Author Topic: 2030 FIRE Cohort  (Read 15175 times)

gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #150 on: March 03, 2017, 05:57:04 AM »
Gavin -- great news all around! Your 457 sounds better than mine. :)

No kidding, that's a fantastic plan.

Yeah, I'm feeling really lucky about it. And can't quite believe that seemingly nobody else in my office of ~100 people is using it!

BeautifulDay

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Re: 2030 FIRE Cohort
« Reply #151 on: March 04, 2017, 08:46:19 AM »
Posting to follow.  Lots of unknowns right now, but hope to retire by about 2030-2033.  That will put us in early to mid 50's.  I was thinking we could retire in 2025, but life happens. Won't go into all the details right now. It's been a winding road and hopefully it will even out soon. 

We have a lot of work to do to make this ambitious goal. But I want to put it out there as something to strive toward.

Networth about $95k (up from about $35k this time last year)

Factors:
Income about $95k between two earners. 
Working on paying off $16k car (I know, not so smart, but for now not selling it) and the last 9k of my student loans.
Buying a home soon and hoping to keep those costs low as possible to avoid lifestyle creep. (Between 90k and 170k mortgage).
Want to start a side business in woodworking which will require a $10k investment and workshop space in new home.  Build the business over time and should offset retirement stash needs.
Looking to retire on about 1.2M stash plus side business income.
Won't try to estimate monthly saving until I know our housing costs. As things get more settled I'll update.

VCaddy

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Re: 2030 FIRE Cohort
« Reply #152 on: March 05, 2017, 03:39:55 PM »
I'll join in here, should be pretty simple to FIRE by 2030, since I'll be eligible to retire from the AF in 2028. 

TomTX

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Re: 2030 FIRE Cohort
« Reply #153 on: March 05, 2017, 04:21:45 PM »
Nice aceyou!  Looks like you are well on your way.  What is your target number before you pull the trigger?

Yeah, it's kind of a rough estimate since it's so far away, but my plan is to be very conservative and have way more than I really need to cover expenses.  I'm predicting that I'll have approximately:

- About 1.5-2 million between the Roth IRA's, 403Bs, and 457's.  Probably closer to the 2 million number is most realistic. 
- Paid off house that's currently worth a bit under 300k
- Two universal life insurance policies of 500,000 each that should be self funding by FIRE.
- Two pensions that will be 45% of the average of our top 3 years teaching. 
- Social Security of course. 

That's kinda the bulk of it.  I'll probably keep coaching and doing other things that bring in income...not for the income, but just because I like to do it and it happens to pay me. 

It's really hard to predict though that far down the road.  There's plenty of wiggle room in those number though, so if markets go bad, it should still be FIRE away at 48.

It appears that the pension alone would be more than enough for your retirement (with paid off house)

It appears that the investments alone would be more than enough for your retirement (even without the paid off house)

aceyou

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Re: 2030 FIRE Cohort
« Reply #154 on: March 05, 2017, 08:00:23 PM »
Nice aceyou!  Looks like you are well on your way.  What is your target number before you pull the trigger?

Yeah, it's kind of a rough estimate since it's so far away, but my plan is to be very conservative and have way more than I really need to cover expenses.  I'm predicting that I'll have approximately:

- About 1.5-2 million between the Roth IRA's, 403Bs, and 457's.  Probably closer to the 2 million number is most realistic. 
- Paid off house that's currently worth a bit under 300k
- Two universal life insurance policies of 500,000 each that should be self funding by FIRE.
- Two pensions that will be 45% of the average of our top 3 years teaching. 
- Social Security of course. 

That's kinda the bulk of it.  I'll probably keep coaching and doing other things that bring in income...not for the income, but just because I like to do it and it happens to pay me. 

It's really hard to predict though that far down the road.  There's plenty of wiggle room in those number though, so if markets go bad, it should still be FIRE away at 48.

It appears that the pension alone would be more than enough for your retirement (with paid off house)

It appears that the investments alone would be more than enough for your retirement (even without the paid off house)

You are absolutely correct.  It's completely awesome and it sucks too in a very first world kinda way.  My wife and I could technically probably FIRE when we are 42/41 respectively, but that has us living off exactly 4% withdrawal and doesn't give us the ability to contribute to our kids college.  If I teach 6 more years till 48, then my stache will likely double due to extra contributions and growth, plus we'll hit two full pensions and go from FI at 42 to like quadruple FI at 48.  Ideally I'd just retire take a smaller pension at 42 and say peace out world, but that's not how pensions work...I need to hit my years.

NorthernDreamer

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Re: 2030 FIRE Cohort
« Reply #155 on: March 05, 2017, 08:06:09 PM »
I had shared that my father passed away in January. My two brothers and I were joint beneficiaries on his investments. Well, turns out that we are each receiving almost $210,000 (!). Some of this will be owed back as taxes, but I'll still have at least $175,000. Craziness. My husband and I had joint investments totalling around $190,000 before this so it has basically doubled. Plus home equity of $230,000.

It's been odd balancing grief with trying to figure out how best to invest this mini windfall. If he can't be here, my dad at least would be super pleased knowing he's made a huge difference in our financial lives.

aceyou

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Re: 2030 FIRE Cohort
« Reply #156 on: March 06, 2017, 08:01:18 PM »
If he can't be here, my dad at least would be super pleased knowing he's made a huge difference in our financial lives.

I think he would be.  And I bet he'd be pleased that you're the type of person who understands how to use it in a way that really improves your life. 

semiretired31

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Re: 2030 FIRE Cohort
« Reply #157 on: March 06, 2017, 08:40:03 PM »
Cheers to that. Sorry about your loss.

gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #158 on: March 07, 2017, 06:44:54 AM »
Just made our first contribution to the brand spankin' new solo 401k.

$2,000 worth of future freedom!!

Feels really good!

jillinsandiego

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Re: 2030 FIRE Cohort
« Reply #159 on: March 07, 2017, 09:45:51 AM »
Congrats Gavin!

I remember when you posted about your dad, Northern Dreamer. Your dad is gone either way and that grief would be there either way. At least he gave you the gift of a financial step up as opposed to probate and debt, and you can honor his memory by using it wisely.

Cornel_Westside

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Re: 2030 FIRE Cohort
« Reply #160 on: March 16, 2017, 09:50:08 PM »
I just found out I should be able to do the mega backdoor Roth! I'm very excited although I think it only allows one in-service distribution per year. This means that my taxes will be a little more complicated since I'll have to pay taxes on any gains in the after-tax contributions before I roll it over to a Roth IRA. I also can contribute to a Roth 401(k) as well.

I'm a little worried about the execution though. From what I understand, these are the steps:

1. Transfer traditional IRA funds to my 401(k) (to avoid tax complications - this is what it says to do in [this](http://thecollegeinvestor.com/17561/understanding-the-mega-backdoor-roth-ira/) guide. I'm not sure how necessary it is though - does it really complicate my taxes that much? Or does it expose my Traditional IRA funds to taxes?
2. Make after-tax contributions to my 401(k)
3. Rollover the after-tax contributions into a Roth IRA (or if necessary, into a Traditional IRA and then to a Roth IRA). I can also send the earnings on this money to a traditional IRA. I don't know which is better, paying the taxes on the earnings, or rolling it over to a Traditional IRA.

Also, is it more worthwhile to skip this and contribute to a a Roth 401(k) instead? Does that run up against the normal 401(k) limit or the Roth IRA limit?

Aelias

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Re: 2030 FIRE Cohort
« Reply #161 on: March 17, 2017, 08:28:56 AM »
Ran the numbers yesterday--we're up to $836K invested for FIRE (not counting home equity or the kids' college funds).

Still got about $375K in mortgage and about $85K in other low interest debt, but still pretty encouraging.  Once the kids are out of daycare, our investments can really ramp up.

May have to drop out of this cohort and FIRE early ;)

mizzourah2006

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Re: 2030 FIRE Cohort
« Reply #162 on: March 17, 2017, 07:53:11 PM »
We just crossed the $400k NW mark in Feb and I received my bonus this month which allowed me to pay off our second car. Only debt left now is home mortgage, with essentially 2 brand new cars (24k and 17k miles). Should be able to start socking away $55-$60kish/yr now.

Anatidae V

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Re: 2030 FIRE Cohort
« Reply #163 on: March 17, 2017, 08:21:13 PM »
Ran the numbers yesterday--we're up to $836K invested for FIRE (not counting home equity or the kids' college funds).

Still got about $375K in mortgage and about $85K in other low interest debt, but still pretty encouraging.  Once the kids are out of daycare, our investments can really ramp up.

May have to drop out of this cohort and FIRE early ;)
That is the BEST reason to drop out of a cohort. You're so close, wow!

rebel_quietude

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Re: 2030 FIRE Cohort
« Reply #164 on: March 20, 2017, 09:34:39 AM »
Hey guys! Can I jump in on this?

My year should be 2031 for a bullet-proof, gold plated retirement with a pension (if I can hang on that long) and around $1.2 mil liquid investments (according to my current spreadsheet). Currently socking away about $3.5k a month on an $85k salary. I'll be 45. We'll see if I can stay the course or if life happens.

Aelias, I'm with V - I bet you can make it out of the rat race before 2025!

semiretired31

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Re: 2030 FIRE Cohort
« Reply #165 on: March 20, 2017, 09:42:37 AM »
Wow... I'm woefully behind the savings numbers.  Doing $1500/mo to taxable, $1250/mo to my 401(k), and $200/mo to my kids college funds.  I'm in sales, so I also dump any commissions/bonuses to my taxable.  So, just under $3000/mo on $130k of salary (plus side monies that could probably add up to $10-15k through the year).   


aceyou

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Re: 2030 FIRE Cohort
« Reply #166 on: March 20, 2017, 11:18:58 AM »
Wow... I'm woefully behind the savings numbers.  Doing $1500/mo to taxable, $1250/mo to my 401(k), and $200/mo to my kids college funds.  I'm in sales, so I also dump any commissions/bonuses to my taxable.  So, just under $3000/mo on $130k of salary (plus side monies that could probably add up to $10-15k through the year).   

Well, the US savings rate is about 6%, and you are destroying that.
Plus, even for this board, your salary is lapping just about everyone. 
A few lifestyle adjustments, and you'll be saving more than most people make in a year. 

I'd say you are anything but "woefully behind in savings", but yeah, you could definitely up your savings game quite a bit if you made it a priority.

semiretired31

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Re: 2030 FIRE Cohort
« Reply #167 on: March 20, 2017, 11:38:00 AM »
Yeah... reaction to rebelquietude's numbers.  I'm impressed by one and all on here.  Still in the "figuring this out" stage.  Continuing to make adjustments and see what is comfortable for me.  I guess that was meant as more of a "i'm impressed", than a "i suck"... 

aceyou

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Re: 2030 FIRE Cohort
« Reply #168 on: March 20, 2017, 12:00:49 PM »
Yeah... reaction to rebelquietude's numbers.  I'm impressed by one and all on here.  Still in the "figuring this out" stage.  Continuing to make adjustments and see what is comfortable for me.  I guess that was meant as more of a "i'm impressed", than a "i suck"...

Yeah, I agree, it's incredible to see what individuals on here are capable of.  The people who have similar salaries to mine who save like 70-80% of their income still have me in awe.  And the fact that there are actually lots of people around here doing it just blows me away.  People are amazing.

jillinsandiego

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Re: 2030 FIRE Cohort
« Reply #169 on: March 20, 2017, 12:20:44 PM »
Yeah... reaction to rebelquietude's numbers.  I'm impressed by one and all on here.  Still in the "figuring this out" stage.  Continuing to make adjustments and see what is comfortable for me.  I guess that was meant as more of a "i'm impressed", than a "i suck"...

The fact that you even care to try and "figure this all out" puts you lightyears ahead of mainstream society. I'll bet if you keep making adjustments from the wealth of knowledge here you will find yourself in awe of what you're able to accomplish!

Aelias

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Re: 2030 FIRE Cohort
« Reply #170 on: March 20, 2017, 12:23:54 PM »
Thanks for the encouragement, everyone.  I think there are many people in this cohort who will drop out early.  Great progress all around.

Honestly, our biggest challenge is figuring out what we want our FIRE life to look like and what level of comfort we need to pull the trigger.  My husband is a lot more conservative in his assumptions than I am.  He's also a lot more attached to our current home and current lifestyle than I am.  There's no right or wrong here--it's just an issue of what do we need, both materially and psychologically, to step away from the security of the careers we've built.

This has also forced me to do some careful thinking about what I actually WANT--for myself, for my family, for my community (however it's defined). A little embarrassed to say, I didn't really think about what I WANTED when I embarked on my career.  Mostly, I wanted to have a job!  Then, as I got a little more established, I wanted a job I didn't hate that let me have a life.

Well, I've got that now.  So what else? That's the big question.

semiretired31

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Re: 2030 FIRE Cohort
« Reply #171 on: March 20, 2017, 12:55:38 PM »
Yeah... reaction to rebelquietude's numbers.  I'm impressed by one and all on here.  Still in the "figuring this out" stage.  Continuing to make adjustments and see what is comfortable for me.  I guess that was meant as more of a "i'm impressed", than a "i suck"...

Yeah, I agree, it's incredible to see what individuals on here are capable of.  The people who have similar salaries to mine who save like 70-80% of their income still have me in awe.  And the fact that there are actually lots of people around here doing it just blows me away.  People are amazing.

Truly...  Love the attitude around here.  Seems like everyone has their head/heart in the right place. 

rebel_quietude

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Re: 2030 FIRE Cohort
« Reply #172 on: March 21, 2017, 06:33:47 AM »
Hey, semiretired - I never judge people's saving ratio when they have kids. My jaw tends to drop when I see childcare and activity prices. Besides, with that income "offense," I think the number on your spreadsheet in 2030 is going to be way more than 1.6m!

Aelias, I agree the "want" question is huge for us. We have a pretty long timeline, a solid plan - and the luxury of contemplating what we want our lives to look like when money isn't the primary motivator.

Anybody else thinking about going back to school after retirement for a thankless, 'improve the world' part time gig? When I think about 2031, I picture a mix of that and family time.

DeskJockey2032

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Re: 2030 FIRE Cohort
« Reply #173 on: March 21, 2017, 09:19:04 AM »
2030 is still a ways off! I suspect we'll have a few people 'dropping out' from being able to retire earlier than that! Also that we'll have a lot more folks joining in once we get less than a decade out (or up at 2025).