Greetings fellow Mustachians,
I have a wild idea.
I have personally been unable to shoot holes in it. Every time I try, I view it as an even better idea. The short version is that I currently have two years of living expenses in an after tax account, and will soon have three (details below). My wife and I are due to have our first child later this year, and I would like to take the full 12 weeks of FMLA leave, shortly followed by approximately one year off from formal work.
Here is the longer version, with additional details:
My wife and I have been on the FI road for a little while now. We're maybe 5 years from being done if I keep working. We spent $33k last year. This was a rather spendy year, with a few sizable optional expenses. In October when our child is due, our after-tax FU account should have approximately two years of expenses in it (invested with vanguard). Work for me is a clusterfun at the moment, and I will be receiving a retention bonus of six months salary in May 2017. Nine months salary if I am laid off sooner. When sporting a 65-70% savings rate, this is a check for a serious amount of freedom.
The current iteration of my plan involves taking off 12 weeks from November through the end of January following our child being born (note: this does not affect the retention bonus). Four weeks should be paid (saved sick/vacation time), with eight weeks of it unpaid. Part of this may be part time, but the financials of it work out the same regardless: there will be 8 weeks unpaid in some form. I will then return to work until my retention pays out, then peace out. I am 99% sure this company is not one I (or many others I work with) will want to work at once the retention period is over.
In the following year I intend to plan the financials as though I won't make money, but will likely take a few months to focus on enjoying life with my family before trying to work as a freelance developer. The goal would be to cover our expenses by working part time, as our long term goal is to both work part time with at least one of those careers having flexible hours. It's worth mentioning my wife has a side gig that makes approximately $500/month.
Here are the reasons I am confident and convinced this is a great idea:
- We have three years of expenses saved, and only intend to take a year off (I have to be off by a factor of three to fail wildly)
- Even in the "worst case" scenario (my wife not working at all), we will end 2017 with more $ in our FU account than we have at the moment, even assuming we continue maxing out our IRAs
- The timing of this coincides with major life events, and is an excellent time to exercise freedom
- We will both have generous amounts of time to give our newest family member
- It allows me to setup a flexible "side" job without simultaneously working a full time job and raising a family
- None of these numbers involve our 6 month emergency fund
- I have a ton of hobbies that would keep me occupied and cannot imagine a universe where I get "bored"
- "Borrowing" a year of retirement from my late 30's or 40's to use now seems so very logical
Here are some concerns I have:
- I don't have hard numbers on health insurance. It will likely be unsubsidized due to the sizable bonus.
- Children may be more expensive than I realize. The FI community has me 95% convince a young child is not expensive unless daycare is needed.
- Friends/family thinking I'm batshit crazy. I probably won't tell any but my closest friends what is really going on.
- Failing at or not enjoying freelancing, and not wanting to go back to cubicle life once I take a break from it.
What are your thoughts? Is this a great idea? Mediocre? Would you do it if you were in my shoes? Can you shoot holes in my epic plan of an early taste of freedom?
Thanks for reading, and for your thoughts/advice!