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, there’s 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. There’s 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 I’m starting to get worried that we aren’t financially ready to pull the plug. Essentially, OMY syndrome.
Now for the numbers…
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!
