Hello Everyone,
I'm a 28 year old pharmacist who has been working full time for the last 4 years in a stressful, high volume retail pharmacy. My original plan was to work full-time until 40 and FIRE, but after some calculations, I figured that I should be able to go part-time now and still FIRE at 50. This would give me ~12 of my 'best years' back, allowing for more time for wife/kids, family, hobbies and travel.
I will say that I had a few huge advantages over some of my peers (which I am very thankful for!). I am an only child so my parents were able to leave me with only $55,000 in student loans after 6 years of schooling. Also, I did recently receive inheritance (~$120k) from a Great Aunt which certainly propelled me a couple years forward.
Anyways, here is my current situation.
Previous 401k: $108K
Roth IRA: $39k
Vanguard Taxable: $138k
2.5yr CD: $60k
Bank: $27k
Debt is 10k on a 2016 Mazda worth 17k. No remaining student loans/CC
Networth: $379k
Liquid Assets: $372k
Retirement Assets: $285k
Current AA (effective ER <0.1%)
29% Domestic (Total US + SCV) - Taxable/IRA
19% International (Total Intl) - Taxable
29% Bonds (Total US Bond) - 401k
16% CD (2.53% 30mo) - Credit Union
7% Cash - Bank
Current AA is conservative for a few reasons:
1) The CD is earmarked for a house down-payment and closing costs
2) Current market valuations (market timing, shame on me)
3) Slightly risk averse (low - need, high - ability, moderate - willingness)
4) I like having 8-12 months of cash as an emergency fund
I do plan to move from this 50/50 allocation to 80/20 or 70/30 once I purchase a home and valuations improve.
For the past 4 years I have made about $120k/yr and have lived on $30k/yr. I have saved $20k in my first year (in addition to paying down loans) and saved $60k my last 3 years. I am completely happy with my current spending (low cost hobbies), but I believe it will increase to about $40-45k (in addition to my spouses contributions) once I have a home and children.
I have recently switched companies, and I have taken a part-time role working about 25 hours per week which I start in a couple weeks. I should gross $80k/yr on this salary. This still allows for 401k access and healthcare.
Originally I wanted this to be temporary until something full time opened up, but I believe I can make this work and not have to go back to full time employment.
Some rough math:
80k gross salary + 4k 401k match
Spending: 28k the next 4 years, 40-45k there after
Taxes: $14k (Federal, State, FICA)
Savings: $42k (Maxed 401k, Traditional IRA, HSA, taxable), 31k after kids/home
I should be able to lower my taxable income considerably (standard deduction + personal exemption + 401k + IRA + HSA) to where my effective tax rate is about 18%.
Assumptions:
1) Average Savings of $33k/yr for next 22 years (ages 28-50)
2) Real return assumptions: 5% equity, 1% bonds
2) Portfolio assumptions (75/25): 4% Real Return, 10% Standard Deviation
3) Will take SS at 70 (assuming 75% of present value)
4) Stand to inherit some money from parents (I use 30% of their current NW in calculations to be safe)
This has me fully retiring at 50 with a portfolio of $1.6-$1.8mil (this does not include inheritance from parents) in 2017 dollars (not including spouses assets) with a paid off home. A 3.3-3.8% SWR would yeild $60k/yr, which is more than I ever plan to spend during my working career (accounts for increased healthcare spending, contingencies and increased travel/charity/luxuries). FIREcalc shows about a 95% chance of success with a 45 year retirement.
I am looking for the community to poke holes in my plan and possibly make me aware of things that I may not have accounted for. Thank you everyone, this is such a great resource!
I'm a 28 year old pharmacist who has been working full time for the last 4 years in a stressful, high volume retail pharmacy. My original plan was to work full-time until 40 and FIRE, but after some calculations, I figured that I should be able to go part-time now and still FIRE at 50. This would give me ~12 of my 'best years' back, allowing for more time for wife/kids, family, hobbies and travel.
I will say that I had a few huge advantages over some of my peers (which I am very thankful for!). I am an only child so my parents were able to leave me with only $55,000 in student loans after 6 years of schooling. Also, I did recently receive inheritance (~$120k) from a Great Aunt which certainly propelled me a couple years forward.
Anyways, here is my current situation.
Previous 401k: $108K
Roth IRA: $39k
Vanguard Taxable: $138k
2.5yr CD: $60k
Bank: $27k
Debt is 10k on a 2016 Mazda worth 17k. No remaining student loans/CC
Networth: $379k
Liquid Assets: $372k
Retirement Assets: $285k
Current AA (effective ER <0.1%)
29% Domestic (Total US + SCV) - Taxable/IRA
19% International (Total Intl) - Taxable
29% Bonds (Total US Bond) - 401k
16% CD (2.53% 30mo) - Credit Union
7% Cash - Bank
Current AA is conservative for a few reasons:
1) The CD is earmarked for a house down-payment and closing costs
2) Current market valuations (market timing, shame on me)
3) Slightly risk averse (low - need, high - ability, moderate - willingness)
4) I like having 8-12 months of cash as an emergency fund
I do plan to move from this 50/50 allocation to 80/20 or 70/30 once I purchase a home and valuations improve.
For the past 4 years I have made about $120k/yr and have lived on $30k/yr. I have saved $20k in my first year (in addition to paying down loans) and saved $60k my last 3 years. I am completely happy with my current spending (low cost hobbies), but I believe it will increase to about $40-45k (in addition to my spouses contributions) once I have a home and children.
I have recently switched companies, and I have taken a part-time role working about 25 hours per week which I start in a couple weeks. I should gross $80k/yr on this salary. This still allows for 401k access and healthcare.
Originally I wanted this to be temporary until something full time opened up, but I believe I can make this work and not have to go back to full time employment.
Some rough math:
80k gross salary + 4k 401k match
Spending: 28k the next 4 years, 40-45k there after
Taxes: $14k (Federal, State, FICA)
Savings: $42k (Maxed 401k, Traditional IRA, HSA, taxable), 31k after kids/home
I should be able to lower my taxable income considerably (standard deduction + personal exemption + 401k + IRA + HSA) to where my effective tax rate is about 18%.
Assumptions:
1) Average Savings of $33k/yr for next 22 years (ages 28-50)
2) Real return assumptions: 5% equity, 1% bonds
2) Portfolio assumptions (75/25): 4% Real Return, 10% Standard Deviation
3) Will take SS at 70 (assuming 75% of present value)
4) Stand to inherit some money from parents (I use 30% of their current NW in calculations to be safe)
This has me fully retiring at 50 with a portfolio of $1.6-$1.8mil (this does not include inheritance from parents) in 2017 dollars (not including spouses assets) with a paid off home. A 3.3-3.8% SWR would yeild $60k/yr, which is more than I ever plan to spend during my working career (accounts for increased healthcare spending, contingencies and increased travel/charity/luxuries). FIREcalc shows about a 95% chance of success with a 45 year retirement.
I am looking for the community to poke holes in my plan and possibly make me aware of things that I may not have accounted for. Thank you everyone, this is such a great resource!
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