FutureFIRE
Confused about dryer sheets
- Joined
- Jul 31, 2016
- Messages
- 6
Been focused on getting my financial house in order since I divorced 12+ years ago. Went from 20-30k in debt to where I am today based on budgeting and investing heavily in 2009. Been lurking on this site for years now while I sit in the background and absorb and then dream about early retirement.
Fast forward to this year, some BS going on at w*rk has accelerated my timetable for early retirement by a few years. The new planned timeline is to retire in October after some bonus/stock items hit. I'll be 46 years old and spouse 44 (wonderful stay at home mom with kid who is about a year old) when we retire.
Few questions I have for you all but some background first:
Plan is to ultimately move to my small condo but since parents live there today the window of that being available is unknown (parents are 80+) so I may need to come back "home" and stay. When we end RVing and parents are still living in condo, we would rent in a place/location of our choosing. So, the house with the mortgage would be put on the market (net worth includes that already). As we will be living in small RV, no need for big expensive apartment. No idea on where we would live but it would be LCOL location since neither of us like the hustle and bustle of big cities.
Health Insurance is my big unknown here, plan would be to use Cobra until end of year and then ACA for future. Based on income would expect subsidy and costs to hover around $6-7k year for that for the family w/ large deductibles (HealthSherpa puts us at $272/month plus usual expenses that focused around 7k for year all in). Based on my research that seems the likely cost but do others feel that is reasonable? That puts annual spend at around 46-52k year but expect some fluctuation in expenses as we adapt to life on the road. We will likely change our residence to Florida while we are on the road and I am yet to look at costs there but am told they offer more plans that I can use around country for roughly same cost model.
The majority (95%+) of individual stock I have is from company I currently work for, will develop a plan to exit those based on long term capital gains and tax burden over the next few years to reduce risk and re-invest those dollars in Vanguard. I'll need some help on tax implications here as I roll into 2021 to ensure I keep my ACA subsidies as I figure out strategy to sell those and move into just Vanguard. I'll post later on that for some guidance after some feedback on above.
I know people say kids are expensive and have that in the back of my mind, but we are living on hand me down clothes, toys, etc. and only bigger costs have been formula, diapers and doctor visits so not sure what huge costs lie ahead (outside of college and potentially vehicles, etc.)
I have run Firecalc and Personal Capital w/ various models, etc. calculator and get 99% or 100% success rates. Either of us can go back to work if needed to cover annual costs if needed (not that we want to). Right now, I am more focused on spending time with kid and getting health; I have gained almost 70lbs in last 5 years as job stress has increased exponentially; and while I make good money I feel time is more valuable especially with a new kid around.
I feel prepared (as I can be) for the mental part of ER with a 1-year old and tons of hobbies and things I like to do in queue I don't think I’ll be bored. I don't expect RVing to add significant costs to budget as gas costs will go up but housing will go down (blend of thousand trails camp membership and boondocking)
Any and all feedback is appreciated!
Fast forward to this year, some BS going on at w*rk has accelerated my timetable for early retirement by a few years. The new planned timeline is to retire in October after some bonus/stock items hit. I'll be 46 years old and spouse 44 (wonderful stay at home mom with kid who is about a year old) when we retire.
Few questions I have for you all but some background first:
Net Worth should be at time of exit roughly 2.3-2.4M if market stays flat:
- Retirement savings will be around 625k in either 401k, HSA or IRAs (plan is to ensure full 401k investment before exit)
- Taxable investments will be around 1.1M (400k in individual company stock, 700k in Vanguard 3-fund portfolio of VTSAX, VBTLX and VTIAX)
- Cash currently sitting at 350k (various CDs, high yield savings, etc.) Average return around 2%. Was being kept to sell of house and purchase some stock options but not with improved timeline re-evaluating. AA is a little lopsided due to this but generally around 75/25 has been target vs the 66/33 where I am today
- Own (2) homes, one with $150k balance on mortgage (@3.25%) and second home/condo is owned outright but parents currently live there. Total value for homes is around 450k.
- Sources of income in retirement are just investment income, interest, etc. Expect $2.2k or so of Social Security when that time hits.
- We spend on average around 40k-45k/year on day to day living (including mortgage which is $1200/month) and it has been that way for years (5+). We are generally pretty frugal people all around.
- Have 529 started with small investment, we are OK with child taking out student loans if needed both of us were raised that way.
- After resigning and getting some things in order plan to purchase a RV and travel for 1+ years with wife and child. I have RV'd in past and love it and wife loves idea, we will do a few test drives with brother’s RV before we leave to validate we both really do want this.
- We both committed to 1 year minimum since we need to purchase travel trailer and truck for trip but want to see 49 states so it will likely take 2-3 years. Guestimating at 55k (minus 17k for selling existing vehicles, so 38k) investment for truck/trailer of which truck would be day-to-day driver if we continue RVing or not.
- We do plan to blog/YouTube our trip but are not expecting any income for that, more focused on telling friends and family about our journey
- We are more outdoor hiking, national park type people that seeing every tourist trap around the US.
Plan is to ultimately move to my small condo but since parents live there today the window of that being available is unknown (parents are 80+) so I may need to come back "home" and stay. When we end RVing and parents are still living in condo, we would rent in a place/location of our choosing. So, the house with the mortgage would be put on the market (net worth includes that already). As we will be living in small RV, no need for big expensive apartment. No idea on where we would live but it would be LCOL location since neither of us like the hustle and bustle of big cities.
Health Insurance is my big unknown here, plan would be to use Cobra until end of year and then ACA for future. Based on income would expect subsidy and costs to hover around $6-7k year for that for the family w/ large deductibles (HealthSherpa puts us at $272/month plus usual expenses that focused around 7k for year all in). Based on my research that seems the likely cost but do others feel that is reasonable? That puts annual spend at around 46-52k year but expect some fluctuation in expenses as we adapt to life on the road. We will likely change our residence to Florida while we are on the road and I am yet to look at costs there but am told they offer more plans that I can use around country for roughly same cost model.
The majority (95%+) of individual stock I have is from company I currently work for, will develop a plan to exit those based on long term capital gains and tax burden over the next few years to reduce risk and re-invest those dollars in Vanguard. I'll need some help on tax implications here as I roll into 2021 to ensure I keep my ACA subsidies as I figure out strategy to sell those and move into just Vanguard. I'll post later on that for some guidance after some feedback on above.
I know people say kids are expensive and have that in the back of my mind, but we are living on hand me down clothes, toys, etc. and only bigger costs have been formula, diapers and doctor visits so not sure what huge costs lie ahead (outside of college and potentially vehicles, etc.)
I have run Firecalc and Personal Capital w/ various models, etc. calculator and get 99% or 100% success rates. Either of us can go back to work if needed to cover annual costs if needed (not that we want to). Right now, I am more focused on spending time with kid and getting health; I have gained almost 70lbs in last 5 years as job stress has increased exponentially; and while I make good money I feel time is more valuable especially with a new kid around.
I feel prepared (as I can be) for the mental part of ER with a 1-year old and tons of hobbies and things I like to do in queue I don't think I’ll be bored. I don't expect RVing to add significant costs to budget as gas costs will go up but housing will go down (blend of thousand trails camp membership and boondocking)
Any and all feedback is appreciated!