Life Situation: 37, in a committed relationship with partner (27), no kids and don't plan on having them. Both had preexisting frugality, savings, and interest in FIRE.
Income: I'm doing independent non-profit consulting, gross income around $60k with no benefits. This is about 12 hours a week of work, and is sustainable for the next couple years. In some ways it's a semi-FIRE gig, after stepping down from a demanding job a few years ago. I'm maxing out my Roth, but not saving much else.
Partner works in tech, earning $150k. She's maxing out retirement accounts. Is very burnt out. Stock vesting schedule makes another two years in current role advantageous.
Assets:
Mine: Around $60k in Roth IRA, $62k in 401k/403b, and $26k in taxable investment account. $148k invested. Also sitting on $33k cash. The big thing for me is that I'm currently selling my house to move in with partner. Bought it at the bottom of the market, and expect to walk away with about $400k after paying off the mortgage.
Total net worth around $550k
I have to say I'm proud of this at 37! I've worked in the nonprofit sector, and there were only a few years that I earned more than $60k. I got some good luck with the housing market, but saved substantially even when I earned $8/hr. Enough to come up with a $20k downpayment on my first house at 20 years old.
Hers: Roth $77k, 401k $54k, taxable investment, $194k. Total invested: $325k. 10k cash. Owns a condo that I'm moving into worth about $490k with $269k mortgage, so $221k equity.
Total net worth around $556k
Joint net worth: $1.1m
Current expenses: We are combining households, so we expect our expenses to reduce in certain areas but not clear yet. We've each been spending around $20k a year on all non-housing expenses. Our projected budget looks something like this:
Car insurance, gas, and repairs (2007 Prius): $1,400
Health insurance for me: $3,600
cell phone for both: $960
Utilities: $1k
Groceries: $6k
Restaurants: $2,400
Entertinament: $1,200
Clothing: $600
Misc: $2,400
Donations: $1k
Travel: $8k (This is a major hobby/priority. Last year we spent a month in Thailand for a total cost of around 5k plus some smaller trips. It could also be dramatically cut if needed, with longer camping/climbing trips domestically)
Total non-housing expenses: $28,500
Mortgage, HOA, insurance, taxes (15 year mortgage): $31k
Total expenses with mortgage: +/- $60k
Discussion/questions: It feels like we are getting pretty close to FI, with a number of caveats. A few more bits of information: in the next two years, we're projecting saving around $130k more, putting our total invested assets around $1m ignoring market increases or decreases. Heath care wise, we are both healthy but after quitting her job she will have to buy individual heath care for the first time, potentially adding $5k/year for now.
Plans wise, I am wrapping up a contract in two years, about the same time as her "it's not worth as much to keep working here" date. I would probably bring in around $10k/year even just working for fun after that. She is also open to doing some software engineering as an independent contractor.
Just a quick note that it's pretty cool that our assets are so equal going into combining our household.
Practical questions: Anything I should keep in mind with my large amount of assets ready to invest? I don't want to time the market, but thinking of doing some dollar cost averaging. I'm also considering paying off the mortgage, both for the safe returns (3.75%) and for the cash flow benefit.
Any tax tips? I'm just investing in my Roth, what other possibilities are there to consider this year?
Bigger questions: psychologically, do we both plan on quitting in two years? Or should we wait to see how the market goes? Biggest worries are health care expense, sequence of returns risk with the market downturn, and uncertainly about earning potential and stress level of both of our contract work possibilities.
Any other things we should be thinking about now?