My plan for Financial Independence

[elduderino]

Hi, my plan for FI is to save for the next 5 years until I have $400k saved. From that point on move to cheaper COL location and get a job to cover yearly expenses. I don't plan on touching the $400k until it is at $800k in 10 years. From that point on use the 4% rule.

Anything I'm missing?

Thanks for the feedback.

[human]

If you aren't adding to it over the 10 year period a market downturn could slow you down. By a job to cover yearly expenses do you mean full time or part time and less stressful than what you do now? If full time, why move? How much do you make now?

Could you just save more in the hcol area and be completely FI in 10 years instead 5 plus 10 in other work at the new location - and then move?

Could you get a job with health insurance? How much do you spend a year now? Will your spending 15 years from now be 32k in today's dollars?

[Khan]

Within a single 10 year span, I would not count on the 400k doubling. Yes, the -average- return for equities(assuming) is around 10%/year for the S&P500(~7 or 8% after inflation), but that is smoothed out on 30 year time horizons. Within a single 10 year time span, well, it could be much higher or lower than that. FIRECalc shows possible 10 year values from 277k to 1.5mil, with an average of 733k(which I'm guessing is mean average, median appears to be closer to 600 something).

That said, if you're just spitballing hypotheticals, and the main aim is to accumulate a stash and then downshift to lower stress work and let time work for you while you enjoy yourself, than yeah your plan works.