Author Topic: 2032 FIRE Cohort  (Read 2931 times)

efree

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2032 FIRE Cohort
« on: June 08, 2019, 07:53:36 AM »
Is anyone else thinking of retiring in 2032? It's obviously still far away but I'm thinking it might be my year. On the one hand, it's a conservative estimate since I anticipate salary increases in the next few years and maybe I could be FI as soon as 2028. On the other hand, a big part of my investments is in a high-risk asset class (P2P lending) so I could suffer some losses if it goes bad.

It's difficult for me to say what my expenses might be in 13 years so this is all just guessing, but I like to have a concrete goal to work towards. 2032 will be mine for now.

Lucky Recardito

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Re: 2032 FIRE Cohort
« Reply #1 on: June 25, 2019, 11:55:20 AM »
Just FYI... with dates a decade or more away, and obviously a ton of things that can and will change to pull FI forward or push it backward, the 2030 thread has assembled a collection of folks looking vaguely in that direction, plus or minus a few years. If you don't get good discussion going on this thread but want a cohort to chat with, c'mon over and join us!

https://forum.mrmoneymustache.com/welcome-to-the-forum/2030-fire-cohort/

efree

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Re: 2032 FIRE Cohort
« Reply #2 on: June 26, 2019, 10:04:44 AM »
Thanks, that's nice of you! Maybe I will. On the other hand, I figure there must be some folks who know they will need more than 10-11 years to FIRE so they can come and chat here :)

lv2glrfy

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Re: 2032 FIRE Cohort
« Reply #3 on: June 28, 2019, 10:14:28 AM »
Heyo! Iím brand-new but looking towards this year in particularósimply because itís the year my husband turns 40 😊 Wouldnít it be nice if we made it...

If this ends up being a dead-end thread for right now Iíll happily move! But I know for sure itís gonna take us 10+ years to FIRE. Also, Iíll be lurking in other cohort threads for funzies.

efree

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Re: 2032 FIRE Cohort
« Reply #4 on: June 30, 2019, 07:47:11 AM »
Hey, nice to have someone else here!

dadbod

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Re: 2032 FIRE Cohort
« Reply #5 on: July 07, 2019, 04:37:23 PM »
Hi, this might be our year as well. I turn 55 in 2032 and can withdraw from my 401k with no penalty if I retire from the job (assuming no changes to the law).  I'll still have a kid in high school then and a lot of things can happen, but that is the plan.  I found MMM last year and have been trying to make small changes, but primarily I've been tracking our spending using Mint to get an idea of where our money goes.  We make good money but got a late start on earning it, and I'm too embarrassed to post a case study because we are at times flagrantly, extravagantly spendy.  So, hello!

lv2glrfy

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Re: 2032 FIRE Cohort
« Reply #6 on: July 29, 2019, 10:01:40 PM »
I found MMM last year and have been trying to make small changes, but primarily I've been tracking our spending using Mint to get an idea of where our money goes.  We make good money but got a late start on earning it, and I'm too embarrassed to post a case study because we are at times flagrantly, extravagantly spendy.  So, hello!

That's such a great beginning, though! Seeing where it all goes is the key to taking control. Cheers to starting out!

A word of encouragement: don't stay embarrassed about case-studying for too long! I posted ours a month ago and expected a vicious roast, but everyone was surprisingly kind and helpful. Apparently, we're not at all heartless here--just very passionate! :)

Kal

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Re: 2032 FIRE Cohort
« Reply #7 on: September 27, 2019, 12:38:07 PM »
Hello everyone, 2032 will be a bit of a stretch goal for my wife(32) and I(31).  I'm curious what everyone's numbers look like, comparing our separate goals and such for that timeline might make good discussion.  I'll take a look at our accounts and post back on Sunday or Monday

efree

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Re: 2032 FIRE Cohort
« Reply #8 on: December 15, 2019, 10:24:26 AM »
Welcome to the cohort, Kal!

I sold my car this year, decided I didn't need one after all. Now I have approx. 3x my yearly expenses saved up.

Hope to hear from others as well as the year comes to a close.

dadbod

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Re: 2032 FIRE Cohort
« Reply #9 on: January 03, 2020, 12:00:41 PM »
Alright team, it's 2020!  twelve more years!  I tracked my family's spending pretty religiously last year using Mint (with the caveat that my husband has business accounts that I don't track).  I know where we need to decrease:

eating out (ouch)
daycare (double ouch)
home improvement (two large expenses but we are already planning another one for 2020 so need to be creative)
pets (this surprised me)
miscellaneous spending at amazon, target, and walmart (this did not surprise me)

I was happy to see that our expenses in these categories were reasonable (to me):

groceries
medical
cars (although higher than I expected)
vacation
exercise

A few areas that I would love to decrease but don't know if it is possible are:

utilities (ouch!)
home services (do we really need that house cleaner?  yes, says the husband).
mobile phone/internet

Financial goals for 2020 include:

Maxing my 401k
Paying off a 401k loan that we used as part of a down-payment on our home
Getting a will
Evaluating current life insurance policy and revising if necessary
Opening an individual 401k for husband (self-employed) so that he can contribute more than he is able to in his IRA.

Happy New Year and good luck to all!


dadbod

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Re: 2032 FIRE Cohort
« Reply #10 on: February 25, 2020, 05:01:42 AM »
Hello fellow future-oriented savers!

Just had "the talk" with my husband where I laid out our 2019 spending, our net worth, our assets and liabilities, and our (my) goals.  It went surprisingly well, probably because I didn't push major changes and asked for his input to goals.  When I first found MMM, I excitedly suggested selling our money-pit of a "forever home," that we had just moved into three years prior.  It didn't go over well.  Small changes and compromise seem to be in our future.

As my timeline for early retirement is still far in the future, we just need to set up best practices.  We recently started an individual 401k for my husband so have the ability to reduce our taxable income significantly with the larger caps on contributions compared to his previous SEP IRA. 

We've also identified a daycare that is 2/3 the price of our current place - and plan on switching to it in June. 

We are moving forward with another home improvement project (backyard landscaping project) but being the GC ourselves and getting multiple quotes on each element.  So far it is slow going but successful at reducing the cost.

We still have our amazon problem - that's a hard one.  I'm considering removing all of our credit cards from the site so that each time we want to buy something we need to go into our wallets and enter the numbers.  The one-click purchase is just too easy.

My goal for this week is to call about wills.  Need to get those in place.

Still on track to pay off 401k loan with my bonuses this year.  That will be an exciting milestone!

In our family meeting, my husband brought up the idea of hiring a fee only adviser.  I'm against it, but have to figure out our life insurance needs.  I have approx $800k worth though my work, but this is one of those things that I just don't understand.  I'll be doing some reading.

good luck to all!  just keep swimming!

Kierun

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Re: 2032 FIRE Cohort
« Reply #11 on: February 25, 2020, 09:38:47 AM »
Hey dadbod, not just wills, but what about a trust?  Life insurance, keep in mind is what the insurance is for, as in what is the purpose of that money if someone were to pass. I've seen folks get way over insured, ie single folks with no kids get sold million+ whole life products, DINKs multi million, etc. Good luck on the home improvements, being your own GC saves a lot of money but can also be very stressful and time consuming.

dadbod

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Re: 2032 FIRE Cohort
« Reply #12 on: May 19, 2020, 02:21:40 PM »
Covid check-up!  My husband and I are both still working but full-time from home now.  With a two year old.  It is amazing in some ways.  Having the chance to spend time with my family is invaluable.  I loved my two months paternity leave and in some ways this reminds me of it.  But having to work at the same time can be impossible.  Fortunately, my company is understanding but it still adds pressure.  We've saved some money with daycare closed but have also spent more money on the landscaping because we wanted to get the backyard suitable for a place to play with our son this summer.  Looks like we might be home for a while.  As a result we are also looking for a part-time nanny, which is budgeted but will increase expenses.

Financial goals for 2020 included:

Maxing my 401k - in process, plan to increase contribution after paying off 401k loan
Paying off a 401k loan that we used as part of a down-payment on our home - in process, set aside 1/3 of the money already and have a stock option bonus coming in July that should do it.
Getting a will - met with an attorney and have a draft that I need to review in my inbox.  After review, will sign via socially distancing shortly.
Evaluating current life insurance policy and revising if necessary - no progress.  Goal is to pay off house and provide living expenses for husband and child for a period of time should I die.  I'm the primary earner.
Opening an individual 401k for husband (self-employed) so that he can contribute more than he is able to in his IRA. - complete, although we need to up contributions to take advantage of it.

In other news, I got a promotion at work and am now managing people for the first time.  Wow, is that hard.  I hope the Peter Principle isn't coming into play here.  Going to read up on it and talk to some of my mentors.  Also been offered the chance to be an expat with the company at some point.  Would be great professionally for me and likely financially as well but hard on the family.  With Covid, plenty of time to defer and discuss later.  One silver lining of covid has been that my husband realized he is able to do his job remotely and believes he could work in another country rather than having to give up his career for us to move overseas.

Hope all in the class of 2032 are surviving.  Just keep swimming!

dadbod

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Re: 2032 FIRE Cohort
« Reply #13 on: September 28, 2020, 09:56:15 AM »
3/4 Year Check-up!  I guess it's me.  Making good progress toward 2032 - I realize that this is very far out, but I picked it because the majority of my savings is going to be via 401k and I'm aiming to take advantage of the rule of 55.  Also, work from home during Covid has made me realize how much I like working in the office!

Been a fairly productive year so far:

Maxing my 401k - in process, plan to increase contribution after paying off 401k loan DONE
Paying off a 401k loan that we used as part of a down-payment on our home - in process, set aside 1/3 of the money already and have a stock option bonus coming in July that should do it. DONE
Getting a will - met with an attorney and have a draft that I need to review in my inbox.  After review, will sign via socially distancing shortly. DONE
Evaluating current life insurance policy and revising if necessary - no progress.  Goal is to pay off house and provide living expenses for husband and child for a period of time should I die.  I'm the primary earner.  NOT DONE
Opening an individual 401k for husband (self-employed) so that he can contribute more than he is able to in his IRA. - complete, although we need to up contributions to take advantage of it.  DONE

Also, with interest rates so low we are refinancing mortgage and heloc (pre-MMM) into a single 30 year fixed at 2.625%.  Crazy low!  The refinance is considered cash out because the heloc was for a remodel job, and the lender suggested we could take more than just what was needed to pay off outstanding mortgage balances but I resisted.  I felt like the queen in lord of the rings when she was able to resist the ring.   

Also, hit 500k invested combined with husband!

Expense-wise, doing okay.  high on TV (which we upgraded this year), home services (because we hired and fired a lawn service - trust me I know), and lawn and garden expenses because we are renovating backyard.  Higher on groceries too but correspondingly lower on eating out.  Most travel cancelled so that saved us some money.

Keep on swimming, folks.

Kierun

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Re: 2032 FIRE Cohort
« Reply #14 on: September 28, 2020, 10:24:24 AM »
Nice! That's some great progress, way to check off those goals!

dadbod

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Re: 2032 FIRE Cohort
« Reply #15 on: January 04, 2021, 04:51:39 AM »
End of year checkup!  Where my people at?!

Very happy with our progress in 2020.  Maxed my 401k, paid off a 30k 401k loan, consolidated heloc and mortgage into single 2.625% mortgage, found a daycare that is less than half the price of the old one and better fit for us to boot, set up the individual 401k, and got wills in place, all while living in a covid world. With the good market gains and pumping 85k into retirement accounts including my contribution, my employer match, my husband's contribution, and the loan payoff, our net worth has increased over 200k, to a little over 550k without considering real estate or a little over 900k with the equity in our home.  I'm hoping to hit the paper millionaire mark this year!

Spending is still a problem but as my husband said: at least we are going in the right direction!  When I graduated from law school into the great recession twelve years ago our net worth was -150k.  I'm happy with the swing.  I might focus on one or two things this year to work on: amazon purchases or groceries.

Looking forward to 2021, the big expense this year is probably going to be a new roof.  I'm sure we will have a burst of spending when covid is (hopefully) over and we can travel again.  I might buy myself a sexy midlife crisis convertible too (1981 Fiat Spider Pininfarina, dark blue or black, manual) if I'm able to pay off my student loans.  YOLO.

Financial Goals for 2021

Evaluating current life insurance policy and revising if necessary - carry over from 2020
Maximize credit card points earning opportunities - prepping for when we can travel again
Reorganize charitable contributions
Increase 529 contribution
Disable one click purchase option from Amazon
Pay off half of remaining student loans
New roof - ugh
Get a new family car??? - still discussing.  Roof is probably pushing this back some :-(
Evaluate and rebalance, if necessary, Roth IRA
Investigate new job opportunities (including expat) - current job getting a little stagnant
Investigate season ticket requirements at local colleges / sports teams for when son is old enough to go with me
Backyard Chickens = Profit???


Goal for 2032 is 2 million invested in 401k's, 500k in a roth ira, a paid off house, and an adequate college fund for junior.  To get there we need to increase husband's contribution by 10k/year next year and start a mega back door roth in two years.  And/or better than 7% gains over the next decade.

Let's hit it! 

And remember, just keep swimming!





3/4 Year Check-up!  I guess it's me.  Making good progress toward 2032 - I realize that this is very far out, but I picked it because the majority of my savings is going to be via 401k and I'm aiming to take advantage of the rule of 55.  Also, work from home during Covid has made me realize how much I like working in the office!

Been a fairly productive year so far:

Maxing my 401k - in process, plan to increase contribution after paying off 401k loan DONE
Paying off a 401k loan that we used as part of a down-payment on our home - in process, set aside 1/3 of the money already and have a stock option bonus coming in July that should do it. DONE
Getting a will - met with an attorney and have a draft that I need to review in my inbox.  After review, will sign via socially distancing shortly. DONE
Evaluating current life insurance policy and revising if necessary - no progress.  Goal is to pay off house and provide living expenses for husband and child for a period of time should I die.  I'm the primary earner.  NOT DONE
Opening an individual 401k for husband (self-employed) so that he can contribute more than he is able to in his IRA. - complete, although we need to up contributions to take advantage of it.  DONE

Also, with interest rates so low we are refinancing mortgage and heloc (pre-MMM) into a single 30 year fixed at 2.625%.  Crazy low!  The refinance is considered cash out because the heloc was for a remodel job, and the lender suggested we could take more than just what was needed to pay off outstanding mortgage balances but I resisted.  I felt like the queen in lord of the rings when she was able to resist the ring.   

Also, hit 500k invested combined with husband!

Expense-wise, doing okay.  high on TV (which we upgraded this year), home services (because we hired and fired a lawn service - trust me I know), and lawn and garden expenses because we are renovating backyard.  Higher on groceries too but correspondingly lower on eating out.  Most travel cancelled so that saved us some money.

Keep on swimming, folks.

K-ice

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Re: 2032 FIRE Cohort
« Reply #16 on: January 07, 2021, 02:14:22 PM »
dadbod nice progress.

We are pretty similar with similar long term goals. I think the 2032 year is the group for me.

Short term 2021 goals (for my accountability):

Max retirement accounts
Sinking fund (YOLO)
About 10% income to brokerage account
Reassess college fund (I started it about 10y ago so it needs a review)
Estate planning (this one is the one I procrastinate the most on)


Whishing everyone a happy 2021!