Total Assets:
House $ 700,000
Portfolio $ 450,000
Total $1,150,000
Liabilities: None
Current expenses:
Food $ 1,000
Utilities (gas, water, hydro) $ 250
Entertainment (internet, netflix, cell) $ 100
Insurance (auto, home) $ 139
Taxes (property) $ 208
Vacation $ 300
Automotive (gas, repairs) $ 100
Health (dental, supplements, other) $ 100
Miscellaneous (clothes, alcohol, etc.) $ 303
Total Monthly expenses $ 2,500
Annual total $ 30,000
(yes, we have food spending issues)
Planning on moving to a lower priced city, so I will be swapping my $700,000 home for a $250,000 home. The net result will be a $900,000 portfolio which is 30 times my projected annual expenses after I step away from work. I’m struggling to decide whether is truly enough and if I should work one more year (OMY), I can think of several possible large expenses which may pop up in 2015 which would reduce our portfolio, such as fertility clinic costs (est. $10k), courses ($5k) on things I want to learn, vehicle ($5k-10k). Based on this, it’s tempting to work OMY and keep building up the portfolio.
Does anyone have any experienced making the decision to FIRE and at which annual expenses to portfolio ratio did you pull the trigger?
My worst case scenario is quitting my job and having to return to work in a few years to replenish the portfolio at a low paying job relative to what I’m making today. I tried to quit my existing job and even gave in my notice but they offered me a new role which I’m tempted to take due to the above issues. I can still walk away from the new role as I haven’t yet signed a new employment agreement; my conservative side is all for it but my gut tells it’s going to be a long year. My thought is to take the job and work OMY and get to portfolio which is 35x my expenses.
Thanks
Nick