Author Topic: can I FIRE?  (Read 5802 times)

stashja

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can I FIRE?
« on: November 08, 2014, 12:50:05 PM »
Me again. Thanks for the great advice last time about mortgage payments.

I'm 35 and am wondering if I can possibly FIRE within 10 years.

Here's my situation.
I realize it probably includes a lot of stupidity and little badassery:

A) dream job. Pays $46K plus any prizes I win. In my city,$46K goes a long way.
I'm in a research field with prizes, and I've gotten one $10K and a few $500-$2K. I get at least one a year. So I average about $48K.
I have publication royalties, but they're laughably nominal, but I'm not a scientist, so I have no lab/equipment/supplies costs and no assistants to pay.
I have $30K in savings. I will invest some with Vanguard this year. I also have two pensions: one with my current employer, and a state pension from another country, where I used to work. I can cash it out whenever, but only if I NEVER want to work there again or retire there. So I don't plan to until I am retired.

B) I also get a lot of free stuff - public transportation, interlibrary loan, books, movies, theatre, outreach lectures, my computer... my entertainment budget is an $80 yearly symphony subscription. No tv/cable/netflix.

- bought a condo. 15 year mortgage. Payments are less than my dilapidated grad school room in Expensive East Coast City. If I wanted to live like a grad student again - or I get one mid-size award per year - I can pay it off in 6 years.
- for financial purposes, I'm single. (Partner lives elsewhere, independent finances, works for us.)

C) No car. 1 bike, 1 Vespa.

D) No debt except the mortgage.

1) Can I achieve FIRE? (If I want to... not quite convinced. If I do, I'd try to keep teaching a few courses I like, and doing my research.) In 10 years?
2) I'm not sure I CAN and keep all the items in B). I've never heard of a 45-year-old emeritus professor.

C) I am still learning about investing, but I own about $5K worth of eighteenth century rare books (European history, mostly), and continue to plan to add to my collection. This is a hobby more than an investment strategy, because I plan to give them to my university when I'm no longer able to take care of them or if they won't fit in my home anymore. I don't think I can sell them for more than I paid, anyhow. (Although I got one for $20 because some idiots at a charity shop had no idea what it was, and had actually put it on the *floor& (!). I've got it appraised for $900.)

thanks

MDM

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Re: can I FIRE?
« Reply #1 on: November 08, 2014, 01:11:54 PM »
If you are willing to do some data input, you may be able to answer your own question.

Tools such as http://www.cfiresim.com/ are available.

I'm also looking for feedback on a very simplified "(when) can I FIRE?" chart at the bottom of the spreadsheet you can download from http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/msg274228/#msg274228.  Again, if you are willing, you may get some answers and I'd appreciate any feedback on the "quick 'n' dirty" approximation.  No intent to compete w/ cFIREsim for complex analysis.

frugal_c

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Re: can I FIRE?
« Reply #2 on: November 08, 2014, 08:49:23 PM »
Honestly, I just skimmed your post but I don't think you provided enough info to answer your question.

So you make $46k and it sounds like you live on the cheap.   That is a really good start.  But what exactly are your monthly expenses (hint: the ability to FIRE is going to depend completely on what number you come up with here)?  Also, can you increase the salary or is that out of the question given it's the dream job?

stashja

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Re: can I FIRE?
« Reply #3 on: November 08, 2014, 09:46:13 PM »
MDM - I will use your spreadsheet to calculate and report back.
2nd reply'er - expenses - well, I'm trying to figure out what I can cut. I save about 20% now. And I can get a raise in 5 years.

Malaysia41

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Re: can I FIRE?
« Reply #4 on: November 08, 2014, 10:02:20 PM »
1st column is savings rate.
2nd column is years to FIRE. 

If you are saving 20% you are 37 years from FIRE. 

5   66
10   51
15   43
20   37
25   32
30   28
35   25
40   22
45   19
50   17
55   14.5
60   12.5
65   10.5
70   8.5
75   7
80   5.5
85   4
90   Lt 3
95   Lt 2
100   0

See http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

stashja

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Re: can I FIRE?
« Reply #5 on: November 08, 2014, 10:07:22 PM »
OK. And 17 years (50%) is still a rather long time, so I guess I have my answer.
Thanks everyone!
Should have started reading this site 10 years ago...

lizfish

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Re: can I FIRE?
« Reply #6 on: November 09, 2014, 02:49:38 AM »

OK. And 17 years (50%) is still a rather long time, so I guess I have my answer.
Thanks everyone!
Should have started reading this site 10 years ago...

Yep you and most of us! Good luck though.

happy

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Re: can I FIRE?
« Reply #7 on: November 09, 2014, 03:07:52 AM »
Quote
In my city,$46K goes a long way.
Live on 16K. Save 65% and you're done in 10 years.

stashja

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Re: can I FIRE?
« Reply #8 on: November 09, 2014, 08:43:00 AM »
I could do that, probably.

joshbredmond

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Re: can I FIRE?
« Reply #9 on: November 09, 2014, 10:36:39 AM »
What is FIRE?

Ziggurat

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Re: can I FIRE?
« Reply #10 on: November 09, 2014, 01:03:14 PM »
What is FIRE?

Financially Independent, Retired Early

joshbredmond

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Re: can I FIRE?
« Reply #11 on: November 09, 2014, 03:22:29 PM »
 Thank you

bo_knows

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Re: can I FIRE?
« Reply #12 on: November 09, 2014, 04:10:08 PM »