Search found 678 matches

by rocket354
Wed Mar 27, 2024 2:48 pm
Forum: Investing - Theory, News & General
Topic: Underspending Paradox
Replies: 7
Views: 1145

Re: Underspending Paradox

I came across an Apple News article that discussed a paper titled, “Understanding underspending in retirement: The Decumulation Paradox reexamined.” I searched for the paper and found it here, https://www.nylannuities.com/connectedassets/final-assets/marketing-materials/white-paper/TPD_Client_Whitepaper_Decumulation_paradox.pdf I also found an article that discussed the paper here: https://insurancenewsnet.com/innarticle/the-decumulation-paradox-why-retirees-underspend I see myself as a person this paper is talking about. I would like opinions on moving forward. My wife (60) and I (turning 62) are both retired with FERs government pensions. We live in a state with no state income tax. Our home is paid off, our autos are paid off, we have n...
by rocket354
Wed Feb 21, 2024 8:27 am
Forum: Personal Consumer Issues
Topic: Washer/Dryer Recommendations
Replies: 6
Views: 883

Re: Washer/Dryer Recommendations

Could you please recommend Washer/Dryer Recommendations preferably from Costco ? This is for my first rental property so looking for something basic that could run for long without much maintenance issues. Looked at lowes, in checkout I see additional items like hose, duct , cord etc., plus delivery fee are needed so I feel Costco is best option because of free delivery, installation. and warranty. I might be wrong. Please provide your inputs. As someone else posted, there are many threads on this very topic. I will reiterate (as a former landlord with multiple rental properties) that the best value and reliability I got was from Whirlpool, and it isn't even close. I trust people who like Speed Queen (or Miele or some other brands) but all...
by rocket354
Fri Feb 09, 2024 1:53 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3617
Views: 568589

Re: Post your Financial Milestone Announcements Here

My taxable account just hit $1MM.

It was less than three years ago my entire NW first crossed $1MM. (I'm now pushing $1.9MM.)
by rocket354
Fri Jan 26, 2024 2:40 pm
Forum: Personal Investments
Topic: Early Retirement Plan - Age 38 w/over $2 million
Replies: 120
Views: 29242

Re: Early Retirement Plan - Age 38 w/over $2 million

Make sure you've thought about the objections to FIRE brought up here: https://wggtb.substack.com/p/the-fire-movement?utm_campaign=post&utm_medium=web Some are straw men for most FIRErs but there are some legitimate criticisms of the movement too. I'm sorry, I couldn't get through that blog post. "Some are straw men"... I found almost every point completely wrong. I had to stop when it said most people planning FIRE assume 12-15% investment returns... meanwhile almost every post I see here is along the lines of "Is 8% too optimistic going forward, shouldn't we assume a lower return with these high P/E ratios, what if we have a way worse outcome than the very worst outcome ever in history," etc. Also the idea that pe...
by rocket354
Thu Jan 25, 2024 11:28 pm
Forum: Personal Finance (Not Investing)
Topic: Retiring early: Health Insurance
Replies: 97
Views: 11332

Re: Retiring early: Health Insurance

To be fair, you are not alone. There seem to be numerous threads where people say "we are financially ready to retire, but are worried about health insurance". It is not clear to me why we don't get similar concerns about, say, property taxes. As someone on the cusp of retirement, I can perhaps conjecture (ie, share my own concerns and assume they might apply to others). Most expenses are fairly predictable. Property taxes, food, travel, etc, all generally go with inflation. Property tax specifically is up to the whims of the local/state governments, but of course are rarely dramatically different year to year. Healthcare though is a huge unknown. The range of possible costs is much broader than probably any other line item. It i...
by rocket354
Thu Jan 25, 2024 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Retiring early: Health Insurance
Replies: 97
Views: 11332

Re: Retiring early: Health Insurance

To be fair, you are not alone. There seem to be numerous threads where people say "we are financially ready to retire, but are worried about health insurance". It is not clear to me why we don't get similar concerns about, say, property taxes. As someone on the cusp of retirement, I can perhaps conjecture (ie, share my own concerns and assume they might apply to others). Most expenses are fairly predictable. Property taxes, food, travel, etc, all generally go with inflation. Property tax specifically is up to the whims of the local/state governments, but of course are rarely dramatically different year to year. Healthcare though is a huge unknown. The range of possible costs is much broader than probably any other line item. It i...
by rocket354
Wed Jan 24, 2024 9:11 am
Forum: Personal Investments
Topic: Need a Rough Family Spending Figure: Basic Calculation?
Replies: 21
Views: 1237

Re: Need a Rough Family Spending Figure: Basic Calculation?

I'm trying to pin down my family's spending. Can I roughly determine spending by taking my gross income + any monetary gifts and then subtract out health care (which gets taken right out of pay), savings (401k, IRA, HYSA), and taxes and that would roughly equal what we're spending. Anything I'm missing? I figure if anything this would overestimate spending. Also, are there any lines on my tax forms that I could use to get these figures? Any help appreciated. In recent years I calculated my net spending in a similar way. I used my last paycheck of the year to get my gross paid amount. I then added to that the YTD lines for 401(k) match and HSA contributions since they were not part of gross pay, but for my purposes, they were part of my com...
by rocket354
Mon Jan 22, 2024 8:55 am
Forum: US Chapters
Topic: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂
Replies: 429
Views: 43315

Re: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂

The happiest of birthdays to you, Mr. Larimore.

Thank you for all you've done for this country and the world, and for all your contributions to this site and personal finance. We've never met, but you have my utmost respect.
by rocket354
Thu Jan 18, 2024 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Giving High-Level Advice to Younger People If You Are Older
Replies: 70
Views: 5853

Re: Giving High-Level Advice to Younger People If You Are Older

So...the advice is "fall backwards into money without trying?" Yeah, it seems like that ...My main point is I saved every single penny, shared a care with my spouse etc early on and in retrospect we did not need to. That is your situation, and it's great that your life worked out better than expected. However, that doesn't mean you can or should tell others to expect what happened to you to happen to them. Many people do not receive inheritances, or, worse, receive reverse inheritances where they have to care for, or at least pay for the care for aging/elderly parents. Also, some people are out of work or under-employed in their 50's via layoff or health concerns, etc. Some people receive an inheritance of something more than nom...
by rocket354
Fri Jan 12, 2024 11:37 am
Forum: Personal Consumer Issues
Topic: 2023 Washer/Dryer Recommendation
Replies: 60
Views: 10148

Re: 2023 Washer/Dryer Recommendation

It's arrived! Less than 48 hours after pulling the trigger with AJ Maddison the new LG Washtower was delivered and installed. The OP's problem was solved before I could tell my tale. Somebody else is looking. In 2022, I decided to replace all my appliances at once. I quit trying to get the last ounce of service out of my appliances. In 2032, I'll replace them all again if they last that long. I did the water heater in 2015; I'll replace it in 2025 if it lasts that long. I asked the local and trusted appliance dealer what he had in his house and ordered the same. Whirlpool dryer model WED5010LW $800 installed Whirlpool washer model WTW5010LW $800 installed Both are good. I'd buy them again. I second the recommendation for Whirlpool. Great r...
by rocket354
Fri Jan 12, 2024 11:30 am
Forum: Personal Investments
Topic: 50/50 Large Cap Growth & Small Cap Value?
Replies: 21
Views: 2926

Re: 50/50 Large Cap Growth & Small Cap Value?

If you just can't stand to stick with the total market--or a reasonable approximation like the S&P 500--and feel that you want to do something with factors, this seems like a tolerable approach. If the factor mavens are right, you will see half of your portfolio outperforming, and if, mysteriously, large growth continues to outperform, you'll see the other half outperforming. The problem of course is that in the latter scenario the proffered portfolio would still underperform the market overall because large growth is a much bigger part of the market than is small value. The given portfolio is a bet on SCV, a bet that it will either outperform or at least not underperform for the investing lifetime of the investor. SCV has outperformed...
by rocket354
Thu Jan 11, 2024 3:10 pm
Forum: Personal Investments
Topic: Is anybody actually running out of money in retirement?
Replies: 201
Views: 48694

Re: Is anybody actually running out of money in retirement?

For people that have done a good job saving for retirement, was there ever an instance where you were happy and thought you were prepared and the money just went way quicker in retirement than you thought? I read a lot of posts here and I look at wealthy family members and they all have what I would think is enough but there is always this concern of running out, so I wonder if anybody actually has? You might find this recent article from the Wall Street Journal interesting... It's about living on Social Security as a primary (or only) source of income. See free gift link: https://www.wsj.com/personal-finance/retirement-only-social-security-benefits-america-a3a706e0?st=cfhdoulq4t9vu34&reflink=desktopwebshare_permalink Regards, A couple...
by rocket354
Mon Jan 08, 2024 3:51 pm
Forum: Investing - Theory, News & General
Topic: Is only maxing out a 401k and IRA "enough"?
Replies: 55
Views: 8599

Re: Is only maxing out a 401k and IRA "enough"?

Hello all, I'm know this question has been asked before, but the search function is not bringing up this topic for whatever reason so apologies for the repeat question and please feel free to link me relevant topics. My question is, I believe, quite straight forward: Is maxing out and contributing to only a 401k and an IRA "enough"? A little more context: I was just playing around with some simulations on Portfolio Visualizer and did a very straightforward simulation with an 80/20 AA, starting balance of $250k (my approximate current investment balance), and monthly contributions (max divided by 12). I also assumed both DH and DW are maxing out both accounts (true for my case). I ran the simulation for a 30 year period. The resul...
by rocket354
Mon Jan 08, 2024 3:16 pm
Forum: Investing - Theory, News & General
Topic: The 4 percent “rule” for plus 30 year periods and variability over time
Replies: 15
Views: 2963

Re: The 4 percent “rule” for plus 30 year periods and variability over time

Read here and there that for 40 year periods the 4 pct rule doesn’t hold and should rather be 3 However, if variability of portfolio returns decrease with longer periods why wouldn’t the SWR regress toward the average portfolio return (which is greater than 4 pct)? Thx The first post after yours answered it pretty well, but to give a little more context, here is my answer: Depending on one's exact asset allocation 4% wasn't actually 100%, with 1966 failing "first" and those years around it close. But there are also other years, such as 1929, or 1906, or 1973, that had fairly low portfolios at the 30-year mark. Extending out to 40 or 50 years just means some portfolios that were > 0 after 30 but still weren't robust enough to with...
by rocket354
Sun Jan 07, 2024 10:12 am
Forum: Personal Investments
Topic: Early Retirement Plan - Age 38 w/over $2 million
Replies: 120
Views: 29242

Re: Early Retirement Plan - Age 38 w/over $2 million

Thanks for all the feedback everyone, I truly appreciate it...but it is slightly frustrating that some of the replies are in regard to lifestyle opinions, as opposed to critiques on the financial aspects of the plan. I don't think it is helpful or constructive to say that my current spending with kids, which I have maintained for close to a decade, is meager or miserable. I certainly do not consider the life we choose to live as lacking, and I believe those in our life (friends, family, etc.) would share the same sentiment. Also, with regard to medical premiums, why do so many of the replies focus on that as a major expense? Again, if I can control my "income" using IRA conversions to avoid being on Medicaid, shouldn't I be able ...
by rocket354
Tue Jan 02, 2024 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: did/will dealing with difficult people cause you to retire?
Replies: 31
Views: 3392

Re: did/will dealing with difficult people cause you to retire?

I'm in tech, and have dealt with a number of difficult people. The current most difficult person I deal with at work is, unfortunately, my direct boss. I am FI and was leaning towards getting out sooner rather than later as it was, but now I am ecstatic to be about 2 months away from freedom. In fact, every day I have to pep talk myself into not quitting on the spot.

In general, I've found the best way to deal with difficult people is: don't. In personal lives that's easier to accomplish than at a megacorp. If your situation is really that bad then find another job, or see if you can find someone in power to lend a sympathetic ear.
by rocket354
Tue Jan 02, 2024 12:33 pm
Forum: Investing - Theory, News & General
Topic: "These will be the best 10 stocks in 2023, analysts say"
Replies: 120
Views: 23010

Re: "These will be the best 10 stocks in 2023, analysts say"

I hope I can manage to remember to revisit this next year. Investor's Business Daily Analysts think 10 stocks in the S&P 500, including Dish Network (DISH), Tesla (TSLA) and Amazon.com (AMZN), will gain 60% or more in the next 12 months. So, that's a legitimate prediction, with a numeric criterion and a specific time frame. How do you read that sentence? I read it to mean that each of them, all of them, ten out of ten, will gain 60%. For sure, they are saying that DISH, TSLA, and AMZN will--three out of three... right? Here's the list: Company Symbol Year-to-date % ch. Implied upside Sector DISH Network (DISH) -57.4% 134.7% Communication Services Warner Bros. Discovery (WBD) -61.2% 125.6% Communication Services Tesla (TSLA) -57.6% 79.6...
by rocket354
Mon Jan 01, 2024 9:45 am
Forum: Personal Finance (Not Investing)
Topic: At what net worth did you start not sweating the "small stuff"
Replies: 137
Views: 28532

Re: At what net worth did you start not sweating the "small stuff"

Depends on the definition of "small stuff." An incorrect $130 charge? I'd definitely sweat it, but by doing what it sounds like the OP more or less did -- handle it in a way that doesn't detract from the vacation itself. But after I became FI, I've really started valuing my time and experiences more. If I'm doing self-checkout at the grocery store and an item rings up as $0.50 more than it was advertised, unless the attendant happens to be right next to me I am not pressing the button and standing around waiting awkwardly for 3 mins as a line grows behind me to eventually explain to someone who then has to spend another 2 mins punching random things into the machine for me to get the $0.50 I so rightly deserve. If I'm at a restaur...
by rocket354
Fri Dec 15, 2023 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: How much more can we spend?
Replies: 23
Views: 3865

Re: How much more can we spend?

BHs: This is not a humble brag but a sincere question. Currently burning $136K annually including discretionary spending of $13K and estimated taxes. Firecalc and other calculators think it is safe even spending $180k annually. I am aware of the 4% rule. But would like some additional eyeballs for confidence. Assets crossed $5M as of market close yesterday. We live a very comfortable lifestyle currently but trying to recalibrate and see if it would make sense from a financial perspective to be a bit more self-rewarding and generous. HHI - $400k. Expect this to continue for next 10 years with modest increases reflecting inflation. 401k - $1750K. Expected contributions of $685K solely from employer and employee contributions in the next 10 y...
by rocket354
Wed Dec 13, 2023 9:06 am
Forum: Personal Investments
Topic: 50 year old.just got laid off-Need advise Bogleheads!
Replies: 94
Views: 13539

Re: 50 year old.just got laid off-Need advise Bogleheads!

You have adequate wealth to retire, may be time to consider FIRE. I am just curious to what makes up the 270k expense. $120K PITI $123K- Household expenses, Food, eating out, clothes, utilities, one new car lease (I drive an old fully paid up car), entertainment, house cleaning, travel, etc. $27k-Part time nanny, summer camp etc. Total ~$270k Since layoffs have been "going around," one question to consider is how safe is your wife's job? If she lost her job then you both would still be ok for a while, but you'd have an $8MM net worth and yet somehow not be financially independent. That is, in a sense, you are house-poor. That $120k PITI is an overwhelming portion of your annual expense. If you can reduce that then both you and yo...
by rocket354
Mon Dec 04, 2023 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Anxious for retirement
Replies: 63
Views: 7388

Re: Anxious for retirement

Realistically, I am within 6 months to 2 years of a pretty early retirement. As I keep getting closer, I keep thinking that I will work, even though I don't love my job. Though I have figured out the "retire from" portion, still working on the "retire to" part. ...admittedly, I am also addicted to having a salary. This sounds like me. I'm about 3-4 months away now. I have so many financial reasons to stay those 3-4 months, including annual bonus, employer HSA contribution, being able to max out 401k and Roth for another year, and then with various deductions having all that money be essentially tax-free since I would still have a quite low MAGI for 2024. I also have a decent amount of PTO to use up. But darn it if every...
by rocket354
Mon Nov 20, 2023 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Student Loan Payoff Credit Score Concern
Replies: 22
Views: 1825

Re: Student Loan Payoff Credit Score Concern

I am concerned about my credit score for two reasons: (1) I may want to get a mortgage in a few years, and (2) I may soon live in a state that allows credit score to be considered when rating insurance. Any impact to credit scores for paying off debt is very short-term and not very big. Therefore, paying it off shouldn't affect concern (1) at all, and likely won't affect concern (2). As well, most agencies that are concerned with credit score have a top tier that starts around 760. Therefore, (2) is unlikely to be affected no matter what--it would require your score to drop another 40 points, which is very unlikely to be caused by paying off $10k of student loans. (In all honesty, I'm surprised the first tranche caused a drop. Are you sure...
by rocket354
Mon Nov 20, 2023 8:24 am
Forum: Personal Consumer Issues
Topic: Home Gym, retired, in spare bedroom
Replies: 35
Views: 5585

Re: Home Gym, retired, in spare bedroom

As most have mentioned, the horse stall mats can be terribly smelly. I'm not convinced they are necessary for someone who by all appearances is doing mostly cardio with light dumbbell work. Even light barbell work doesn't need those mats. If OP would be squatting 300+ lbs, sure. In my garage gym I have a mix of the EVA foam tiles, and some harder rubber tiles (like the horse stall mats, but also interlocking and not nearly as smelly; but also a little more pricey). I got the flooring because I found that walking around a hard surface for an hour or two while doing my workout was really putting more stress on my knees/ankles than I liked. I have the harder rubber under my squat rack so I have a firmer base to stand. Everywhere else is the ev...
by rocket354
Fri Nov 17, 2023 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4288
Views: 1081795

Re: Share your net worth progression

Had quite a few years when I didn't record it, but I have a somewhat unusual progression. 2006: $250,000 2011: -$150,000 (yes, negative) 2015: $150,000 2019: $560,000 2020: $700,000 2021: $1,200,000 Here's hoping I never go negative again... 2022: $1,500,000 Got lucky to ride the real estate market to its peak in June '22, when I sold off 80% of my rental portfolio and dumped all the proceeds into index funds, which is now up a little bit. As well, I kept saving as much as possible. Given the state of the market, I just hope by this time next year my number is greater than my current number. 2023: $1,700,000 I did something not recommended and did a quick calculation on how much more I'd have if I were 100% TSM instead of doing my small ca...
by rocket354
Wed Nov 15, 2023 9:26 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman on small cap value tilt
Replies: 120
Views: 19312

Re: Paul Merriman on small cap value tilt

In this linked podcast: https://player.fm/series/sound-investing-2284192/how-i-failed-the-bogleheads , Merriman argues that a small value tilt is still worthwhile. Comments? Makes no sense. Small cap value universe is so small that if every one tilts then it will no longer be a tilt. Sure there will - even though that will never happen. There is always a small-cap universe - the smallest X% in terms of market cap. Which brings up a good point as to why the SCV premium could have (not necessarily has) gone away. If the great data scientists and super-computers of fintech all looking for an edge have identified the specific advantageous elements of the companies that were previously classified as SCV--the ones that actually drove the histori...
by rocket354
Sun Nov 05, 2023 2:11 pm
Forum: Personal Consumer Issues
Topic: Small to Medium sized cities for FIRE
Replies: 103
Views: 10229

Re: Small to Medium sized cities for FIRE

mkc wrote: Sat Nov 04, 2023 5:34 pm Chattanooga, TN
Knoxville, TN
A little smaller than those but also a university town and 100k+ population is Murfreesboro, TN. It's also quite close to Nashville for sports/events/music/dining/culture/etc.

One advantage I've found living in TN is just how central it is. Miami, Washington, DC, NYC, Minneapolis, Denver, Dallas...all at most (and usually well under) about a 2hr 15 min flight away. Atlanta, which is a major international hub, is only an up-and-down flight away. Living in TN is very convenient for reasonable accessibility to most of the country.
by rocket354
Sun Sep 24, 2023 10:08 am
Forum: US Chapters
Topic: Roll Call for the Retirement Class of 2024!
Replies: 142
Views: 44192

Re: Roll Call for the Retirement Class of 2024!

Tentative, but > 50% probability.

Retire April 5, 2024. Age 45. Retirement goal: to pursue other interests (some of which may end up being income-producing) other than the boring ol' 9-5.
by rocket354
Wed Sep 20, 2023 8:29 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

One thing that concerns me about your comments is your worry about the market. One prerequisite for being ready to retire is that you can be more or less indifferent to market movements. A worst case scenario of a 60% drop and prolonged recession where you couldn't get a job even if you wanted to needs to not rattle you (i.e. your fire plan cannot depend on good market luck). Could be that a more conservative AA is warranted. It might be worth giving up a half or one percent of expected return in order to mitigate the nastiest of possible outcomes. There is no amount of money that would have me indifferent to market movements. That is because I recognize that the worst case we've seen is not necessarily the worst case we will ever see. And...
by rocket354
Tue Sep 19, 2023 7:43 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

chrisdds98 wrote: Mon Sep 18, 2023 11:03 pm I would consider owning bonds. I was 100% equities while I was working but its different when you don't have an income coming in anymore! I'm mid40s and FIRE and it was nice having my cash/short bonds do ok in 2022 while equities and long bonds crashed.
For me, I have a hard time owning bonds while I still have a mortgage, and a hard time having a paying off my mortgage when I can earn > 5% in MM accounts. But I'll perhaps get there at some point. Certainly my AA is something I should make sure I'm comfortable with.
by rocket354
Tue Sep 19, 2023 7:41 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

Nathan Drake wrote: Mon Sep 18, 2023 9:23 pm You say you only came into this income during the last few years - how did you manage to amass so much savings? Did you have an inheritance or lucky investment or something?
I saved what I could (mostly Roth) for as long as I was an adult. I also did RE investing which has paid off, particularly with the covid/post-covid boom.
by rocket354
Tue Sep 19, 2023 7:40 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

London wrote: Mon Sep 18, 2023 5:09 pm We pretend on this board that we’re making 30 year decisions but we’re all making a series of one day decisions.
I like that perspective. That is very true. If I decide to "retire" I don't get thrown in jail if I change my mind.

I guess my biggest concern is giving up my earning potential and having a hard time finding a similar-paying job. I'd rather retire once than go in spurts, particularly if pulling the plug too soon means I have to work another, say, five years when one or two more would have sufficed.
by rocket354
Tue Sep 19, 2023 7:38 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

On the flip side, however, is the fact that I hear the clock of my own mortality ticking louder and louder with each passing day. I do really get this. Most of us are not Tom Brady. But you mentioned a couple times that a typical day in what appears to be a largely sedentary job leaves you physically exhausted. This is more a description that I hear from my circle now approaching 60 not when we were 45. At 45, it was only the friends who had jobs that expected 12 hour days or were “sandwiched” with childcare and ailing parent duties who were looking for new ways to work. I am wondering if there is a component of this that should be addressed with health related lifestyle or medical changes. I wouldn't call it physically exhausted as much a...
by rocket354
Mon Sep 18, 2023 9:09 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

If there is a possibility of children that's a strong reason to stay employed abit longer and of course possibility of medical expenses. A paid off mortgage gives you a lot of financial cushion also. I like the other posts that are focusing on your dissatisfaction and then thinking about retirement. I would start to peruse other activities that you might want to do in retirement. If you are already financially secure you have the leverage to request things like additional time off (possibly unpaid). Start experimenting with you want to do in retirement and when you find your groove I think it will be more clear when it is time to leave. I feel that a job is just that, 9-5. Sometimes it's rewarding, usually it's not terrible, but at the end...
by rocket354
Mon Sep 18, 2023 8:55 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

OP, in 2018 I was where you are right now. I was 46 years old with a 1.8M net worth, similar income and expenses, and a job that I dreaded. I presume you posted here because you have some doubts about your numbers, because I also felt the same way at the time. What I decided to do was downsize my assets (got rid of property that wasn't doing anything), simplified my investments, and accepted a new job opportunity which required a small reduction in pay but allowed me to leave my management role and return to being an individual contributor. I figured that if I didn't like it, I could always quit and fall back on my RE plans. However, the job change made a huge difference in my work satisfaction, and I was able to stay employed through the ...
by rocket354
Mon Sep 18, 2023 8:49 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

It could be hard to stay this frugal for the long haul but nonetheless you should take the leap because it's what you want to do and once you do it, you will be stoked and not for a second want your job back. You can chill for a couple years then reasonably assume your interests will lead to some pleasant way to make a little money later on-- even 20k a year will create a nice cushion. Even if you retired and after a few months hated it because of loneliness or whatever (doubt this will happen), you can go get a new job which you'd need to do anyway if you weren't retiring. So just quit your job already and enjoy the freedom. I've pretty much always been this frugal, so it isn't difficult. A lot of that was borne of necessity due to lower ...
by rocket354
Mon Sep 18, 2023 8:44 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

I'm in the "go for it" camp. Another thing you can not predict is your health and how long it will last. I"m turning 50 this year. 5 years ago when I started thinking about FIRE at 45, I was in tremendous shape and was running 100mi/wk. I also worked 60+hrs at a super high stress job. 5 years later, I've had my right hip replaced and it didnt go well. Surgically my implant is perfectly done but I can barely walk for more than 30 mins without being in pain, its destroying my back and I"m in the worst shape of my life. Multiple surgeons have no idea what is wrong but its clear something isnt right, but I'm stuck because there is nothing surgical to do at this point. Just ongoing pain management. However, I now have plenty...
by rocket354
Mon Sep 18, 2023 8:43 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

I need something new, something that isn't logging in and doing someone else's bidding for 40 hrs a week all so I can enjoy a few hours during my weekends, and a few weeks a year at a beach or lake or on a mountain. Just curious, would you be happier if you asked to switch your schedule down to 32 hours, 4 days a week? That dramatically increases the weekend/workday ratio (reward/cost, perhaps?) by +87.5%; from 0.4 (2/5) up to 0.75 (3/4). Or work remotely from a beach/lake/mountain? The FI portfolio gives you the ability to negotiate accommodations that others might be afraid to ask for, since you’re already prepared to walk away. I don't think a 32hr week is an option for me. I mean, I can ask, but I feel like doing so would signal reduce...
by rocket354
Sun Sep 17, 2023 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

OP, you mostly discussed wanting to retire away from your job rather than retiring to free up time for other activities. You can financially swing it, but I am in agreement with other posters with concern for what you will actually do with your time given your primary motivator. You mentioned that you've had similar issues with any employed position, and also that you've spent most of your working life self employed. Would your skill set permit you to consider returning to self employment in some capacity, on your own terms and with enough flexibility to allow you to travel and enjoy life more? Seems like that would be the best of both worlds by both resolving the parts of work that you hate and also allow you to inflate your lifestyle fur...
by rocket354
Sun Sep 17, 2023 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

You have done very well. But remember, life changes and you are only half way through it. When i was in my early 40s, I was starting to think I would be single forever. Fast forward a few decades and I am paying/saving for 2 kids' college educations. Expenses are not predictable in the long-term. In 2012, I went through our records and calculated exactly how much we spent in a calendar year. I think it was $32k or 34K. It is probably double that now, not counting college expenses. Once you leave the workforce, it can be very hard to get back in. If I were you, I would keep the dream alive but give myself more margin of error so you don't lock yourself into a lifestyle. Right now, time is on your side; as soon as you retire that could rever...
by rocket354
Sun Sep 17, 2023 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

I appreciate all responses. I've added my expected SS to the OP; I expect $24k/yr at age 70 if I stop working in six months and never earn another dime. $24k a year at age 70 seems quite low with that income. Are you sure about those numbers? That's a good question. E.g., someone born in 1978 with SS earnings only from 2005 (age 27) through 2023 (age 45) might expect $24K/yr at age 70 in 2048 even if earnings each year were ~44.4% of the maximum SS earnings for that year (so earning $39,950 in 2005, $71,112 in 2023, etc.), assuming - no increase to the average wage index (likely a very conservative assumption) - no "haircut" to SS benefits in ~2035 (whether that is likely or not gets into politics so no comment on the likelihood)...
by rocket354
Sun Sep 17, 2023 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

Thanks for your feedback. Taking it in order: I am looking for constructive feedback on any part of my situation: portfolio allocation, planned FIRE date, planned FIRE activities, withdrawal strategy, etc...anything and everything is in play. First without even trying to crunch the numbers with a $1.7 million dollar net worth if you were somehow forced to retire today and could never work again as a single person in your mid 40s you could somehow make things work if you never worked again. Agreed. My primary life goal the last few years was to put myself in position so that if I lost my job tomorrow I would not ever have to work again. I have succeeded in that, and it is quite liberating. The problem is that you are budgeting for a pretty f...
by rocket354
Sun Sep 17, 2023 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

livingalmostlarge wrote: Sun Sep 17, 2023 6:31 pm Is $300 a month a realistic expense for healthcare during the most expensive years coming up? It cheap to insure 35-45, but 45-65 even with Obamacare gets expensive fast.

I rarely see people retiring lean saying oh I got cancer or an autoimmune disease and able to mitigate more expensive treatment or healthcare. If you have an Uber generous budget and backstop or lots of fire retirees have partners or spouses who cover them.

Healthcare reality check at 55-65 would be my concern
Healthcare is my big concern, as well. I don't have any real data for that 55-65 range, just a few anecdotes, and a myriad of "what-if" scenarios.
by rocket354
Sun Sep 17, 2023 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

I appreciate all responses. I've added my expected SS to the OP; I expect $24k/yr at age 70 if I stop working in six months and never earn another dime. $24k a year at age 70 seems quite low with that income. Are you sure about those numbers? Mid 40s is about what I'm shooting for to FIRE. I'm single with low expenses as well. Yes you can FIRE if you want IMHO if your expenses don't increase by a lot. Or look into a low stress, easy, part time job? Even a little income per year could really buffer your situation. Yes, I'm sure about my SS. I've spent most of my adult life at low-to-moderate income levels. Ten years ago, I had barely more than a $0 net worth and was struggling to earn $40k+. It's only the last few years since I got my megac...
by rocket354
Sun Sep 17, 2023 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

You've done well setting yourself up for success. I think the FIRE plan sounds tight (I would wait and earn for a few more years and get the mortgage paid off, personally) but I think if you were really clear about what purpose you'd be fulfilling in FIRE, it would likely be a clear decision. The emotional reasons probably concern me the most. I highly recommend therapy, it's expensive but I think it's one of the best gifts I've ever given myself. I think traveling the world, reading books, and playing video games will feel amazing for a few years then get old, really fast. Hobbies could certainly help with that but I'm still skeptical for the same reasons you've named lower in your post. There are so many places to work that are great and...
by rocket354
Sun Sep 17, 2023 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

You say the main motivation for FIRE is dissatisfaction with your current job, but it doesn’t sound like you have really done an extensive search for a better job. Ask yourself, if you were in a more fulfilling role, would you really be looking to retire today? In your 40s, the daily grind can really wear you down, but the answer is not reading and video games. If you are intelligent enough to make $170k and get promoted, you will get bored of that really quickly. People thrive when they have a purpose, and a different job could provide much more of a sense of purpose than what you propose to do in retirement. Dream a little and consider a wider range of career options. If it were me, I would switch jobs or tough it out for a while, with t...
by rocket354
Sun Sep 17, 2023 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

You have kept your living expenses low, which is great. However, it means that you have less wiggle room to cut out expenses if necessary. I would look at ways to improve your job quality, take an extended leave as suggested above, or find an alternative position that might improve your quality of life. Adding even 1-2 years earnings is a big difference and aside from dumpster fire companies I expect a new position would be interesting for at least that long. I agree that another year or two always adds more cushion. But that's the problem. I was in position to potentially pull the plus two years ago. But OMY kept me going. And in another year or two, it will still be the case that yet another year or two will make me that much more secure...
by rocket354
Sun Sep 17, 2023 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

If you have a 170k, non stressful job seems a bit drastic to FIRE now. Could you negotiate unpaid leave and travel for a few months to get it out of your system? Maybe I’m looking at it from my own view point of having 2 young kids and a spouse, but I don’t think I could take that leap in your position. I'm not sure non-stressful is the best description. It just isn't overly-stressful. I am able to fit all my work into the standard 40 hrs. But the stress has been increasing as my responsibilities have increased, and as there's been more talk of budget concerns. I do sometimes catch myself thinking of work items while in the shower on the weekends or on vacation, when I never really used to do that. I'll definitely consider the unpaid sabba...
by rocket354
Sun Sep 17, 2023 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

Re: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

I appreciate all responses. I've added my expected SS to the OP; I expect $24k/yr at age 70 if I stop working in six months and never earn another dime.
by rocket354
Sun Sep 17, 2023 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - mid-40's, modest portfolio, no pension. Sanity check, please
Replies: 63
Views: 10974

FIRE - mid-40's, modest portfolio, no pension. Sanity check, please

Mid-40s, single. NW around $1.7MM. About $1.5MM of that is invested. Of liquid assets, about 97% is stocks, 3% cash. Really want to FIRE in about six months. I am looking for constructive feedback on any part of my situation: portfolio allocation, planned FIRE date, planned FIRE activities, withdrawal strategy, etc...anything and everything is in play. Taxable: $890k -- about $600k in VTI (total market), about $290k in VBR/VIOV (small-cap value) Roth IRA: $330k -- about $180k in VBR (small-cap value), $80k in VOE/VTV (mid/large value), $70k in VSS/VWO/VXUS (small-cap/emerging market/total international) Traditional 401(k): $230k -- about $100k in international (state street, but < 0.4% fee), $70k in VOO (S&P 500 fund), $60k in VXF (exte...