Hello ER!
I discovered FIRE a couple months ago and it immediately clicked with my Finance and I. We are 27 (Me) and 25 (Her) and already dread the corporate existence we were raised to be involved in. While my research has led me to great blogs like Retire by 40, Mad Fientist, and jlcolin. My hope is that by publicly getting involved in a forum will help keep me motivated and learning on my path to FIRE.
Here is a quick recap of where we currently are in our lives and our plan for FIRE, feedback is extremely welcomed and any advice will be heard with open ears.
Combined Salary is $129K (Single filers, Getting Married in 2017)
Current Debts:
Student Loans: $2K @ 6% Interest (Will be gone in 2016, was $45K in 2013)
Car: $9K @ 2% Interest (plan on paying the minimum for the life of the loan)
Total: $11K Debts
Current Savings:
Combined 401K: $19K
Savings: $6K
Total: $25K
Net worth: $14K
Our FIRE Plan going forward 2017 to 2035 (~18 Years of Saving for FIRE, Age 45)
Max out both 401K: $36K/Year
Savings to Vanguard Brokerage Account: $24K/Year
Total Savings/Year: $60K
Savings Rate: 56%
This is where we would start, we are still figuring out where to cut costs and lower bills, as we get raises/bonuses the savings will only increase. With this plan it would give us $2.2M at 45, which may be excessive ($66K/Year @ 3% Withdrawal), we may play with the age of when we retire in the future.
I am sure I will get asked why all savings after 401K will be going into a brokerage account and not an IRA, and my answer is just for the sake of having the money tangible if needed. I like the idea if storing it all there if we end up wanted to use some of it as a down payment on a house in 10 years, and to use the dividend returns from the account as well.
With that said, I have only been at this for a couple months, I am open to the wisdom and guidance any seasoned pro’s would like to throw at me, I would greatly appreciate it. I look forward to being an active member on this site.
Tizookie
I discovered FIRE a couple months ago and it immediately clicked with my Finance and I. We are 27 (Me) and 25 (Her) and already dread the corporate existence we were raised to be involved in. While my research has led me to great blogs like Retire by 40, Mad Fientist, and jlcolin. My hope is that by publicly getting involved in a forum will help keep me motivated and learning on my path to FIRE.
Here is a quick recap of where we currently are in our lives and our plan for FIRE, feedback is extremely welcomed and any advice will be heard with open ears.
Combined Salary is $129K (Single filers, Getting Married in 2017)
Current Debts:
Student Loans: $2K @ 6% Interest (Will be gone in 2016, was $45K in 2013)
Car: $9K @ 2% Interest (plan on paying the minimum for the life of the loan)
Total: $11K Debts
Current Savings:
Combined 401K: $19K
Savings: $6K
Total: $25K
Net worth: $14K
Our FIRE Plan going forward 2017 to 2035 (~18 Years of Saving for FIRE, Age 45)
Max out both 401K: $36K/Year
Savings to Vanguard Brokerage Account: $24K/Year
Total Savings/Year: $60K
Savings Rate: 56%
This is where we would start, we are still figuring out where to cut costs and lower bills, as we get raises/bonuses the savings will only increase. With this plan it would give us $2.2M at 45, which may be excessive ($66K/Year @ 3% Withdrawal), we may play with the age of when we retire in the future.
I am sure I will get asked why all savings after 401K will be going into a brokerage account and not an IRA, and my answer is just for the sake of having the money tangible if needed. I like the idea if storing it all there if we end up wanted to use some of it as a down payment on a house in 10 years, and to use the dividend returns from the account as well.
With that said, I have only been at this for a couple months, I am open to the wisdom and guidance any seasoned pro’s would like to throw at me, I would greatly appreciate it. I look forward to being an active member on this site.
Tizookie