Do I have enough to FIRE?

[pmcgowan360]

I'm making close to 200K in a corporate job that is not very fulfilling or satisfying.  I'm 52, single, no kids, with about $1,250,000 net worth but don't own a home.  I've owned in the past and never really liked the responsibility of owing a home so I rent a very nice apartment.  Of course that adds to my expenses so I need about 55K to live very comfortably.  I do feel if I FIRE I could build up some consulting business and not have to tap into my net worth, but am still wondering if it is responsible to leave nearly 200K in income.  I feel like life is passing by but I also come from a generation that was all about working and responsibility.  I'm torn, any opinions.

[Telecaster]

Consider posting a case study:

https://forum.mrmoneymustache.com/case-studies/how-to-write-a-'case-study'-topic/

[JAYSLOL]

I second posting a full case study.  But I don’t see why not, I’m also planning for $55k/year as my FIRE budget, so I’m planning to need $1.375m, however if you can earn $55k/year doing some freelance consulting, then there’s really no harm in doing that.  You could quit tomorrow, take as many months as you need to recharge before starting up the consulting business, and in 2-3 years (market swings depending) of it barely covering your expenses, you wouldn’t even need to do that anymore thanks to your money growing while you leave it untouched.  Absolutely nothing irresponsible about that plan, life is about creating the most fulfilling moments for YOU while you are here.  But to be safe, post a full case study with a budget and everything and see if people see anything else to consider.

[bryan995]

Not sure I could ever rent through FIRE. The inability to control costs would get to me. Just these past 24 months, 2 bedrooms rents in my area have jumped from 2700 to 3500 to 4300.

That would not be sustainable on a “fixed budget”. Why not just buy and lock in your largest monthly expense (albeit now is a a potentially horrible time)?

[ixtap]

Not sure I could ever rent through FIRE. The inability to control costs would get to me. Just these past 24 months, 2 bedrooms rents in my area have jumped from 2700 to 3500 to 4300.

That would not be sustainable on a “fixed budget”. Why not just buy and lock in your largest monthly expense (albeit now is a a potentially horrible time)?

Owning has large costs, as well, such as roof replacements.

OP, your income, expenses and age don't seem to add up. How long have you been tracking expenses? Does it include.years when you replaced a car or otherwise had something big that can be hard to time or sinking funds to cover such an expense?

Have you taken into account what kinds of resources you would need for consulting in your field? Even the simplest consulting needs to at least have a website, preferably paid so that you can have a matching email. In some fields, certain equipment is also necessary.

[pmcgowan360]

Thanks for the advice and link for a case study.  I had not seen that but will start it today.  In answer to the one comment about income and expenses, I do track it very closely for years, and have always averaged 55K expense, with some years higher and some significantly lower.  My income just reached its zenith in recent years, as I came up in an industry where you pay a lot of dues and only start earning in the upper management positions.  I was frugal and a saver even in the years of not earning much though.  Thanks for your responses.

[bryan995]

Not sure I could ever rent through FIRE. The inability to control costs would get to me. Just these past 24 months, 2 bedrooms rents in my area have jumped from 2700 to 3500 to 4300.

That would not be sustainable on a “fixed budget”. Why not just buy and lock in your largest monthly expense (albeit now is a a potentially horrible time)?

Owning has large costs, as well, such as roof replacements.

True. But over the long run owning must come out ahead, 99.99% of the time.
Don’t forget, someone owns the house/apartment you are renting. And is marking a profit above and beyond your rent paid, including all repairs / maintenance / tax. Whether to be via cash flow or appreciation. They are not losing money :)  assuming your time horizon is long, owning is the name of the game !

[zolotiyeruki]

If you were retiring in your 30's, I'd say you need 25x expenses, or $55k*25 = $1.375M.  However, you're 52, and Social Security will kick in for you in 10 or 15 years.

So here's what I suggest:
1) Go to ssa.gov, get your earning history, and figure out what your SS payments will be at various ages
2) Go to cFireSim and run a simulation, using your current savings and allocation, and expected future SS payments
3) Also, go to Rich, Broke, or Dead and run a similar exercise.

You haven't said anything about your asset allocation, but if you have $1.25M in an index fund right now, you have plenty to retire today.

[LightStache]

I do feel if I FIRE I could build up some consulting business and not have to tap into my net worth, but am still wondering if it is responsible to leave nearly 200K in income.  I feel like life is passing by but I also come from a generation that was all about working and responsibility.  I'm torn, any opinions.

I'm still a few years out from FIRE, but I know it's going to be hard to walk away from the safety of a high salary. I don't give a rat's ass about generational mores or what others think about the responsibility of my financial decisions. But I know taking the leap will be hard even if the numbers are solid.

[ryan_themoneyguy]

Supplementing your income with a consulting gig would be a great way to cover your expenses and not tap into your nest egg. If you aren't happy in your role and think you can maintain expenses, it's not irresponsible to do so.

[mistymoney]

I do feel if I FIRE I could build up some consulting business and not have to tap into my net worth, but am still wondering if it is responsible to leave nearly 200K in income.  I feel like life is passing by but I also come from a generation that was all about working and responsibility.  I'm torn, any opinions.

I'm still a few years out from FIRE, but I know it's going to be hard to walk away from the safety of a high salary. I don't give a rat's ass about generational mores or what others think about the responsibility of my financial decisions. But I know taking the leap will be hard even if the numbers are solid.

I'm struggling with this as well. Worked my whole life underpaid, taken advantage of definitely long before pay equity was a thing companies looked into, and very foolishly doing stellar work above and beyond my position. Finally, and a bit unexpectedly, get a really good title and salary at the end (not 200 though!), and it makes it harder to walk away or even downshift.

I do worry about quitting "too soon". This is a position and salary that for me is highly unlikely to be replicated.