So I got the dreaded call from my boss and HR last week that I will be laid off at the end of the month due to Covid since my company is not doing well. I wasn't too surprised as I work in corporate for a hospitality industry so I knew layoffs were coming soon. I've always been frugal and had FIRE in the back of my mind ever since I graduated from college, but after running the numbers I am leaning towards FIREing vs. finding another job and am hoping to get some validation before I take this leap of faith.
Below are some of my key numbers:
Single: 38 years old
Paid off condo: $500,000
Cash/Investments: $1,500,000
Retirement: $500,000
HCOL Area projected monthly expenses: $3,500
Assuming I use a little bit more conservative approach of 3.5% withdraw rate so I would get $52,500 or $4,375 so that should cover my expenses? But I would have to take taxes into consideration (how is this done)?
I currently set aside about $400 for medical insurance monthly is that enough? Reasonably healthy with no pre-existing condition
Taxes and insurance have me kind of worried since I'm not quite sure how to estimate them any pointers would be appreciated and if there is anything else I should think about before I FIRE. Thanks!
Below are some of my key numbers:
Single: 38 years old
Paid off condo: $500,000
Cash/Investments: $1,500,000
Retirement: $500,000
HCOL Area projected monthly expenses: $3,500
Assuming I use a little bit more conservative approach of 3.5% withdraw rate so I would get $52,500 or $4,375 so that should cover my expenses? But I would have to take taxes into consideration (how is this done)?
I currently set aside about $400 for medical insurance monthly is that enough? Reasonably healthy with no pre-existing condition
Taxes and insurance have me kind of worried since I'm not quite sure how to estimate them any pointers would be appreciated and if there is anything else I should think about before I FIRE. Thanks!