Author Topic: 2030 FIRE Cohort  (Read 133737 times)

haypug16

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Re: 2030 FIRE Cohort
« Reply #500 on: October 07, 2019, 02:16:07 PM »
Q3 2019 update
X= Yearly Expenses
2017 - Stache at 1.17x  - Ending Balance $29,448.59
2018 - Stache at 1.41x  - Ending Balance $35,167.30
2019 - Stache goal 2.5x  - Current balance $52,868.44 (2.115x expenses)

I have about $10k left to reach my year end goal. I'm feeing optimistic that I'll hit it or at least come very close.

wbarnett

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Re: 2030 FIRE Cohort
« Reply #501 on: October 16, 2019, 12:46:45 PM »
I'm joining!  Husband will be 55 and I'll be 52.  Warrior Princess will be 14 and Chunky Baby will be 12.  Our worth has tracked as follows:

2015:  $591k, got married
2016:  $691k, Warrior Princess arrived
2017:  $795k
2018:  $924k, Chunky Baby arrived

We're at $893k right now due to taking on renovation debt.

Invested:  $538k
529s:  $90k  Front-loading, almost finished!
Cash:  $31k

The remainder is a car and some home equity.  With the kids in daycare and the reno, our savings rate is at an all-time low:  42%.

Welcome @Chrissy! The '$893k right now' number is great, congrats! I assume that's your net worth estimate, and the Invested + Cash amount is your FI progress, right? Can I ask why 2030? Are you trying to reach a certain FI number, or does 2030 make more sense since you have young children? I have young kids too.

At any rate, a minimum of 42% savings rate is fantastic.

Chrissy

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Re: 2030 FIRE Cohort
« Reply #502 on: October 16, 2019, 01:31:51 PM »
Hi @wbarnett .  Yes, Invested + Cash is our FI progress. 

So... Husband wants another baby.  Meanwhile, we spend $8.2k/mo (taxes not included), with $3k/mo of that being daycare.  It's hard for me to do the math imagining all the moving pieces, but, conservatively, by 2030, we should have $1.5M, a paid off house, college socked away for 3 kids, and no daycare costs.

x02947

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Re: 2030 FIRE Cohort
« Reply #503 on: October 18, 2019, 07:53:30 AM »
Finally convinced DW to let us drop the financial advisor.  Raising their rates to 1.7% without any warning was the last straw for her.  They also switched over the custodian of the account a few months ago and somehow dropped our automatic deposit, meaning nothing had been going into the IRA… (Things have been busy past few months so I haven’t been doing my due diligence till now). So *actually* moving everything over to Vanguard for a 75/25 VTSAX/VBTLX setup, instead of just talking about it! 

Spending is hard to tell this year.  I amortize things like vacations and home reno, both of which we have done this year, so in actuality we are way high.  If we actually stick to the amoritization budget (only 2 years under the belt so far, so not enough data) then we are within roughly 0.5% of last year.  There are somethings I failed to track last year. 

Still not getting any traction with DW agreement on actually RE, though.  Anytime I mention it, she just blows it off as foolhardy, prideful, etc.  I’ve tried couching it in terms of things we’ll be able to do (look at all the charity/volunteer work we will have time for!) but no luck.  It doesn’t help that I’m in a (for now) comfortable, low-stress job that, if I hang around at full time, gives us a pension (and health care!) we can fully live off of starting in 2045. It’s a bit odd- she’s frugal so we save lots of money, but she doesn’t believe any amount of money us non-multimillionaires have will actually do us any good in the long run.  I dunno.  It’s really a big concept to believe in, isn’t it?  I've got a couple years to work at it.

Longwaytogo

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Re: 2030 FIRE Cohort
« Reply #504 on: November 04, 2019, 02:55:05 PM »
Thread has been a little quiet this year it seems!

How's everyone doing?

We decided to re-fi the remainder of our credit card debt into a second mortgage and take some additional money for remodeling for our home and some other spendy pants items.That is a 12 year loan set to be paid off May of 2031, with our primary Mortgage ending December of 2030. So debt wise should be basically on track for that target.

Stash wise our invested accounts have finally hit the 6 figure mark, ~$105K today all in total market stuff basically :) We are putting close to $20K  a year in now which I'd have NEVER thought possible in 2013 when I found MMM and the forum.

The third leg of our FIRE tripod is DW'S pension which won't hit full amount until 2034, which is also when our youngest would theoretically finish a traditional 4 year college situation.

So in all likelihood I'll stick out work (at some capacity) until then with her, but can maybe still be close to the FI portion by 2030.

My Father (who I work for/with) is still on slate to retire sometime in 2021; or 2022 at the latest. At which point I'll take over the business with some potential for higher earning an/or some better tax reduction strategies as well. Looking forward to it; but also trying to enjoy our time together as we don't spend a ton of time together outside of work. Time will tell if he'll be interested in staying on in any part time capacity or not.

Hope everyone is having a good year!

Chrissy

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Re: 2030 FIRE Cohort
« Reply #505 on: November 04, 2019, 04:06:31 PM »
Invested:  $538k
529s:  $90k
Cash:  $31k

Sure, I'll play.  We had a pretty fantastic month, and here's where we stand now:

Invested:  $560k
529s:  $94k 
Cash:  $34k
« Last Edit: November 04, 2019, 05:42:58 PM by Chrissy »

rebel_quietude

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Re: 2030 FIRE Cohort
« Reply #506 on: November 04, 2019, 04:08:28 PM »
Hi all!

You're right, @LWTG, it's been pretty quiet. I imagine in 2028 - 2029 this threat will be roaring. :)

Speaking for myself alone . . . a lot of just sticking with the plan, and living life (for better and worse).  I'm glad to see folks are doing well . . . reading through, it seems like everyone is doing about how they expected or better. We can all commiserate if equities push us back and forth a few years before our dates get closer.

Goodness, a lot of families in the making - congrats to all the parents in this thread!

I'll do another roster at the end of December, I do think we're grown quite a bit!


haypug16

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Re: 2030 FIRE Cohort
« Reply #507 on: November 04, 2019, 06:01:54 PM »
Doing well over here too. Sticking to the plan and the numbers are cooperating. This far out it's so hard to know how I'm really doing though.

I like to stalk the current year cohort to see all the fun FIRE activities, though I haven't in a little while. Soon it'll be time to start on the 2020 thread.

Mgmny

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Re: 2030 FIRE Cohort
« Reply #508 on: November 05, 2019, 07:44:20 AM »
I'm sure this has been asked and answered 100x, but i just can't seem to wrap my head around the "proper" answer:

Do you include home equity in your progress numbers?

On the one hand, if you have home equity, but still have a mortgage payment, that home equity is more or less worthless, right? So, maybe i should take it out of my stash number, and then include the mortgage payment (in perpetuity) as part of my 4% SWR yearly requirement...

On the other hand, I could cash this out and put it in the market and count it towards my stash, but then i suppose my monthly payment would be higher...

On the third hand, I could count it because it makes me feel like i am making better progress (my home equity is like $180k right now - so not nothing)

On the last hand, I could plan to pay off my mortgage and not count it towards my stash, and just leave it out of the equation...

What is everyone doing?

When i examine the extremes, i think of things like, "Well, i could have a 1.2 million dollar house with 200k loan on it, and $1 million saved. If i completely disregard the house, I have a SWR of 40k a year. If I downsize the house, I could have a SWR of $80k ($1M house + $1M investments) - doubling my yearly income.

What is everyone else doing? Maybe it all depends on our goals for our houses, but i know there is a "right" answer in the math somewhere.

Lucky Recardito

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Re: 2030 FIRE Cohort
« Reply #509 on: November 05, 2019, 07:59:38 AM »
The "right" answer depends on your plans for your house + FIRE.

For our situation, we plan to stay in our current home for the forseeable ever (which obviously isn't actually "forever" -- but basically, no plans to move, FIRED or not). Thus, the calculation I use for FI is basically (amount needed to pay off remaining mortgage balance) + (anticipated living expenses sans mortgage x 25).

Another way to think of it: I calculate our net worth and overall progress as (cash/stock/bond savings) + (home equity) -- in which "home equity" is specifically (original purchase price of house) - (remaining mortgage). In other words, I don't pay any attention to whether our property value is going up or down, because it doesn't impact our FIRE plans since we don't plan to sell our home.

In practice, I expect us to FIRE with a pot of money that is enough to cover our non-mortgage living expenses in perpetuity (to the extent it's possible to plan for perpetuity, in any case), plus enough money to pay off our remaining mortgage balance. (Whether we actually choose to pay off the remaining mortgage at FIRE or keep the payments flowing is TBD.)

The main gap in your post, @Mgmny , is that there is no situation in which you would need to consider your mortgage payment a perpetual expense. It will go away at some point, because mortgages eventually end. So it's not correct to include it in your overall 4% number -- you should think of your mortgage payment as a temporary expense. I find that 25x non-mortgage expenses plus "whatever's going to be left on the mortgage" to be a logical way to think about this.

The other piece, then, is whether you consider your home equity to be "spendable" in your WR calculation. Since I plan to live in my home, I don't count it. Covering the cost of our house is important in our FIRE planning, but the house doesn't create income for us to live off of. But if you plan to sell your home in RE, then your mileage will vary.

brandon1827

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Re: 2030 FIRE Cohort
« Reply #510 on: November 05, 2019, 08:24:54 AM »
Still plugging along here. The 401K has grown nicely and the new pension statements will be available January 1st. We've been on pause in terms of saving the past couple of months due to my wife quitting her job and then having a couple of surgeries. She hopes to get back in the market and start working soon; which would allow us to re-start the debt payoff/savings in full.

Like Lucky, we are in our forever home on a 20-acre plot of land and do not intend to ever sell. The hope is to pay off the mortgage as quickly as possible and at some point after FIRE, give the house to our son; while we move into the detached garage apartment. I say all of that to say that we don't factor home equity into our particular equation at all.

meerkat

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Re: 2030 FIRE Cohort
« Reply #511 on: November 05, 2019, 08:31:01 AM »
On tracking house value - I have two numbers, one is our total net worth and one is our total investments. Our net worth includes our mortgage liability and the purchase price of our house because that's a static number. It saves me having to track whatever Zillow thinks our home is worth month to month, plus I don't trust Zillow's math. Really it just saves me over thinking it when it doesn't really matter in the long run, I overthink plenty of other things.

Mgmny

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Re: 2030 FIRE Cohort
« Reply #512 on: November 05, 2019, 08:34:13 AM »
The "right" answer depends on your plans for your house + FIRE.

For our situation, we plan to stay in our current home for the forseeable ever (which obviously isn't actually "forever" -- but basically, no plans to move, FIRED or not). Thus, the calculation I use for FI is basically (amount needed to pay off remaining mortgage balance) + (anticipated living expenses sans mortgage x 25).

Another way to think of it: I calculate our net worth and overall progress as (cash/stock/bond savings) + (home equity) -- in which "home equity" is specifically (original purchase price of house) - (remaining mortgage). In other words, I don't pay any attention to whether our property value is going up or down, because it doesn't impact our FIRE plans since we don't plan to sell our home.

In practice, I expect us to FIRE with a pot of money that is enough to cover our non-mortgage living expenses in perpetuity (to the extent it's possible to plan for perpetuity, in any case), plus enough money to pay off our remaining mortgage balance. (Whether we actually choose to pay off the remaining mortgage at FIRE or keep the payments flowing is TBD.)

The main gap in your post, @Mgmny , is that there is no situation in which you would need to consider your mortgage payment a perpetual expense. It will go away at some point, because mortgages eventually end. So it's not correct to include it in your overall 4% number -- you should think of your mortgage payment as a temporary expense. I find that 25x non-mortgage expenses plus "whatever's going to be left on the mortgage" to be a logical way to think about this.

The other piece, then, is whether you consider your home equity to be "spendable" in your WR calculation. Since I plan to live in my home, I don't count it. Covering the cost of our house is important in our FIRE planning, but the house doesn't create income for us to live off of. But if you plan to sell your home in RE, then your mileage will vary.

Thanks Lucky!!

So, in summary, i think: If my fire number is $1million, and i owe $200k on my house, I should really shoot for $1.2million... then everything works out? Is that what you are saying?

startingsmall

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Re: 2030 FIRE Cohort
« Reply #513 on: November 05, 2019, 08:46:21 AM »
I'm sure this has been asked and answered 100x, but i just can't seem to wrap my head around the "proper" answer:

Do you include home equity in your progress numbers?

On the one hand, if you have home equity, but still have a mortgage payment, that home equity is more or less worthless, right? So, maybe i should take it out of my stash number, and then include the mortgage payment (in perpetuity) as part of my 4% SWR yearly requirement...

On the other hand, I could cash this out and put it in the market and count it towards my stash, but then i suppose my monthly payment would be higher...

On the third hand, I could count it because it makes me feel like i am making better progress (my home equity is like $180k right now - so not nothing)

On the last hand, I could plan to pay off my mortgage and not count it towards my stash, and just leave it out of the equation...

What is everyone doing?

When i examine the extremes, i think of things like, "Well, i could have a 1.2 million dollar house with 200k loan on it, and $1 million saved. If i completely disregard the house, I have a SWR of 40k a year. If I downsize the house, I could have a SWR of $80k ($1M house + $1M investments) - doubling my yearly income.

What is everyone else doing? Maybe it all depends on our goals for our houses, but i know there is a "right" answer in the math somewhere.

I also track two numbers:
1. net worth  (which includes Zillow value minus mortgage)
2. FIRE assets (which excludes both the home value and the mortgage)

I look at the net worth as a "cool! neato!" number and the FIRE asset number as what actually matters.

We plan on downsizing before FIRE, but will likely roll all of our equity from this home into the next home... so my FIRE budget includes a mortgage payment that's significantly lower than our current mortgage payment but I don't consider our home equity to be part of our FIRE assets.

Mgmny

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Re: 2030 FIRE Cohort
« Reply #514 on: November 05, 2019, 09:34:15 AM »
I'm sure this has been asked and answered 100x, but i just can't seem to wrap my head around the "proper" answer:

Do you include home equity in your progress numbers?

On the one hand, if you have home equity, but still have a mortgage payment, that home equity is more or less worthless, right? So, maybe i should take it out of my stash number, and then include the mortgage payment (in perpetuity) as part of my 4% SWR yearly requirement...

On the other hand, I could cash this out and put it in the market and count it towards my stash, but then i suppose my monthly payment would be higher...

On the third hand, I could count it because it makes me feel like i am making better progress (my home equity is like $180k right now - so not nothing)

On the last hand, I could plan to pay off my mortgage and not count it towards my stash, and just leave it out of the equation...

What is everyone doing?

When i examine the extremes, i think of things like, "Well, i could have a 1.2 million dollar house with 200k loan on it, and $1 million saved. If i completely disregard the house, I have a SWR of 40k a year. If I downsize the house, I could have a SWR of $80k ($1M house + $1M investments) - doubling my yearly income.

What is everyone else doing? Maybe it all depends on our goals for our houses, but i know there is a "right" answer in the math somewhere.

I also track two numbers:
1. net worth  (which includes Zillow value minus mortgage)
2. FIRE assets (which excludes both the home value and the mortgage)

I look at the net worth as a "cool! neato!" number and the FIRE asset number as what actually matters.

We plan on downsizing before FIRE, but will likely roll all of our equity from this home into the next home... so my FIRE budget includes a mortgage payment that's significantly lower than our current mortgage payment but I don't consider our home equity to be part of our FIRE assets.

Ah, ok, that makes sense.

Mgmny

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Re: 2030 FIRE Cohort
« Reply #515 on: November 05, 2019, 09:36:22 AM »
On tracking house value - I have two numbers, one is our total net worth and one is our total investments. Our net worth includes our mortgage liability and the purchase price of our house because that's a static number. It saves me having to track whatever Zillow thinks our home is worth month to month, plus I don't trust Zillow's math. Really it just saves me over thinking it when it doesn't really matter in the long run, I overthink plenty of other things.

So, when looking at your FIRE number, it's just the investments? or TNW?

meerkat

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Re: 2030 FIRE Cohort
« Reply #516 on: November 05, 2019, 10:12:00 AM »
On tracking house value - I have two numbers, one is our total net worth and one is our total investments. Our net worth includes our mortgage liability and the purchase price of our house because that's a static number. It saves me having to track whatever Zillow thinks our home is worth month to month, plus I don't trust Zillow's math. Really it just saves me over thinking it when it doesn't really matter in the long run, I overthink plenty of other things.

So, when looking at your FIRE number, it's just the investments? or TNW?

Investments, or other cash flow.

Lucky Recardito

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Re: 2030 FIRE Cohort
« Reply #517 on: November 05, 2019, 11:37:51 AM »
The "right" answer depends on your plans for your house + FIRE.

For our situation, we plan to stay in our current home for the forseeable ever (which obviously isn't actually "forever" -- but basically, no plans to move, FIRED or not). Thus, the calculation I use for FI is basically (amount needed to pay off remaining mortgage balance) + (anticipated living expenses sans mortgage x 25).

Another way to think of it: I calculate our net worth and overall progress as (cash/stock/bond savings) + (home equity) -- in which "home equity" is specifically (original purchase price of house) - (remaining mortgage). In other words, I don't pay any attention to whether our property value is going up or down, because it doesn't impact our FIRE plans since we don't plan to sell our home.

In practice, I expect us to FIRE with a pot of money that is enough to cover our non-mortgage living expenses in perpetuity (to the extent it's possible to plan for perpetuity, in any case), plus enough money to pay off our remaining mortgage balance. (Whether we actually choose to pay off the remaining mortgage at FIRE or keep the payments flowing is TBD.)

The main gap in your post, @Mgmny , is that there is no situation in which you would need to consider your mortgage payment a perpetual expense. It will go away at some point, because mortgages eventually end. So it's not correct to include it in your overall 4% number -- you should think of your mortgage payment as a temporary expense. I find that 25x non-mortgage expenses plus "whatever's going to be left on the mortgage" to be a logical way to think about this.

The other piece, then, is whether you consider your home equity to be "spendable" in your WR calculation. Since I plan to live in my home, I don't count it. Covering the cost of our house is important in our FIRE planning, but the house doesn't create income for us to live off of. But if you plan to sell your home in RE, then your mileage will vary.

Thanks Lucky!!

So, in summary, i think: If my fire number is $1million, and i owe $200k on my house, I should really shoot for $1.2million... then everything works out? Is that what you are saying?

Basically, yep!

Caveats/clarifications:

1) In the example you've described, make sure that $1m "FIRE number" does includes property tax & insurance, as that don't go away with the mortgage. (Easy to forget that if you escrow and currently pay those costs as part of your mortgage payment.)

2) "if I owe $200K on my house..." -- key here is to think about mortgage balance at the time you reach FI. So, if you currently owe $200K but don't plan to FIRE for another 10 years, look at what will be left at your mortgage in 10 years... because you'll be paying down the mortgage in small pieces while you work on accumulating your stash. (You may have already been thinking this... I'm just over-clarifying!)

#2 is why I've chosen to count our home equity in our NW calculation, and use that number as my FIRE number -- it's easier to see where I'm at overall. In my case... we're shooting for $1.5m in invested assets (to support a $60K annual withdrawal), but also cover our $800K home (HCOL area), which we've only owned for 3 years, and in which we only have 25% equity. If I only track that "$1.5m in invested assets" goal, I'd be lying to myself about FIRE timelines, as we'll hit that first, while we still have a ways to go on the house. So for me, it makes sense to look at the total goal!

DadJokes

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Re: 2030 FIRE Cohort
« Reply #518 on: November 05, 2019, 11:50:11 AM »
I thought I had already joined this cohort, but apparently not.

2030 is a bit of an ambitious goal and my projections put me closer to 2034 right now, but a lot can change in a decade, and I don't yet know how my pension, social security, and home equity will play into things.

Year              Net Worth           Investments        % to FI               
201860,89819,8121.32%
Today122,01169,4194.63%
2019130,85075,6595.04%
2020204,724135,7378.87%
2021280,905197,01412.62%
2022370,418266,54116.74%
2023479,614345,09121.24%
2024587,812433,51226.15%
2025707,502532,72831.5%
2026839,887643,90637.32%
2027986,253768,33843.65%
20281,147,991907,24650.53%
20291,326,0221,062,13757.98%
20301,522,9681,234,62266.07%

Assumptions:
Annual 3% pay increase, 75% of which goes to investments
9% market returns
2% inflation
Home equity & increased value is not included in investments
Pension is not included in investments; it looks like its value in 2030 will be about $100k.

66% FI is a withdrawal rate of 6%, which could be safe depending on the value of the pension. It's also highly unlikely that both my wife and I will quit working at the same time with neither of us earning another dime. We also have a child who will be 12 by then, so I'm sure there will be expenses associated with him.
« Last Edit: November 05, 2019, 03:06:05 PM by DadJokes »

Longwaytogo

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Re: 2030 FIRE Cohort
« Reply #519 on: November 05, 2019, 02:33:02 PM »
Hi all!

You're right, @LWTG, it's been pretty quiet. I imagine in 2028 - 2029 this threat will be roaring. :)

LOL, guess that's true.

But look at all the flurry since I posted :)

I'm sure this has been asked and answered 100x, but i just can't seem to wrap my head around the "proper" answer:

Do you include home equity in your progress numbers?

I include it in my Net worth as it will decrease my monthly outgo when paid off. But I don't count it in my "stash" to base my 4 (or 5 likely) % withdrawal from.

So basically yes and no :D  Like others have already responded I essentially just track both numbers - Total Net Worth and Stash only.


Longwaytogo

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Re: 2030 FIRE Cohort
« Reply #520 on: November 05, 2019, 02:35:43 PM »
I thought I had already joined this cohort, but apparently not.

2030 is a bit of an ambitious goal and my projections put me closer to 2034 right now, but a lot can change in a decade, and I don't yet know how my pension, social security, and home equity will play into things.

Welcome!

Stretch goal for me as well, my wife definitely working until 2034 to hit her full pension.  Be fun to be FI by my 50th Birthday (fall 2030) even I don't decide to RE at that time.

Your chart is showing a fast trajectory for investments, you guys must be saving a ton! Nice job.

WGH

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Re: 2030 FIRE Cohort
« Reply #521 on: November 08, 2019, 12:31:51 PM »
A lot has changed for me since I last posted! Looking to buy a house with my GF next summer and plan on renting my current place. Increased my 457 contributions and realized that I could finally comfortably max out my contributions this year for the first time ever. I already pay into a government pension so I'm one of the lucky ones who can go over the $19k pretax limits. Currently will spend the next few months saving for another home down payment and then max out next year.

Next year should be even better with our blended family and no longer needing childcare plus the dual incomes. GF is even more frugal than I am so it should be very exciting to see what we can accomplish together.

4,431 days until I am fully eligible to draw my pension which will pay close to $4k a month plus about $1M about evenly between the 457 and ROTH IRA. I will be 51.

Life is good!

Rural

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Re: 2030 FIRE Cohort
« Reply #522 on: November 08, 2019, 05:49:25 PM »
I guess 2030 is me in the worst case scenario. I will qualify for retiree health benefits for me and my family in December 2030. Depending on how the politics of health care goes over the next few years, we could go earlier, and my husband could go before me anyway- he can't get the retiree health deal since it's been discontinued but I'm grandfathered in.


On an up note, though, I vested in the pension on Halloween, and the record of vesting showed up in the pension plan online portal about 15 minutes ago (not that I was watching and hitting refresh or anything)!

dogboyslim

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Re: 2030 FIRE Cohort
« Reply #523 on: November 11, 2019, 08:16:57 AM »
Target date is my birthday in May 2030.  I will be 56.  Presently have 187 days of 365 funded (51%).  At retirement that will be 540 of 365 days (148%).  I will hit my expected full funding in October 2025.

I'm sticking around longer due to kids college expense and health care expense uncertainty.
3,877 days to go.  2,770 weekdays.  554 weeks. 10.6 years.

192 Days/ 52.6% funded.
3836 days.  2741 weekdays. 548 weeks.  10.5 years.


DadJokes

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Re: 2030 FIRE Cohort
« Reply #524 on: November 19, 2019, 09:58:27 AM »
Target date is my birthday in May 2030.  I will be 56.  Presently have 187 days of 365 funded (51%).  At retirement that will be 540 of 365 days (148%).  I will hit my expected full funding in October 2025.

I'm sticking around longer due to kids college expense and health care expense uncertainty.
3,877 days to go.  2,770 weekdays.  554 weeks. 10.6 years.

192 Days/ 52.6% funded.
3836 days.  2741 weekdays. 548 weeks.  10.5 years.

Uncertainty about college & healthcare are a definite annoyance for long-term planning, but I guess it's better than being an uncertainty for short-term planning...

Mgmny

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Re: 2030 FIRE Cohort
« Reply #525 on: December 13, 2019, 12:36:55 PM »
Who's ready for end of year updates on progress and tracking towards 2030?!

dogboyslim

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Re: 2030 FIRE Cohort
« Reply #526 on: December 13, 2019, 02:04:56 PM »
Target date is my birthday in May 2030.  I will be 56.  Presently have 187 days of 365 funded (51%).  At retirement that will be 540 of 365 days (148%).  I will hit my expected full funding in October 2025.

I'm sticking around longer due to kids college expense and health care expense uncertainty.
3,877 days to go.  2,770 weekdays.  554 weeks. 10.6 years.

192 Days/ 52.6% funded.
3836 days.  2741 weekdays. 548 weeks.  10.5 years.

Year end will be about (I'll edit if stock market goes crazy up or down to change this):
200 Days/54.8% Funded. 
3786 days. 2705 weekdays.  541 weeks. 10.4 years.

terrifictim

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Re: 2030 FIRE Cohort
« Reply #527 on: December 13, 2019, 02:58:13 PM »
Hi All,

Joining this cohort as motivation. My case study (https://forum.mrmoneymustache.com/case-studies/case-study-29-and-a-recent-mmm-enthusiast-can-i-be-fire-by-40/) has more details so I'll just summarize below:
  • I'm 30, DW is 28, No kids currently but planning on 1-2in next couple of years
  • I'm an engineer, she's a teacher
  • Assets are primary residence, rental property, and investments
  • Liabilities are two mortgages + car loan

I like the X * Expenses Ratio approach. We are currently in the Don't Payoff Mortgage Club - but our expenses for FIRE will be without mortgage. Also made a reasonable assumption about cost of kids - we'll see how that turns out :)
X= Est. FIRE Stache (Comes from Personal Capital Projections). $60k per year
Jan 1 2018: 3x (Actual 2.9x)
Jan 1 2019: 4x (Actual 5.0x - Accounts for Equity of Rental Property but Not Primary Home)

Jan 1 2020: 5.7x (Projected 7.0x)
Jan 1 2021: 7.5x (Projected 9.0x)
Jan 1 2022: 10x (Projected 10.4x)
Jan 1 2023: 11.6x (Projected 11.9x)
Jan 1 2024: 13.3x (Projected 13.5x)
Jan 1 2025: 15x (Projected 15.2x)
Jan 1 2026: 16.6x (Projected 16.9x)
Jan 1 2027: 18.3x (Projected 18.5x)
Jan 1 2028: 20x (Projected 20.4x)
Jan 1 2029: 22x (Projected 22.6x)
Jan 1 2030: 23.7x (Projected 26.2x)
Jan 1 2031: 25.5x ( I will be 43, DW 41) (Projected 28.8x)

Mgmny

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Re: 2030 FIRE Cohort
« Reply #528 on: December 16, 2019, 07:55:23 AM »
I'm stealing Haypug's post:

Year End Update

X= Yearly Expenses
2017 - Stache at 1x   $50,000 - Ending Balance $217,000
2018 - Stache at 2x   $100,000 - Ending Balance $314,000 = 6.3x expenses
2019 - Stache at 2.5x   $150,000
2020 - Stache at 4x   $200,000
2021 - Stache at 6x  $300,000
   
2022 - Stache at 8x   $400,000
2023 - Stache at 10x   $500,000
2024 - Stache at 12x   $600,000
2025 - Stache at 14x   $700,000
2026 - Stache at 16x   $800,000
2027 - Stache at 18x   $900,000
2028 - Stache at 20x   $1,000,000
2029 - Stache at 22x   $1,100,000
2030 - Retire by end of year with 25x yearly expense rate $1,250,000

We gave birth to our son in November 2018, and we'll see if my wife keeps working, and if so for how long. We are through 2021 in terms of numbers which puts us in a good position for 2030 (3 years ahead), but if she quits working, those multipliers will catch up fast!

My stache includes all net worth (equities, cash, and home equity) because my FIRE number assumes a mortgage payment, so my home equity could be cashed out for this purpose.

Just sold our house and got a bit more than we thought we would for it, so updating my numbers as a "Mid Year" mark because we crossed off another year (trending past 2022).

Rough numbers:
Retirement / Investment: $200,000
Real Estate: $170,000k
Cash/Savings/Emergency: $35,000

Mid-Year End Update

X= Yearly Expenses
2017 - Stache at 1x   $50,000 - Ending Balance $217,000
2018 - Stache at 2x   $100,000 - Ending Balance $314,000 = 6.3x expenses
2019 - Stache at 2.5x   $150,000
2020 - Stache at 4x   $200,000
2021 - Stache at 6x  $300,000
2022 - Stache at 8x   $400,000

2023 - Stache at 10x   $500,000
2024 - Stache at 12x   $600,000
2025 - Stache at 14x   $700,000
2026 - Stache at 16x   $800,000
2027 - Stache at 18x   $900,000
2028 - Stache at 20x   $1,000,000
2029 - Stache at 22x   $1,100,000
2030 - Retire by end of year with 25x yearly expense rate $1,250,000

2019 Year End update!

So, over the last year i have come to realized i was tracking against my NW, when really i should have been looking at my portfolio only. With that in mind, then I need to adjust some of my progress backwards... :(

My portfolio definitely still grew in 2019, but I did withdraw 30k to use towards a downpayment on a house, and because i was tracking NW instead of portfolio, my number goes down a bit. Here we go for 2019 (even though there are still 2 weeks left!!)

Year End Update

X= Yearly Expenses
2017 - Stache at 1x   $50,000 - Ending Balance $63,000 (but missing 1 account from tracking)
2018 - Stache at 2x   $100,000 - Ending Balance $165,000 = 3.3x expenses (Missing account got added to personal capital, so historical data is accurate)
2019 - Stache at 2.5x   $150,000 - Ending Balance $236,000 =   4.7x expenses
2020 - Stache at 4x   $200,000

2021 - Stache at 6x  $300,000
2022 - Stache at 8x   $400,000
2023 - Stache at 10x   $500,000
2024 - Stache at 12x   $600,000
2025 - Stache at 14x   $700,000
2026 - Stache at 16x   $800,000
2027 - Stache at 18x   $900,000
2028 - Stache at 20x   $1,000,000
2029 - Stache at 22x   $1,100,000
2030 - Retire by end of year with 25x yearly expense rate $1,250,000

NW is at $418,000 with cash accounts and home equity added to the investment portfolio above.

Because i was using NW instead of investment portfolio, my confidence in staying on track is shaking a little bit, but i'm still about 1.5 years "ahead," but if my wife quits working, it will be tough! After i took out $30k for home purchase from the stash, i can definitely see a hit - that's over 10% of my total portfolio!

My year end will probably end up closer to 245k as i know my wife will have another 3k of 401k contributions, and i have another $1k in HSA contribution left for the year!

NW Breakdown:
Home Value: $415,000
Mortgage: $247,000
Cash: $15,000
Investment: $238,000



« Last Edit: December 19, 2019, 09:01:36 AM by Mgmny »

teacherwithamustache

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Re: 2030 FIRE Cohort
« Reply #529 on: December 17, 2019, 08:33:04 AM »
Locked into 2030 due to pension eligibility.  I will actually retire 1/02/2031 but this group is close enough.  Wife and I Pension will go into effect at same time and replace 68% of our income.  With our savings rate we will be richer in retirement then we will be while working.

                                          2020                             2030 Goal
Checking                               30K                               30K
Savings                                 22K                               22K
Inv outside retirement acct     105K                             375K
IRA Both                               160K                             650K
House Equity                         100K                             280K
529 Kid 1  (7 years out)           70K
529 Kid 2  (9 Years Out)          42K

Plan is to spend 50K a year outside of pension from our non retirement accts for first decade to let our IRA's continue to grow.  Anticipate making 15K a year in fun projects/side hustles for first decade of retirement.

Steeze

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Re: 2030 FIRE Cohort
« Reply #530 on: December 18, 2019, 08:44:24 PM »
Started the year with 90k invested and 10k cash, and paid off condo.
Goal was 180k invested, 30k cash
Ending the year with 200k invested, 30k cash (spend around 40k)
Next year shooting for 300k invested and 50k cash
Cash is there as an opportunity fund, may purchase a rental?

2030 goal 1500k invested, 60k cash, 500k equity, 2x new paid off cars
Will settle for 1250k, 50k cash, 300k equity, 2x new cars paid

A lot of work to do in just 10 years! Good luck to all !
Will see if we are blessed with a child this year.
Goals above assume we are DINKS, but that wonít last.

Mgmny

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Re: 2030 FIRE Cohort
« Reply #531 on: December 19, 2019, 07:24:24 AM »
Started the year with 90k invested and 10k cash, and paid off condo.
Goal was 180k invested, 30k cash
Ending the year with 200k invested, 30k cash (spend around 40k)
Next year shooting for 300k invested and 50k cash
Cash is there as an opportunity fund, may purchase a rental?

2030 goal 1500k invested, 60k cash, 500k equity, 2x new paid off cars
Will settle for 1250k, 50k cash, 300k equity, 2x new cars paid

A lot of work to do in just 10 years! Good luck to all !
Will see if we are blessed with a child this year.
Goals above assume we are DINKS, but that wonít last.

Dayummmmmm!! Great work! [more than!] Doubling your investment portfolio in 1 year?! Nice!

Now... just keep that up for a decade! :D


haypug16

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Re: 2030 FIRE Cohort
« Reply #532 on: December 19, 2019, 08:09:28 AM »
Not quite year end but I have reached my goal of 2.5x expenses and I still have one more 401k contribution of $1.1k scheduled for 12/31.

2020 goal is to get to 4x expenses which will be adding $36.5k. Plan of attack is max 401k $19,500 + $2,300 in employee matching contributions + Max Roth IRA $6k and then $8.7k in non-tax sheltered investments and gains. Hoping the gains will be as good as this year (nearly $9K for the year)

Steeze

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Re: 2030 FIRE Cohort
« Reply #533 on: December 19, 2019, 12:11:06 PM »
Started the year with 90k invested and 10k cash, and paid off condo.
Goal was 180k invested, 30k cash
Ending the year with 200k invested, 30k cash (spend around 40k)
Next year shooting for 300k invested and 50k cash
Cash is there as an opportunity fund, may purchase a rental?

2030 goal 1500k invested, 60k cash, 500k equity, 2x new paid off cars
Will settle for 1250k, 50k cash, 300k equity, 2x new cars paid

A lot of work to do in just 10 years! Good luck to all !
Will see if we are blessed with a child this year.
Goals above assume we are DINKS, but that wonít last.

Dayummmmmm!! Great work! [more than!] Doubling your investment portfolio in 1 year?! Nice!

Now... just keep that up for a decade! :D

Thanks! No rent/mortgage this year, and DWís first two years out of grad school/making money are helping set a good pace.

Decade is a long time! We have at least a year more at this pace, but we will try for kid #1 this year, so my plans beyond that are a bit shaky. Not sure if DW will be a SAHP for a year or three.

Plus a potential 5 year plan of moving out of NYC - anything could happen.

x02947

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Re: 2030 FIRE Cohort
« Reply #534 on: December 31, 2019, 07:37:44 AM »
Technically 2019 spending was *way* above 2018 spending, but thatís because we took a family vacation to Hawaii, bought a (new to us) van, redid/upgraded our laundry room, and had some health issues.  But those are all covered in the multiyear budget, so as long as we donít do it again in the next few years weíll be good. 

Taking the one-offs out, 2019 spending was basically only $200 higher, or possibly even $100 lower, depending on how you count things like charity, required employee retirement contributions, etc.  So Iíll take it. 

Savings wise weíre at 3% above projected, plus we started/maxed out an HSA, which I need to figure out how to incorporate into my plan.  Do you include that as part of your 25x expenses?  If not, then arenít you just tricking yourself into a super-duper SWR? Plus we fired the financial advisor, so thatís an automatic 1.3% gain.  I'm tempted to set a goal of paying off my mortgage by the time my oldest graduates high-school- that would mean I need to come up with an extra $3k/year somewhere...

Frugal wise, weíve had a decent year.  Started biking for local trips around the neighborhood.  I want to start commuting by bike, but still trying to win DW over on that one.  We are going to get a small garden going in the spring.  Iíve set a goal of changing the oil in our cars this year - take my man card away, Iíve never actually done that before. 

...
 but we will try for kid #1 this year, so my plans beyond that are a bit shaky. Not sure if DW will be a SAHP for a year or three.
...

Careful!  Any non-frugal extended family members have a way of butting into your life once kids come along!  No, you don't need a brand new crib, AND all brand new outfits, AND a brand new high chair, AND on and on.  But seriously, good luck!
« Last Edit: December 31, 2019, 07:45:04 AM by x02947 »

haypug16

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Re: 2030 FIRE Cohort
« Reply #535 on: December 31, 2019, 08:54:26 AM »
Year End 2019 update
X= Yearly Expenses

2017 - Stache at 1.17x  - Ending Balance $29,448.59
2018 - Stache at 1.41x  - Ending Balance $35,167.30
2019 - Stache at 2.628x - Ending Balance $65,693.78

Ending the year about $3k over my goal which feels great. 2020 goal is to hit $100K in retirement savings. This will come from $19,500 in 401k, $2k in employee conributions, $6k in a Roth IRA for 2019,and if I can swing it I'll do another $6k for 2020 before year end and the rest in dividends/market gains, maybe even post-tax investments if I happen to have a bunch of cash lying around ;P

I also need to cut back on my expenses a bit. 2019 ended up being a bit more spendy than 2018 but not as spendy as 2017 (the year I took a 3 week vacation in Hawaii and my cat got really sick while we were away!) This year we just had a baby which was not too expensive. Lots of hand me downs, used  online items, and gifts. My goal is to spend $25k and I've been a few thousand over that number the past couple years so I either need to make sure I can get my expenses down or I need to adjust my FIRE number up from $625k to $750k. I'll make it a goal to figure that out this year. It probably wouldn't hurt to up my number a bit maybe split the difference.

Here's to a great 2020. :D

DadJokes

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Re: 2030 FIRE Cohort
« Reply #536 on: January 01, 2020, 08:32:28 AM »
A decade to go! 2019 was very friendly for investing, so we comfortably overshot our goal for the year.

Year              Net Worth           Investments        % to FI               
201860,89819,8121.32%
2019130,850 137,26575,659 80,6195.04% 5.35%
2020206k135k8.9%
2021283k195k12.6%
2022369k264k16.8%
2023482k342k21.3%
2024592k430k26.3%
2025713k529k31.7%
2026848k640k37.6%
2027997k764k44%
20281.162m902k50.9%
20291.344m1.057m58.4%
20301.545m1.229m66.6%

Assumptions:
Annual 3% pay increase, 75% of which goes to investments
9% market returns
2% inflation
Home equity & increased value is not included in investments
Pension is not included in investments; it looks like its value in 2030 will be about $100k.

66% FI is a withdrawal rate of 6%, which could be safe depending on the value of the pension. It's also highly unlikely that both my wife and I will quit working at the same time with neither of us earning another dime. We also have a child who will be 12 by then, so I'm sure there will be expenses associated with him. At least, people keep telling me that children are expensive, but I haven't seen any evidence of it yet.

Road2Freedom

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Re: 2030 FIRE Cohort
« Reply #537 on: January 01, 2020, 10:00:31 AM »
Happy New Year to everyone on here!

Net worth: $581,483

We have no debt and currently rent.

Happy 2020!  A lot of changes for us this year.  Our son graduated HS in May and we bought a home in Sept.  Ended up putting a chunk of money into it to replace flooring and some other items around the house.

I also got back into sports cards as a hobby / side hustle opportunity.  Been tracking purchases and will be curious to see what type of return I'll get when I start selling.

Anyhow, we benefited quite a bit due to last year's market gains and investing in our 401Ks, HSAs, and IRAs.

Net worth:  $778,174 (doesn't include home equity or sports card side hustle)
« Last Edit: January 01, 2020, 10:06:26 AM by Road2Freedom »

Chrissy

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Re: 2030 FIRE Cohort
« Reply #538 on: January 01, 2020, 08:07:57 PM »
When I posted in October, I must've been using October numbers for each year.  Here are EOY numbers:

2015:  $604k, got married
2016:  $724k, Warrior Princess arrived
2017:  $860k
2018:  $900k, Chunky Baby arrived
2019:  $977k

Invested:  $580k
529s:  $104k
Cash:  $42k

The remainder is a car and some home equity.  We underwent a VERY costly home renovation this year.
« Last Edit: January 02, 2020, 07:27:17 AM by Chrissy »

Mgmny

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Re: 2030 FIRE Cohort
« Reply #539 on: January 02, 2020, 07:05:32 AM »
It's so interesting to see how we all have the same date in mind, but our portfolios/progress are all over the map.

Some of you already have others in this thread's FI number, but with a decade left to go!! How exciting!

haypug16

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Re: 2030 FIRE Cohort
« Reply #540 on: January 02, 2020, 07:57:56 AM »
It's so interesting to see how we all have the same date in mind, but our portfolios/progress are all over the map.

Some of you already have others in this thread's FI number, but with a decade left to go!! How exciting!

I was just thinking the same thing. I have a lean FIRE number so I tend to think I'm way behind but then I just have to remind myself that everyone's situations are different. My number doesn't include Home Equity (don't plan on selling) or Mr Pugs half of the pot (we keep our finances seperate) Our mortgage is super low due to great timing on Mr Pugs part so I don't have super high expenses. Plus if it only took MMM 10 years starting at zero I should be able to do it in 13 (I found MMM in 2017)

Road2Freedom

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Re: 2030 FIRE Cohort
« Reply #541 on: January 02, 2020, 09:10:06 AM »
It's so interesting to see how we all have the same date in mind, but our portfolios/progress are all over the map.

Some of you already have others in this thread's FI number, but with a decade left to go!! How exciting!

I was just thinking the same thing. I have a lean FIRE number so I tend to think I'm way behind but then I just have to remind myself that everyone's situations are different. My number doesn't include Home Equity (don't plan on selling) or Mr Pugs half of the pot (we keep our finances seperate) Our mortgage is super low due to great timing on Mr Pugs part so I don't have super high expenses. Plus if it only took MMM 10 years starting at zero I should be able to do it in 13 (I found MMM in 2017)

You're definitely a lot further along based on that info.  Ours is combined and nowhere near paying off our home (and don't intend to pay it off aggressively as I'd rather put that money into the market or have access to if needed).  I can only imagine our expenses will go down when our son graduates college.  Healthcare is the major expense that we'll have to consider when we do FIRE.

x02947

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Re: 2030 FIRE Cohort
« Reply #542 on: January 03, 2020, 07:12:55 AM »
I'm just being optimistic :)  Shoot for the moon and all that.   

But I do have a pension in the equation, tied to how long I work at this job and when I start taking it.  The hard part to account for is that it doesn't receive any COLA/inflation adjustments until I start receiving it, which for the best case would be, uh, 18 years after 2030.  Even assuming 3% inflation for those 18 years, it would still theoretically provide 25% of my fat-ish FIRE expenses, pre-tax.  I haven't accounted for taxes yet in my plan. 

I also don't count on SS at all.  Unrealistic, I know, but that's my hedge regarding the pension and inflation. 

brandon1827

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Re: 2030 FIRE Cohort
« Reply #543 on: January 03, 2020, 07:54:55 AM »
Very similar situation for me regarding the pension; although I would be eligible to take it without penalty in 2037. Due to that defined benefit plus my 401K, I don't factor SS in either. If it ends up being there for me when I'm eligible then great...but I'm not counting on the program remaining solvent long-term. I'm a little different on the mortgage as I plan to pay that thing off by my 2030 Fire date. I don't want to carry any debt whatsoever into Fire, and I contribute the max match amount to my 401K, so while I might be able to invest on my own in addition to the 401K, pension, & SS...I'd rather just not have a mortgage payment or other debt when I'm retired.

Longwaytogo

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Re: 2030 FIRE Cohort
« Reply #544 on: January 16, 2020, 03:25:06 PM »
Copied from my Update in the 2016 Net Worth thread:

Jan 2, 2013  -($33,302) 
Jan 2, 2014 -($20,162)    +13,140
Jan 2, 2015    $2,833       +22,995
Jan 2, 2016    $13,330     +10,497
Jan 2, 2017    $75,494     +62,164

Have not finalized my exact 2017 goals yet but should cross into the 6 figure club by Summer!

Looked through the thread and I've posted around off and on but looks like I missed updating my NW a couple times.

Dec 31, 2012  -($33,302)
Dec 31, 2013 -($20,162)    +13,140
Dec 31, 2014    $2,833       +22,995
Dec 31, 2015    $13,330     +10,497
Dec 31, 2016    $75,494     +62,164
Dec 31, 2017   $106,827     +31,333
Dec 31, 2018    $125,811    +18,984
Dec 31, 2019   $221,500     +95,689

That chunk of NW is about half home equity and half pre-tax investments; so we hit the milestone of a 6 figure investment acct this year which was exciting :)

Our debt is a little wonky because it actually went UP $40K; but it went from $230K mortgage combined with $50K consumer to ~$320K mortgage and zero consumer. We did a re-fi to consolidate all our debt to longer term/lower rate; do a remodel to our home, and few YOLO purchase like New mountain bike for my 40th B-day and a big vacation(s) for our 15th Wedding Anniversary.

Our old mortgage rate was so low (2.75) that we left it and just did a 2nd for the $100k of 12 years which should align roughly with the 12 left we had on the primary 15 year note. So they should both be paid off by Dec 2031. 

We also upped the retirement % we were putting into DW's work acct from 12-20% and split it 10% to 403b and 10% to 457b.  The 457B money should cover us from 53ish to 65ish since there are no early withdrawal penalties form that like the 403/401 would have.

And DW is another year closer to the pension, 16 down 14 to go.

Happy 2020 Everyone :)

haypug16

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Re: 2030 FIRE Cohort
« Reply #545 on: January 31, 2020, 06:57:51 AM »
Jan 2020 update
X= Yearly Expenses
2017 - Stache at 1.17x  - Ending Balance $29,448.59
2018 - Stache at 1.41x  - Ending Balance $35,167.30
2019 - Stache at 2.628x - Ending Balance $65,693.78
2020 - Stache Goal 4x - January Balance $67,450.05 = 2.7x

Only 10 years and 11 months more of work for me (or less) ;P

msbutterbean

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Re: 2030 FIRE Cohort
« Reply #546 on: February 25, 2020, 01:22:13 PM »
Joining! I am a late bloomer as far as finances go. When I first started reading this forum the ink on my divorce papers was fresh, and I had never followed a budget. That was mid 2017. I tend to be overly optimistic but finances were starting to keep me up at night, and the prospect of working forever was bringing me down. Setting up my plan with "early" retirement in mind was a revelation. (I'll be 60 in 2030, which is way earlier than it would have been if I hadn't corrected course.)

Net worth right now is about $250K. I estimate I'll have $750K in investments at the end of 2029 and about $200K in home equity if I stay in my current VHCOL until then. Unfortunately, I'm tied to the area as a result of the divorce, and am planning to keep the spendy house until the last of my kids is finished with college (May 2029).

I've set 2030 as my target date, less as a result of the dollar values and more because I know I need an end goal in mind for the desk job. There seem to be so many variables that could swing the plan one way or another -- kids' college expenses, keeping my current job, future of the new relationship, social security, healthcare, where the kids will end up, where I'll end up -- so for now I'm letting the tail wag the dog a little.

But happy to see that this thread has been in the works for several years now, as my 10-year horizon seems like an eternity!
« Last Edit: February 26, 2020, 12:48:19 PM by msbutterbean »

Eco_eco

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Re: 2030 FIRE Cohort
« Reply #547 on: February 26, 2020, 12:24:09 AM »
2030 for us is looking to be the year of fatFIRE. Assuming we make it and don't leanFIRE in the meantime I'll be 54 and looking to downshift, from standard paid employment to part time contracting or just managing a small business. We are likely to live in the southern hemisphere for six - nine months and the northern hemisphere for rest of the year.

Updating after a couple of years of doing things other than hanging around on the MMM forums.

I recently sat down and rebuilt our financial forecast spreadsheets. Weíve been chugging along with our FatFIRE plans. We are on track to retire in 2030 in our early 50ís, when the kids are about 18 and I anticipate my job has gone stale. My DW is considering partial retirement in a year or two. She went back to work to teach the kids while they have been at elementary school (she is their teacher). They both only have a couple of years left before high school.

Something interesting (at least for me) has how badly we have arranged our retirement income sources. A large part of our net worth is tied up in the house we currently live in - which Iím not sure the kids would ever want us to sell, and we also have a large chunk in funds which canít be accessed before age 65 (around 500k). We also have a largely property based approach to FI and our rental portfolio will kick into high gear later in life when the debt is all finally discharged. This means our 50s will be relatively tight on income, but we will have large amounts of income (over 200% of our fatfire income requirements) coming on stream for our golden years.


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Eco_eco

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Re: 2030 FIRE Cohort
« Reply #548 on: February 26, 2020, 01:50:17 AM »
Sorry for the double post but I forgot to put in our money targets.

Right now we are aiming for the following income levels (all inflation adjusted back to 2020 dollars):

Retirement lifestyles achieved:
A) Millennial-Revolution Fire (travel the world lifestyle, no ppr):
Income required of about $40,000, income available from investments about $44,000 (if we sold up to travel)

B) The Frugalwoods option (move to LCoL location, live super frugally, continue to work remotely):
Income required of $30,000 (with fully paid PPR), income available of about $31,000 from investments (if we relocated)

Retirement Lifestyles we are aiming towards:
The Mr 1500 days approach (retire without major lifestyle changes):
Income required of $80,000, income currently available from assets $9,000, target date of 2030 for full retirement

The provide for the kids approach (retire comfortably, have enough assets that the kids should never have to work):
Income required of $150,000 plus

Our investments are structured to provide income (if we were to draw it without re-investing) of:
2020: about $10,000 pa
2023: about $31,000 pa
2030: about $80,000 pa
2040: about $140,000 pa

Settings:
All based on 6% net of tax investment return for index funds, SWR of 3.5%, inflation of 2%. We currently spend about 50% of our income.

Investment vehicle of choice:
Mostly we invest in residential rental properties, a lot of our savings goes into building property capital (as opposed to managed funds which we only hold as a hedge against property market risk and for diversification). This is why our income grows so dramatically from 2040 onwards as mortgage payments cease and the rental income streams donít have to service debt.




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brandon1827

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Re: 2030 FIRE Cohort
« Reply #549 on: February 26, 2020, 08:23:43 AM »
Hello and welcome Ms Butterbean! Great to have you with us and glad to see you've got things moving the right direction now. It's amazing what a little time and attention can do to course correct an off the rails fire plan. I'm fairly certain that you and I aren't the only "late bloomers" in terms of a plan to retire early also, so stick to your plan and don't be afraid to make changes as circumstances dictate.

On that note, I've been planning my fire strategy around the assumption that besides land and a little cash inheritance, my wife wouldn't have any retirement income to contribute. My plan has been focused around maxing my 501K, my pension, and the previously stated land/cash assets we have. My wife was a school teacher for 13 years and had some significant health issues that forced her hand into not accepting another contract at the end of last year. That time was a bit of a strain going back down to 1 income, but it allowed her time to get the surgeries she needed and now she's completely healthy again. She was offered a job with our city Parks and Rec making more in her starting salary than she ever made in 13 years as an educator. She was also provided a range; so we now know what her salary will be when she "maxes out" in her current position; which is nice. She also gets performance bonuses, amazing insurance, and has also been enrolled in the city pension plan. So now in addition to my pension, 401K, and the land/cash assets, we will now have an additional pension to add to the formula! I'm over the moon about it and am so excited to re-run the numbers when we have more concrete data to use.