help me pull the trigger, am I FI already?

[MidWestLove]

36 year olds, married, one 2 year old kid. we spend 54k a year of which 19 is a nanny/babysitter. income 220k +, savings of 1.25 mln in vanguard funds plus ~200k in various other funds (house "upgrade" fund if we decide to do it, emergency fund of 2 years worth of expenses, baby's college fund ,etc) , no debt of any kind, own our house and car.  very fortunate being in the right time and place for IT career, saving as much as I could as single and later married person.
DW does not want to leave and likes her part time job (social work , pay is bad but she loves the purpose behind it and it allows us to fund her 403b account and gives insurance option if I stop working)

Am I crazy wanting to give it up? I am seriously tempted to hang it up now or in 2 years (where I get  another 60-70k per year in retention money just by staying in place and not moving).  My peers look at me really strange for willing to walk away from that much money (plus bonuses , plus stock grants, plus stock options) and I look at my daughter and think whether I would be happier being a full time dad. obviously if I stay home we do not need  nanny  and our costs drop to 35k a year.

[TomTX]

Looks like you can do it at a WR below 4%, particularly if DW keeps working and gets medical coverage.

The math works.

...and it shouldn't be too hard to qualify for the Earned Income Tax credit, for a bonus $3.3k from the feds each year.

[Abe]

It looks like you are set, financially. Earning just 3% interest on your primary savings will be enough for your yearly expenses, even if your wife stops working. I'm assuming the cost include health insurance (which is the main expense that may increase significantly faster than inflation). Ask yourself if there's any specific reason why you'd need more money. If not, there's no reason you should keep working for the money. If you like the job for non-monetary reasons, maybe you can work part-time? My wife and I are in high-earning fields also, and find it tends to attract people who enjoy working for the sake of the challenge and/or for the cash. If neither aspect interests you, don't use colleagues' opinions as a yardstick for your life.

[arebelspy]

http://www.cfiresim.com

[Nicster]

http://www.cfiresim.com

Arebelspy, how do you account for rental income in this calculator? Under "other income?"

[arebelspy]

http://www.cfiresim.com

Arebelspy, how do you account for rental income in this calculator? Under "other income?"

Sure.

Or subtract the rental income off your expenses and put in the lower expenses amount.  It comes out to the same thing.

[Thegoblinchief]

Without knowing your expenses, yes. I'd be FIRE with a 2.x% SWR.

You have a built-in cushion with your DW still working. Even a part time job will cover most, if not all core expenses. I'd go ahead and quit.

Alternatively, give yourself six more months. Over that period, track your expenses in detail.

[CommonCents]

Do you plan to fund college for your kid (and any future ones)?  If so, I'd make sure to include that in your calculation, and some buffer in terms of expenses for the kid in your calculation. 

[Workinghard]

http://www.cfiresim.com

I find the calculator matches Vanguard's portfolio/retirement analysis. The percent of success in both is 100%. It just doesn't feel that way, and I'll be more comfortable having another three years of joint income.

[randymarsh]

I say quit! I think the 2 years with your daughter is worth 60K.

BTW, can I ask for more details? I'm also in the midwest and entering IT in just another month. What area(s) do you work in? What was your salary history like?

[Threshkin]

http://www.cfiresim.com

Arebelspy, how do you account for rental income in this calculator? Under "other income?"

Sure.

Or subtract the rental income off your expenses and put in the lower expenses amount.  It comes out to the same thing.

I prefer to use the other income area for rental income because then I can include an end date.  I certanly do not want to keep a rental property forever!  Plus, then you can add another one-time income to account for the sale of the rental property.

[wesley]

Do you have the option at work to take a 'career break' 12 months leave with the intention of going back to work - without losing benefits?

Or perhaps cut down now to 3 days a week.

Overall I think that the extra 2 years reaps an extra 6 months worth of income so I would be tempted to stick around, however as someone pointed out its probably worth it to stay at home with your child now, and plan to go back to work after she has started school (at which point you will be paying for a nanny/afterschool service or similar).

But all in all, what an awesome problem to have ;)

[arebelspy]

http://www.cfiresim.com

Arebelspy, how do you account for rental income in this calculator? Under "other income?"

Sure.

Or subtract the rental income off your expenses and put in the lower expenses amount.  It comes out to the same thing.

I prefer to use the other income area for rental income because then I can include an end date.  I certanly do not want to keep a rental property forever!  Plus, then you can add another one-time income to account for the sale of the rental property.

Absolutely the way to do it if you're planning on selling at some point (then you just have the tricky part of estimating what it will sell for in the future, minus taxes, minus depreciation recapture).  Lots of people will 1031 or probate to exit, so may not do it that way.

[nicknageli]

How confident are you in being able to cover rising health insurance premiums after you both quit working?  That's a big concern of mine personally.

[MidWestLove]

Thank you for all of the responses , good thoughts. I have not worked through all of the items and know  we have to account for health insurance going forward, thus looking at ACA for my state to understand MAGI rules when are used to determine subsidies if any.
For the work itself, there are parts I truly love especially problem solving for complex issues and optimization challenges where it feels like I am working with multidimensional puzzle for fun. The rest of work could be less fun, employee issues, hr, politics, power wars - all of the fun of any current corporation.

For the person thinking about career, I currently do data and database management (platform ownership and coverage of db technology stack) and find it rewarding.  I have friends who similarly enjoy different fields within IT so it Is less what you pick and more how you go about it. At start you will be learning , learning, and learning, to get all you van from your first few jobs. Then , very few companies actually recognize your value to the market , it is likely you will switch job few times for salary reasons. As you get sr level skills you find work chasing you and your network being best source of employment, I.e. I have job hunted in over a decade and vs instead approached to help in various areas. Once you hit six digits and above , pick a place you like and stay the course, for me a lot of promotions were simply because I was the only one left.. Salary numbers for comparison 50-65-80-85-105-115-120-135-150-etc.  Hope it helps

[soccerluvof4]

You seem to like it, so how about finding a compromise. I agree numbers wise your fine with your wife working. I also agree its great to be able to watch your child grow up. But before you quit is there away you can do something out of your house to keep you active somewhat i  n the business. I am speaking from experience as that worked well for me.