Author Topic: For those who have actually FIRE'd, I have a few questions?  (Read 20662 times)

BTDretire

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Re: For those who have actually FIRE'd, I have a few questions?
« Reply #50 on: January 08, 2017, 03:44:59 PM »
Quote
Since everyone's expenses are so different here, some needing $10k/year and other's needing over $100k, I don't think knowing networth or even withdrawal percent is of much value.

It is for me because we're trying to figure out how much we need.  It's a moving target with growing kids and even with mint.com tracking, it's amazing how much $ is spent on "life."

If you asked me today, based on our current expenses, we need $2.5million based on a 4% return. Wow... And we're pretty frugal. We drive two 10 year old vehicles, our home is not extravagant, we don't buy lots of stuff.  We go on staycations rather than trips around the world. We don't live in a large city with skyrocketing costs of living...  We're pretty average.

 Well there you go, the reason you need $2.5 million is because as you said "We're pretty average"
Mustachians that can live on a stache of $1 Million or less are not "pretty average".
They structure their life to live on $40k or less, you plan on $100k.
   I'm not looking for quite your level, but $60K is in my ballpark, although we don't
spend that much now.
Hmm...  in ten years we will be collecting about $30k of SS, this does put us close
to your number. We will never spend it, the kids will get it.
 

arebelspy

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Re: For those who have actually FIRE'd, I have a few questions?
« Reply #51 on: January 08, 2017, 04:02:42 PM »


Quote
Since everyone's expenses are so different here, some needing $10k/year and other's needing over $100k, I don't think knowing networth or even withdrawal percent is of much value.

It is for me because we're trying to figure out how much we need.  It's a moving target with growing kids and even with mint.com tracking, it's amazing how much $ is spent on "life."

If you asked me today, based on our current expenses, we need $2.5million based on a 4% return. Wow... And we're pretty frugal. We drive two 10 year old vehicles, our home is not extravagant, we don't buy lots of stuff.  We go on staycations rather than trips around the world. We don't live in a large city with skyrocketing costs of living...  We're pretty average.

 Well there you go, the reason you need $2.5 million is because as you said "We're pretty average"
Mustachians that can live on a stache of $1 Million or less are not "pretty average".
They structure their life to live on $40k or less, you plan on $100k.
   I'm not looking for quite your level, but $60K is in my ballpark, although we don't
spend that much now.
Hmm...  in ten years we will be collecting about $30k of SS, this does put us close
to your number. We will never spend it, the kids will get it.

Nah. Spending 40k IS average. Average household income is like 53k, and a lot of that goes to servicing debt, so spending is around 40k.

It's just that so many here make so much more than average, their idea of normal is skewed upward on both earning and spending.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

BTDretire

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Re: For those who have actually FIRE'd, I have a few questions?
« Reply #52 on: January 08, 2017, 04:45:46 PM »


Quote
Since everyone's expenses are so different here, some needing $10k/year and other's needing over $100k, I don't think knowing networth or even withdrawal percent is of much value.

It is for me because we're trying to figure out how much we need.  It's a moving target with growing kids and even with mint.com tracking, it's amazing how much $ is spent on "life."

If you asked me today, based on our current expenses, we need $2.5million based on a 4% return. Wow... And we're pretty frugal. We drive two 10 year old vehicles, our home is not extravagant, we don't buy lots of stuff.  We go on staycations rather than trips around the world. We don't live in a large city with skyrocketing costs of living...  We're pretty average.

 Well there you go, the reason you need $2.5 million is because as you said "We're pretty average"
Mustachians that can live on a stache of $1 Million or less are not "pretty average".
They structure their life to live on $40k or less, you plan on $100k.
   I'm not looking for quite your level, but $60K is in my ballpark, although we don't
spend that much now.
Hmm...  in ten years we will be collecting about $30k of SS, this does put us close
to your number. We will never spend it, the kids will get it.

Nah. Spending 40k IS average. Average household income is like 53k, and a lot of that goes to servicing debt, so spending is around 40k.

It's just that so many here make so much more than average, their idea of normal is skewed upward on both earning and spending.
You're right Areb,
 He's looking to live 2.5 times above average.

scienceplayhouse

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Re: For those who have actually FIRE'd, I have a few questions?
« Reply #53 on: January 10, 2017, 12:37:14 PM »
1. What age did you finally FIRE? 46 (Retired from active duty military at 42) (3 kids under 10)

2. What was your net worth? (low six figures in investments but decent pension, paid off house, no debt, and low cost medical)

3. Did you find you kept working in some capacity knowing the money you were earning was more "efficient" aka - going to you and not to savings or something else? (Although I tried not to work, I only made it a couple years of true retirement before I got bored and started my own business in an area I had a passion in. Now, who knows...)

4. How many years have you been "FIRED?" (3, but since I started working again...)

oldtoyota

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Re: For those who have actually FIRE'd, I have a few questions?
« Reply #54 on: January 12, 2017, 09:05:09 PM »
Quote
Since everyone's expenses are so different here, some needing $10k/year and other's needing over $100k, I don't think knowing networth or even withdrawal percent is of much value.

It is for me because we're trying to figure out how much we need.  It's a moving target with growing kids and even with mint.com tracking, it's amazing how much $ is spent on "life."

If you asked me today, based on our current expenses, we need $2.5million based on a 4% return. Wow... And we're pretty frugal. We drive two 10 year old vehicles, our home is not extravagant, we don't buy lots of stuff.  We go on staycations rather than trips around the world. We don't live in a large city with skyrocketing costs of living...  We're pretty average.

I also recall that during College, with inflation (and owning a car) I could live off about $1500/month. But somehow, with marriage and kids, we've catapulted into the "WAY MORE THAN THAT" a month income to sustain after taxes.

That's making a FIRE goal very difficult.

So I guess the assumption was that people who are FIRING are either really well off, or don't have children. That's where my second question came up was "do you have kids?"

You probably need to examine your expenses. Could you define "life" and what expenses that includes?

If you need $2.5M to cover expenses, most here would probably not consider your current lifestyle a frugal one.

Do you have a lot of kids?

Holyoak

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Re: For those who have actually FIRE'd, I have a few questions?
« Reply #55 on: January 13, 2017, 02:50:43 PM »
1. What age did you finally FIRE?   
2. What was your net worth?         
3. Did you find you kept working in some capacity knowing the money you were earning was more "efficient" aka - going to you and not to savings or something else?
4. How many years have you been "FIRED?"

1. 46, and just me.

2. $1.3M in taxable and IRA mutual funds (VG), cash savings, and about $150k-ish in individual stocks.

3. No, no earned income yet since FIRE, but may PT just for the heck of it once I settle down, and see how it effects other components of retirement.  Debt free other than rent, and plan on paying cash for a modest abode once I figure out where in the heck home will eventually be.  Currently have about $26k in annual dividends and capital gains coming in, but if using a percentage of the stache as a WR, it would be about 2%.  I fly incredibly low below the radar, love minimalism, enjoy living a very austere life, being self sufficient, and keeping a humble perspective, full of gratitude.

4. Going on four years, and it suits me just fine...  Be darn hard to have to do a full time work gig again, especially so if it were anything but ideal.  Once you overcome the fear, and for many the huge transition, it's a nice comfortable groove.  At times I smile and laugh, thinking just how great it is.  Good luck. 

 *Edit concerning kids*- 22 Y/O daughter, living a few states away, supporting herself.
« Last Edit: January 13, 2017, 03:06:25 PM by Holyoak »