Author Topic: Getting close to FIRE, need advice!  (Read 1203 times)

embwbam

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Getting close to FIRE, need advice!
« on: May 11, 2020, 12:20:27 PM »
Hi everyone! I am close to FIRE, and I am hoping for some detailed advice and review.

Life:
* 37, single, 3 kids 30% of the year.
* I live in a van most of the time

Expenses:
* 25k Living expenses (groceries, restaurants, gas, bills, whatever)
* 10k Discretionary spending (gear, travel, etc)
* 5k Alt housing (Airbnbs, hotels, supplies to support not having a house)

Assets:
* $900,000 Betterment Taxable 90/10
* $46,000 Betterment Retirement 90/10
* $7,000 VTI (HSA)
* $170,000 remaining passive after-tax income 2020


I stopped working last fall when my startup ended. I've been thinking that I should FIRE this year, once that passive income finishes paying out this year. Specifically, I want to start working on very different kinds of things, waste time exploring interests, etc. I've already begun doing this (collaborating on a research paper, traveling, athletics, friends).

It's quite possible I'll end up in some kind fo second career, making more money, but I don't want to HAVE to work again.

Am I there? Should I pull the trigger? Or should I go heads down for another year?

My main concern is that our adventurous housing situation might get old, but I'm very happy with it for now.

I've read McClung's book, and I'm thinking of doing something like the following:
* Start with 2y of cash
* Keep allocation 90/10 to start, since the markets are down, using alt prime harvesting to spend bonds first. If the markets go up, rebalance to 80/20
* Switch to even asset class allocations instead of betterments' US-total-market heavy balance
* Unless markets recover in 1y, wait until cash is exhausted to harvest

Since my retirement is long, I'm wary of strategies that aim to exhaust the portfolio. I can be flexible with some of my spending. Which variable withdrawal strategy would you use?

Should I switch to more even asset class allocations now? Or build to that over time?

Can I create a plan where I go back to work under specific circumstances?



« Last Edit: May 11, 2020, 12:23:01 PM by embwbam »

marty998

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Re: Getting close to FIRE, need advice!
« Reply #1 on: May 11, 2020, 09:15:15 PM »
You have your 3 kids for 2 days a week and you live out of a van?

Are you living out of cheap motels when you have them? What sort of child support do you pay with your level of assets?


embwbam

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Re: Getting close to FIRE, need advice!
« Reply #2 on: May 12, 2020, 02:45:37 PM »
You have your 3 kids for 2 days a week and you live out of a van?

Are you living out of cheap motels when you have them? What sort of child support do you pay with your level of assets?


We started with a trailer to pull behind the van, but nobody liked that. While staying at my parents house to regroup, we realized we love it. Multigenerational families are out of vogue but they're pretty magical. We camp and explore maybe a third of the days I have them. Most of that alt-housing budget goes to the occasional Airbnb, nice hotel, for when I have the kids. For child support, I pay $800/mo, but I have money set aside for that separately.

Housing is the biggest worry / weakness in my plan. I am very happy with the arrangement for now, but I doubt we'll keep going like this for the next 10 years. But there are so many different ways it could go: Will I have a partner? Will we move overseas? Or will I want to find other single parents and rent a place together like roommates?

I love living with my kids with other people. I don't see that changing.

So... do I wait until I could afford to rent a nice big place for them in the city, even though I don't want that? Or just pull the trigger and keep being creative?

Dicey

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Re: Getting close to FIRE, need advice!
« Reply #3 on: May 12, 2020, 06:12:15 PM »
Poke around here for more ideas:

https://www.keepyourdaydream.com/