Hey all,
My wife and I are thinking about FIREing about 5 years from now—we’ll both be about 49. We currently have approximately $1.45M liquid net worth ($325K taxable accounts, $1.055M tax deferred, and $70K in Roths). We currently save $125K/year—maxing out retirement contributions ($61K) and saving the remainder ($64K) of our unspent paychecks. Most of our non-employer accounts are through Schwab, and our total expense ratio for all accounts is about 9 basis points for a moderate allocation. We have a house that’s paid off and valued (by SmartZip) at $341K—though I actually think it is worth around $315K, based on recent sales in the area. We spend $72K/year and don’t carry debt of any kind.
We currently live in the U.S., but would like to move to Spain when we FIRE—wife and kids have citizenship, there. My plan would be to have $2M - $2.5M saved between now and then, to generate between $80K and $100K/year of passive income (using Bernstein’s 4% rule). This income would cover our normal spending (estimated to be 20% - 30% lower overall than in the U.S.) and college for our 3 kids—tuition is lower (around $2500/year/kid at public university). We would use the revenue from the sale of our house to purchase a home in Spain. Health care is not a large expenditure as it is in the U.S., and insurance can be purchased relatively cheaply. We would use a Roth conversion ladder, as required.
My questions are:
1) Does anyone else have a similar situation? If so, I’d love to hear it.
2) Are there any forums or blogs for people in similar situations? If so, where?
3) Are there critical details or traps (financial or non-financial) that I would need to plan for either before or after FIREing?
