Plan for Exit 2024

[Love This Community]

Q3 2021 update



- We finished Q3 at $2,233k, 74.4% of the target.

Plus only $17k for last three months - very soft quarter for us.



- Quarter high was $2289 but September booked negative $56k.

- We continue to add new money to our $401ks and HSAs.

- Cash position went down as we added some money to taxable during September lows, plan to keep adding if market will continue to correct.

- So far 2021 is still good for us, +$205k for the first 9 months, will see how we will close full year.



- We have 11Qs to go...

Keep rocking! Love the way you planned and executed. I will take shamelessly steam your format for representing my data.

 

[Exit 2024]

Thanks, LTC!
Looking forward to see your updates in new format

 

[Snowie2014]

exit2024 - I love this post; i'm hoping to retire in 3-5 years.
i have been a lurker for a while

 

[Exit 2024]

Q4 and Full 2021 update

- We finished Q4 at $2,361k, 78.7% of the original target.

Plus 128k for last three months - happy about that gain after very soft Q3 for us.

- We continue to add new money to our 401ks and HSAs and maxed them out for the year
- Added $20k to I-bonds, could not resist current interest rates in them

- Cash position went down as we added some money to I-Bonds and taxable during this year, plus also were helping child with student loan payments while they are at 0%.

- 2021 added $333k to out NW - best year for us, before that 2019 was leading with $325k gain.

-after Q3 update I got a question about split between added new money and growth in overall NW gains, I thought that would be interesting exercise and included additional columns to my spreadsheet. My OCD part was ecstatic about adding those, thanks for the comment, Luvtoride


- We have 10Qs to go... (click on the picture to see it bigger)

 

[Exit 2024]

Actuals without RE vs High and Low targets.

After slow Q3 we are back in the range, closed above Low target by $48K and below High target by 21k. Looking forward to stay in that range at least.

 

[RxMan]

Great progress Exit2024!

 

[Exit 2024]

Thanks, RxMan !

Also forgot to mention in update that we passed $2M mark on NW excluding RE.
Starting to really look forward to that big $3M target without RE - I was doubting if $3M is doable in my first post, and that was including RE

Net worth target - looking at $3mil (is that even realistic ? )
That will include RE that will be paid off - about $300k
Investable assets - $ 2.7mil or 30 x spending, WR ~3.3% (too conservative? )

 

[zekeboz]

Looking good @exit 2024 !

One thing to keep in mind if you have not already is to review/come up with 'your' ideal withdrawal strategy since you most likely will be under 59 1/2.

Personally, establishing this approach has been much harder than the savings part.

Ex. I noticed that your Taxable portion appears to be 10-15% of your total assets. Have you considered if that will be 'enough' to bridge those years until you can access tax sheltered accounts fee free?

Since you have at least a year or so you should be in an ideal spot to make any adjustments if needed.

 

[Exit 2024]

One thing to keep in mind if you have not already is to review/come up with 'your' ideal withdrawal strategy since you most likely will be under 59 1/2.

zekeboz, thanks for your comment and question.

Yes, you are correct that I need to look into planning how to cover expenses till one of us turns 59 1/2.

So here is my thoughts:
Plan is to exit in summer 2024, age 55 1/2.
Need 4 years of expenses, have been budgeting for $90k/year minimum or $360k.
With current inflation I guess we should up it to $400k.

Right now we have:
$208k in Taxable
$66k in I-bonds
Total: $274k

Short $126k, have 2.5 years timeline

Plan A to cover shortage: $62k in Cash, need to save about $64k more, very doable as it looks today.

Plan B to cover shortage: earn some cash through hobby or seasonal work for fun. Do not want to bank on it though.

Next 2 plans are dependent on how long our child will continue to live in our condo, if will move out by our FIRE:

Plan C to cover shortage: rent out condo, expect about $1k/month for 4 years ~$48k (very conservative estimate), plus still need to save rest in Cash/Bonds

Plan D to cover shortage: sell condo (part of RE bucket) worth about $130k

Any medical emergencies will be covered by HSAs.

So, currently PLAN A in our main approach.

 

[Out-to-Lunch]

zekeboz, thanks for your comment and question.

Yes, you are correct that I need to look into planning how to cover expenses till one of us turns 59 1/2.

So here is my thoughts:
Plan is to exit in summer 2024, age 55 1/2.

Might you have access to your 401(k) under the Rule of 55? You could check your plan documents...

 

[Exit 2024]

Out-to-Lunch
we do have in spouse's 401k ability to access at 55 but to be able to do it need to retire from that company after turning 55, it can happen but as of now looks like employment there for next 2 years is not that certain. Will see, definitely would solve that issue.

 

[dvalley]

Fantastic numbers Exit2024! Of the 1.9M what's your AA and are you planning to change it anytime soon or once you retire? Sorry if you previously covered this already; I've been MIA and just catching up on a few threads.

 

[tulak]

Out-to-Lunch
we do have in spouse's 401k ability to access at 55 but to be able to do it need to retire from that company after turning 55, it can happen but as of now looks like employment there for next 2 years is not that certain. Will see, definitely would solve that issue.

Can you get it in the year she turns 55?

This is the option I’m considering, since my birthday is late in the year and I’d get access shortly after turning 54.

 

[Exit 2024]

Hi, dvalley!
Yes, I do track AA, here is our status as of 12/31/2021.

It is off target right now due to huge growth in Stocks, trying to balance it out by putting all new money into Bonds and Cash positions. 71/29 is not that bad though, so I do not want to get into re-balancing yet.
Will re-evaluate in mid year and then if it will continue to drift out of balance - will re-balance.
At FIRE want to stay between 70/30 and 60/40 for the first 10 years (till age 65) then go to more conservative AA.


tulak, that would be great but BD is in January, so pretty much no gain in timing.

 

[dvalley]

Hi, dvalley!
Yes, I do track AA, here is our status as of 12/31/2021.

It is off target right now due to huge growth in Stocks, trying to balance it out by putting all new money into Bonds and Cash positions. 71/29 is not that bad though, so I do not want to get into re-balancing yet.
Will re-evaluate in mid year and then if it will continue to drift out of balance - will re-balance.
At FIRE want to stay between 70/30 and 60/40 for the first 10 years (till age 65) then go to more conservative AA.


tulak, that would be great but BD is in January, so pretty much no gain in timing.

Cool, thanks. Yeah 70/30 or 60/40 seems to work for a lot of folks. I need to rebalance to those myself. I don't have any bonds, just stocks and cash because I've never done well with bonds, don't understand them fully and never took enough interest to try to figure them out. My cash is earning between 1.75% and .5% depending on where it's sitting but I'm prob 90/10 AA right now.

 

[Love This Community]

Congratulations on a successful Q4 2021 Exit. I wish that the remaining quarters are as successful and go by quickly. How do you post your bmp spreadsheet thumbnails? Curious and want to use the same style in my reporting.

 

[Exit 2024]

How do you post your bmp spreadsheet thumbnails? Curious and want to use the same style in my reporting.

Hi LTC,
To add attachment instead of "Post quick reply" click "Go Advanced", it will open screen with reply window and "Additional options" section below.
Go to "manage attachments" to upload your pictures.

Looking forward to see your new reports

 

[Love This Community]

Hi LTC,
To add attachment instead of "Post quick reply" click "Go Advanced", it will open screen with reply window and "Additional options" section below.
Go to "manage attachments" to upload your pictures.

Looking forward to see your new reports

Thank you for the details. For some reason I am not able to open the "additional options". It said, thread is too old or something like that. If the issue persists, will drop a note to the admins.

 

[Exit 2024]

Q1 2022 update

- We finished Q1 at $2,316k, 77.2% of the target.
NW is down by $45k for last three months - very soft quarter for us.

- We continue to add new money to our $401ks and HSAs, also maxes out Roth IRAs and I-Bonds for this year.
- Cash position went down slightly, we put a lot of money into investments from ongoing earnings to mitigate losses due to market correction.
- Really worried about inflation, looks like we may get into OMY loop if it will not go down below 3% by time of expected FIRE.
- Child finally started full time job, we will continue to help with student loans in next 2 years, but not to extent to derail our plans to retire.

- We have 9Qs to go...

 

[Exit 2024]

Actuals without RE vs High and Low targets.

After good close of 2021 at almost the High target we are back below red line and by sizable amount
Closed

• below Low target by $68K
• below High target by $160k

Image is clickable

 

[SJhawkins]

Late to the party here Exit but your thread is so close to our journey its a little crazy, same age, last kid just got done with college, same net worth etc. We don't spend as much as you however

Just some random thoughts, the Healthcare nut is hard to Crack as we all know and what I found is as we are getting close to our number perceptions just change.

Sometimes I feel I'm in the middle of no place, retire now, keep working as I still enjoy my work 75% of the time, what will I do with all my time, etc. The latest, if we run it upto age 58 give or take that would give the kids a much better chance of a nice big pile. A second home on a lake has crossed my mind as motivation to work a few more years!

As you get closer to your number to you have any of the above thoughts, just curious.

 

[Exit 2024]

Late to the party here Exit but your thread is so close to our journey its a little crazy, same age, last kid just got done with college, same net worth etc. We don't spend as much as you however

Just some random thoughts, the Healthcare nut is hard to Crack as we all know and what I found is as we are getting close to our number perceptions just change.

Sometimes I feel I'm in the middle of no place, retire now, keep working as I still enjoy my work 75% of the time, what will I do with all my time, etc. The latest, if we run it upto age 58 give or take that would give the kids a much better chance of a nice big pile. A second home on a lake has crossed my mind as motivation to work a few more years!

As you get closer to your number to you have any of the above thoughts, just curious.

Hi, SJhawkins
Thanks for your comments, as crazy as it sounds but we are wrestling with exact same questions right now.

Healthcare - 10 years to cover through exchange is a little tough to accept, no stability in price and also very limited choices in our area, we are healthy right now but you never know how it will be during next 10-12 years.

Work - I was moved to work from home permanently, that elevated a lot of stress, plus that does not restrict any traveling - I can work from anywhere in the world if I want to.

Really considering either retirement for my better half and I will stick out for couple more years, or both switch to part time. Do not want to make that decision right now but already have those options as viable Plan B and Plan C in my mind.

If we hold till 58-59 we can better mitigate inflation pressure, help kid with student loans and may be even able to get some property on the ocean (it was long time unattainable dream, rent in summer and live there off season)

Strange feeling but it looks like we are on parallel paths, not only in real life but even in our thinkings and perceptions.

 

[NgineER]

Alleviate or elevate a lot of stress?

 

[monte1022]

Hi, SJhawkins
Thanks for your comments, as crazy as it sounds but we are wrestling with exact same questions right now.

Healthcare - 10 years to cover through exchange is a little tough to accept, no stability in price and also very limited choices in our area, we are healthy right now but you never know how it will be during next 10-12 years.

Work - I was moved to work from home permanently, that elevated a lot of stress, plus that does not restrict any traveling - I can work from anywhere in the world if I want to.

Really considering either retirement for my better half and I will stick out for couple more years, or both switch to part time. Do not want to make that decision right now but already have those options as viable Plan B and Plan C in my mind.

If we hold till 58-59 we can better mitigate inflation pressure, help kid with student loans and may be even able to get some property on the ocean (it was long time unattainable dream, rent in summer and live there off season)

Strange feeling but it looks like we are on parallel paths, not only in real life but even in our thinkings and perceptions.

We are also in the same boat. DW will exit this yr d/t care for parents, but I may continue OMY. ACA for 9yrs and 12yrs makes me a bit nervous. We are licensed healthcare professionals and will absolutely maintain our credentials for many years just-in-case. DW is a RN making her re-entry less challenging. As a pharmacist, the market has become very saturated d/t too many schools making my re-entry a bit more challenging.
Another year for me also helps alleviate near-term inflation pressures and supplies dollars for some early retirement projects. The schedule is not that bad, the pay is great, and the work is what it is.

 

[Exit 2024]

Alleviate or elevate a lot of stress?

Sure it is Alleviate, saw the typo but was too late to correct. Wondering why Edit option disappears next day, non of other forums that I am part of restrict editing.