link to an article and was deemed a spammer
Very cool to read this. I'm 27 so this is inspiring.
Background: Been out of college with a Master's since Dec. 2015. Just came across this site. My FIRE goal is 50 w/ $5M nest egg. Married. DINK.
Currently This is where I am at.
Mid to high 90’s salary (wife + me) plus some incentive compensation (variable)
Paying off ~$2k/month in consumer debt
Budget is $5k/month in KC area.
Currently at $30k Investable Assets
Currently at $40k Consumer Debt
Currently at $215k Mortgage
On track to have consumer debt paid off by EOY. 2019 and beyond will max Roth IRA's and 401k.
Thanks for the feedback everyone. It's nice to know we are not alone out there (though at times it feels like in my circle of friends/family)
Did everyone survive the market correction?
Sitting @ $375k net worth. That's $15k/yr @ 4% draw down.
Spending for 2017 came in @ $24k, therefore I am able to cover 62% of my actual spending through investments.
Another one, I'm 25 and most people tell me I am "nuts" either directly or indirectly if they realize I am working on that.This. Lately, I've been feeling like I'm the only person I know who is on the path to FIRE. None of my friends nor my parents know. But you just gotta keep going. I'm glad there's a supportive and knowledgeable community for this.
That's really good! Keep it up!
Thanks, it's good to have benchmarks.When I was in my 30s and told a visiting friend (just a bit younger) about my wife's and my plan for financial independence and early retirement, he responded, "BB, I would never dare to ask so much from life," and then went off to bed with full confidence that ours was a pipe dream.
Well, we asked and we got it; he's still a wage slave. Don't let others write your script!
-BB
Thanks, it's good to have benchmarks.
I decided to take my foot off the pedal for a bit in 2020. Taking a sabbatical starting April 1 2020 for 9-12 months.
Nice to see some activity in here.
OP checking in.
Just cracked $400k NW ($500k combined with SO).
We are definitely taking 9-12 months off in 2020! Currently spending a combined $36-40k/yr so we are sitting on ~12-15 years of assets.
Would need about 1.25 mil and no desire to increase lifestyle to retire - at around 100k/yr that’s 7 more years? If they want a break in 1.5 years it’s not like they could delay it for just a bit longer and retire.
With $320k increase in assets over the past ~3 years, and knowing that it will likely accumulate even faster (more money grows faster than less money after all) going forward, I'm wondering why you're only considering a sabbatical in a couple years when you could be looking at having the ability to FIRE by working just a couple more years?
Would need about 1.25 mil and no desire to increase lifestyle to retire - at around 100k/yr that’s 7 more years? If they want a break in 1.5 years it’s not like they could delay it for just a bit longer and retire.
If they had a desire to increase their lifestyle they could do so now as they make a lot more than they spend, so I assume that isn't currently a desire. To withdraw $36k/year at 4% he'd need $900k. Alone, he's already at $400k. $60k/year (which probably is pretty close to what he's been putting away) in contributions with 7% growth gets him all to that $900k by 2023, just 3 years later than the sabbatical.
The spending is also "combined" so they're, together, actually even closer. Starting at $500k (combined), putting $65k/year at 7% gets them to ~$940k after just 4 years (about 2 years later than the sabbatical). Wait until 5 years and they're closer to $1.1M
Not many people will suggest using a 4% swr for a 31? Year old - especially after such a long bull market. 3-3.5% seems much more realistic.
At their age, that is a big decision to make about never wanting to increase spending. Do/will they have kids?
7% growth is very optimistic for the next 5 years. That is the historic average for stock returns (after inflation) but if I were retiring in 5 years I would have around 30% bonds and those currently yield almost nothing after inflation so I can’t support making big life decisions on 7%.
Without additional funds, there is limited room for unaccounted for items - health insurance. If the ACA stays around and IF they can get subsidies, how much will oop be? Will they stay married? What about big expenses? (Roof, car accident, etc). There are people who advocate retiring with 400k and live in Thailand off of $1k/mo. I prefer to plan for more than my immediate-5 year plan but account for what I will need throughout my lifecycle. If one of them needs long term care wiping out their savings is the surviving spouse going to live on SSI only with a Work history of 8 years and no savings (spent on care)
This. Lately, I've been feeling like I'm the only person I know who is on the path to FIRE. None of my friends nor my parents know. But you just gotta keep going. I'm glad there's a supportive and knowledgeable community for this.
That's really good! Keep it up!