- I'm 37 years old and I am ready for FIRE
I'm worried about the 30 year length at 4% SWR, so I'm going with 3.5%
I need 2k per month, and I have 700k saved.
I also have another 40k in Roth/IRA that should grow to about 500k assuming a 10% return in EM (could be 7-8%, but just to use a round number). I will not take any withdrawals from this account and will not show it below.
My questions are:
1. How do I go about making withdrawals? I am looking at a system where I just pay dividends to cash and sell shares to cover the full amt. Does this make sense and how should I go about this?
2. If we do experience a down equity market, should I have a backup plan like a job or a cash/savings account so I don't have to take any withdrawals? I understand the first 5-10 years are crucial and at some point we will have a recession. With this said, I don't want to time the market and I want to FIRE now. I can work for another year and save some cash and maybe even fund my expenses for a year before portfolio withdrawals.
3. Anything I'm missing here?
Dividends:
Account Div Yield Total Invested Yr Income Mth Income
Vanguard Total Stock Taxable 1.84% 350,000 6,440 537
Vanguard Total Bond Taxable 2.54% 350,000 8,890 741
AVG: 2.19% 700,000 15,330 1,278
Withdrawals:
Vanguard Total Stock Taxable 1.31% 350,000 3,930 328
Vanguard Total Bond Taxable 1.31% 350,000 3,930 328
1.31% 700,000 7,860 655
3.50% Total 2,041