Aiming_4_55
Thinks s/he gets paid by the post
Over the last few years, the annual budget has averaged about $55k, confirmed with actual expense tracking. Sure a few one time extra expenses took place, emergency funds available for future life issues.
Would this be considered FI? Would you ER?
At 42: Budget / Expenses 65k - Net Rental Income 30k = Needed from Investments 35k
At 55: Budget / Expenses 65k - Net Rental Income 30k - Pension 10k = Needed from Investments 25k
At 62: Budget / Expenses 65k - Net Rental Income 30k - Pension 10k - SSN (not including DW's) 18k = Needed from Investments 7k
Other details - family of 4, 2 young kids, no mortgage, college fund sitting at 50k, but monthly contribution in budget, additional rental income available but currently used to help Mom with retirement and enjoyment.
Current investments are about 1M depending on the market movement, a tad high on equities (75% equities/20% bonds/5% cash) - but can change asset allocation if ER. I would estimate SWR would be 3.5% but decreasing in the future.
BTW - the budget accounts for increased medical expense, net rental income includes taxes paid, rental expenses, estimated vacancies, etc. Not extremely conservative budget, so things can be trimmed or reduced, but enjoying life as is.
I'll be starting a new job next week and collecting severance from a job elimination situation, but just thinking.... am I FI at age 42? or did I miss something major ?
Would this be considered FI? Would you ER?
At 42: Budget / Expenses 65k - Net Rental Income 30k = Needed from Investments 35k
At 55: Budget / Expenses 65k - Net Rental Income 30k - Pension 10k = Needed from Investments 25k
At 62: Budget / Expenses 65k - Net Rental Income 30k - Pension 10k - SSN (not including DW's) 18k = Needed from Investments 7k
Other details - family of 4, 2 young kids, no mortgage, college fund sitting at 50k, but monthly contribution in budget, additional rental income available but currently used to help Mom with retirement and enjoyment.
Current investments are about 1M depending on the market movement, a tad high on equities (75% equities/20% bonds/5% cash) - but can change asset allocation if ER. I would estimate SWR would be 3.5% but decreasing in the future.
BTW - the budget accounts for increased medical expense, net rental income includes taxes paid, rental expenses, estimated vacancies, etc. Not extremely conservative budget, so things can be trimmed or reduced, but enjoying life as is.
I'll be starting a new job next week and collecting severance from a job elimination situation, but just thinking.... am I FI at age 42? or did I miss something major ?
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