2024 FIRE Cohort

[PacificaFog]

@PacificaFog add me to the OLY section, I pulled it forward to 2022 and it’s been the best decision I could have made.

Will do!  Congrats on that.  Have to say, I'm a bit jealous.  Still cranking away here and not feeling very sure about when we'll be pulling to plug given the market craziness the past year or so!

[mspym]

@PacificaFog add me to the OLY section, I pulled it forward to 2022 and it’s been the best decision I could have made.

Will do!  Congrats on that.  Have to say, I'm a bit jealous.  Still cranking away here and not feeling very sure about when we'll be pulling to plug given the market craziness the past year or so!

I ran the numbers in broke rich or dead, realised there was a 4x chance I would be dead rather than broke and that I was willing to take the chance. Might be worth looking at relative risks!

Good luck. 

[Edwards]

Dropping in to say my plans to retire in 2024 have changed.
This decision was made from a mixture of the intense market drop and a personal decision to relax my extreme savings rate. I'm still banking around 70% each year but am using the other 15-20% I was saving to enjoy life more. With those factors slowing down my plans, i expect to be a few more years out at this time now.

The trip will take longer but should be more comfortable finally.

[pdxvandal]

This is my new approach as well, Edwards. I put myself in the 2023 cohort in early 2022 when the markets were at all-time highs and a CFP told me I could pull the plug in a year. Well, stuff happens including market drops and some unexpected medical bills. I also got a 25% raise at work recently as well as 10 more annual days off, so I am trying to spend the extra $$ on more experiences and have become slightly less Mustachianism (I'm still dropping nearly $5k monthly into the market). And work is slightly more enjoyable than it has been in a while (even though I'd rather NOT work).

My FIRE timeline has shifted to at least 2024, and very likely until 2025. I'm OK with that ... or at least until I'm not. I think it's important to be flexible while also saving your a$$ off while having fun along the way.

[techwiz]

This is my new approach as well, Edwards. I put myself in the 2023 cohort in early 2022 when the markets were at all-time highs and a CFP told me I could pull the plug in a year. Well, stuff happens including market drops and some unexpected medical bills. I also got a 25% raise at work recently as well as 10 more annual days off, so I am trying to spend the extra $$ on more experiences and have become slightly less Mustachianism (I'm still dropping nearly $5k monthly into the market). And work is slightly more enjoyable than it has been in a while (even though I'd rather NOT work).

My FIRE timeline has shifted to at least 2024, and very likely until 2025. I'm OK with that ... or at least until I'm not. I think it's important to be flexible while also saving your a$$ off while having fun along the way.

Sorry to see Edwards and yourself leave the 2024 cohort. I think both of you have the right idea of being comfortable and enjoying life. Being Mustachianism does not mean you have to deprive and suffer to reach the FIRE as fast as you can.  Being flexible and having fun along the way is key!   

[achvfi]

Best of luck to all in 2024 FIRE cohort.

2023 and 2024 will give this cohort great opportunities to setup risk free relatively high fixed income for next 2-5 years as you start off your fire journeys. Is anyone looking into taking advantage of this and what is your strategy?

[techwiz]

Best of luck to all in 2024 FIRE cohort.

2023 and 2024 will give this cohort great opportunities to setup risk free relatively high fixed income for next 2-5 years as you start off your fire journeys. Is anyone looking into taking advantage of this and what is your strategy?

I am not changing any of my investment plans and sticking with the original long term plan with the same AA.

When I hear "risk Free and high fixed income" that sends up the too good to be true flag for me. I assume you are taking about federal bonds yields? For some heading into FIRE changing their holdings might be part of their plans and having these higher yields is better than the last few years of low interest rates. However, looking at the big picture inflation is also higher and rates might still be rising. Being flexible is one of the best defenses against sequence of return risk in the first few years.   

[Turtle]

Best of luck to all in 2024 FIRE cohort.

2023 and 2024 will give this cohort great opportunities to setup risk free relatively high fixed income for next 2-5 years as you start off your fire journeys. Is anyone looking into taking advantage of this and what is your strategy?

I am not changing any of my investment plans and sticking with the original long term plan with the same AA.

When I hear "risk Free and high fixed income" that sends up the too good to be true flag for me. I assume you are taking about federal bonds yields? For some heading into FIRE changing their holdings might be part of their plans and having these higher yields is better than the last few years of low interest rates. However, looking at the big picture inflation is also higher and rates might still be rising. Being flexible is one of the best defenses against sequence of return risk in the first few years.

I took the first quote to specifically be highlighting the better interest rates for short term cash/equivalents rather than suggesting any changes in long term AA.   

[PacificaFog]

Best of luck to all in 2024 FIRE cohort.

2023 and 2024 will give this cohort great opportunities to setup risk free relatively high fixed income for next 2-5 years as you start off your fire journeys. Is anyone looking into taking advantage of this and what is your strategy?

I am not changing any of my investment plans and sticking with the original long term plan with the same AA.

When I hear "risk Free and high fixed income" that sends up the too good to be true flag for me. I assume you are taking about federal bonds yields? For some heading into FIRE changing their holdings might be part of their plans and having these higher yields is better than the last few years of low interest rates. However, looking at the big picture inflation is also higher and rates might still be rising. Being flexible is one of the best defenses against sequence of return risk in the first few years.

I took the first quote to specifically be highlighting the better interest rates for short term cash/equivalents rather than suggesting any changes in long term AA.

Hi Turtle!  I read the first quote the same way you did.  I’m actually gradually increasing my cash holdings by diverting new savings that way.  When I had a saving account with a 0.3% yield, cash was looking pretty bad, but now that I’m able to buy CDs at 5% I’m hoping to get about 1.5 years worth of living expenses in a CD ladder before pulling the plug.  Obviously, that may not keep up with inflation long term, but hopefully it will prevent me from having to sell stocks the first year or two of my retirement if things continue to be volatile.

[Turtle]

Best of luck to all in 2024 FIRE cohort.

2023 and 2024 will give this cohort great opportunities to setup risk free relatively high fixed income for next 2-5 years as you start off your fire journeys. Is anyone looking into taking advantage of this and what is your strategy?

I am not changing any of my investment plans and sticking with the original long term plan with the same AA.

When I hear "risk Free and high fixed income" that sends up the too good to be true flag for me. I assume you are taking about federal bonds yields? For some heading into FIRE changing their holdings might be part of their plans and having these higher yields is better than the last few years of low interest rates. However, looking at the big picture inflation is also higher and rates might still be rising. Being flexible is one of the best defenses against sequence of return risk in the first few years.

I took the first quote to specifically be highlighting the better interest rates for short term cash/equivalents rather than suggesting any changes in long term AA.

Hi Turtle!  I read the first quote the same way you did.  I’m actually gradually increasing my cash holdings by diverting new savings that way.  When I had a saving account with a 0.3% yield, cash was looking pretty bad, but now that I’m able to buy CDs at 5% I’m hoping to get about 1.5 years worth of living expenses in a CD ladder before pulling the plug.  Obviously, that may not keep up with inflation long term, but hopefully it will prevent me from having to sell stocks the first year or two of my retirement if things continue to be volatile.

I'm going to want the flexibility in order to have options for covering fixed expenses while keeping my taxable income low during the first few years of retirement.  It also serves to address some sequence of returns risk. 

[achvfi]

Best of luck to all in 2024 FIRE cohort.

2023 and 2024 will give this cohort great opportunities to setup risk free relatively high fixed income for next 2-5 years as you start off your fire journeys. Is anyone looking into taking advantage of this and what is your strategy?

I am not changing any of my investment plans and sticking with the original long term plan with the same AA.

When I hear "risk Free and high fixed income" that sends up the too good to be true flag for me. I assume you are taking about federal bonds yields? For some heading into FIRE changing their holdings might be part of their plans and having these higher yields is better than the last few years of low interest rates. However, looking at the big picture inflation is also higher and rates might still be rising. Being flexible is one of the best defenses against sequence of return risk in the first few years.

Yes, I meant for short term cash savings and bonds you have t-bills, ibonds, CDs and other safe instruments that yield >5 % for next 2 years atleast and likely more in coming months.

I hope people are not scrambling to change their asset allocation, but rather there is opportunity to mitigate sequence of returns risk for first few years of your FIRE journey.

[marblejane]

Hi all! Lurking into this thread from the 2023 cohort. My plans are still up in the air, but it's looking very likely due to market performance and life changes that I'll retire in 2024. I bought a house with my fiance last summer and we are getting married this August. Life as a new homeowner has been very spendy lately, so I feel it's prudent to continue working a bit longer to see how our expenses settle in this new phase of life. The market dive this past year also has me behind the projected net worth that I had set when I cam up with my 2023 retirement date. I am trying to stay flexible in my mindset right now so I won't pick a specific date just yet.

[jade]

I might do too bringing it forward a year so joining this thread as well as 2025 .. we'll see how it goes!

[PacificaFog]

Welcome @marblejane and @jade!  I think there are a lot of us who picked tentative FIRE dates a few years ago who are now just in a holding pattern as we wait and see what happens.  If you’d asked me two years ago, I would have predicted I’d have hit my lean-FIRE number by now, but it’s still tantalizingly close.  Just can’t seem to quite get there!  Staying flexible is really the best option!

[jade]

Welcome @marblejane and @jade!  I think there are a lot of us who picked tentative FIRE dates a few years ago who are now just in a holding pattern as we wait and see what happens.  If you’d asked me two years ago, I would have predicted I’d have hit my lean-FIRE number by now, but it’s still tantalizingly close.  Just can’t seem to quite get there!  Staying flexible is really the best option!

Thanks for the welcome and useful reminders @PacificaFog .. I agree about staying flexible. I'm not ready to leave work yet but I think I could be ready for it to be the last year. We'll see how it goes and how the numbers stack up. I love the idea of these threads so we can support each other on the way! All the best with your journey too.

[By the River]

I missed posting but as of yesterday I have 500 days at the most.   I will leave sometime between March 1 and August 22, 2024   

(That's somewhere between 200 and 275 work days).

[techwiz]

Now that our FIRE dates are getting closer what are you doing to help get ready for the transition?

One item I am doing is meeting with a professional financial planner to review my plan and get outsiders view and comments.   

[By the River]

Now that our FIRE dates are getting closer what are you doing to help get ready for the transition?

One item I am doing is meeting with a professional financial planner to review my plan and get outsiders view and comments.   

A few years ago, I moved an old IRA that was maybe 15% of our investments to a financial planner (most is in 401Ks at work or emergency funds).  It was worth the fees he charged for my wife to be assured that we are okay to retire and probably won't be living in the van down by the river later.

[techwiz]

A few years ago, I moved an old IRA that was maybe 15% of our investments to a financial planner (most is in 401Ks at work or emergency funds).  It was worth the fees he charged for my wife to be assured that we are okay to retire and probably won't be living in the van down by the river later.

That does sound worth the fees for peace of mind and assurance.

Some would argue Chris Farley had it made living in nature in a van!  :P

[PMJL34]

Bytheriver,

What assurance did the financial planner give you and your wife?

For me, as 2024 approaches, my mindset has changed from "just save as much as possible and hope the numbers get there" to "I'm right there, let me just get to this specific number." I'm not doing a good job explaining, but it certainly feels different.

I've also been talking more openly about it to family and close friends and really planning and forecasting how life will be different with actionable steps.

[By the River]

My wife is more risk adverse than me.  So even though my spreadsheets and the Rich Broke or Dead calculator both showed that we should be fine, she wanted another opinion.  The planner agreed that we should be okay with our plans but be able to make adjustments if necessary and we discussed the magnitude of adjustments. 

I just tell my friends and family that I'll retire in the next couple of years.  I'll give work a couple of months notice when I decide on the actual date.

[techwiz]

My wife is more risk adverse than me.  So even though my spreadsheets and the Rich Broke or Dead calculator both showed that we should be fine, she wanted another opinion.  The planner agreed that we should be okay with our plans but be able to make adjustments if necessary and we discussed the magnitude of adjustments. 

I just tell my friends and family that I'll retire in the next couple of years.  I'll give work a couple of months notice when I decide on the actual date.

Glad to hear session with the planner went well. I agree no reason to give work more than a couple of months notice good to keep options open.

[PMJL34]

Gotcha Bytheriver! I still encourage you and your wife to be in complete control of your assets, but do whatever helps the both of you sleep best at night :)

Now that I thought about it a little more, what I was trying to say earlier is that I feel more in control as my number gets closer. I felt sort of powerless and really no end in sight during the middle phase. Now that I am in the final stretch and can see the light at the end of the tunnel, I feel like I am more in control of the steering wheel.

I will be retiring through rental income so no changes to my asset allocation for me. I will stick with 100% index funds with 70domestic/30int. Depending on how things go, I plan to stay with this allocation for a while.

My W2 position is easily replaceable so the standard 2 week notice will do it for me.

Best of luck everyone, we got this!

[AO1FireTo]

I'm still looking at December 2024.  If my wife would agree to sell our expensive house in Toronto and move to a low cost of living area, I would pull the plug now.  Every month I show her how our investments can more than cover our expenses during our budget meeting, but I think she'll work another ten years even though we clearly have enough.  Not sure how I'll ever convince her otherwise, but for me, I'm done with the corporate BS ion 2024.

[MisterA]

If my wife would agree to sell our expensive house in Toronto and move to a low cost of living area, I would pull the plug now.  Every month I show her how our investments can more than cover our expenses during our budget meeting

You have a budget meeting, with your wife? Do you schedule them, ahead of time??

[deborah]

If my wife would agree to sell our expensive house in Toronto and move to a low cost of living area, I would pull the plug now.  Every month I show her how our investments can more than cover our expenses during our budget meeting

You have a budget meeting, with your wife? Do you schedule them, ahead of time??

This is something recommended by several finance gurus. It obviously works for a number of people. If you schedule meetings, you can get the kids out of the way, you can keep your discussion to your budget…

[PMJL34]

lol is it the terminology of "meeting" that is throwing people off? Because I think everyone who has a partner, should be having frequent and deep conversations/meetings/discussions (whatever you want to call it) about FIRE if that's your goal.

[mspym]

My partner and I just had a chat about tax implications of moving money between countries over our morning coffee. But then we are both very interested in and comfortable talking about money. For a lot of couples, especially where one person has become The Money Person, having a regular financial check-in is healthy.

[AO1FireTo]

If my wife would agree to sell our expensive house in Toronto and move to a low cost of living area, I would pull the plug now.  Every month I show her how our investments can more than cover our expenses during our budget meeting

You have a budget meeting, with your wife? Do you schedule them, ahead of time??

This is something recommended by several finance gurus. It obviously works for a number of people. If you schedule meetings, you can get the kids out of the way, you can keep your discussion to your budget…

Yes we tract our spending each month, and investments quarterly.  We also review our goals quarterly.  I do all the work, but reviewing our position helps make sure we both are on the same page.  Once the daughter is old enough we will include her too.

[By the River]

My boss just requested a project where I will review a portion of our leases on a quarterly basis (total of 16 to 24 hours a quarter).  I put together a schedule that covered all leases over three years ending in June 2026.  This is the first project I have with a deadline past my assumed retirement date.

[techwiz]

My boss just requested a project where I will review a portion of our leases on a quarterly basis (total of 16 to 24 hours a quarter).  I put together a schedule that covered all leases over three years ending in June 2026.  This is the first project I have with a deadline past my assumed retirement date.

If you are like me I find it's hard to be 100% motivated to work on things with a deadline past my FIRE date. I have to activity put aside my first thought of "why do I care" and put on my good corporate worker hat and make sure I am doing my best for the time I will be working on it. As we get closer to 2024 there is more and more of this type of work.   

[PMJL34]

Bytheriver,

Is this request by your boss what YOU want to do for the next 3 years?

[By the River]

Bytheriver,

Is this request by your boss what YOU want to do for the next 3 years?

It's an item that can be considered as belonging to my job.  The good thing is that it's only 2 or 3 days a quarter and all data I need is online.  Its a great project to work at home since it involves no meetings etc.    Not staying longer than I need to do though, will be transferred to someone else when the time comes. 

[Nobodyinparticular]

So I went out with some friends tonight and one of them asked me when I was going to pull the plug.  I've felt weird about about talking about this to anyone outside of close family members, but I told him.  For some reason I now feel the need to put a stake in the ground, so I'm going to put it out to the world that the plan is Aug 2, 2024. 




P.S.  I realize I've just doomed us all to a horrifying world economic collapse that will ruin all retirement plans.  I truly am sorry about that.

[techwiz]

P.S.  I realize I've just doomed us all to a horrifying world economic collapse that will ruin all retirement plans.  I truly am sorry about that.

Well now we know who to blame... "Nobody in particular"!   

P.S(your username is prefect)

[PMJL34]

Bytheriver,

Oh wow! you literally only work 2-3 days a quarter (so 8-12 work days a year) + no meetings and full WFH? That's not even work. I take back what you said, sounds like you are FIRE already then!

[By the River]

Bytheriver,

Oh wow! you literally only work 2-3 days a quarter (so 8-12 work days a year) + no meetings and full WFH? That's not even work. I take back what you said, sounds like you are FIRE already then!

Sorry for the confusion.   I have different projects with different but usually short timelines.  This is just another one thrown on the pile but it is the longest duration project.   

[techwiz]

Days left until my FIRE date!

Now that it is under a year away I assume the days will go even faster.



* One would think May 27 is only 363 days away, but 2024 is a leap year and there is an extra day for all of us with FIRE dates after February 29.

[doneby35]

Joining this to keep myself motivated.

Current Net Worth: $830,000 (June 2023)
Target Net Worth: $1,000,000
Target FIRE Date: December 2024

[techwiz]

11 months and 11 days to my FIRE Date


Hoping to avoid the OMY syndrome!

[wageslave23]

Our path to FI has ups and downs, especially when you make charts.

RED: Trailing Twelve Month expenses, totaling spending over the previous 12 month period
YELLOW: 4% of investable assets

BLUE:  TTM (red) but excluding P+I from mortgage
GREEN: 4% of investable assets after paying off mortgage balance

The gist is that once we are FI, we could pay off our mortgage, though we probably wouldn't. So we have two slightly different ways to measure if we're FI. If 4% of our invested assets can cover our annual expenses including the mortgage, we're actually a bit past FI because we wouldn't have to pay that mortgage forever. Eventually it gets paid off.

So the other way to look at is if 4% would cover our expenses after using some investments to pay off that mortgage. So we're just waiting for that green line to rise to meet blue, and VOILA! FIRE. (There's some complexity there - we of course don't include equity in invested assets, but also that P+I payment adds a chunk to expenses, regardless of some of the money going to equity. S.O.R.R. would be really bad if we are paying on the mortgage from reduced investments. But long-term/historically we expect investments to outperform the drag of mortgage interest.)

The early rise of the graph is the result of buying a house, using cash for the down payment, and some lifestyle inflation that went along with home ownership. As we work to reduce our expenses over time, and contribute to our investments, we can hopefully accelerate the singularity!

Right now, the numerical data suggests late 2024 for this moment to occur, of course somewhat at the mercy of investment behavior!

My, that chart looked good back then. The chart has resumed looking good in trajectory, but with a delay.

I dont understand your chart. Why are your trailing 12 month actual expenses varying with market? Shouldn't they be independent of each other?

[ToughMother]

Hi all. Checking out this group since I will retire somewhere between August 2023 and February 2024. I prefer the latter date since it will improve my pension and give us some time to do some savings “catch up” after some house repairs/major renovations. However, I’m dealing with some health issues so that may lead to an earlier exit. Thanks!

[Nobodyinparticular]

Since, theoretically, many the people on this list will be making the leap in 6-18 months I was curious if anyone was making big changes in preparation.  The move into planning for FIRE takes an adjustment of mindset(for most people) and planning.  Then the middle part is just save, invest, control spending, fantasize(for some people).  Now that "THE DAY" is getting visible on the horizon, I was wondering how people's mindsets might be adjusting.

[marblejane]

Since, theoretically, many the people on this list will be making the leap in 6-18 months I was curious if anyone was making big changes in preparation.  The move into planning for FIRE takes an adjustment of mindset(for most people) and planning.  Then the middle part is just save, invest, control spending, fantasize(for some people).  Now that "THE DAY" is getting visible on the horizon, I was wondering how people's mindsets might be adjusting.

Mostly, I am hyper focused on my budget and spending as I really want to be sure that I've correctly nailed down my withdrawal rate. I have a decent amount in my brokerage account, but I am also doing more detailed cash flow modeling to ensure that I have funds in the right buckets. Also, I'm spending money like crazy! What I mean is, making sure that I am caught up on home maintenance & looking hard at making any major purchases that are on the 5 year horizon now before I retire. I need to start looking at the ACA exchanges and nail down my post-retirement healthcare budget in more detail.

I already have a pretty decent idea of how I will spend my time once I quit working. There is a good sticky on this topic in the Post-FIRE subforum.

[Turtle]

Since, theoretically, many the people on this list will be making the leap in 6-18 months I was curious if anyone was making big changes in preparation.  The move into planning for FIRE takes an adjustment of mindset(for most people) and planning.  Then the middle part is just save, invest, control spending, fantasize(for some people).  Now that "THE DAY" is getting visible on the horizon, I was wondering how people's mindsets might be adjusting.

Mostly, I am hyper focused on my budget and spending as I really want to be sure that I've correctly nailed down my withdrawal rate. I have a decent amount in my brokerage account, but I am also doing more detailed cash flow modeling to ensure that I have funds in the right buckets. Also, I'm spending money like crazy! What I mean is, making sure that I am caught up on home maintenance & looking hard at making any major purchases that are on the 5 year horizon now before I retire. I need to start looking at the ACA exchanges and nail down my post-retirement healthcare budget in more detail.

I already have a pretty decent idea of how I will spend my time once I quit working. There is a good sticky on this topic in the Post-FIRE subforum.

While still working is a good time to take advantage of those x years no interest finance deals for major house purchases.  I recently got new doors which won't be paid off until after I retire because they came with a 5 year no interest finance deal included.  (Lurker from Class of 2026/27 here)

[kissthesky]

My people! :)

I plan on hitting FI in 2024 when I'm 34 with >$1M in fire assets. I'll probably work part-time after that to keep health insurance and still have something stable to do. I bet a lot of things will change between now and then.. I like having a plan though!

Wow over 6 years later and I'm still planning on end of 2024! I'm at $2.5M and recently went down to 20 hrs/wk at work to ease into retirement and it's awesome :)

[PMJL34]

Way to go fellow bay area FIRE seeker (kissthesky)! Sounds like you crushed your estimates/goals from 2017!

Nobodyinparticular,

As others have mentioned, I too, am trying to make all big purchases (almost all housing related) now before pulling the trigger. I am also checking my spending (way too often!) just to make sure for the 1000th time that I am being realistic/prepared.

[wageslave23]

Since, theoretically, many the people on this list will be making the leap in 6-18 months I was curious if anyone was making big changes in preparation.  The move into planning for FIRE takes an adjustment of mindset(for most people) and planning.  Then the middle part is just save, invest, control spending, fantasize(for some people).  Now that "THE DAY" is getting visible on the horizon, I was wondering how people's mindsets might be adjusting.

I never understood this. If you have older windows that you would like to replace in 5 yrs, wouldn't it be better to keep that money invested for 5 more years? Or if you have a 10 yr old car that you will eventually want to replace, wouldn't it make more sense to set that money aside and earn interest until you actually need it? Seems like rookie psychological games that those who are near FIRE should be advanced beyond. Time value of money and all...

[Nobodyinparticular]

At least in my case, the windows have needed replacing for quite some time.  So, you are correct in that I could have saved up money for a year and a half and then got the windows.  I would have been eating the extra utility costs of doing that.  With 100+ degree days very common in the summer, that is a measurable amount.  I will note, that I did pay a lot of minimum payments as the time went along and am making larger payments in the last few months of the period.

[PMJL34]

Wageslave23,

I guess I should have been more specific. In my case, I'm doing a full gut rehab of my primary residence. No point in waiting for me and my family. Rather deal with the unexpected surprises/costs now while working than in my first few years of FIRE. Also, I will attempt to get to as much deferred maintenance on my rentals prior to FIRE. Since I DIY everything, I prefer to be FIRE with a semi-clean slate rather than FIRE with huge to-do lists. Hope this makes sense.