MPP: Having to inform and convince a loan underwriter how it is possible to live without W-2 income or monthly retirement payments from a 401K, pension, or SS. They are unfamiliar with the idea that someone can live on taxable brokerage proceeds which I collect just one time per year in December and they don't see how it is possible that I have paid zero income tax on that fat FIRE annual withdrawal.
Backstory- I am setting up a home equity line of credit so I can tap a large sum on short notice without selling stock. My house is debt free and is worth more than $600K; I asked for just a $100K line of credit. My net worth is about $3M without the house, have a 820 credit score, and I have been with this credit union for more than 30 years. The HELOC should be a no brainer.
The loan officer and the back office underwriter are stumped. They have no idea what verification paperwork to ask of me and we have had a few phone calls where I have explained FIRE and the 4% rule and that I live on less than 2% tax free. They are fascinated, polite, and not uncooperative, but it is work on my part to explain how I manage to live without a Holy Paycheck, Giver of All Things.
I have suggested which paperwork might help them and they are having meetings about me. They are unable to make a decision without some kind of massive internal consensus. If my Interactive Brokers margin account was working like it should be I wouldn't bother (it isn't, I will add story to that separate thread when I know more).
Sigh. It is hard to be weird. You get it.
I think it is on the pre-FIRE checklist for Mustachians to consider getting a HELOC set up before they leave work if they ever think they will want one, and I agree. No creative thinking is required when you show up with a W-2. On the other hand, maybe someone in the credit union is getting their eyes opened to the concept of FIRE this week and will come visit us one day.