Life_by_Fire
Dryer sheet aficionado
- Joined
- Apr 14, 2021
- Messages
- 35
Hello everyone! I recently found this forum and have been enjoying reading the threads. I love the support and advice given and am hoping to get some of that for myself.
As the title indicates, my wife and I are 32 and hope to FIRE by 2030. We have a 2.5 and 1.5 year old and want to spend as much time developing their education and life experiences as we can.
A snapshot of our assets:
Inherited IRAs (Pre Secure Act)
401ks
Roth IRAs
Cash ~$70,000 with another ~$90,000 once estate is closed.
Our home is valued at approx 270k due to recent surge in demand (more realistic is 240k). We purchased for 187k and owe 163k.
Total investable assets ~$1.55 million not including the estate money.
Plan
We will feel comfortable pulling the plug with $5 million in investable assets. Our current expenses are around $6,000 a month but this will likely grow when we move into a bigger home within the next 6-9 months. We have no debt other than the mortgage. We focused on paying down student loans which has been a big relief since we finished those.
We plan to invest/save approximately $70,000 per year moving forward until we leave our j*bs. This money will be invested in the 401ks, Roth IRAs, Brokerage Account, and savings account. The RMDs from the Inherited IRAs will be put into a brokerage account. This year the RMDs total ~$23,000.
I currently have a real estate side hustle that I intend to spend much more time doing once I FIRE. This is something I find very interesting and will keep me active and mentally stimulated. My wife has several hobbies she will pursue that may or may not bring in any income but will give her fulfillment. We also plan to travel with the kids and be involved in their extracurricular activities. So we will not be bored and spending our days becoming couch potatoes.
FIRE Expenses and Income
Health coverage will be a significant expense in retirement as the RMDs will likely be approaching 6 figures by then. Since 2030 is so far away, I can't make a reasonable estimate of what the expenses will be.
I would like to have the ability to sustainably live on $200,000 pretax. Not saying that will be our actual expenses but it is a number with enough of a buffer that I never have to worry. I think of the RMDs from the Inherited IRAs as a pseudo pension since it is money that will have to be withdrawn every year. I also hope to have income available from the real estate business to use in lieu of pulling from brokerage.
So with all that rambling, how do we look currently? What things do we need to consider given the amount of time between now and 2030? There are lots of holes, how do I plug them?
Thank you in advance!
As the title indicates, my wife and I are 32 and hope to FIRE by 2030. We have a 2.5 and 1.5 year old and want to spend as much time developing their education and life experiences as we can.
A snapshot of our assets:
Inherited IRAs (Pre Secure Act)
- Total a little over 1.3 million (these grew by ~40% in 2020)
401ks
- Standard ~93,000
- Roth ~$8,000
Roth IRAs
- ~$82,000
Cash ~$70,000 with another ~$90,000 once estate is closed.
Our home is valued at approx 270k due to recent surge in demand (more realistic is 240k). We purchased for 187k and owe 163k.
Total investable assets ~$1.55 million not including the estate money.
Plan
We will feel comfortable pulling the plug with $5 million in investable assets. Our current expenses are around $6,000 a month but this will likely grow when we move into a bigger home within the next 6-9 months. We have no debt other than the mortgage. We focused on paying down student loans which has been a big relief since we finished those.
We plan to invest/save approximately $70,000 per year moving forward until we leave our j*bs. This money will be invested in the 401ks, Roth IRAs, Brokerage Account, and savings account. The RMDs from the Inherited IRAs will be put into a brokerage account. This year the RMDs total ~$23,000.
I currently have a real estate side hustle that I intend to spend much more time doing once I FIRE. This is something I find very interesting and will keep me active and mentally stimulated. My wife has several hobbies she will pursue that may or may not bring in any income but will give her fulfillment. We also plan to travel with the kids and be involved in their extracurricular activities. So we will not be bored and spending our days becoming couch potatoes.
FIRE Expenses and Income
Health coverage will be a significant expense in retirement as the RMDs will likely be approaching 6 figures by then. Since 2030 is so far away, I can't make a reasonable estimate of what the expenses will be.
I would like to have the ability to sustainably live on $200,000 pretax. Not saying that will be our actual expenses but it is a number with enough of a buffer that I never have to worry. I think of the RMDs from the Inherited IRAs as a pseudo pension since it is money that will have to be withdrawn every year. I also hope to have income available from the real estate business to use in lieu of pulling from brokerage.
So with all that rambling, how do we look currently? What things do we need to consider given the amount of time between now and 2030? There are lots of holes, how do I plug them?
Thank you in advance!