2025 Fire Cohort

[Lady Stash]

Jumping into this cohort. 

I've hit my lean FIRE number but I'm still enjoying work and padding my stash. 

By 2025, I'm hoping to hit a more cushioned FIRE number.   2025 seems like a nice year to aim for to assess work vs. RE options.

[Sandi_k]

Today we hit $997,936 net worth, almost to the dos-commas-club!  Our SoCal housing has been appreciating at an astonishing rate.  We are now at a 60/40 split between stock and real-estate.  I have another $835,000 in startup 'paper' stock options, that from everything I can see, have a strong possibility of becoming real, or even 2-4x larger (eeeek!)

Income continues to grow, but spending seems to always follow suit, only at a slightly slower rate.
We've been focusing on optimizing for efficiency so that we can prioritize work, and so far it has been paying off, but I think now is a good time to re-evaluate spending and attempt to do some pruning. 

Though, if we can somehow hit 4-6M NW by 2025 (age 40), then perfect!  I think we could have a very good life at a 200k yearly spend :)

Your "spend" isn't based on Net Worth - it's based on investment assets that throw off income.

[tj]

Today we hit $997,936 net worth, almost to the dos-commas-club!  Our SoCal housing has been appreciating at an astonishing rate.  We are now at a 60/40 split between stock and real-estate.  I have another $835,000 in startup 'paper' stock options, that from everything I can see, have a strong possibility of becoming real, or even 2-4x larger (eeeek!)

Income continues to grow, but spending seems to always follow suit, only at a slightly slower rate.
We've been focusing on optimizing for efficiency so that we can prioritize work, and so far it has been paying off, but I think now is a good time to re-evaluate spending and attempt to do some pruning. 

Though, if we can somehow hit 4-6M NW by 2025 (age 40), then perfect!  I think we could have a very good life at a 200k yearly spend :)

Your "spend" isn't based on Net Worth - it's based on investment assets that throw off income.

If your net worth is based on investment assets, then it's the same.

[bryan995]

Your "spend" isn't based on Net Worth - it's based on investment assets that throw off income.

Not sure I follow? At any moment one could sell all assets, pay off all liabilities and have a bucket of cash that is equal to their NW. 

Are folks only tracking FIRE progress via investment / income producing assets?
I suppose equity in a home throws things off a bit, but owning a home outright would also help to control/lower expenses during FIRE.

At this point I don't think I would FIRE prior to 2025, regardless of income/NW. 
I don't want to FIRE at 35-40 to then have to scrimp and save for the next 40 years. Especially with all of the unknowns, I very much want to overshoot my expected expenses to ensure I still retain the the freedom that comes with FIRE. 

[Sandi_k]

Today we hit $997,936 net worth, almost to the dos-commas-club!  Our SoCal housing has been appreciating at an astonishing rate.  We are now at a 60/40 split between stock and real-estate.  I have another $835,000 in startup 'paper' stock options, that from everything I can see, have a strong possibility of becoming real, or even 2-4x larger (eeeek!)

Income continues to grow, but spending seems to always follow suit, only at a slightly slower rate.
We've been focusing on optimizing for efficiency so that we can prioritize work, and so far it has been paying off, but I think now is a good time to re-evaluate spending and attempt to do some pruning. 

Though, if we can somehow hit 4-6M NW by 2025 (age 40), then perfect!  I think we could have a very good life at a 200k yearly spend :)

Your "spend" isn't based on Net Worth - it's based on investment assets that throw off income.

If your net worth is based on investment assets, then it's the same.

But that's not true for most - a home doesn't typically throw off income. Your FI calc should be based on income-producing investable assets - either a portfolio, or rental real estate, or business income that happens without you at the helm.

[sytar7]

Excited to join the 2025 cohort. We've been running the numbers over and over and it is time to make it official. Plan to retire October 2025, if I'm not convinced to ride out the holiday season and get one last bonus. Pros and cons.

[tj]

Today we hit $997,936 net worth, almost to the dos-commas-club!  Our SoCal housing has been appreciating at an astonishing rate.  We are now at a 60/40 split between stock and real-estate.  I have another $835,000 in startup 'paper' stock options, that from everything I can see, have a strong possibility of becoming real, or even 2-4x larger (eeeek!)

Income continues to grow, but spending seems to always follow suit, only at a slightly slower rate.
We've been focusing on optimizing for efficiency so that we can prioritize work, and so far it has been paying off, but I think now is a good time to re-evaluate spending and attempt to do some pruning. 

Though, if we can somehow hit 4-6M NW by 2025 (age 40), then perfect!  I think we could have a very good life at a 200k yearly spend :)

Your "spend" isn't based on Net Worth - it's based on investment assets that throw off income.

If your net worth is based on investment assets, then it's the same.

But that's not true for most - a home doesn't typically throw off income. Your FI calc should be based on income-producing investable assets - either a portfolio, or rental real estate, or business income that happens without you at the helm.

I have no idea why someone would inlcude personal residence home equity in their net worth, but if you do plan to sell it in the near future, I could see including the after tax value.

[Fomerly known as something]

Today we hit $997,936 net worth, almost to the dos-commas-club!  Our SoCal housing has been appreciating at an astonishing rate.  We are now at a 60/40 split between stock and real-estate.  I have another $835,000 in startup 'paper' stock options, that from everything I can see, have a strong possibility of becoming real, or even 2-4x larger (eeeek!)

Income continues to grow, but spending seems to always follow suit, only at a slightly slower rate.
We've been focusing on optimizing for efficiency so that we can prioritize work, and so far it has been paying off, but I think now is a good time to re-evaluate spending and attempt to do some pruning. 

Though, if we can somehow hit 4-6M NW by 2025 (age 40), then perfect!  I think we could have a very good life at a 200k yearly spend :)

Your "spend" isn't based on Net Worth - it's based on investment assets that throw off income.

If your net worth is based on investment assets, then it's the same.

But that's not true for most - a home doesn't typically throw off income. Your FI calc should be based on income-producing investable assets - either a portfolio, or rental real estate, or business income that happens without you at the helm.

I have no idea why someone would inlcude personal residence home equity in their net worth, but if you do plan to sell it in the near future, I could see including the after tax value.

I include it in my net worth, but it is not a factor in my investments for FIRE.  To me they are two different numbers.

[Sandi_k]

Today we hit $997,936 net worth, almost to the dos-commas-club!  Our SoCal housing has been appreciating at an astonishing rate.  We are now at a 60/40 split between stock and real-estate.  I have another $835,000 in startup 'paper' stock options, that from everything I can see, have a strong possibility of becoming real, or even 2-4x larger (eeeek!)

Income continues to grow, but spending seems to always follow suit, only at a slightly slower rate.
We've been focusing on optimizing for efficiency so that we can prioritize work, and so far it has been paying off, but I think now is a good time to re-evaluate spending and attempt to do some pruning. 

Though, if we can somehow hit 4-6M NW by 2025 (age 40), then perfect!  I think we could have a very good life at a 200k yearly spend :)

Your "spend" isn't based on Net Worth - it's based on investment assets that throw off income.

If your net worth is based on investment assets, then it's the same.

But that's not true for most - a home doesn't typically throw off income. Your FI calc should be based on income-producing investable assets - either a portfolio, or rental real estate, or business income that happens without you at the helm.

I have no idea why someone would inlcude personal residence home equity in their net worth, but if you do plan to sell it in the near future, I could see including the after tax value.

I include it in my net worth, but it is not a factor in my investments for FIRE.  To me they are two different numbers.

Exactly. In finance, Net Worth is defined as Assets - Liabilities. So yes, we include our house value, minus the outstanding mortgage.

It is useful for us to know the value so that 1) we can consider moving in retirement if work becomes overwhelmingly awful, since that is essentially our FU money pre-retirement, and 2) so that we do not over-improve the house for the neighborhood.

But really, invested assets are what's actionable for FI, in most instances.

[TomTX]

I have no idea why someone would inlcude personal residence home equity in their net worth, but if you do plan to sell it in the near future, I could see including the after tax value.

Oh, that one is easy. It's because of the definition of "net worth". You add up the value* of all your assets, then subtract the value of all your liabilities/debts.

You may be thinking of something more like "invested assets" or "invested assets minus liabilities" or "stash"

*What you could sell it for, not what you paid

[SotI]

Hiya, I would like to enlist with this group here as I moved my expected FIRE date to Dec 2025.
All things being roughly equal to this day and age, of course.

I hope we can all stay on a good course. My FIRE level will be probably less cushy than some of the numbers I have seen here but they are hopefully good enough for our limited needs.

[Sapphire]

OMG!! I just realised that it could be Under Four Years this year!!

We were thinking of a July 2025 end date, but December 2025 is better for tax reasons and annual bonus.  Nearly at that 4 year mark!

PS, hope it is okay to quote oneself!

[markbike528CBX]

OMG!! I just realised that it could be Under Four Years this year!!

We were thinking of a July 2025 end date, but December 2025 is better for tax reasons and annual bonus.  Nearly at that 4 year mark!

PS, hope it is okay to quote oneself!

Epiphanies are OK.

[Sapphire]

Lol thank you :)

[oneday]

Hiya, I would like to enlist with this group here as I moved my expected FIRE date to Dec 2025.
All things being roughly equal to this day and age, of course.

I hope we can all stay on a good course. My FIRE level will be probably less cushy than some of the numbers I have seen here but they are hopefully good enough for our limited needs.

@SotI welcome!

[Sandi_k]

OK, with a planned retirement date of November 15, 2025 - it means we're getting close to T minus four years.

I am so looking forward to it! On vacation right now, and the idea that I will be able to disconnect from work permanently is just sounding SO APPEALING!

[SaucyAussie]

Wow only 3 years to go!  It's definitely starting to feel real.  My trusty FIRE calculator actually says 1.36 years, thanks to this crazy market.  I feel like one really bad day at work, and I may just pull the plug!

Anyone changing things up, now that we are getting close?  I'm front loading my taxable account this year to allow flexibility in the case of an early exit.

[Fomerly known as something]

Wow only 3 years to go!  It's definitely starting to feel real.  My trusty FIRE calculator actually says 1.36 years, thanks to this crazy market.  I feel like one really bad day at work, and I may just pull the plug!

Anyone changing things up, now that we are getting close?  I'm front loading my taxable account this year to allow flexibility in the case of an early exit.

Since my date is due to a cliff vesting pension, I’m actually working on spending more money.

[Sandi_k]

Wow only 3 years to go!  It's definitely starting to feel real.  My trusty FIRE calculator actually says 1.36 years, thanks to this crazy market.  I feel like one really bad day at work, and I may just pull the plug!

Anyone changing things up, now that we are getting close?  I'm front loading my taxable account this year to allow flexibility in the case of an early exit.

Yes. I've made sure that I have at least the first 5 years in cash/TIPS/GNMAE funds. That will take us to age 65/67 - at which point, the house is paid off (+$28k in cash flow) and DH reaches FRA (+$24k in cash flow).

This means I don't care what the market does. I just keep trudging along, as my retirement age multiplier for the pension is now more important than anything we save from here on out.

Age 56.5, Multiplier of ~1.99 x 34 years of service = 68% retirement pay
Age 57, Multiplier of 2.08 x 34.5 years = 72%
Age 58, Multiplier of 2.22 x 35.5 years = 79%
Age 59, Multiplier of 2.36 x 36.5 years = 86%
Age 60, multiplier of 2.5 x 38 years (includes unused SL) = 95% retirement check.

Minus survivor benefits for DH, but it's a stunning progression the last 3.5 years of service!

[swashbucklinstache]

Yah chief, sign me up. Likely as FI rather than FIRE, with a few extra years to pad on after, but so much could change from now to then. Aged 27, 8.5x current expense saved, no house, 65% or so savings rate give or take. Single, readiness-to-mingle currently TBD

Well, there was my original post in 12/2016! In the intervening 9 months I've moved from 8.5x current expenses to 10.96x and upped my savings rate a few percentage points! I'm still an immature smartass though :).

My life is so far from where it'll be in 2025 that it's hard to say how i'm doing, but things are headed in the right direction. I could be in the 650k-900k range if things go roughly how they've gone so far. The high end of that is looking damn near the end of things for full-time worker bee me if I'm still single and childless at that time, or at least time to ask for a stupid amount of money not to go a-wanderin'.

Hope everyone else is on track, too.

Update, maybe I'll keep an annually running tab in this thread if people don't mind :).
stache as multiple of 3 year trailing current expenses
12/2016: 8.5x
09/2017: 10.96x
12/2017: 11.6x - would be higher but have had an expensive year

2018 EOY update:
2016: 8.5x
09/2017: 10.96x
2017: 11.6x
2018: 13.65x

I'm aiming for ~45x with these numbers for FIRE (health insurance, likely lifestyle changes etc.).

How is everyone else doing as we start 2019?

2019 EOY update:
2016: 8.5x
09/2017: 10.96x
2017: 11.6x
2018: 13.65x
2019: 16.99x (with a high expense year! trailing 3 years is more like 19.26x)

Getting there! Closing in on half a million with a minimum FI goal of 1 million and saving 100-115 a year right now means I might be as little as ~3 years out with just a little above average returns or some raises.

Like many, I'm fortunate to say that 2020 was good to my assets. I closed the year at 711k net worth. That's good for 28x my trailing three years of expenses. I'm pushing on to 1mm mostly to account for desired lifestyle changes (travel, big city living) + flexibility  (family) in retirement. But, that could be as soon as 1.4 years from now with 6.7% returns and 110-120 annual contributions. We'll see what mr market has to say, but decent chance I check out ahead of 2025 at this point. If I do see 7 figures with such high valuations I might turn to one of several "step towards FIRE" plans rather than leap outright. 2025 projects at 1.5mm if nothing changes and averages hold, so probably wouldn't hang around that long barring big lifestyle changes.

2021 closed at 957k. My original WAG FIRE number in 2016 was 900k, which is 1040k in 2021 dollars. I'm 32 and figuring out my long term desired spend & seeing how a new potentially long term romantic partnership plays out. So, still targeting 2025. Assuming average returns and regular contributions I would land at 1.7 million in today's dollars, 55k at 3.25% WR. I'm 100% stocks so absent a big market crash it's all about long term spend at this point, as I'm at 38x trailing 3 year average expenses.

How is everyone else?

[swashbucklinstache]

Wow only 3 years to go!  It's definitely starting to feel real.  My trusty FIRE calculator actually says 1.36 years, thanks to this crazy market.  I feel like one really bad day at work, and I may just pull the plug!

Anyone changing things up, now that we are getting close?  I'm front loading my taxable account this year to allow flexibility in the case of an early exit.

Has always been the plan, but I'm trying out more expensive lifestyles. Primarily that's around where to live and potential 3-6 month leases. When I cross to a million I'll start building up 5 years in bonds and treasuries then back to stocks. No math behind that, just like the idea of a non-stock backdrop and 125k there won't make much of a practically meaningful difference in long term wealth anyway.

[AK]

Wow only 3 years to go!  It's definitely starting to feel real.  My trusty FIRE calculator actually says 1.36 years, thanks to this crazy market.  I feel like one really bad day at work, and I may just pull the plug!

Anyone changing things up, now that we are getting close?  I'm front loading my taxable account this year to allow flexibility in the case of an early exit.

I'm starting a mini-retirement in a few weeks until probably September with some part-time consulting during that time. This will be a FIRE trial for me. FI has always been the goal but not so sure about the RE part any more. This requires quitting my FT position that I like most days but isn't fulfilling. When I'm done, I'll ramp up my contracting and I'm thinking about starting a YouTube channel to teach people my technical skills for income.

[TomTX]

Wow only 3 years to go!  It's definitely starting to feel real.  My trusty FIRE calculator actually says 1.36 years, thanks to this crazy market.  I feel like one really bad day at work, and I may just pull the plug!

Anyone changing things up, now that we are getting close?  I'm front loading my taxable account this year to allow flexibility in the case of an early exit.

Yes. I've made sure that I have at least the first 5 years in cash/TIPS/GNMAE funds. That will take us to age 65/67 - at which point, the house is paid off (+$28k in cash flow) and DH reaches FRA (+$24k in cash flow).

This means I don't care what the market does. I just keep trudging along, as my retirement age multiplier for the pension is now more important than anything we save from here on out.

Age 56.5, Multiplier of ~1.99 x 34 years of service = 68% retirement pay
Age 57, Multiplier of 2.08 x 34.5 years = 72%
Age 58, Multiplier of 2.22 x 35.5 years = 79%
Age 59, Multiplier of 2.36 x 36.5 years = 86%
Age 60, multiplier of 2.5 x 38 years (includes unused SL) = 95% retirement check.

Minus survivor benefits for DH, but it's a stunning progression the last 3.5 years of service!

Do you actually need a 95% retirement check, or is it just a firehose of extra cash?

[LightStache]

2021 closed at 957k. My original WAG FIRE number in 2016 was 900k, which is 1040k in 2021 dollars. I'm 32 and figuring out my long term desired spend & seeing how a new potentially long term romantic partnership plays out. So, still targeting 2025. Assuming average returns and regular contributions I would land at 1.7 million in today's dollars, 55k at 3.25% WR. I'm 100% stocks so absent a big market crash it's all about long term spend at this point, as I'm at 38x trailing 3 year average expenses.

How is everyone else?

Sadly 2021 wasn't great for me. I sold my last rental and took the tax hit and kept my investment accounts largely in cash out of fear. NW up only $70K when it would be at least +$150K if I had stayed the course. Those decisions, as well as now footing the bill for 100% of my housing costs in a HCOL area, probably means I need to be held back to 2027. Sharing my disappointing results in case others out there have some stumbles. It's not always easy sailing.

[aetheldrea]

Financially, 2021 was my best year ever. Net worth went up about $450k, about 10% of which was saving. Back to work today after a couple weeks off and I noticed how much of the time I’m swearing under my breath while staring at a damn screen. So yeah, pulling the plug sooner is looking better and better.

[Sandi_k]

Wow only 3 years to go!  It's definitely starting to feel real.  My trusty FIRE calculator actually says 1.36 years, thanks to this crazy market.  I feel like one really bad day at work, and I may just pull the plug!

Anyone changing things up, now that we are getting close?  I'm front loading my taxable account this year to allow flexibility in the case of an early exit.

Yes. I've made sure that I have at least the first 5 years in cash/TIPS/GNMAE funds. That will take us to age 65/67 - at which point, the house is paid off (+$28k in cash flow) and DH reaches FRA (+$24k in cash flow).

This means I don't care what the market does. I just keep trudging along, as my retirement age multiplier for the pension is now more important than anything we save from here on out.

Age 56.5, Multiplier of ~1.99 x 34 years of service = 68% retirement pay
Age 57, Multiplier of 2.08 x 34.5 years = 72%
Age 58, Multiplier of 2.22 x 35.5 years = 79%
Age 59, Multiplier of 2.36 x 36.5 years = 86%
Age 60, multiplier of 2.5 x 38 years (includes unused SL) = 95% retirement check.

Minus survivor benefits for DH, but it's a stunning progression the last 3.5 years of service!

Do you actually need a 95% retirement check, or is it just a firehose of extra cash?

That 95% minus survivor benefits covers both me and DH in retirement. So he can retire long before SS and FRA as well. He had spinal surgery 15 years ago, and his body just isn't dealing well with anything requiring standing or lifting.

So yeah - firehose of extra cash, meant to cover DH's under-employment in recent years, plus medical disability.

[Turtle]

Hello All!

I may be joining this cohort depending on how my company treats payment of annual items for retirees.  Their annual bonus and profit sharing 401k bonus are usually paid at the end of the first quarter of the year, based upon the prior year.  People who leave earlier than that risk forfeiting that money.  However, I'm not sure if there's any difference based upon whether it is retirement or simply quitting, so I need to look into that.

Otherwise I'm thinking April of 2026, most likely.

[charis]

We are still hanging in here. We finally hit 700k+ invested this week and we'll be effectively FI at 1m (in our early 40s with 2 school aged kids). That's because we'll have 3 smallish pensions by 62, which taken with early SS would bring in about 65k/year (more than our current spend) even without investments. Even if we stopped contributing now, we'd likely hit 1m in 2025, though I hope to get there sooner.

Spouse will work at least a couple more years past FI (to vest pension) but I'd like to be retired from FT work by then.  Our oldest will be looking at colleges within a couple of years of FI status.

[aetheldrea]

Hello All!

I may be joining this cohort depending on how my company treats payment of annual items for retirees.  Their annual bonus and profit sharing 401k bonus are usually paid at the end of the first quarter of the year, based upon the prior year.  People who leave earlier than that risk forfeiting that money.  However, I'm not sure if there's any difference based upon whether it is retirement or simply quitting, so I need to look into that.

Otherwise I'm thinking April of 2026, most likely.

My company pays a bonus to retirees for their previous year’s work, but to no one else who isn’t on the payroll for any reason on the date the bonus is paid.

[oneday]

How is everyone else?

Those decisions, as well as now footing the bill for 100% of my housing costs in a HCOL area, probably means I need to be held back to 2027. Sharing my disappointing results in case others out there have some stumbles. It's not always easy sailing.

I estimated 2025 back in 2015 when I was married, but a divorce in 2018 drastically changed the picture (no spouse's pension). So most likely I'll be class of 2028. But I'm not leaving this class until 1/1/26 proves I didn't retire in 2025! I hold on to a very, very slim hope :)

[afuera]

We are still planning for 2025 but are coasting for now, making babies and just maxing retirement accounts.  My husband FIRE'd in 2021 to be a house spouse so we are down to one income until we reach our number. We will see what expenses level out to in a couple years while we try to survive with two babies under two.

[swashbucklinstache]

How is everyone else?

Those decisions, as well as now footing the bill for 100% of my housing costs in a HCOL area, probably means I need to be held back to 2027. Sharing my disappointing results in case others out there have some stumbles. It's not always easy sailing.

I estimated 2025 back in 2015 when I was married, but a divorce in 2018 drastically changed the picture (no spouse's pension). So most likely I'll be class of 2028. But I'm not leaving this class until 1/1/26 proves I didn't retire in 2025! I hold on to a very, very slim hope :)

Rooting for you both! If nothing else we can also be a 2025 FU Money cohort and you'll definitely be there at least =)

[ca-rn]

Joining for 2025 FIRE, unless I get OMY syndrome or we're in the mist of a terrible extended bull market!  But seriously, my AA (70-65/30-35) and withdrawal (less than 3%) is supposed to cover ugly bull markets, right? 

I'm PT/downshifted and will continue until around 2025 to access 401K via rule of 55.  It will be 800K+ (with just my pre tax contributions all going to total bond market) by then and will need some serious Roth converting before Medicare and RMDs. 

Filing Single and living in California, I keep reading its going to cost a lot to convert...plus rental income and pension (may lump sum) adds more $ but also more complexity and taxes.  I think it'll be best to finish Roth converting before starting/lump sum pension.  Luckily SS isn't taxed in California.

Property will be paid off, rental income should cover housing taxes/maintenance/insurance and part/all(?) of health insurance.  Health insurance/cost will be my biggest unknown.  Those are my largest monthly expenses.  Personal expenses are pretty low, easily less than 2k/month. Have plenty in taxable (1+ million) to cover lumpy/travel costs, help family members and maybe a CCRC for me in the future.

3 more years!!!!!!

[ca-rn]

2021 closed at 957k. My original WAG FIRE number in 2016 was 900k, which is 1040k in 2021 dollars. I'm 32 and figuring out my long term desired spend & seeing how a new potentially long term romantic partnership plays out. So, still targeting 2025. Assuming average returns and regular contributions I would land at 1.7 million in today's dollars, 55k at 3.25% WR. I'm 100% stocks so absent a big market crash it's all about long term spend at this point, as I'm at 38x trailing 3 year average expenses.

How is everyone else?

Sadly 2021 wasn't great for me. I sold my last rental and took the tax hit and kept my investment accounts largely in cash out of fear. NW up only $70K when it would be at least +$150K if I had stayed the course. Those decisions, as well as now footing the bill for 100% of my housing costs in a HCOL area, probably means I need to be held back to 2027. Sharing my disappointing results in case others out there have some stumbles. It's not always easy sailing.

LightStache, what made you decide to sell your last rental?   Curious, as I am getting ready to sell one too and definitely not looking forward to the tax hit. 

Also, if you cashed out of your investments accounts out of fear, it points to a TOO aggressive AA.  Don't beat yourself up though, its a lesson learned and you need to figure out what is an AA that lets you sleep at night without fear of making rash decisions. 

[LightStache]

LightStache, what made you decide to sell your last rental?   Curious, as I am getting ready to sell one too and definitely not looking forward to the tax hit. 

It hadn't been the greatest rental and I had some (possibly rational) concerns about the foundation. But mostly it was just my sense that the market is in a bubble, so a good time to exit. Essentially market timing. Let the tar-and-feathering commence. ;)

[evanc]

Still on track for 2025. Actually, with the favorable market, could end up crossing the line a little early, but I told myself I'll wait until 2024 to reassess. What's OMY, right? :D

[evanc]

Greetings! Fellow 2025er. I found MMM in 2016 and got the face punch I was searching for. Fortunately, DW was on board once I shared the “shockingly simple math” post. We realized for the first time that we could actually do this (RE). Up to that point, basically everything I read said it was impossible. Once we made a plan, we set our sights on 2025 and haven’t looked back since. Like some of you, we anticipate higher expenses post retirement due to a combination of increased healthcare costs, additional travel, and inflation. Here’s how we have progressed thus far with current levels of spending in parentheses for comparison purposes.

T-8 years: 5.77x (7.21)
-7: 7.13 (8.92)
-6: 9.06 (11.33)
-5: 10.52 (13.14)

and project the following:

-4: 12.85 (16.07)
-3: 15.65 (19.56)
-2: 18.64 (23.3)
-1: 21.83 (27.29)
FIRE: 26x (32.5)

There is some room, but the biggest added expense is healthcare on ACA or whatever is available at that point. Cautiously optimistic that we can make it happen in 2025. As of now, right on track. I will be 46 and DW a few years older.

As of today, 15.15x (18.93). Still projecting 2025 FIRE, but unofficially hopeful it could be sooner.

Update as of 1/1/22: 20.2x (25.3)

Mathematically, DW and I are FI with current expenses (seems weird even saying that, as this is the first time I've seen it on paper). However, still both working to achieve fat fire by 2025.

[Sandi_k]

So this month means I am now at 3.5 years from my "age 60" pension multiplier and goal. Woot!

Some disruption at work seems to have calmed down, so I am hoping that this means the new boss and I are "gelling" enough for me to stay firmly employed at my fabulous salary through 2025. ;)

The recent market hit has me feeling...content. I am glad that we have 5 years in TIPS and cash; no worries about having to work OMY or anything like that.

We're starting to think about home improvement projects. But we don't want to undertake them when contractors are so darned hard to obtain.

DH is a little underemployed. He turns 59.5 next Spring, and we're considering tapping into his accounts a little earlier than that.

Does anyone have any experience with accessing the accounts using SEPP? Or should we just bite the bullet and pay the 10% penalty on the amount, should he choose to withdraw funds?

[markbike528CBX]

So this month means I am now at 3.5 years from my "age 60" pension multiplier and goal. Woot!

Some disruption at work seems to have calmed down, so I am hoping that this means the new boss and I are "gelling" enough for me to stay firmly employed at my fabulous salary through 2025. ;)

The recent market hit has me feeling...content. I am glad that we have 5 years in TIPS and cash; no worries about having to work OMY or anything like that.

We're starting to think about home improvement projects. But we don't want to undertake them when contractors are so darned hard to obtain.

DH is a little underemployed. He turns 59.5 next Spring, and we're considering tapping into his accounts a little earlier than that.

Does anyone have any experience with accessing the accounts using SEPP? Or should we just bite the bullet and pay the 10% penalty on the amount, should he choose to withdraw funds?

As is often the case, there is a thread for that:
https://forum.mrmoneymustache.com/ask-a-mustachian/anybody-with-experience-using-sepp-72-method/msg2266852/#msg2266852

I've been doing SEPP / 72(t) for 3 years now.  No issues.   I used the amortization method, so I don't have to calculate it every year.   
I intentionally used a 0.05% mid market rate instead of the IRS rule maximum, so I kept the withdrawal (which is taxable) less than the Married Filing Jointly (US) standard deduction.
Two years $0 federal tax, this year $35 to the feds (a MPP thread worthy thing).

[SaucyAussie]

So this month means I am now at 3.5 years from my "age 60" pension multiplier and goal. Woot!

Some disruption at work seems to have calmed down, so I am hoping that this means the new boss and I are "gelling" enough for me to stay firmly employed at my fabulous salary through 2025. ;)

The recent market hit has me feeling...content. I am glad that we have 5 years in TIPS and cash; no worries about having to work OMY or anything like that.

We're starting to think about home improvement projects. But we don't want to undertake them when contractors are so darned hard to obtain.

DH is a little underemployed. He turns 59.5 next Spring, and we're considering tapping into his accounts a little earlier than that.

Does anyone have any experience with accessing the accounts using SEPP? Or should we just bite the bullet and pay the 10% penalty on the amount, should he choose to withdraw funds?

As is often the case, there is a thread for that:
https://forum.mrmoneymustache.com/ask-a-mustachian/anybody-with-experience-using-sepp-72-method/msg2266852/#msg2266852

I've been doing SEPP / 72(t) for 3 years now.  No issues.   I used the amortization method, so I don't have to calculate it every year.   
I intentionally used a 0.05% mid market rate instead of the IRS rule maximum, so I kept the withdrawal (which is taxable) less than the Married Filing Jointly (US) standard deduction.
Two years $0 federal tax, this year $35 to the feds (a MPP thread worthy thing).

That thread is all of one post long.  lol

I too am thinking of going the SEPP route.  Not to get us too off-topic here but I have a couple of questions regarding SEPP that I bet you fine folk can help with.

1. If I quit by job and start doing SEPP, can I go ahead and get another job somewhere else?  Can I contribute to the new jobs 401k?
2. If I find the SEPP is giving me more cash than I need, can I re-invest in a tax-advantaged account?

[tj]

So this month means I am now at 3.5 years from my "age 60" pension multiplier and goal. Woot!

Some disruption at work seems to have calmed down, so I am hoping that this means the new boss and I are "gelling" enough for me to stay firmly employed at my fabulous salary through 2025. ;)

The recent market hit has me feeling...content. I am glad that we have 5 years in TIPS and cash; no worries about having to work OMY or anything like that.

We're starting to think about home improvement projects. But we don't want to undertake them when contractors are so darned hard to obtain.

DH is a little underemployed. He turns 59.5 next Spring, and we're considering tapping into his accounts a little earlier than that.

Does anyone have any experience with accessing the accounts using SEPP? Or should we just bite the bullet and pay the 10% penalty on the amount, should he choose to withdraw funds?

As is often the case, there is a thread for that:
https://forum.mrmoneymustache.com/ask-a-mustachian/anybody-with-experience-using-sepp-72-method/msg2266852/#msg2266852

I've been doing SEPP / 72(t) for 3 years now.  No issues.   I used the amortization method, so I don't have to calculate it every year.   
I intentionally used a 0.05% mid market rate instead of the IRS rule maximum, so I kept the withdrawal (which is taxable) less than the Married Filing Jointly (US) standard deduction.
Two years $0 federal tax, this year $35 to the feds (a MPP thread worthy thing).

That thread is all of one post long.  lol

I too am thinking of going the SEPP route.  Not to get us too off-topic here but I have a couple of questions regarding SEPP that I bet you fine folk can help with.

1. If I quit by job and start doing SEPP, can I go ahead and get another job somewhere else?  Can I contribute to the new jobs 401k?
2. If I find the SEPP is giving me more cash than I need, can I re-invest in a tax-advantaged account?

#2 doesn't make any sense.  You can't reduce the distribution after you start, you have to keep it going until 59.5 or 5 years,whichever is longer.

SEPP has zero impact on you contributing earned income to retirement accounts.

https://www.kitces.com/blog/rule-72t-sepp-calculate-payments-rmd-avoid-penalty-tax-early-ira-withdrawals-notice-2022-6/

[SaucyAussie]

So this month means I am now at 3.5 years from my "age 60" pension multiplier and goal. Woot!

Some disruption at work seems to have calmed down, so I am hoping that this means the new boss and I are "gelling" enough for me to stay firmly employed at my fabulous salary through 2025. ;)

The recent market hit has me feeling...content. I am glad that we have 5 years in TIPS and cash; no worries about having to work OMY or anything like that.

We're starting to think about home improvement projects. But we don't want to undertake them when contractors are so darned hard to obtain.

DH is a little underemployed. He turns 59.5 next Spring, and we're considering tapping into his accounts a little earlier than that.

Does anyone have any experience with accessing the accounts using SEPP? Or should we just bite the bullet and pay the 10% penalty on the amount, should he choose to withdraw funds?

As is often the case, there is a thread for that:
https://forum.mrmoneymustache.com/ask-a-mustachian/anybody-with-experience-using-sepp-72-method/msg2266852/#msg2266852

I've been doing SEPP / 72(t) for 3 years now.  No issues.   I used the amortization method, so I don't have to calculate it every year.   
I intentionally used a 0.05% mid market rate instead of the IRS rule maximum, so I kept the withdrawal (which is taxable) less than the Married Filing Jointly (US) standard deduction.
Two years $0 federal tax, this year $35 to the feds (a MPP thread worthy thing).

That thread is all of one post long.  lol

I too am thinking of going the SEPP route.  Not to get us too off-topic here but I have a couple of questions regarding SEPP that I bet you fine folk can help with.

1. If I quit by job and start doing SEPP, can I go ahead and get another job somewhere else?  Can I contribute to the new jobs 401k?
2. If I find the SEPP is giving me more cash than I need, can I re-invest in a tax-advantaged account?

#2 doesn't make any sense.  You can't reduce the distribution after you start, you have to keep it going until 59.5 or 5 years,whichever is longer.

SEPP has zero impact on you contributing earned income to retirement accounts.

https://www.kitces.com/blog/rule-72t-sepp-calculate-payments-rmd-avoid-penalty-tax-early-ira-withdrawals-notice-2022-6/

I'm not talking about reducing distributions, I'm talking about depositing funds into another account separate from the SEPP calculations.

[tj]

So this month means I am now at 3.5 years from my "age 60" pension multiplier and goal. Woot!

Some disruption at work seems to have calmed down, so I am hoping that this means the new boss and I are "gelling" enough for me to stay firmly employed at my fabulous salary through 2025. ;)

The recent market hit has me feeling...content. I am glad that we have 5 years in TIPS and cash; no worries about having to work OMY or anything like that.

We're starting to think about home improvement projects. But we don't want to undertake them when contractors are so darned hard to obtain.

DH is a little underemployed. He turns 59.5 next Spring, and we're considering tapping into his accounts a little earlier than that.

Does anyone have any experience with accessing the accounts using SEPP? Or should we just bite the bullet and pay the 10% penalty on the amount, should he choose to withdraw funds?

As is often the case, there is a thread for that:
https://forum.mrmoneymustache.com/ask-a-mustachian/anybody-with-experience-using-sepp-72-method/msg2266852/#msg2266852

I've been doing SEPP / 72(t) for 3 years now.  No issues.   I used the amortization method, so I don't have to calculate it every year.   
I intentionally used a 0.05% mid market rate instead of the IRS rule maximum, so I kept the withdrawal (which is taxable) less than the Married Filing Jointly (US) standard deduction.
Two years $0 federal tax, this year $35 to the feds (a MPP thread worthy thing).

That thread is all of one post long.  lol

I too am thinking of going the SEPP route.  Not to get us too off-topic here but I have a couple of questions regarding SEPP that I bet you fine folk can help with.

1. If I quit by job and start doing SEPP, can I go ahead and get another job somewhere else?  Can I contribute to the new jobs 401k?
2. If I find the SEPP is giving me more cash than I need, can I re-invest in a tax-advantaged account?

#2 doesn't make any sense.  You can't reduce the distribution after you start, you have to keep it going until 59.5 or 5 years,whichever is longer.

SEPP has zero impact on you contributing earned income to retirement accounts.

https://www.kitces.com/blog/rule-72t-sepp-calculate-payments-rmd-avoid-penalty-tax-early-ira-withdrawals-notice-2022-6/

I'm not talking about reducing distributions, I'm talking about depositing funds into another account separate from the SEPP calculations.

The only way you can "re-invest", is if you have earned income to qualify for the annual contributions limits in that year. The distributions are irrelevant. The IRS doesn't care where the $$ come from to deposit into an IRA, only that you have the earned income. 

[Sapphire]

So the plan was for us to retire in December 2025...however circumstances have changed and December 2024 is looking more likely...

That said, I have no plans to move out of this lovely cohort...even if we retire in December 2024, we are likely to get paid into 2025...

I have always fancied keeping a journal....just wondering if now might be the time...144 weeks to go (and yes I have a countdown app :)).

[bryan995]

So the plan was for us to retire in December 2025...however circumstances have changed and December 2024 is looking more likely...

That said, I have no plans to move out of this lovely cohort...even if we retire in December 2024, we are likely to get paid into 2025...

I have always fancied keeping a journal....just wondering if now might be the time...144 weeks to go (and yes I have a countdown app :)).

Similar change in circumstances, we would likely be ready in 2024.  Though with all of the current uncertainty in the market / world / inflation.  We may power through until 2025 no matter what. We both fancy of jobs plenty.

Maybe 2025 can turn into a 'treat-yourself-2025' celebration.  One final drunken spend-it-all-living-paycheck-to-paycheck hurrah before we downshift into FIRE :)

[charis]

Maybe 2025 can turn into a 'treat-yourself-2025' celebration.  One final drunken spend-it-all-living-paycheck-to-paycheck hurrah before we downshift into FIRE :)

This caught my eye because sometimes I fantasize about a year of no saving just to see what it would be like to be so debaucherous, lol.  Only saving up to the 401k (I know I could never haha), letting the investments ride, taking home everything else and seeing what happens. Since we save almost 65% of income, I can't really wrap my mind around it! We would spend a lot more in taxes though.

[bryan995]

Maybe 2025 can turn into a 'treat-yourself-2025' celebration.  One final drunken spend-it-all-living-paycheck-to-paycheck hurrah before we downshift into FIRE :)

This caught my eye because sometimes I fantasize about a year of no saving just to see what it would be like to be so debaucherous, lol.  Only saving up to the 401k (I know I could never haha), letting the investments ride, taking home everything else and seeing what happens. Since we save almost 65% of income, I can't really wrap my mind around it! We would spend a lot more in taxes though.

I am going to do it, need to live the American dream once ! :) 

Will still max 401k and avoid as many taxes as possible, but the rest shall be spent!  Maybe a lot of pre-buying / repairs / remodel etc to kick FIRE off with a highest chance of success. 

*disclaimer - need to seek wife approval first

[Sapphire]

Maybe 2025 can turn into a 'treat-yourself-2025' celebration.  One final drunken spend-it-all-living-paycheck-to-paycheck hurrah before we downshift into FIRE :)

This caught my eye because sometimes I fantasize about a year of no saving just to see what it would be like to be so debaucherous, lol.  Only saving up to the 401k (I know I could never haha), letting the investments ride, taking home everything else and seeing what happens. Since we save almost 65% of income, I can't really wrap my mind around it! We would spend a lot more in taxes though.

I am going to do it, need to live the American dream once ! :) 

Will still max 401k and avoid as many taxes as possible, but the rest shall be spent!  Maybe a lot of pre-buying / repairs / remodel etc to kick FIRE off with a highest chance of success. 

*disclaimer - need to seek wife approval first

Oooh, suddenly I like that idea...lol @bryan995 I'm the wife with approval veto :)

[Sapphire]

Ok, this was fun...found in the 2022 Retirement cohort, courtesy of @dsw - not that I am planning a jump, was just reading to keep the motivation going...

https://www.timeanddate.com/date/workdays.html?d1=11&m1=10&y1=2019&d2=1&m2=4&y2=2022&ti=on

Suddenly my 1004 days dropped to 691 days (once you take out the weekends and public holidays)...

[markbike528CBX]

So this month means I am now at 3.5 years from my "age 60" pension multiplier and goal. Woot!

Some disruption at work seems to have calmed down, so I am hoping that this means the new boss and I are "gelling" enough for me to stay firmly employed at my fabulous salary through 2025. ;)

The recent market hit has me feeling...content. I am glad that we have 5 years in TIPS and cash; no worries about having to work OMY or anything like that.

We're starting to think about home improvement projects. But we don't want to undertake them when contractors are so darned hard to obtain.

DH is a little underemployed. He turns 59.5 next Spring, and we're considering tapping into his accounts a little earlier than that.

Does anyone have any experience with accessing the accounts using SEPP? Or should we just bite the bullet and pay the 10% penalty on the amount, should he choose to withdraw funds?

As is often the case, there is a thread for that:
https://forum.mrmoneymustache.com/ask-a-mustachian/anybody-with-experience-using-sepp-72-method/msg2266852/#msg2266852

I've been doing SEPP / 72(t) for 3 years now.  No issues.   I used the amortization method, so I don't have to calculate it every year.   
I intentionally used a 0.05% mid market rate instead of the IRS rule maximum, so I kept the withdrawal (which is taxable) less than the Married Filing Jointly (US) standard deduction.
Two years $0 federal tax, this year $35 to the feds (a MPP thread worthy thing).

That thread is all of one post long.  lol

I too am thinking of going the SEPP route.  Not to get us too off-topic here but I have a couple of questions regarding SEPP that I bet you fine folk can help with.

1. If I quit by job and start doing SEPP, can I go ahead and get another job somewhere else?  Can I contribute to the new jobs 401k?
2. If I find the SEPP is giving me more cash than I need, can I re-invest in a tax-advantaged account?

@SaucyAussie  and others:
Sorry about the one post thread I linked, I meant this one:
https://forum.mrmoneymustache.com/post-fire/anybody-actually-taking-section-72(t)-'sepp'-withdrawals-from-tira/

If it makes you feel any better, this issue disturbed my sleep last night, so I thought I take care of it today. :-)
I had previously forgotten where I had made the mistake, so I couldn't find where to fix it.