I’m feeling good about my decision to FIRE in one month, but it is always nice to get another opinion or two. Here’s my situation:
Single, male, 39, live in California.
Expenses:
Rent: $1,610/month
Everything else: averages $1,500/month
After FIRE health (get insurance through work right now): $200/month
Assets:
457: $255k
Roth: $115k
HSA: $7k
Investment account: $438k
Cash: $38k
Breakdown: 30% S&P500 index, 14% small/mid index, 17% European index, 16% emerging market index, 17% “bonds”, and 7% cash - totals may not equal 100 due to rounding
Before I retire, I will be able to max out my 2018 457 and HSA with bonus/vacation cash out. At 50 I will be able to draw $26k/year from retirement.
My “bonds” are in a general fund in my 457 that is guaranteed to return 4% per year. That seems to be as uncorrelated to equity as you can get, so I don’t see much reason to shift any of that portion into an actual bond index with interest rates where they are now.
My general plan is to keep cash+”bonds” at 20-25% of my total. I like to have at least 6 months expenses in cash, so as I draw down my checking/savings account I’m planning to refill it from my investment account and adjust the 457 general fund as necessary.
I’ve run the scenarios in firecalc, and I am at 100% success for a 30 year horizon, with an average ending balance of $1,800,000. As far as I can tell, my biggest risks are unforeseen health expenses/health law changes or dramatic rent increases. I’m thinking that the worst case scenario then would be to move somewhere with a lower cost of living. I’d have plenty of options!
Anything I’m missing?