Author Topic: RE? 35 year old. 1.1m VHCOL  (Read 6826 times)

ForRealTalk

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RE? 35 year old. 1.1m VHCOL
« on: January 16, 2020, 08:38:48 AM »
I've had an incredibly fortunate position for the last year and nearly tripled my NW. But it's a very stressful work environment and I'm 4 months past where I thought I absolutely could not do it anymore and feel that way. It's crazy that perhaps one really cannot be paid enough to put up with some things... I would add 100k+ to stay on 6 more months. Would rather have "enough" though.

Long time FIRE follower. Back in 2015 I calculated I'd need ~890k to retire at 45. My expenses have never exceeded 35k and have only lived in VHCOL areas. Well, 2019 probably exceeded 35k, but I moved for the incredible income opportunity and would not continue living in this particularly outrageous HCOL area. It's nice to know that I don't value the fancier junk though.

NW of 1,070,000
~850k in index funds
~200k 401k/IRA
~Cash in high interest savings for the rest.
Own no property.

Not budgeting much for health care, as will initially use long term SO's insurance (who is ~70% of my NW, and who has taken work breaks supported by my insurance previously). No issues taking subsidized health care after that.

Not interested in kids. Probably not even marriage. Considering slow travel, moving to Europe for a bit, recreational van life etc. Might be fun to find a job in a new country down the road.


MrFire22

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #1 on: January 16, 2020, 09:25:33 AM »
If your expenses are $35K in a VHOL area, I think you may be ready now to FIRE. Especially if you're flexible in the future about where you live.

ReadyOrNot

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #2 on: January 16, 2020, 09:34:21 AM »
I would be interested to see your expenses breakout and see how you could live on $35k in the LCOL area.

I went through this exercise and thought we were pretty frugal, but was shocked our annual expenses were in the $60k - $80k area.  We own no fancy cars, no fancy material possessions, have an average home for our area. Our only vice is eating out a lot (about $38 per day which is not exorbitant for a family of 3, I feel). Don't do excess shopping, but it's amazing to see how costs can add up fast.

YttriumNitrate

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #3 on: January 16, 2020, 10:02:38 AM »
Doing a rough calculation, it seems that for every extra week you work you'll be able to increase your retirement spending by about 0.5%. It would be tough for me to walk away when the money is piling on that fast.

ForRealTalk

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #4 on: January 16, 2020, 10:19:44 AM »
I'd have to stay the entire six months to actually land the next huge payout, but still taking home like $500 a workday after living expenses. Would also consider advice on how to better enjoy/endure/HODL. Starting therapy soon...

The budget is for me alone. SO expenses not included. If we broke up I'd get a studio apartment and revert to my even cheaper way of life. I haven't ever owned a car and the lack of children surely go a long way in the budget.

Here's typical budget for my half of expenses.

Rent   $1,250 in my prior & much preferred VHCOL area, $1800 at the moment until GF finishes her work commitment this summer.
Cell Phone   $50
Wifi   $45
Food   $300
Shopping   $300
Going out   $130
Travel   $500
Utilities   $40
Health  $200

BlueHouse

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #5 on: January 16, 2020, 11:02:29 AM »
Your Health Insurance may be low if you intend to leave your job and will no longer have a work-subsidized health insurance plan. But then I guess you'd qualify for an ACA subsidy.

MrThatsDifferent

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #6 on: January 16, 2020, 11:33:37 AM »
What are you waiting for, you have more than enough? You should be able to generate $44k, when your expenses are $35k. Execute your plan of living in Europe and your expenses will drop. Youíre still young so if you ever wanted PT work or anything, you could easily find it, but you wouldnít need to. Life is so short and not worth the stress. The goose has given you the golden egg to be where you are, quit tomorrow, be free and live your best life.

ReadyOrNot

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #7 on: January 16, 2020, 01:25:26 PM »
Agreed, the math seems to indicate you can FIRE and do something more up your alley for at least the next few years.  You are still incredibly young and have time to get back to work if needed. Enjoy!

ForRealTalk

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #8 on: January 16, 2020, 10:34:38 PM »
Thank you all for the replies! This makes me very smiley to gain some confidence.

Pennycounter

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #9 on: January 18, 2020, 11:58:38 AM »
Did you say that SO was 70% of your net worth or did I read that wrong? That would be my only question, how much of that NW is yours to draw from? Or is she supporting you partially?

use2betrix

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #10 on: January 18, 2020, 12:43:56 PM »
Did you say that SO was 70% of your net worth or did I read that wrong? That would be my only question, how much of that NW is yours to draw from? Or is she supporting you partially?

I read that too, but I would have to ďassumeĒ that he means that his SO has 70% of his NW.. I.e. she has around $700k or so?

Villanelle

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #11 on: January 18, 2020, 02:19:20 PM »
Are you talking retire-retire, or do something else making money, but likely less time and far less money-retire. 

First, I'm assuming you've confirmed that you can be on your SO's insurance, even though you aren't married.  Second, you mention moving to Europe for a bit or slow travel, but the SO will still be working.  So you will be in Europe or cruising around the US alone, but on her insurance? 

Will you still be contributing the same amount to the household?  That would mean you are paying some of the rent, but also paying for transportation and lodging. 

Am I misunderstanding?

Personally, I'd have a hard time not staying on for one more 6 month stint. 

waltworks

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #12 on: January 18, 2020, 09:40:54 PM »
Our only vice is eating out a lot (about $38 per day which is not exorbitant for a family of 3, I feel).

LOL, that's almost $14k a year of eating out... there are *real* vices that are cheaper than that!

-W

ForRealTalk

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #13 on: January 19, 2020, 11:49:27 PM »
Did you say that SO was 70% of your net worth or did I read that wrong? That would be my only question, how much of that NW is yours to draw from? Or is she supporting you partially?

She has her own separate savings of around 700k dollars. We keep finances separate. I will continue paying half of shared expenses no matter what, though she will likely take a break from her job  when she's fulfilled her contract and we'll move someplace more to our liking. Will go on her insurance or check the marketplace rates. If you live together for a year that generally makes you domestic partners.

ForRealTalk

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #14 on: February 15, 2020, 10:47:25 AM »
Update for the record:

Worked out an exit and am immediately happier and on an upward happiness trend as time passes. I have time to exercise and work on myself now and I enjoy my city more than I thought I could. Oddly I worry about money less than I did when I was working, but I also have some shopping urges and bought a few $100ish items off craigslist. The therapy I signed up for to help me endure my job is instead going toward other personal growth topics. I'm tempted to take some gigs with people I like, but also want to give myself space since I worked very hard for this opportunity and am still learning what time feels like. It remains to be seen how I do with socializing while unemployed, and if I'm truly going the RE route I need to move to a less expensive apartment.

MrThatsDifferent

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #15 on: February 15, 2020, 12:26:08 PM »
Update for the record:

Worked out an exit and am immediately happier and on an upward happiness trend as time passes. I have time to exercise and work on myself now and I enjoy my city more than I thought I could. Oddly I worry about money less than I did when I was working, but I also have some shopping urges and bought a few $100ish items off craigslist. The therapy I signed up for to help me endure my job is instead going toward other personal growth topics. I'm tempted to take some gigs with people I like, but also want to give myself space since I worked very hard for this opportunity and am still learning what time feels like. It remains to be seen how I do with socializing while unemployed, and if I'm truly going the RE route I need to move to a less expensive apartment.

Great job! Very proud of you for caring about yourself, and trusting yourself enough to live your best life, as healthy as possible. Youíre going to be fine, just never stop growing, learning and experiencing.  All the best!

BikeFanatic

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #16 on: February 15, 2020, 02:27:03 PM »
SO you cut the cord without waiting the six more months?? Congrats, I think you will be fine!

ForRealTalk

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #17 on: February 25, 2020, 05:06:27 PM »
Brief update: I am concerned I have fell into very poor timing. Besides the sp500 large declines, 20% of my NW was tied to my prior company's stock which I could not sell before this week. That stock is down 10+%. I sold over 20% of it so far.

I don't have a good sense on if I should trade to more reliable investments, or ride the volatility there.

I also suppose I need to reset my 3.5% figure at wherever this thing lands... and maybe get some work while I can?

use2betrix

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #18 on: February 25, 2020, 07:14:58 PM »
Was your combined spending at 35k, or just yours?

Because if itís just yours, then 35k spending on a personal net worth of around 350k or so, seems a bit risky. I understand your partner has a larger net worth, but with separate investments, do they intend to let you ride on their earnings? Otherwise I donít see how this is planning to work.

ontheway2

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #19 on: February 26, 2020, 01:04:52 PM »
Was your combined spending at 35k, or just yours?

Because if itís just yours, then 35k spending on a personal net worth of around 350k or so, seems a bit risky. I understand your partner has a larger net worth, but with separate investments, do they intend to let you ride on their earnings? Otherwise I donít see how this is planning to work.

I read that OP has/had a NW of 1.1m and partner has about 700k

use2betrix

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #20 on: February 26, 2020, 07:11:38 PM »
Was your combined spending at 35k, or just yours?

Because if itís just yours, then 35k spending on a personal net worth of around 350k or so, seems a bit risky. I understand your partner has a larger net worth, but with separate investments, do they intend to let you ride on their earnings? Otherwise I donít see how this is planning to work.

I read that OP has/had a NW of 1.1m and partner has about 700k

Ah - that would make significantly more sense!

TomTX

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #21 on: February 27, 2020, 06:19:00 PM »
Was your combined spending at 35k, or just yours?

Because if itís just yours, then 35k spending on a personal net worth of around 350k or so, seems a bit risky. I understand your partner has a larger net worth, but with separate investments, do they intend to let you ride on their earnings? Otherwise I donít see how this is planning to work.

I read that OP has/had a NW of 1.1m and partner has about 700k

After the recent market moves, more like $990k and $630k...

ontheway2

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #22 on: February 28, 2020, 07:49:36 AM »
Was your combined spending at 35k, or just yours?

Because if itís just yours, then 35k spending on a personal net worth of around 350k or so, seems a bit risky. I understand your partner has a larger net worth, but with separate investments, do they intend to let you ride on their earnings? Otherwise I donít see how this is planning to work.

I read that OP has/had a NW of 1.1m and partner has about 700k

After the recent market moves, more like $990k and $630k...

Definitely why I said has/had ;)

BikeFanatic

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Re: RE? 35 year old. 1.1m VHCOL
« Reply #23 on: April 04, 2020, 05:06:16 AM »
You have a year in cash? If you do, then you could let it ride and see how things are in a year. At least take the summer off.