Author Topic: 2027 FIRE Cohort  (Read 102552 times)

Valvore

  • Stubble
  • **
  • Posts: 137
  • Age: 32
  • Location: Tempe, AZ
  • Formerly known as FireryFIRE
Re: 2027 FIRE Cohort
« Reply #150 on: February 27, 2019, 10:33:48 AM »
@fuzzy math My husband receives VA disability benefits for service connected disability. I actually debated mentioning it by name because I feel sort of strange about it. Yes, my husband has issues from his service and I feel he should be compensated but all the benefits of the payment baffle me and makes me feel sort of guilty. His issues will never get better so the payments are guaranteed for life. And the money is non-taxable income. Which is huge for our FIRE plans because the amount we plan to withdraw from various accounts (17K) keeps us in the 10% tax bracket and eligible for a bunch of other benefits (which we don't plan on taking).

That's part of the reason our FIRE plan is complicated. We rely on the disability but also have various accounts that we will pull from and let others grow and then switch. Starting with IRA, then to 457b, then back to IRA and then old 401K.

In case anyone is wondering, the disability is 100% my DH's. If he passes or we get divorced, it goes away for me. It is risky but he is my life-love partner (divorce unlikely) and we have a life insurance policy for him so hopefully I'm covered. But it would seriously alter my FIRE plans. Not to mention we want to FIRE together!

fuzzy math

  • Handlebar Stache
  • *****
  • Posts: 1756
  • Age: 42
  • Location: PNW
Re: 2027 FIRE Cohort
« Reply #151 on: February 27, 2019, 10:45:47 AM »
@fuzzy math My husband receives VA disability benefits for service connected disability. I actually debated mentioning it by name because I feel sort of strange about it. Yes, my husband has issues from his service and I feel he should be compensated but all the benefits of the payment baffle me and makes me feel sort of guilty. His issues will never get better so the payments are guaranteed for life. And the money is non-taxable income. Which is huge for our FIRE plans because the amount we plan to withdraw from various accounts (17K) keeps us in the 10% tax bracket and eligible for a bunch of other benefits (which we don't plan on taking).

That's part of the reason our FIRE plan is complicated. We rely on the disability but also have various accounts that we will pull from and let others grow and then switch. Starting with IRA, then to 457b, then back to IRA and then old 401K.

In case anyone is wondering, the disability is 100% my DH's. If he passes or we get divorced, it goes away for me. It is risky but he is my life-love partner (divorce unlikely) and we have a life insurance policy for him so hopefully I'm covered. But it would seriously alter my FIRE plans. Not to mention we want to FIRE together!

I get it, it can be a contentious thing and definitely something that us non military peeps have a harder time comprehending. My in laws are all military people and have disability payments. My FIL  gets one for his sleep apnea and other aging related conditions. I asked him how they could prove sleep apnea was military related (he was an officer, never saw combat) - he responded with "well how can they prove it isn't?"  Considering my husband has sleep apnea too, I'm pretty sure he (my DH) didn't get it from living on base. But those are the rules, and they are well intentioned rules and one of the few redeeming things that can come from a lifetime of sacrifices.

Its a great situation for your family because it doesn't prevent your DH from working. I hope he is physically well enough not to be suffering too terribly from whatever. Use what you've got to your advantage! It will certainly help you achieve FIRE much faster and provide a lot of stability if the market goes wonky around your FIRE date. 

Depending on the terms of your accounts (and since I'm in a similar position), it might be better to consider getting into your 457 first before the IRAs. I plan on heavily converting our IRAs to Roths once FIREd.

imperfect

  • 5 O'Clock Shadow
  • *
  • Posts: 29
Re: 2027 FIRE Cohort
« Reply #152 on: March 08, 2019, 07:22:49 PM »

Hey, checking in for class of 2027.  I'll be 55 then, and like some others, a pension benefit is the big factor in choosing that age.

My personal savings rate is about 60% (but hasn't always been).  Between the pension, 401k, and an after tax brokerage account, if my math is correct I'll have a nice cushion on my expected expenses then.

Setting a reminder to check back in here at least once a year to see if my plan is on track.

Fingers crossed!

TomTX

  • Walrus Stache
  • *******
  • Posts: 5345
  • Location: Texas
Re: 2027 FIRE Cohort
« Reply #153 on: March 09, 2019, 09:17:08 AM »
Welcome!

frugalecon

  • Pencil Stache
  • ****
  • Posts: 747
Re: 2027 FIRE Cohort
« Reply #154 on: March 11, 2019, 07:37:44 PM »
Passed a birthday, which caused my counter app to roll over to 7 years, 11 months, and change. Seems almost doable. (Though I havenít given up on the 2025 cohort.)

MikeO

  • 5 O'Clock Shadow
  • *
  • Posts: 67
  • Age: 51
  • Location: Central Florida
Re: 2027 FIRE Cohort
« Reply #155 on: March 13, 2019, 07:35:07 PM »
I'm a newbie here, but have been following MMM for a Little while now.

I'm a 2027 ish guy. 

Currently 46 years old, with $600,000 saved we currently save just over 50% of our take-home pay and live off of $50,000 a year. 

We stay quite busy having fun, traveling etc but also save more than most people make in a year (or two).  My philosophy is gotta live today like tomorrow may never come because to be honest it might not, but at the same time i so badly want to be FI and work because i want to not because i have to. 

Good thing is i love my job and it's afford me lots of time off.  So once i get to FI/FU I'll stop working overtime and give up the supervisor position to just work the line giving us even more time to enjoy life.  (7 days on 7 days off with 4 weeks of vacation a year. 1 week of vacation equals 3 weeks off!)

Medical will be the big deciding factor if i quit all together or work a little. 

I could probably stop sooner but the pessemist in me thinks i need more money  just in case, once i quit i don't want to have to do the walk off shame back to work. 

fuzzy math

  • Handlebar Stache
  • *****
  • Posts: 1756
  • Age: 42
  • Location: PNW
Re: 2027 FIRE Cohort
« Reply #156 on: March 14, 2019, 01:04:30 PM »
I'm a newbie here, but have been following MMM for a Little while now.

I'm a 2027 ish guy. 

Currently 46 years old, with $600,000 saved we currently save just over 50% of our take-home pay and live off of $50,000 a year. 

We stay quite busy having fun, traveling etc but also save more than most people make in a year (or two).  My philosophy is gotta live today like tomorrow may never come because to be honest it might not, but at the same time i so badly want to be FI and work because i want to not because i have to. 

Good thing is i love my job and it's afford me lots of time off.  So once i get to FI/FU I'll stop working overtime and give up the supervisor position to just work the line giving us even more time to enjoy life.  (7 days on 7 days off with 4 weeks of vacation a year. 1 week of vacation equals 3 weeks off!)

Medical will be the big deciding factor if i quit all together or work a little. 

I could probably stop sooner but the pessemist in me thinks i need more money  just in case, once i quit i don't want to have to do the walk off shame back to work.

Welcome Mike! My spend and save rates are about the same as yours, but I'm 9 years younger and have saved half of what you save. By your retirement age, you will be within 15 years of social security. Are you anticipating a much higher annual spend than what you have now?

Go curry cracker just wrote a new article about the value of social security that I've been musing over a bunch. It seems relevant to your situation
https://www.gocurrycracker.com/spending-future-social-security-income-now/

frugalecon

  • Pencil Stache
  • ****
  • Posts: 747
Re: 2027 FIRE Cohort
« Reply #157 on: March 20, 2019, 07:09:30 PM »
Passed a birthday, which caused my counter app to roll over to 7 years, 11 months, and change. Seems almost doable. (Though I havenít given up on the 2025 cohort.)

After some reflection and analysis, I am officially decamping for the 2025 cohort. I wonít return to 2027 unless there really is a financial market meltdown. Best wishes to all!

TomTX

  • Walrus Stache
  • *******
  • Posts: 5345
  • Location: Texas
Re: 2027 FIRE Cohort
« Reply #158 on: March 21, 2019, 07:10:44 AM »
Congrats!

MikeO

  • 5 O'Clock Shadow
  • *
  • Posts: 67
  • Age: 51
  • Location: Central Florida
Re: 2027 FIRE Cohort
« Reply #159 on: March 22, 2019, 11:16:34 AM »
Fuzzy math,

Thanks for sharing the article, I'll have to run the numbers of my own situation.  Currently i do not use social security in my calculations.  If i get ss it'll be bonus.  Now i believe it'll be there although I'm worried about what Uncle Sam will do to it by the time i get there. 

To answer your question.... I think my spending will be similar to what it is now.  In our plan is to have our home paid off in full by 55 or so, so that will free up roughly 12k a year.  If we continue to spend the same that's alot of extra cash to use for enjoyment. 

My bigger concern is medical insurance.  It's bad now, with no end in sight.  There's no telling what the system will look like In 10, 15 or 20 years.  We'll just have to decide once we get there, but worst case senario is I continue working a job i love for the medical.  Hopefully not but only time will tell. 

Julard

  • 5 O'Clock Shadow
  • *
  • Posts: 58
  • Location: Australia
Re: 2027 FIRE Cohort
« Reply #160 on: March 24, 2019, 01:43:42 AM »
I'm working to a 2027 timeframe.  I'm halfway to my target now, and there plenty of variables that could change things one way or the other, but hopefully I won't have to go longer than this. 

And who knows, perhaps my job will become massively more enjoyable and I'll want to stay longer.  But like many of us, I so very badly want to know that I can say 'fuck you' whenever I want.  You know, actually out loud while walking away instead of just in my head while I sit in my cubicle.

Valvore

  • Stubble
  • **
  • Posts: 137
  • Age: 32
  • Location: Tempe, AZ
  • Formerly known as FireryFIRE
Re: 2027 FIRE Cohort
« Reply #161 on: March 25, 2019, 09:44:01 AM »
I hit my first $100K! Even with the small drop on Friday, payday put us over the threshold. I have a much smaller FI number than most here (425K), so this 100K is big.

Currently 23.5% of the way there!

401K - 10.6K
457b - 45K
IRA - 17K
DH IRA - 13K
HSA - 9.1K
Savings - 5.3K
TOTAL: $100,000


Currently 21.2% of the way there!

401K - 10.5K
457b - 41.5K
IRA - 16.1
DH IRA - 8.8K
HSA - 9.1K
Savings - 4K
TOTAL: $90,000

I think I also mentioned this is the first year we are an actual double income household so I am looking to contribute 50K to our freedom this year. The goal is to hit 150K by the end of 2019 which would be 35% to the goal. I'll check in later this year but I thought the first 100K was worth the post! First 100k took 3.5 years, next 100k should take less than 2 years.

MikeO

  • 5 O'Clock Shadow
  • *
  • Posts: 67
  • Age: 51
  • Location: Central Florida
Re: 2027 FIRE Cohort
« Reply #162 on: March 26, 2019, 01:48:11 PM »
Congrats on getting to 100k!  It's a big number for anyone.  My FU number is smaller than my RE number.  Im fortunate enough to actually like my job and plan on continuing to work just not a supervisor and no overtime once i hit FU. Which i hope to hit in 5 years. (to me FU is enough to live on but not what i want to live on, plus zero debt, house will be paid off in 5 years)

Vasilisa

  • Stubble
  • **
  • Posts: 114
  • Location: Santa Cruz, CA
Re: 2027 FIRE Cohort
« Reply #163 on: March 26, 2019, 02:37:33 PM »
@FireryFIRE that is exciting! Congrats!

We've been on such a good track and now this year is looking like we're falling off the rails. We've had some huge medical bills for IVF and now, happily, we're looking at family leave this year. Trying to figure out the whole two full-time working parents thing, health insurance, and the fact I need to leave my good paying job due to the horrific working conditions. Have applied to other jobs that are a reduction in wages but increase in quality of life and actually have HR departments. Things are looking up as far as working towards goal of becoming a parent but feeling like in this transition FIRE goals seem farther and farther away.

How have others "stayed the course" during these times of life change?

Glenstache

  • Magnum Stache
  • ******
  • Posts: 3415
  • Age: 94
  • Location: Upper left corner
  • FI(lean) working on the "RE"
Re: 2027 FIRE Cohort
« Reply #164 on: March 26, 2019, 03:10:27 PM »
@FireryFIRE that is exciting! Congrats!

We've been on such a good track and now this year is looking like we're falling off the rails. We've had some huge medical bills for IVF and now, happily, we're looking at family leave this year. Trying to figure out the whole two full-time working parents thing, health insurance, and the fact I need to leave my good paying job due to the horrific working conditions. Have applied to other jobs that are a reduction in wages but increase in quality of life and actually have HR departments. Things are looking up as far as working towards goal of becoming a parent but feeling like in this transition FIRE goals seem farther and farther away.

How have others "stayed the course" during these times of life change?
Everyone's life has periods of changes in financial situation. I think the bolded part in your post is the important thing, and realizing that mindless consumption is not how to get there. I "stayed the course" during my own time of change a couple of years ago by remembering that the goal is improved quality of life, and that the short-term expenses associated with my situation were not a long-term planned expense (like buying a new $$$ Truck on credit would be, for example). While there is a lot of emphasis on net worth in these forums, I think the steps you are describing above don't necessarily represent a huge deviation from the course. And congrats on the move towards parenthood!!

Valvore

  • Stubble
  • **
  • Posts: 137
  • Age: 32
  • Location: Tempe, AZ
  • Formerly known as FireryFIRE
Re: 2027 FIRE Cohort
« Reply #165 on: March 27, 2019, 04:34:39 PM »
Congratulations on the family leave @Vasilisa ! I'm hoping that means IVF was successful.

Don't be discouraged by the lower paying jobs. Job hunting can be really fun! And do not be afraid to negotiate for more. The job I'm at now offered me 8.5% more than what I was making at the time. I acted like it was a super low offer (it was because I was hoping for more) and was able to negotiate a total of a 23.5% raise. It took some time and some back and forth (they wanted to see my old pay stubs and I said NO) but I ended up with more money, better benefits and less stress. You never know what is out there until you try. I bet you'll be back on track and even better than you though by the end of the year.

@FireryFIRE that is exciting! Congrats!

We've been on such a good track and now this year is looking like we're falling off the rails. We've had some huge medical bills for IVF and now, happily, we're looking at family leave this year. Trying to figure out the whole two full-time working parents thing, health insurance, and the fact I need to leave my good paying job due to the horrific working conditions. Have applied to other jobs that are a reduction in wages but increase in quality of life and actually have HR departments. Things are looking up as far as working towards goal of becoming a parent but feeling like in this transition FIRE goals seem farther and farther away.

How have others "stayed the course" during these times of life change?

Valvore

  • Stubble
  • **
  • Posts: 137
  • Age: 32
  • Location: Tempe, AZ
  • Formerly known as FireryFIRE
Re: 2027 FIRE Cohort
« Reply #166 on: March 27, 2019, 04:42:09 PM »
How have others "stayed the course" during these times of life change?

Whoops, forgot to answer your question. I definitely have some times where everything seems to be going wrong, but it helps me when I look back at how far I've come. In December 2015 I was 84K in debt (CC, Student loans, car loan) and no savings. In December 2018 I had 25K in debt and 75K in retirement/savings. That's a huge difference in only 3 years. The days go by slow but the years go by fast. Take a look at your past and see how far you've come in a realatively short time.

Another tip, the attitude of gratitude can help turn your day around. You have so many wonderful things in your life to be grateful for, say it out loud or write it down. Even thank your huge IVF medical bill because it has allowed you to grow your family. I'm so grateful people have this as an option.

fuzzy math

  • Handlebar Stache
  • *****
  • Posts: 1756
  • Age: 42
  • Location: PNW
Re: 2027 FIRE Cohort
« Reply #167 on: April 01, 2019, 06:23:06 AM »
I hit my first $100K! Even with the small drop on Friday, payday put us over the threshold. I have a much smaller FI number than most here (425K), so this 100K is big.

Currently 23.5% of the way there!

401K - 10.6K
457b - 45K
IRA - 17K
DH IRA - 13K
HSA - 9.1K
Savings - 5.3K
TOTAL: $100,000


Currently 21.2% of the way there!

401K - 10.5K
457b - 41.5K
IRA - 16.1
DH IRA - 8.8K
HSA - 9.1K
Savings - 4K
TOTAL: $90,000

I think I also mentioned this is the first year we are an actual double income household so I am looking to contribute 50K to our freedom this year. The goal is to hit 150K by the end of 2019 which would be 35% to the goal. I'll check in later this year but I thought the first 100K was worth the post! First 100k took 3.5 years, next 100k should take less than 2 years.

woo hoo! If you can keep up $50k a year you will hit your goal 2-3 yrs earlier than 2027

fuzzy math

  • Handlebar Stache
  • *****
  • Posts: 1756
  • Age: 42
  • Location: PNW
Re: 2027 FIRE Cohort
« Reply #168 on: April 19, 2019, 07:41:01 PM »
@FireryFIRE that is exciting! Congrats!

We've been on such a good track and now this year is looking like we're falling off the rails. We've had some huge medical bills for IVF and now, happily, we're looking at family leave this year. Trying to figure out the whole two full-time working parents thing, health insurance, and the fact I need to leave my good paying job due to the horrific working conditions. Have applied to other jobs that are a reduction in wages but increase in quality of life and actually have HR departments. Things are looking up as far as working towards goal of becoming a parent but feeling like in this transition FIRE goals seem farther and farther away.

How have others "stayed the course" during these times of life change?

Congrats!! You will find ways for parenthood not to be the huge $$ suck that everyone says it is. #! Tip is accept free stuff! If you are still job hunting try to find a situation that allows you to work a slightly different shift than your DH to cut down on daycare costs or merely just time the kiddo will spend in care. You pay less in taxes by having a kiddo so if you're resourceful you will hopefully come out close to even in the end (not that $$ is the measure of success for parenthood).


AS for me, I've been doing some calculations and if DH and I can save an additional $600 a month (totally doable after a couple debts are paid off) we will be on track to hit the double comma club possibly by April of 2026. It opens up a lot of options for us. We went on our big long overdue anniversary adults only vacation to Spain in March and it was amazing how relaxed I was away from work. It was also amazing and not surprising that I want to move there when I retire haha. I wish we were young enough to be able to do the globetrotter thing with kids, but as it stands my kids are 12, 9 and 7. They will be 20, 17 and 15 when we hopefully call it quits. Not exactly the right time to pull them out of US unless we were able to plant it somewhere or treat it like a semester or year of foreign exchange (which the kids would probably hate living with their parents). These next 8 years will tell us who they end up being and if they are open to that sort of thing.

Vasilisa

  • Stubble
  • **
  • Posts: 114
  • Location: Santa Cruz, CA
Re: 2027 FIRE Cohort
« Reply #169 on: April 22, 2019, 09:56:57 AM »
Thanks for all the positive responses, folks. Yes, looking at a November due date and feeling pretty thrilled about it. Definitely rereading the MMM blog posts on parenting and Frugalwoods has had some great frugal parent posts as well. As we've been telling people, the free stuff offers are coming in- hooray for hand me downs.

Still looking for other work in the midst of first trimester low energy and sickness.

Certainly practicing gratitude and reflection on how far we've come- good reminders when you're in the trenches.

@fuzzy math Sounds like a wonderful trip. I feel that sense of relaxation every weekend- love my non-work life and am thrilled at any time I'm not in the office. We have a great home life, many community garden projects and a great community. Living the dream 128 hours a week, ha!


Valvore

  • Stubble
  • **
  • Posts: 137
  • Age: 32
  • Location: Tempe, AZ
  • Formerly known as FireryFIRE
Re: 2027 FIRE Cohort
« Reply #170 on: April 24, 2019, 11:57:39 AM »
@fuzzy math Isn't it so weird how much your FIRE date can change? When I first started my BEST FIRE date was 2035 (20 years) and I thought that was awesome/super early! But over the years you learn to optimize more and more, plus your earnings usually go up. After paying off debt and upping my savings I'm at 2027 (12 years), although as others pointed out because I have continued to up my savings rate, I could FIRE as early as 2024 (9 years)

Not to mention all the different dates if you incorporate coastFI, leanFI, or BaristaFI. I've got multiple contingency plans..

MikeO

  • 5 O'Clock Shadow
  • *
  • Posts: 67
  • Age: 51
  • Location: Central Florida
Re: 2027 FIRE Cohort
« Reply #171 on: April 24, 2019, 03:24:44 PM »
FireryFIRE

It would be awesome to be able to FIRE in half my estimated time!

Every year i seem to beat my expectations.  I've essentially tripled my total investments every 3.5 years.  Like you said, the older i get the more i make and the more i invest.

Loretta

  • Pencil Stache
  • ****
  • Posts: 819
Re: 2027 FIRE Cohort
« Reply #172 on: June 22, 2019, 01:02:47 PM »
This was a particularly brutal work week, but the knowledge that I can retire in November 2027 made it a little better.  Iím also back to putting money into my TSP after taking out some money for surgery.  It was money well spent but it also feels good to get that TSP match again. 

fuzzy math

  • Handlebar Stache
  • *****
  • Posts: 1756
  • Age: 42
  • Location: PNW
Re: 2027 FIRE Cohort
« Reply #173 on: August 20, 2019, 08:13:31 AM »
*bump* Where my 2027 peeps at??!

Its been a particularly fruitful past 3 months here in the fuzzy math household. DH and I received raises, totaling between us $36k. DH is also actively job hunting and if that pans out he will likely start out $15k higher than where he is now (with much better retirement account options too).

Using Personal Capital for a lazy person's estimation of funds, it appears we might be FI by 2025. The question at that point is how the market conditions look and whether I'd want to OMY (one more year) it. Back when 2027 was the minimum date to achieve FIRE I had promised myself I would quit no matter what our accounts looked like. Now it appears we have options. I don't want to be one of those people moaning about fat FIRE and OMY, but I just have no idea what life will look like then. I don't want to make myself any promises about FIREing earlier that I will later regret, because once uttered they're hard to take back.
« Last Edit: August 20, 2019, 08:15:39 AM by fuzzy math »

rockstache

  • Walrus Stache
  • *******
  • Posts: 7250
  • Age: 11
  • Location: Southeast
Re: 2027 FIRE Cohort
« Reply #174 on: August 20, 2019, 08:36:34 AM »
Still here. Still chugging along. We have one child now, so daycare is an expense, but we seem to have absorbed it pretty well. The real trouble will be if we decide to have a second kid. Things will get much tighter at that point, but I'm happy that we have a good chunk invested and that will keep working for us even if we go through a few years of not being able to invest as much. 2027 still seems like a good bet for now, if not earlier.

TomTX

  • Walrus Stache
  • *******
  • Posts: 5345
  • Location: Texas
Re: 2027 FIRE Cohort
« Reply #175 on: August 20, 2019, 04:03:58 PM »
Got a job in a different Division this month for $17k/year more. Same pension, but the "high 3 average" rule makes this a big deal. :D

talltexan

  • Walrus Stache
  • *******
  • Posts: 5345
Re: 2027 FIRE Cohort
« Reply #176 on: August 28, 2019, 07:00:37 AM »
I've probably mentioned the project to make a within-city move in this thread before. My wife and I looked at some *Fabulous* new construction houses in North Charlotte last night. I thought they had everything she wanted. She thought they were too expensive.

Will keep the group posted, because I'm comprehending that this is a decision that could really move the needle wrt RE.

Loretta

  • Pencil Stache
  • ****
  • Posts: 819
Re: 2027 FIRE Cohort
« Reply #177 on: August 28, 2019, 05:47:31 PM »
*bump* Where my 2027 peeps at??!


Iím still here.  Iím learning more now how groovy my HSA is and why it can be helpful flor lowering taxes and growing investment $.   Wishing I had signed up a couple years ago instead of 2019.  Oh well.

me1

  • Stubble
  • **
  • Posts: 115
Re: 2027 FIRE Cohort
« Reply #178 on: August 30, 2019, 06:29:38 AM »
I have no idea if I still belong here. I will give myself a few months to figure it out. I could have stayed the same very stressful course and probably moved up a couple of years sooner while leaving my SO floundering in his career. Instead, We just made a large overseas move where SO will be the main bread winner (making less than 1/2) of what I made and I will work part time or maybe completely switch careers, I have no idea. Not sure how our expenses or our income will be changed because of all this. But hoping for a lot less stress. We were just under $500k before we started bleeding money for the move. But it should be mostly reimbursed soon. Hopefully.

Valvore

  • Stubble
  • **
  • Posts: 137
  • Age: 32
  • Location: Tempe, AZ
  • Formerly known as FireryFIRE
Re: 2027 FIRE Cohort
« Reply #179 on: September 16, 2019, 12:30:10 PM »
Need advice cohorts!

I mentioned above how my FIRE date was changing with all the increased saving and increased income. If that market doesn't go wonky, the very earliest I could FIRE is May 2023. This is a huge jump up from my original November 2027 plan.

Now here's my "problem." We were able to cut the date because we bought an inexpensive house in a great neighborhood 4 years ago (spent 215K, instantly appraised for 235K). We made tons of upgrades including new roof (covered by insurance), new windows/doors (10K), new kitchen (10K) and new exterior paint. With the hot market here in AZ, we have 100K - 140K of untapped equity in our home. Even with all these upgrades, I still do not like our home. I dislike the layout and all the little issues associated. We are REALLY interested in getting a new home but are suffering from lifestyle inflation. We really want a nice home that we can spend the next 10 years in.

What should we do?
Option A. Buy a house in 400K price range that will make us happier and use equity as down payment. (Would raise mortgage about $500, pushes FIRE date back to ~2027)
Option B. Buy house in 315K price range that will be not as nice but better layout (Slow rehab. Mortgage does not increase)
Option C. Stay put, stay on track to FIRE early
Option D. ????

DeniseNJ

  • Pencil Stache
  • ****
  • Posts: 809
Re: 2027 FIRE Cohort
« Reply #180 on: September 16, 2019, 02:14:59 PM »
I'll join in here.  My retirement date is Aug. 4, 2028, but DH is July 25, 2017--that's the earliest we can reitre with our full pensions.  I'll be 57 and DH will be 60.  I like my job and also need to take my health ins into retirement.  He hates his job so I'm letting him off a year before me.

Right now we have:
430K in 401K
7K in my Roth
10K in his Roth
So less than 450K

We have a bit over 100K in equity in house.  I plan to sell at retirement and rent.  Right now we pay 1000 monthly in tax and 400 in HOA fees so renting in another state for 1600 or 1700 for a similar place will be practically be free.  I feel like we basically "rent" our house now.

We are managing to save 70K annually--just started MMM less than a year ago.  I figure we should have 1.5m in investments, plus our pensions and SS.  I haven't done all the math but it seems doable.  Anyway, not working a minute longer than 8/4/28--it's a Friday and the end of a pay period.  :)

fuzzy math

  • Handlebar Stache
  • *****
  • Posts: 1756
  • Age: 42
  • Location: PNW
Re: 2027 FIRE Cohort
« Reply #181 on: September 16, 2019, 03:44:41 PM »
Welcome Denise!! I like that you are already scoping out Fridays for retirement.

@Valvore - your options remind me a whole lot of what people got caught up in from 2006-2008. Be very wary of assuming all of your instant equity is real and tangible and will continue to be so in the next few years. I think we are in for a hurt. Having a nice roof or exterior paint will not raise the appraisal on your home, but its something that come inspection time a person might discount or negotiate for lower if they weren't in good condition. I bought a home in 2008 with lots of equity, put money into it and walked on it in 2012 when I was underwater 100k (plus the other 60 of lost "real equity")

Honestly, if I didn't have kids I'd be looking to rent ( if you have your 2 years into the home so you don't pay gains on it) and wait for the market to cool off. Sell high, sit tight and wait for others to be distressed to find something else you want. $400k+ is a fairly large gamble considering what your FIRE budget is going to be. Obviously this mindset comes from a person scarred by 2008 and it may never repeat, but I'm hearing more and more people talk the way you're talking and it makes me think it could happen again.

DeniseNJ

  • Pencil Stache
  • ****
  • Posts: 809
Re: 2027 FIRE Cohort
« Reply #182 on: September 18, 2019, 12:22:04 PM »
Did a little math.  Out of 230K, we bring home 150K--taxes, health ins., life ins, union dues, FICA, Medicare, blah blah blah.  Out of that we currently save 42%, or 62K (does no include 401K match of 7K) and spend 87K.  Most savings are pretax and some after tax.  We have 450K so far--just started super saving.  We also have about 100K equity in house.  Other than house, no debt.  I figure we'll have 1.5M in 9 years when I retire at current savings rate.  So we should be able to pull out 60K.  We also won't have kids at home and college costs or mortgage since I want to sell and move to Lower COL area and rent for the costs of property taxes and HOA fees in NJ.

Our pensions though might be another 60K.  Seems like we'll have way more than we'll need.  Hmmm. . . What to do, what to do. . . Mustachian People Problems. 

CharlesBronzee

  • 5 O'Clock Shadow
  • *
  • Posts: 37
  • Location: Toronto, Canada
Re: 2027 FIRE Cohort
« Reply #183 on: September 26, 2019, 06:23:25 PM »
I may have joined another cohort earlier, but 2027 is my target date now.

I will be the senior citizen of this group - Iíll be 60 then, wife 57.

Short-term goals are payoff mortgage in 2020 (c$36k balance today), payoff car loans in 2021.  Then start saving for living expenses for years 2027-2031.  Plan is not to start pensions and withdraw from retirement accounts until 2032.

I might actually just take a sabbatical for one year then go back to working again. Iím fortunate as I donít mind my job (self-employed).  Wife however will surely retire as she has a semi-stressful corporate job.

talltexan

  • Walrus Stache
  • *******
  • Posts: 5345
Re: 2027 FIRE Cohort
« Reply #184 on: October 03, 2019, 07:03:31 AM »
I'd moved myself to 2029, but the numbers that people are sharing here seem more like the talltexan household (many people in 2029 have below $200,000 saved). I might be able to join you guys again!

raincoast

  • 5 O'Clock Shadow
  • *
  • Posts: 82
  • Location: Vancouver, Canada
Re: 2027 FIRE Cohort
« Reply #185 on: November 17, 2019, 10:49:54 PM »
2027 is my "conservative" target year (no inheritances, no big raises, no big spending reductions). I'll turn 38 towards the end of that year. I'm single, with no kids, so there are a few big life changes that could change that date.

I don't plan to stop working completely, but I hope to re-align my career more around my well-being and my interests rather than around making money. I'm a lawyer, but I've always wanted to write books.

My big debate in the next year or so is when (or whether) to buy a condo. The real estate market here in Vancouver is completely insane - $500,000 minimum for a one-bedroom condo anywhere central, and $1 million+ for a single family home in almost the entire commutable region. The year I moved here, real estate prices increased 30% in a single year. A mortgage, even with the large down payment I have saved, would cost significantly more per month than my current rent (and that's before adding property taxes, condo fees, insurance, etc.). So for now I'm waiting it out and adding all that money I save to my stash.

BostonBrit

  • 5 O'Clock Shadow
  • *
  • Posts: 63
Re: 2027 FIRE Cohort
« Reply #186 on: November 25, 2019, 01:02:16 PM »
Targeting a fat FIRE in 2027.

DW and I will be mid 40s. Kids will be 14, 11 and 9.
« Last Edit: November 25, 2019, 01:06:29 PM by BostonBrit »

engineerjourney

  • Bristles
  • ***
  • Posts: 469
  • Age: 36
Re: 2027 FIRE Cohort
« Reply #187 on: November 27, 2019, 12:52:36 PM »
I am going to join in here as a goal!  So many unknowns between now and 2027 but why not shoot for it!
Current age - 32, DH and I have two kids and plan to have 1-2 more
Found 2027 just by looking at 401k and IRA account projections just in case having more kids stagnates our savings (so not counting HSAs, taxable, or home equity).  Also have some conservatism in our projected spending due to health care unknowns. 
Right now looking for $1.4M as the goal and will be adjusting as expenses change.
Will be 40 in 2027 so that sounds fabulous.  Current kids would be 12 & 10, future kids would be at most 7 & 5.  Would potentially shoot for part time work while they are in school if finances/health care doesnt work out! Hoping by 2027 to be done working full time either way!   

moneybags

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Re: 2027 FIRE Cohort
« Reply #188 on: December 02, 2019, 02:25:46 PM »
Checking in! Aiming for my 40th birthday! SO will be 45. We're currently approximately 39% towards our (ever evolving) FIRE number.

TomTX

  • Walrus Stache
  • *******
  • Posts: 5345
  • Location: Texas
Re: 2027 FIRE Cohort
« Reply #189 on: December 02, 2019, 05:12:53 PM »
Welcome!

mizzourah2006

  • Handlebar Stache
  • *****
  • Posts: 1089
  • Location: NWA
Re: 2027 FIRE Cohort
« Reply #190 on: December 03, 2019, 07:24:33 AM »
I think I'm going to move to this cohort as well. We've been rather blessed since we started this journey with some big increases in income, a side gig that now pays an additional $20-$30k/yr among other things. My estimates have us closer to 2025 for our FIRE #, but that's assuming 6% real CAGR, which I don't think we can count on the next 5-6 years. Plus I doubt I'll actually pull the trigger in 2025 as the kids would be 9 and 7.

talltexan

  • Walrus Stache
  • *******
  • Posts: 5345
Re: 2027 FIRE Cohort
« Reply #191 on: December 03, 2019, 10:09:07 AM »
We're sending a lot of cash flow toward fixing up/selling our old house. Hoping the market hangs on, as we have some debt against a taxable investment account, and I don't want to feel stupid for going that route instead of just cashing it out.

imperfect

  • 5 O'Clock Shadow
  • *
  • Posts: 29
Re: 2027 FIRE Cohort
« Reply #192 on: January 01, 2020, 05:29:54 PM »

Making a yearly check-in.  I'm still on track for 2027, although we are considering making a move that would increase expenses considerably for the sake of the kids.  Still waffling on the right course of action.  Happy New Years!

DeniseNJ

  • Pencil Stache
  • ****
  • Posts: 809
Re: 2027 FIRE Cohort
« Reply #193 on: January 02, 2020, 04:41:38 AM »
I'll join in here.  My retirement date is Aug. 4, 2028, but DH is July 25, 2017--that's the earliest we can reitre with our full pensions.  I'll be 57 and DH will be 60.  I like my job and also need to take my health ins into retirement.  He hates his job so I'm letting him off a year before me.

Right now we have:
430K in 401K
7K in my Roth
10K in his Roth
So less than 450K

We have a bit over 100K in equity in house.  I plan to sell at retirement and rent.  Right now we pay 1000 monthly in tax and 400 in HOA fees so renting in another state for 1600 or 1700 for a similar place will be practically be free.  I feel like we basically "rent" our house now.

We are managing to save 70K annually--just started MMM less than a year ago.  I figure we should have 1.5m in investments, plus our pensions and SS.  I haven't done all the math but it seems doable.  Anyway, not working a minute longer than 8/4/28--it's a Friday and the end of a pay period.  :)
Since I wrote this in just Sept we are now over 500K!  The market has just been amazing. We've saved 60K this year and spent just short of 100K and 85K went to taxes, ins, and other payroll deductions.  I don't think we've saved more than 20K in any year ever.  MMM has changed my life.  Bracing myself for a market drop but also buying some years in dh's retirement system.  Really looking forward to retirement but enjoyng every day.

talltexan

  • Walrus Stache
  • *******
  • Posts: 5345
Re: 2027 FIRE Cohort
« Reply #194 on: January 02, 2020, 05:48:39 AM »
SP500 index fund in my 401K gained over 30% last year. Too bad I have positions in other indices that didn't do as well.

fuzzy math

  • Handlebar Stache
  • *****
  • Posts: 1756
  • Age: 42
  • Location: PNW
Re: 2027 FIRE Cohort
« Reply #195 on: January 03, 2020, 03:09:22 PM »
I've decided to take a sabbatical no later than 2024, and move abroad with my kids (my oldest will be graduating high school then) so we can all experience another culture before they're completely raised and gone. At best it will be a semester, at worst it will be a summer. This will almost certainly require me quitting my job, there is no way they would actually grant me a sabbatical or more vacation time than 3 weeks. Hopefully my DH will be able to work remotely during that time. Depending on how long we are gone for, it might be possible for me to get my job back because it will likely take them forever to fill the position. 

We won't be FIRE ready but we will hopefully be 80% + of the way there. If I return to no job, I can either work locums out of town part time, or take a coast FIRE job part time.

A friend's young adult kid died a month ago and it really got me thinking about taking control and seizing the day. I also read Tanja Hester's Work Optional book and there was a huge focus on designing your life around the things that are important to you. Life is too short to not do this with my kids because I'm too trapped at work. Once they're grown and gone I just can't imagine a time where we would all be able to do extended travel like this. I am so looking forward to this experience with them and I hope it primes them to be world nomads like we want to be when we FIRE.

This concept really helps break up what would otherwise be a number of monotonous work years. My mini milestones are as follows:

Jan 2020 - vesting in my 401k - celebrating with an expensive steak dinner in 3 weeks
Jan 2022 - vesting in my pension - celebrating TBD but this represents true FU status
Summer 2023 (possibly as soon as) - summer 2024 (no later than) - aforementioned sabbatical and live abroad experience

After all that FIRE will be icing on the cake :)

« Last Edit: January 03, 2020, 03:11:50 PM by fuzzy math »

Glenstache

  • Magnum Stache
  • ******
  • Posts: 3415
  • Age: 94
  • Location: Upper left corner
  • FI(lean) working on the "RE"
Re: 2027 FIRE Cohort
« Reply #196 on: January 03, 2020, 03:18:38 PM »
I've decided to take a sabbatical no later than 2024, and move abroad with my kids (my oldest will be graduating high school then) so we can all experience another culture before they're completely raised and gone. At best it will be a semester, at worst it will be a summer. This will almost certainly require me quitting my job, there is no way they would actually grant me a sabbatical or more vacation time than 3 weeks. Hopefully my DH will be able to work remotely during that time. Depending on how long we are gone for, it might be possible for me to get my job back because it will likely take them forever to fill the position. 

We won't be FIRE ready but we will hopefully be 80% + of the way there. If I return to no job, I can either work locums out of town part time, or take a coast FIRE job part time.

A friend's young adult kid died a month ago and it really got me thinking about taking control and seizing the day. I also read Tanja Hester's Work Optional book and there was a huge focus on designing your life around the things that are important to you. Life is too short to not do this with my kids because I'm too trapped at work. Once they're grown and gone I just can't imagine a time where we would all be able to do extended travel like this. I am so looking forward to this experience with them and I hope it primes them to be world nomads like we want to be when we FIRE.

This concept really helps break up what would otherwise be a number of monotonous work years. My mini milestones are as follows:

Jan 2020 - vesting in my 401k - celebrating with an expensive steak dinner in 3 weeks
Jan 2022 - vesting in my pension - celebrating TBD but this represents true FU status
Summer 2023 (possibly as soon as) - summer 2024 (no later than) - aforementioned sabbatical and live abroad experience

After all that FIRE will be icing on the cake :)

This sounds like a great plan. Thoughts on where to go abroad?  A good friend is doing a version of this living in Guadalajara for a couple of years (also yielding a thoroughly bilingual kid).

fuzzy math

  • Handlebar Stache
  • *****
  • Posts: 1756
  • Age: 42
  • Location: PNW
Re: 2027 FIRE Cohort
« Reply #197 on: January 03, 2020, 03:39:08 PM »
I've decided to take a sabbatical no later than 2024, and move abroad with my kids (my oldest will be graduating high school then) so we can all experience another culture before they're completely raised and gone. At best it will be a semester, at worst it will be a summer. This will almost certainly require me quitting my job, there is no way they would actually grant me a sabbatical or more vacation time than 3 weeks. Hopefully my DH will be able to work remotely during that time. Depending on how long we are gone for, it might be possible for me to get my job back because it will likely take them forever to fill the position. 

We won't be FIRE ready but we will hopefully be 80% + of the way there. If I return to no job, I can either work locums out of town part time, or take a coast FIRE job part time.

A friend's young adult kid died a month ago and it really got me thinking about taking control and seizing the day. I also read Tanja Hester's Work Optional book and there was a huge focus on designing your life around the things that are important to you. Life is too short to not do this with my kids because I'm too trapped at work. Once they're grown and gone I just can't imagine a time where we would all be able to do extended travel like this. I am so looking forward to this experience with them and I hope it primes them to be world nomads like we want to be when we FIRE.

This concept really helps break up what would otherwise be a number of monotonous work years. My mini milestones are as follows:

Jan 2020 - vesting in my 401k - celebrating with an expensive steak dinner in 3 weeks
Jan 2022 - vesting in my pension - celebrating TBD but this represents true FU status
Summer 2023 (possibly as soon as) - summer 2024 (no later than) - aforementioned sabbatical and live abroad experience

After all that FIRE will be icing on the cake :)

This sounds like a great plan. Thoughts on where to go abroad?  A good friend is doing a version of this living in Guadalajara for a couple of years (also yielding a thoroughly bilingual kid).

I speak some Spanish so I would prefer a Spanish speaking country. Spain, Panama, wherever is cheap and politically stable in 4 years! Kids have opinions already and no one seems that interested in Spanish, but they do want to go to Portugal (perhaps just to be contrarian). We will need a hard deadline for a language choice in the next couple years!

Vasilisa

  • Stubble
  • **
  • Posts: 114
  • Location: Santa Cruz, CA
Re: 2027 FIRE Cohort
« Reply #198 on: January 16, 2020, 12:44:57 PM »
Seven more years, 2027 cohort! How are those goals coming along?

2019 was a really rough year with a pregnancy loss and getting laid off from work but it was also positive in realizing we were in such a good place financially and also becoming pregnant again.

2020- have already maxed out Roth IRA and realized that I had hit the six figure net worth without realizing it- very exciting. Need to sit down and review new financial goals for the year but feel incredibly comfortable with where we're at currently- definitely coasting!

raincoast

  • 5 O'Clock Shadow
  • *
  • Posts: 82
  • Location: Vancouver, Canada
Re: 2027 FIRE Cohort
« Reply #199 on: January 17, 2020, 11:57:00 AM »
Seven more years, 2027 cohort! How are those goals coming along?

2019 was the year I found the FI community, so weíll call that a good year.

2020 should be the year I hit half of my FI goal number.

I also have a big non-financial goal this year: I plan to start submitting my novel manuscript to literary agents/publishers.