Feeling A Bit Overwhelmed

[Candyland33]

Hello,
I’m single. 35 years old. I’m new to FIRE.  I have been saving for years ($200K in 401K now).  I have been keeping track of my costs for the past 1.5 years.

I’m a bit overwhelmed with FIRE movement. I don’t know what steps to follow. I maxed out 401K. I have Roth IRA.  I’m saving on the side. I would like increase my investment so I’m not sure how to or here to go from here.

What do I do next?
Thank you

[friedmmj]

Hello,
I’m single. 35 years old. I’m new to FIRE.  I have been saving for years ($200K in 401K now).  I have been keeping track of my costs for the past 1.5 years.

I’m a bit overwhelmed with FIRE movement. I don’t know what steps to follow. I maxed out 401K. I have Roth IRA.  I’m saving on the side. I would like increase my investment so I’m not sure how to or here to go from here.

What do I do next?
Thank you

You’re doing awesome by the sounds of it!  Stay the course.  Keep things simple with your investments. 

[Mustache ride]

Investment Order thread should help.

https://forum.mrmoneymustache.com/investor-alley/investment-order/

[Freedomin5]

+1 on following the Investment Order

[Buffaloski Boris]

It looks to me like you're making good progress.  $200K isn't anything to sneeze at. 

For me, The whole FI thing boils down to freedom and freedom looks different for everyone. One size doesn't fit all. Nor does the strategy for getting to FI.       

If what you're looking for is investment information, I agree with the other posts in that the investment order thread over at "investor alley" is quite good.  Beyond that there are a lot of investment strategies that can work.   

I have an odd suggestion for you. I suggest skipping the more public threads for a spell and diving into the journals.  Go to the main page, scroll down and take a look.  Here at MMM the journals tend to be very introspective stories and you'll get to see how other folks are making progress and struggling with their own path. You might maybe find a few folks whose journals and stories resonate with you.  Say hi and maybe ask a few questions. There are a lot of nice folks here.

[ender]

I like to suggest folks read https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

Because really, thats the heart of what you need to figure out how to plan.

Once you have a goal in mind of years to retirement you can set a goal for savings rate.

[Candyland33]

Thank you so much for feedback.
WHAT            
0. Establish an emergency fund to your satisfaction - Yes, established 6 months emergency fund             
1. Contribute to your 401k up to any company match - Yes, I have done this
2. Pay off any debts with interest rates ~5% or more above the current 10-year Treasury note yield.  -No debt over 5%
3. Max Health Savings Account (HSA) if eligible.  Yes, I have maxed it out.
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level- maxes out Roth. Sadly, my company does offer after tax contributions
5. Max 401k (if
    - 401k fees are lower than available in an IRA, or
    - you need the 401k deduction to be eligible for (and desire) a tIRA deduction, or
    - you earn too much for an IRA deduction and prefer traditional to Roth, then
    swap #4 and #5)            Yes, maxed out 401K
6. Fund a mega backdoor Roth if applicable.      -not applicable
7. Pay off any debts with interest rates ~3% or more above the current 10-year Treasury note yield.            - is it really worth the investing bond rate?
8. Invest in a taxable account and/or fund a 529 with any extra.  - Will research this.           

[PhilB]

What do I do next?

Concentrate on enjoying the journey.

The early stages of discovering FIRE and optimising your spending, setting up your investments, etc are the exciting part with things to actively do.  After that comes the building period, where there isn't that much else you can do except wait while the stash builds.  The important thing here is not to spend those next years obsessing about your stash and waiting to start living once it's grown.  You need to enjoy your new efficient life as much as possible whilst the stash does its thing in the background.

[Moonwaves]

If you haven't done so already, read the blog from the start. You should also read the JL Collins stock series and/or book. I found Dr. Doom's blog, Living a FI really interesting reading and would highly recommend that, too.

Remember that once you've set the financial stuff, it's all about finding the things that fit into your life, using them and not bothering about the rest. You could also post a case study in that part of the forum if you want feedback on your overall spending. There is a pinned thread with a template at the top of the case study section of the forum.

[Freedomin5]

It’s also worth it to periodically review your expenses and financial picture to see if there are other areas of optimization. I like to look at my largest expense categories and see if I can think of creative ways to significantly reduce those expenses. That was part of the reason why I switched jobs — I realized I could get a job with similar pay and better hours and improved quality of life, that would also bring my housing, transportation, and tuition fees to close to $0. Tuition and housing were our highest expenses last year before I switched jobs.

[Captain Cactus]

It looks to me like you're making good progress.  $200K isn't anything to sneeze at. 

For me, The whole FI thing boils down to freedom and freedom looks different for everyone. One size doesn't fit all. Nor does the strategy for getting to FI.       

If what you're looking for is investment information, I agree with the other posts in that the investment order thread over at "investor alley" is quite good.  Beyond that there are a lot of investment strategies that can work.   

I have an odd suggestion for you. I suggest skipping the more public threads for a spell and diving into the journals.  Go to the main page, scroll down and take a look.  Here at MMM the journals tend to be very introspective stories and you'll get to see how other folks are making progress and struggling with their own path. You might maybe find a few folks whose journals and stories resonate with you.  Say hi and maybe ask a few questions. There are a lot of nice folks here.

Where does one access the journals?  I didn't see it in the main menu...maybe I'm overlooking it?

[ender]

Where does one access the journals?  I didn't see it in the main menu...maybe I'm overlooking it?

https://forum.mrmoneymustache.com/journals/

[Greystache]

You don't say when you plan to retire, but if your plan is to retire long before you can easily access your tax deferred retirement accounts (401K , IRA as well as SS and pension) then you need to have some money available in accounts that can be easily accessed when you are younger. Make sure you have have some money in Roth IRA and/or taxable brokerage accounts. Give some serious thought now to how you will fund the entirety of your hopefully long retirement.

[MoneyTree]

I'd say you are in great financial shape for someone who is new to FIRE.

Since you've pretty much maxed out everything you can put into tax advantaged accounts, the only other things you can do on the investment side are invest in a taxable account, start a business, or get into real estate.

The only other thing I can really say is to consider how your asset allocation is distributed amongst your different accounts. I have my REITs in my Roth accounts, my Bond Exposure in my 401K/Traditional IRA accounts, and everything else in taxable.

If you haven't already, I would then turn my attention to the other 2 components of reaching FIRE (from a financial standpoint). 1) Looking for ways to lower your expenses 2) Looking for ways to increase your income.

Personally I prefer focusing on lowering expenses first, but others may have other opinions on that. Focusing on increasing income first can sometimes lead people's spending to inflate as well, and walking that back after tasting what a higher income can get you is more difficult for a lot of folks. I also find that learning to live more simply by lowering expenses has made me more content and happier. Also, lowering expenses has the double effect of enabling you to accumulate more towards your stash AND decreasing what you need to live on into perpetuity. Increasing income only helps you in the accumulation phase.

[Dicey]

Thank you so much for feedback.
[snip]           
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level- maxes out Roth. Sadly, my company does offer after tax contributions

Are you saying you make to much to qualify for a Roth? If not, you don't need your company to offer one, you can easily DIY it.

Awesome job so far, BTW. You're doing fine.

[toocold]

Here are my suggestions:

1) Develop a net worth and an income statement (wage, expenses).
2) Project your net worth out with reasonable estimates on investment growth, income growth, debt paydown, etc.  Hopefully you will achieve a period where 4% (or more conservative 3%) of your investment assets will cover your expenses.  That is your FI date. Review to see if you are happy with this.  If so, update and review quarterly or annually.  If not, take actions (e.g. figure out how to grow income, how to trim expenses). 
3) Once you do this as a habit, don't think about it too much.
4) If, and when you have a significant other, share this to make sure you guys are aligned.

[Much Fishing to Do]

I think you're doing awesome.  The only thing I think important in the near term is to get No. 8 done with a basic/simple investment plan you are comfortable with over time (e.g. if you like a basic 80/20 mix just putting everything in Vanguard Lifestrategy Growth would accomplish that).  Throw everything that doesn't fit into 1-7 into this. 

Then you are on autopilot and IMO 99% of what matters after that is to spend less and make more.