Help me FIRE

[popspop]

Hi!

Super excited to join. I’m thinking I’m very close to FIRE, but hesitant to make the jump away from full time employment. I have a good career with a good company in logistics. It does wear on me from a work/life perspective. I’d like to be at home more with my family.

My situation is:
235k annual comp
3600 month income from rentals
1.04M in real estate
62k in mortgage remaining at 4%
No other debt
Healthcare covered through employer
42k cash
1.8M in non retirement accounts
0.8M in 401k

I’m confident we can currently maintain lifestyle at about $70k/yr. We’re thinking about more children. Also, we have considered buying another home as we’re currently renting.

Looking for help with calculating when I can make the decision, reduce market risk with non retirement accounts, and how to leverage tax benefits.

[former player]

Welcome.

$1.8m in retirement accounts should cover an $70k annual spend at 4%.  But there are questions your post doesn't cover:

Is your $1.8m in low cost index funds?

How much of your annual $43,200 in rental income is profit, ie after expenses and money set aside for repairs etc?  Do you manage them directly?  Would you keep them after retirement?

You don't say how old you are and how far you are away from being able to access the $800k in your retirement accounts.  How is that money invested?

What's the social security position of you and your spouse?

What will you do for healthcare if you leave work?

How much would you spend on a home to live in and where are you pulling the money from?  What sort of home and where?  (If you are living where you are for work would you move?  Are you near family?  What sort of home fits your intended retirement?)

You've done a good job on earning, saving and investing.  I think you are at FIRE and maybe just need to do a bit of thinking and fine tuning.

Someone else here can no doubt chime in on the tax issues.

[popspop]

Thanks!

1.8 is all in stocks. Converting to low cost funds (voo, etc) is the thought, but I planned on saving closer to the 70k+ in cash (year or so expenses). Then move stock money into index funds with no tax hit up to 94k, 15% up to 500k, etc.

The rental income is all profit, after taxes (relatively low 2k each for property tax and then income tax). I manage the properties. I do need a new roof on one. About 15k this year. I would keep them. Appears more beneficial then selling at current value and then putting money in fund assuming 6-8% yearly average for 20-30 years.

About 20 years before I can access the retirement accounts. They are all low cost index funds.

Not sure on social security. How can I confirm that?

Healthcare would either be through something part time or marketplace. Estimates I’m seeing are about 1200/mo.

Home we recently put an offer on was 400k. My initial thought was put 20% down 2k monthly payments. This is where I currently work. We like the area. Safe and family friendly. Also very walkable. Wouldn’t need to drive for anything. Even grocery store close. Looking for something similar to that if we decide to purchase. Family is a one stop (4-5 hour) flight away.

Thanks again for the questions! Welcome to any suggestions too.

[FIRE 20/20]

You'll get more and better responses in the "Case Studies" forum.  Here's a link:
https://forum.mrmoneymustache.com/case-studies/

There's a sticky post at the top on how to write a case study to get the best help from the community. 

However, it seems pretty clear you could have FIREd many years ago.  $1.8M in non-retirement accounts can safely provide 72k per year according to the 4% rule.  When you add in the $40k/year in income you're getting from real estate rentals plus the $0.8M in 401(k), plus Social Security, you have vastly over-saved.  But you'll get more detailed and better advice in the Case Studies section.  Hopefully we'll see you back here in the Post-FIRE forum after you give your 2-weeks notice at work.  :D

[Financial.Velociraptor]

You'll get more and better responses in the "Case Studies" forum.  Here's a link:
https://forum.mrmoneymustache.com/case-studies/

There's a sticky post at the top on how to write a case study to get the best help from the community. 

However, it seems pretty clear you could have FIREd many years ago.  $1.8M in non-retirement accounts can safely provide 72k per year according to the 4% rule.  When you add in the $40k/year in income you're getting from real estate rentals plus the $0.8M in 401(k), plus Social Security, you have vastly over-saved.  But you'll get more detailed and better advice in the Case Studies section.  Hopefully we'll see you back here in the Post-FIRE forum after you give your 2-weeks notice at work.  :D

FIRE 20/20 beat me to it.  You are gold.  But since you are looking for "proof" the CS forum will hammer you with bulletproof math to back up their claims.

[popspop]

Thanks so much!