Its it time to light the FIRE -

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SFBeachGuy
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Joined: Sat Aug 10, 2019 10:39 pm

Its it time to light the FIRE -

Post by SFBeachGuy » Sat Aug 10, 2019 10:57 pm

Hi, Current I have a very stressful job which may not be around in a few months. Hoping to get take a break / look into another field but entertaining early retirement (FiRe)

Suggestions for setting up the portfolio/withdrawal strategy

Age 55 / Wife 54 (Stay at home)

Debt $0 CC paid monthly
Home - 300K value - no mortgage

CD's / Cash / EE Fund ~500K
401K/IRA ~650K (600K in Fedility FPIPX .12 (50/50 fund)) Vangaurd 50K VTHRX .14%
Roth HSA 20K VTSAX

Current expenses ~50K (+- 20%)
SS FRA with Wife ~50K with retiring early

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ruralavalon
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Re: Its it time to light the FIRE -

Post by ruralavalon » Sun Aug 11, 2019 8:32 am

Welcome to the forum :) .

It's good to see that you are debt free.

SFBeachGuy wrote:
Sat Aug 10, 2019 10:57 pm
Hi, Current I have a very stressful job which may not be around in a few months. Hoping to get take a break / look into another field but entertaining early retirement (FiRe)

Suggestions for setting up the portfolio/withdrawal strategy

Age 55 / Wife 54 (Stay at home)

Debt $0 CC paid monthly
Home - 300K value - no mortgage

CD's / Cash / EE Fund ~500K
401K/IRA ~650K (600K in Fedility FPIPX .12 (50/50 fund)) Vangaurd 50K VTHRX .14%
Roth HSA 20K VTSAX
I am unclear about your total investable assets. Is that
$500k, cash etc.
$600k, 401k, Fidelity Freedom® Index 2020 Investor (FPIFX)
$50k, IRA, Vanguard Target Retirement 2030 Inv (VTHRX)
$20k, HSA, Vanguard Total Stock Market Index Fund (VTSAX)
$1,170k, total?
SFBeachGuy wrote:
Sat Aug 10, 2019 10:57 pm
Current expenses ~50K (+- 20%)
SS FRA with Wife ~50K with retiring early
How solid is the $50k number for current expenses?

Is that adjusted fo what would change if you retire? Does that include income taxes? Does that include what you will need to pay for health insurance, vision and dental before Medicare age, or after? Does that include extra for more travel, hobbies, or entertainment spending if you retire?
Last edited by ruralavalon on Sun Aug 11, 2019 8:42 am, edited 1 time in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

mtmingus
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Re: Its it time to light the FIRE -

Post by mtmingus » Sun Aug 11, 2019 8:37 am

SS retiring early ~ 50k (one stay home spouse) - are you sure?

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AerialWombat
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Re: Its it time to light the FIRE -

Post by AerialWombat » Sun Aug 11, 2019 9:09 am

You have zero debt, paid off house, and $1.22 million to your name. You’re rich, by any objective comparison to the rest of society. Congrats on winning the game. Yes, you can FIRE.

You could live off just your cash until FRA, then just live off SS without ever touching your 401k.

Enjoy your retirement.
“Life doesn’t come with a warranty.” -Michael LeBoeuf

nix4me
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Re: Its it time to light the FIRE -

Post by nix4me » Sun Aug 11, 2019 9:21 am

Barely enough. And are you sure your expenses are going to be $50K? You will have no healthcare for 10 years.

student
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Re: Its it time to light the FIRE -

Post by student » Sun Aug 11, 2019 9:29 am

If I understand your post correctly, you have about 1.2 million dollars and a paid off house. To get $50,000 a year, you need to withdraw about 4%. How much is your expected SS? I would not retire yet but I would suggest looking for a less stressful, perhaps even part time, job.

lostdog
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Re: Its it time to light the FIRE -

Post by lostdog » Sun Aug 11, 2019 9:34 am

Semi-retire to a less stressful job. Part time and you're golden.
VT/VTWAX+BNDW

Small Savanna
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Re: Its it time to light the FIRE -

Post by Small Savanna » Sun Aug 11, 2019 9:37 am

If job may not be around in a few months, does that mean you might be able to collect unemployment or get a severance package? If that could happen in a few months you may not want to quit now. Health insurance may be the biggest issue.

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whodidntante
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Re: Its it time to light the FIRE -

Post by whodidntante » Sun Aug 11, 2019 9:47 am

I would find a non stressful job with health insurance, some flexibility, and a 401k. It can pay half of the job that is ruining your health and happiness. Heck, it can even pay 49% as much.
Last edited by whodidntante on Sun Aug 11, 2019 9:48 am, edited 1 time in total.

Grt2bOutdoors
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Re: Its it time to light the FIRE -

Post by Grt2bOutdoors » Sun Aug 11, 2019 9:48 am

AerialWombat wrote:
Sun Aug 11, 2019 9:09 am
You have zero debt, paid off house, and $1.22 million to your name. You’re rich, by any objective comparison to the rest of society. Congrats on winning the game. Yes, you can FIRE.

You could live off just your cash until FRA, then just live off SS without ever touching your 401k.

Enjoy your retirement.
He'll be touching his 401k. Erring on side of conservatism, current expenses are 50K give or take 20% up or down, let's say it's up - that's 60K.
His cash will take him to about age 63, touching social security at that age is a 30% haircut from age 67. It's great if cash was returning personal consumer inflation rates of return, it's not. Working to age 59 might be a better plan, even if it's in a job that pays less than he's currently making now.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

HomeStretch
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Re: Its it time to light the FIRE -

Post by HomeStretch » Sun Aug 11, 2019 9:49 am

I think you need to be certain about the $50k SS and $50k living expenses estimates before considering retirement.

How did you estimate SS at FRA for you and spouse at $50k per year in today’s dollars? Just checking to make sure your estimate isn’t from the SSA estimate which assumes you continue working so it could be overstated if you stop working now. That said, $50k is possible. The 2019 maximum SS at FRA (age 66) is $2,861/mo which is $34,332 for you and $17,166 for SAH spouse (at 50% of your benefit) for a total of $51,498. That benefit level requires you to have earned at least equal to the SS wage base for 35 years.
Last edited by HomeStretch on Sun Aug 11, 2019 9:57 am, edited 1 time in total.

Retired2013
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Re: Its it time to light the FIRE -

Post by Retired2013 » Sun Aug 11, 2019 9:51 am

Your situation is very similar to mine 5 years-ago when I retired. Healthcare could be your biggest expense for the next 10 years if you are not getting retirement healthcare. You will need to look into the ACA.

If you need to go on ACA, to get the lowest premium (net of subsidies) you need to control your MAGI. For a couple, try to keep your MAGI around $24k. You need $50k but pull $24k (less interest from your cd’s) from your 401k each year (around the end-of-year) and the other $26k from your CD, Cash accounts (monthly). Since the standard deduction for a couple is $24k, your federal tax bill will be $0. Most likely your State tax will also be $0 or minimal. Your healthcare cost will be the smallest allowable in your state.

However, if you are keeping / controlling your MAGI at $24k, you can’t do any ROTH conversions. Also, if you need any funds above the $50k, those funds would also need to come from your cash / cd funds.

You might want to look at your wife collecting SS at 62 and you at 70 rather than both at FRA unless she is collecting off of your record.

Enjoy your retirement.

chw
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Re: Its it time to light the FIRE -

Post by chw » Sun Aug 11, 2019 10:18 am

Perhaps you could FIRE- but I would take a deep dive into your projected annual medical expenses (including premiums) until age 65. I retired a few years ago and budget around 25k/year for healthcare related expenses. Your current employer may be picking up some or most of these expenses, but I would still take a hard look at what your possible out of pocket responsibility may be if either you or your wife were to get ill or hurt.

Good luck with your decision.

esteen
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Re: Its it time to light the FIRE -

Post by esteen » Sun Aug 11, 2019 3:36 pm

Good points above, I'll only add that if you haven't already, think long and hard about what you'll be doing in retirement. Hanging around at the house? Travelling? Working part-time on passion projects? Moving from a busy stressful FT job directly to staying at home with an already stay-at-home partner can be a recipe for marital stress.

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willthrill81
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Re: Its it time to light the FIRE -

Post by willthrill81 » Sun Aug 11, 2019 3:42 pm

Grt2bOutdoors wrote:
Sun Aug 11, 2019 9:48 am
AerialWombat wrote:
Sun Aug 11, 2019 9:09 am
You have zero debt, paid off house, and $1.22 million to your name. You’re rich, by any objective comparison to the rest of society. Congrats on winning the game. Yes, you can FIRE.

You could live off just your cash until FRA, then just live off SS without ever touching your 401k.

Enjoy your retirement.
He'll be touching his 401k. Erring on side of conservatism, current expenses are 50K give or take 20% up or down, let's say it's up - that's 60K.
His cash will take him to about age 63, touching social security at that age is a 30% haircut from age 67. It's great if cash was returning personal consumer inflation rates of return, it's not. Working to age 59 might be a better plan, even if it's in a job that pays less than he's currently making now.
But if his expense estimate is correct (i.e. $50k), that works out to a 4% withdrawal rate, and that could be completely covered by SS benefits at FRA. Even if SS benefits are cut by the currently estimated 21%, it would mean that he would only need $10k from his portfolio after the first 11 years.

IMHO, the OP is on rock-solid ground to FIRE. If he wants what Fritz at The Retirement Manifesto describes as "recreational employment" (i.e. an improved RE to "retire early"), that would be possible but certainly not required if the numbers he's provided are accurate.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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AerialWombat
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Re: Its it time to light the FIRE -

Post by AerialWombat » Mon Aug 12, 2019 1:37 pm

Grt2bOutdoors wrote:
Sun Aug 11, 2019 9:48 am
AerialWombat wrote:
Sun Aug 11, 2019 9:09 am
You have zero debt, paid off house, and $1.22 million to your name. You’re rich, by any objective comparison to the rest of society. Congrats on winning the game. Yes, you can FIRE.

You could live off just your cash until FRA, then just live off SS without ever touching your 401k.

Enjoy your retirement.
He'll be touching his 401k. Erring on side of conservatism, current expenses are 50K give or take 20% up or down, let's say it's up - that's 60K.
His cash will take him to about age 63, touching social security at that age is a 30% haircut from age 67. It's great if cash was returning personal consumer inflation rates of return, it's not. Working to age 59 might be a better plan, even if it's in a job that pays less than he's currently making now.
I think I'm confused here, please help me understand. Did I miss a date, age, or financial number?
“Life doesn’t come with a warranty.” -Michael LeBoeuf

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AerialWombat
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Re: Its it time to light the FIRE -

Post by AerialWombat » Mon Aug 12, 2019 1:40 pm

willthrill81 wrote:
Sun Aug 11, 2019 3:42 pm
If he wants what Fritz at The Retirement Manifesto describes as "recreational employment" (i.e. an improved RE to "retire early"), that would be possible but certainly not required if the numbers he's provided are accurate.
This is probably off-topic, but do you have a link for this? I'd be personally curious in looking at this. Thanks! :sharebeer
“Life doesn’t come with a warranty.” -Michael LeBoeuf

Topic Author
SFBeachGuy
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Re: Its it time to light the FIRE -

Post by SFBeachGuy » Mon Aug 12, 2019 2:00 pm

AerialWombat wrote:
Mon Aug 12, 2019 1:37 pm
Grt2bOutdoors wrote:
Sun Aug 11, 2019 9:48 am
AerialWombat wrote:
Sun Aug 11, 2019 9:09 am
You have zero debt, paid off house, and $1.22 million to your name. You’re rich, by any objective comparison to the rest of society. Congrats on winning the game. Yes, you can FIRE.

You could live off just your cash until FRA, then just live off SS without ever touching your 401k.

Enjoy your retirement.
He'll be touching his 401k. Erring on side of conservatism, current expenses are 50K give or take 20% up or down, let's say it's up - that's 60K.
His cash will take him to about age 63, touching social security at that age is a 30% haircut from age 67. It's great if cash was returning personal consumer inflation rates of return, it's not. Working to age 59 might be a better plan, even if it's in a job that pays less than he's currently making now.
I think I'm confused here, please help me understand. Did I miss a date, age, or financial number?
High level info
Age 55
Assets 1.2 M 60 % in IRA 50/50 portfolio rest in cash instruments
No debt

Target retirement 56 age
Expected Expenses 50k to 60k per year
Expected SS FRA 48k

Thanks

delamer
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Re: Its it time to light the FIRE -

Post by delamer » Mon Aug 12, 2019 2:08 pm

chw wrote:
Sun Aug 11, 2019 10:18 am
Perhaps you could FIRE- but I would take a deep dive into your projected annual medical expenses (including premiums) until age 65. I retired a few years ago and budget around 25k/year for healthcare related expenses. Your current employer may be picking up some or most of these expenses, but I would still take a hard look at what your possible out of pocket responsibility may be if either you or your wife were to get ill or hurt.

Good luck with your decision.
I agree.

And you need to evaluate the impact on income and expenses for the surviving spouse, since one of you is highly likely to predecease the other. Some expenses will go down, but the survivor will have a higher tax rate and have only the larger Social Security check.

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willthrill81
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Re: Its it time to light the FIRE -

Post by willthrill81 » Mon Aug 12, 2019 2:13 pm

AerialWombat wrote:
Mon Aug 12, 2019 1:40 pm
willthrill81 wrote:
Sun Aug 11, 2019 3:42 pm
If he wants what Fritz at The Retirement Manifesto describes as "recreational employment" (i.e. an improved RE to "retire early"), that would be possible but certainly not required if the numbers he's provided are accurate.
This is probably off-topic, but do you have a link for this? I'd be personally curious in looking at this. Thanks! :sharebeer
Here it is.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

cherijoh
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Re: Its it time to light the FIRE -

Post by cherijoh » Mon Aug 12, 2019 2:40 pm

chw wrote:
Sun Aug 11, 2019 10:18 am
Perhaps you could FIRE- but I would take a deep dive into your projected annual medical expenses (including premiums) until age 65. I retired a few years ago and budget around 25k/year for healthcare related expenses. Your current employer may be picking up some or most of these expenses, but I would still take a hard look at what your possible out of pocket responsibility may be if either you or your wife were to get ill or hurt.

Good luck with your decision.
A former employer discontinued retiree health benefits a few years after I separated from them. I left about a decade before my earliest retirement date and therefore wasn't eligible, but some of my older colleagues who retired (around when I left) had the expectation that they would have low cost health insurance until they were eligible for Medicare. This turned out not to be the case. The employer had a DB pension which meant that for most of these retirees their pension put them over the maximum income to get an ACA subsidy.

When it comes to health insurance in retirement, don't cout your chickens before they have hatched.

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AerialWombat
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Re: Its it time to light the FIRE -

Post by AerialWombat » Mon Aug 12, 2019 7:24 pm

willthrill81 wrote:
Mon Aug 12, 2019 2:13 pm
AerialWombat wrote:
Mon Aug 12, 2019 1:40 pm
willthrill81 wrote:
Sun Aug 11, 2019 3:42 pm
If he wants what Fritz at The Retirement Manifesto describes as "recreational employment" (i.e. an improved RE to "retire early"), that would be possible but certainly not required if the numbers he's provided are accurate.
This is probably off-topic, but do you have a link for this? I'd be personally curious in looking at this. Thanks! :sharebeer
Here it is.
Ooooh, this was good stuff. Thank you, kind sir. The comment thread was particularly popcorn-munching worthy. 8-)
“Life doesn’t come with a warranty.” -Michael LeBoeuf

mariezzz
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Re: Its it time to light the FIRE -

Post by mariezzz » Mon Aug 12, 2019 7:53 pm

AerialWombat wrote:
Mon Aug 12, 2019 7:24 pm
willthrill81 wrote:
Mon Aug 12, 2019 2:13 pm
AerialWombat wrote:
Mon Aug 12, 2019 1:40 pm
willthrill81 wrote:
Sun Aug 11, 2019 3:42 pm
If he wants what Fritz at The Retirement Manifesto describes as "recreational employment" (i.e. an improved RE to "retire early"), that would be possible but certainly not required if the numbers he's provided are accurate.
This is probably off-topic, but do you have a link for this? I'd be personally curious in looking at this. Thanks! :sharebeer
Here it is.
Ooooh, this was good stuff. Thank you, kind sir. The comment thread was particularly popcorn-munching worthy. 8-)
Yes. Can be linked to when someone on BH argues that it isn't FIRE if someone includes the option to work in some way: blogging (money through ads or whatever product you generate); part-time/full-time; self-employed/consultant/for an employer.

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ruralavalon
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Re: Its it time to light the FIRE -

Post by ruralavalon » Tue Aug 13, 2019 9:42 am

SFBeachGuy wrote:
Mon Aug 12, 2019 2:00 pm
AerialWombat wrote:
Mon Aug 12, 2019 1:37 pm
Grt2bOutdoors wrote:
Sun Aug 11, 2019 9:48 am
AerialWombat wrote:
Sun Aug 11, 2019 9:09 am
You have zero debt, paid off house, and $1.22 million to your name. You’re rich, by any objective comparison to the rest of society. Congrats on winning the game. Yes, you can FIRE.

You could live off just your cash until FRA, then just live off SS without ever touching your 401k.

Enjoy your retirement.
He'll be touching his 401k. Erring on side of conservatism, current expenses are 50K give or take 20% up or down, let's say it's up - that's 60K.
His cash will take him to about age 63, touching social security at that age is a 30% haircut from age 67. It's great if cash was returning personal consumer inflation rates of return, it's not. Working to age 59 might be a better plan, even if it's in a job that pays less than he's currently making now.
I think I'm confused here, please help me understand. Did I miss a date, age, or financial number?
High level info
Age 55
Assets 1.2 M 60 % in IRA 50/50 portfolio rest in cash instruments
No debt

Target retirement 56 age
Expected Expenses 50k to 60k per year
Expected SS FRA 48k

Thanks
Assuming that your number for expected expenses is accurate, you are good to go :) .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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jose
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Re: Its it time to light the FIRE -

Post by jose » Tue Aug 13, 2019 11:28 am

mariezzz wrote:
Mon Aug 12, 2019 7:53 pm
AerialWombat wrote:
Mon Aug 12, 2019 7:24 pm
willthrill81 wrote:
Mon Aug 12, 2019 2:13 pm
AerialWombat wrote:
Mon Aug 12, 2019 1:40 pm
willthrill81 wrote:
Sun Aug 11, 2019 3:42 pm
If he wants what Fritz at The Retirement Manifesto describes as "recreational employment" (i.e. an improved RE to "retire early"), that would be possible but certainly not required if the numbers he's provided are accurate.
This is probably off-topic, but do you have a link for this? I'd be personally curious in looking at this. Thanks! :sharebeer
Here it is.
Ooooh, this was good stuff. Thank you, kind sir. The comment thread was particularly popcorn-munching worthy. 8-)
Yes. Can be linked to when someone on BH argues that it isn't FIRE if someone includes the option to work in some way: blogging (money through ads or whatever product you generate); part-time/full-time; self-employed/consultant/for an employer.
Good discussion in retirement manifesto. It says that "The original FIRE started way back in 1992 when Vicki Robin launched the concept in her 1992 bestseller Your Money Or Your Life". Actually, the first author of that book was the late Joe Dominguez. It was re-edited later with Robin as first author, but the credit for creating the movement in 1992v should go to Dominguez.

Regarding retirement, in this and all cases, we should assume REtirement defined as NO active income (work), only passive income. Otherwise, it is recreational employment part time or whatever, not retirement. If only for conservativeness sake.

I think the OP is in a "maybe" situation with the 50k in expenses. My main concern is INFLATION and the ability of the portfolio (even SS) to match real consumer inflation. In order to match inflation, you must take risk.

Second, is healthcare insurance and unexpected healthcare costs such a disease.

Third (and a question) is whether 50k include long-term large expenses such as vehicles and renovations. Or unexpected such as a storm, fire, and so on.

Last and not least, are you willing to commit to staying where you are with no life changes, forever? Retiring will lock you into that budget forever, unless you un-retire. Just stress-test your plan. Retirement from a profession at some age can be largely irreversible.

A suggestion: divide the 50k expenses into necessary and discretionary, and use a variable withdrawal policy. Would that cover your necessary expenses in a worst-case scenario?

In any case, congratulations for all the sacrifices you made to get where you are.

jose

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willthrill81
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Re: Its it time to light the FIRE -

Post by willthrill81 » Tue Aug 13, 2019 11:36 am

mariezzz wrote:
Mon Aug 12, 2019 7:53 pm
AerialWombat wrote:
Mon Aug 12, 2019 7:24 pm
willthrill81 wrote:
Mon Aug 12, 2019 2:13 pm
AerialWombat wrote:
Mon Aug 12, 2019 1:40 pm
willthrill81 wrote:
Sun Aug 11, 2019 3:42 pm
If he wants what Fritz at The Retirement Manifesto describes as "recreational employment" (i.e. an improved RE to "retire early"), that would be possible but certainly not required if the numbers he's provided are accurate.
This is probably off-topic, but do you have a link for this? I'd be personally curious in looking at this. Thanks! :sharebeer
Here it is.
Ooooh, this was good stuff. Thank you, kind sir. The comment thread was particularly popcorn-munching worthy. 8-)
Yes. Can be linked to when someone on BH argues that it isn't FIRE if someone includes the option to work in some way: blogging (money through ads or whatever product you generate); part-time/full-time; self-employed/consultant/for an employer.
The important point in the issue, IMHO, is being financially independent (FI). Whether a person has achieved FI then retires, takes on 'recreational employment', etc. is irrelevant. If they're truly FI, they don't need to do anything of those things, and if they do, it's purely their choice. I think that the very clear trend that 'FIRE' people do not actually retire is more indicative of the need for at least the type of people to have reached this status, and perhaps most people in general, to want to do something productive with their time. For some, this means gainful employment, while others do charity work or something else important and/or enjoyable to them.

Now this could be conflated if someone's portfolio really suffers for a while, and they eventually return to gainful employment out of necessity, but if an early retiree has 30x or more in their portfolio, I think it's pretty safe to say that they are FI.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

DoctorWu
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Re: Its it time to light the FIRE -

Post by DoctorWu » Tue Aug 13, 2019 12:32 pm

We're in a somewhat similar situation and this one raises questions for me. Living expenses of $50k per year. And that includes buying your own health insurance for the next ten years out of pocket? +/- 20% is a big swing. I can't see how, with buying health insurance, paying property taxes, keeping up with rising inflation, exposure to downturns in the markets or having no growth element to investments, upkeep on a home & vehicles, taking vacations... how this can work.

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ruralavalon
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Re: Its it time to light the FIRE -

Post by ruralavalon » Tue Aug 13, 2019 12:51 pm

DoctorWu wrote:
Tue Aug 13, 2019 12:32 pm
We're in a somewhat similar situation and this one raises questions for me. Living expenses of $50k per year. And that includes buying your own health insurance for the next ten years out of pocket? +/- 20% is a big swing. I can't see how, with buying health insurance, paying property taxes, keeping up with rising inflation, exposure to downturns in the markets or having no growth element to investments, upkeep on a home & vehicles, taking vacations... how this can work.
Health care expenses, including vision and dental, policy premiums before age 65, and premiums for Medicare Part B and D after age 65, are significant amounts. It is a serious error when when people fail to specifically include them in making expected expense calculations.

Likewise it is a serious error when people fail to include expenses for home maintenance and vehicle replacement, or other recurring expenses which do recur on a monthly, yearly or other regular basis.

This always makes me worry when I see someone estimating low annual lIving expenses for retirement.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Topic Author
SFBeachGuy
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Re: Its it time to light the FIRE -

Post by SFBeachGuy » Tue Aug 13, 2019 1:00 pm

Hi DoctorWu,

Excellent points and they are some of my concerns as well.

Mitigation Strategy
Medical
* ACA Not sure how long this will be around due to the politics but its reasonable with subsidies (<$200 per month for a basic plan)
* Short Term Medical Insurance - rates are reasonable but have restrictions and dont cover preexisting conditions - Luckily in fairly good health
* Medishare Some folks have mixed results but some claim 1 Million coverage
* Live overseas - Europe full medical insurance < 200 per person - Wife is excited about this option

Home / Property Taxes / Other
I live in Florida so property taxes are capped but the concern is home insurance currently at 4K which is about the same as the taxes. Moving to a cheaper state may be an option as well
A possible reverse mortgage or downsize event at 62 is another option

My barebone budget is 35-40K but my target is 50-60K with 2 moderate vacations. We are really good finding deals especially when we can avoid peak seasons.

My end goal is ideally to transition into something else but making sure we have a safety net and a plan in place for any contingencies.

Thanks

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catalina355
Posts: 231
Joined: Sun Jun 10, 2018 6:46 pm

Re: Its it time to light the FIRE -

Post by catalina355 » Tue Aug 13, 2019 1:16 pm

SFBeachGuy wrote:
Tue Aug 13, 2019 1:00 pm
* Live overseas - Europe full medical insurance < 200 per person - Wife is excited about this option
Are you an EU citizen or have the right to live in the EU?

DoctorWu
Posts: 12
Joined: Tue Oct 18, 2016 12:01 pm

Re: Its it time to light the FIRE -

Post by DoctorWu » Tue Aug 13, 2019 1:23 pm

Similar place to where we are but 58 with a bit more to work with, and higher living expenses. Both our private money manager and Vanguard say we're okay and good to go but I still wonder about it. So going to four days a week and continuing to work and capture health insurance from it. (There's no way we're getting health insurance for $200 a month but we do have $39k in an HSA.)

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SFBeachGuy
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Joined: Sat Aug 10, 2019 10:39 pm

Re: Its it time to light the FIRE -

Post by SFBeachGuy » Tue Aug 13, 2019 1:47 pm

catalina355 wrote:
Tue Aug 13, 2019 1:16 pm
SFBeachGuy wrote:
Tue Aug 13, 2019 1:00 pm
* Live overseas - Europe full medical insurance < 200 per person - Wife is excited about this option
Are you an EU citizen or have the right to live in the EU?
No but the wife is. :D

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jose
Posts: 65
Joined: Thu Feb 05, 2015 3:19 pm

Re: Its it time to light the FIRE -

Post by jose » Tue Aug 13, 2019 2:29 pm

Oh, if you are moving to Europe, a lot of concerns go away, especially healthcare, insurance and home maintenance. You just have to manage and live with FX risk and higher taxes. All your pre-tax, your earnings and interest, and SS have to go through European tax rates, lots of reporting to both governments, US account closing, FATCA, FBAR, PFIC...

European taxes are still much lower than US healthcare, so I think that lowers your risk.

jose

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catalina355
Posts: 231
Joined: Sun Jun 10, 2018 6:46 pm

Re: Its it time to light the FIRE -

Post by catalina355 » Tue Aug 13, 2019 2:39 pm

jose wrote:
Tue Aug 13, 2019 2:29 pm
Oh, if you are moving to Europe, a lot of concerns go away, especially healthcare, insurance and home maintenance. You just have to manage and live with FX risk and higher taxes. All your pre-tax, your earnings and interest, and SS have to go through European tax rates, lots of reporting to both governments, US account closing, FATCA, FBAR, PFIC...

European taxes are still much lower than US healthcare, so I think that lowers your risk.

jose
Why would they have to close US accounts?

Grt2bOutdoors
Posts: 20976
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Its it time to light the FIRE -

Post by Grt2bOutdoors » Tue Aug 13, 2019 4:49 pm

AerialWombat wrote:
Mon Aug 12, 2019 1:37 pm
Grt2bOutdoors wrote:
Sun Aug 11, 2019 9:48 am
AerialWombat wrote:
Sun Aug 11, 2019 9:09 am
You have zero debt, paid off house, and $1.22 million to your name. You’re rich, by any objective comparison to the rest of society. Congrats on winning the game. Yes, you can FIRE.

You could live off just your cash until FRA, then just live off SS without ever touching your 401k.

Enjoy your retirement.
He'll be touching his 401k. Erring on side of conservatism, current expenses are 50K give or take 20% up or down, let's say it's up - that's 60K.
His cash will take him to about age 63, touching social security at that age is a 30% haircut from age 67. It's great if cash was returning personal consumer inflation rates of return, it's not. Working to age 59 might be a better plan, even if it's in a job that pays less than he's currently making now.
I think I'm confused here, please help me understand. Did I miss a date, age, or financial number?
No, you didn't miss a number. I'm just stating my opinion that declaring him FIRE may be a bit premature for reasons listed above.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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