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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: 3vader on October 28, 2020, 02:18:07 PM

Title: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: 3vader on October 28, 2020, 02:18:07 PM
Status-Married no kids. Age 44

120K-Income
200K- 401k  (Saving 33K Yr)
210K- 401K Rollover
40K- Roth (Saving 12K Yr)
40K-Brokerage (Saving 14K Yr)
10K-HSA (Saving 7K Yr)
225K- Payed off home.
110K-Rental property payed off. (9K Rental Income)
20K - Emergency Funds
20K Yearly expenses
Plan is to keep rental after retirement.

Questions:
Should I be saving more to my Brokerage account vs 401K?

Is it possible to Fire in 7-8 years?







Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: Tester on October 28, 2020, 03:39:33 PM
You are extra fired????
20k expenses minus 9k rental income, 11k.

500k savings (not including the house and rental value) at 4% is 20k.

So go do whatever you want right now.
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: cool7hand on October 28, 2020, 03:53:16 PM
There is no one right way to FIRE. I agree that you can FIRE now. Or CoastFire. Check out this solid prior post on investment order: https://forum.mrmoneymustache.com/investor-alley/investment-order/. In your shoes, I would be investing in a brokerage account presently with the goal of covering my yearly expenses. But what's right for one person might not be right for another.
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: Freedomin5 on October 28, 2020, 03:58:10 PM
Yeah, youíre already FIRE based on your numbers. If youíre going to have trouble withdrawing from your 401k before a certain age, then you should probably start beefing up your savings in your taxable accounts. .
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: reeshau on October 28, 2020, 05:15:59 PM
It looks OK, but this is the barest minimum of expense information you can give--so the answers are just as limited as the input.

What provision for health care is included in your $20k?  Travel / hobbies?
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: 3vader on October 29, 2020, 11:03:35 AM
Thanks for the feedback everyone. We would like to continue to work and save aggressively if possible until age 52 or 55.  Another possibility is to move to Mexico- La Playa. My cost of living should be a lot less. Thoughts?
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: bbqbonelesswing on November 02, 2020, 06:15:40 AM
Thanks for the feedback everyone. We would like to continue to work and save aggressively if possible until age 52 or 55.  Another possibility is to move to Mexico- La Playa. My cost of living should be a lot less. Thoughts?

Sure, sounds fine. As others have noted, you can FIRE now if you want to.
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: MrThatsDifferent on November 02, 2020, 07:43:34 AM
Thanks for the feedback everyone. We would like to continue to work and save aggressively if possible until age 52 or 55.  Another possibility is to move to Mexico- La Playa. My cost of living should be a lot less. Thoughts?

If you havenít already, take the time to read through MMMís blog posts. As many as possible, itís worth the investment of time. You have only $20k/yr expenses as a couple, honestly it doesnít get much cheaper than that, even if you go to Mexico. And thatís not even counting what your budget would be if you no longer had to work. Youíve achieved FI. Pad it as much as you want, but know that youíre working to cover your fear more than because you need to. With $20k expenses, you both could easily quit full time work and find some part time gig to cover that if you needed to. Youíre fine. Educate yourself to manage your fear, then create a plan.
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: 3vader on November 03, 2020, 07:29:20 AM
Thanks for advice MrThatsDifferent! MMM blog is very informative. I do have lots to learn as I start newbie Fire journey.  It really is good to hear from other people that we are on the right path to FIRE!:)
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: Tester on November 03, 2020, 09:24:45 AM
I will say it again, you are fired.
Nobody says to stop working, but think hard about what makes you tick.
You have the freedom to live life on your own terms - use it, this is how I think about the fire idea.
Title: Re: Newbie is Fire possible in next 7 to 8 yrs..?
Post by: 3vader on November 04, 2020, 08:40:34 AM
Thank you Tester! Not sure if I'm ready to pull the plug yet! Good to have options! Thanks everyone!