Author Topic: FIRE Jitters & OMY syndrome are Nipping at my Heels!  (Read 916 times)

Gimesalot

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FIRE Jitters & OMY syndrome are Nipping at my Heels!
« on: July 20, 2017, 09:29:10 AM »
After 4 years of savings and cutting costs, the time to FIRE is drawing closer.  Originally, the plan was to work through 2017 and a few months into 2018 after which, we would leave the U.S. and move to South America. 

However, thereís been some developments that have might change our plans:

  • Our house renovations are NOT coming along.  Neither of us has time to work on it, and getting contractors to work has been really difficult since there was a flood and tornado near-by and they are all booked.
  • My job has taken a turn for the worse.  Benefits are being cut, management is being pressured, and I am generally unhappy over stress from the renovations not moving along.
  • Due to the economic situation, we have surpassed our FIRE number much earlier than we anticipated.
   

The rub is that I know that this run-up of the market is not sustainable long-term, 10 year horizon.  Thereís been a lot of chatter on the board about the P/E being at all-time highs, a potential correction, the importance of the first 10 years, etc.  So Iím starting to get worried that we arenít financially ready to pull the plug.  Essentially, OMY syndrome.

Now for the numbersÖ
Savings-
Cash: 13k
Trading Accounts: $209k
Retirement (401k, IRAs, HSA): $409k
Total: $631k

Rental-
Total rental income: $57.5k
Profit (PITI, PM, Vacancies, repairs, taxes, etc): $8k <-- this is the most conservative estimate

Spending: $24k to $26k (visiting in November to get a better understanding of costs)
Barebones budget: $17.5k (still leaves a few luxuries to stay sane)
Withdrawal Rate: 2.7%

In my rational mind, I know that this is an incredibly low rate that will most likely leave me rich beyond my imagination.  On the flip side, I keep thinking about all of the things that could go wrong and leave us poor and destitute.
Your advice and input are much appreciated!
« Last Edit: July 20, 2017, 09:31:06 AM by Gimesalot »

mozar

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Re: FIRE Jitters & OMY syndrome are Nipping at my Heels!
« Reply #1 on: July 20, 2017, 11:22:44 AM »
Personally I would've retired yesterday, but I can see how that could feel a little tight. Are you going to keep the rental when you move? And how much do you think you'll get from the sale of the house? Maybe lay out some scenarios you are worried about to get it off your chest.

spokey doke

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Re: FIRE Jitters & OMY syndrome are Nipping at my Heels!
« Reply #2 on: July 20, 2017, 11:29:06 AM »
Tough call...how sure of those budget numbers are you (good for you if you can pull it off with those modest numbers)?

How about the really unhappy one at work quits and takes on making sure the renovations get done while the other continues to work until it is all buttoned up?  If things go south in the meantime, you'll have one job in addition to the rental while you recalculate