2029 FIRE Cohort

[pasadenafr]

Truly the boring middle for many on this thread I'd imagine.  It's the point where you've absorbed all the FIRE concepts, have the calculations down cold, and have investments and savings fully automated. 

Indeed. The plan is in place, it's executing slowly but surely, and the most exciting thing happening on the FIRE front is when I update my spreadsheet 😂

[DeskJockey2028]

I looked into the ACA - the plans we would qualify for have a much higher deductible (mine's $0 for most things) and a higher copay, with comparable monthly costs.

For someone with a child that has several conditions which may require hospitalizations and surgeries in their future (and if we're covering them until they're 26 like I expect we will), we're looking at higher costs through the ACA.

For every operation they've had, we've paid a total of $100 plus generally less than $10 for prescriptions afterwards. That includes many, multiple night stays in hospital.

By the time she ages out of being under our care, we'll be just a year or three away from Medicare.

I’m not following why you’re concerned.  ACA should cover you at a very reasonable cost.

[maisymouser]

I looked into the ACA - the plans we would qualify for have a much higher deductible (mine's $0 for most things) and a higher copay, with comparable monthly costs.

For someone with a child that has several conditions which may require hospitalizations and surgeries in their future (and if we're covering them until they're 26 like I expect we will), we're looking at higher costs through the ACA.

For every operation they've had, we've paid a total of $100 plus generally less than $10 for prescriptions afterwards. That includes many, multiple night stays in hospital.

By the time she ages out of being under our care, we'll be just a year or three away from Medicare.

I’m not following why you’re concerned.  ACA should cover you at a very reasonable cost.

I'm (sort of) in your boat. I've looked at ACA plans and have to bank on meeting my OOP every year. So the ACA plans that I would need seem fairly pricy.

[SotI]

Truly the boring middle for many on this thread I'd imagine.  It's the point where you've absorbed all the FIRE concepts, have the calculations down cold, and have investments and savings fully automated. 

Indeed. The plan is in place, it's executing slowly but surely, and the most exciting thing happening on the FIRE front is when I update my spreadsheet 😂

+1

Having said that, I may move to an earlier retirement date than 2029. If all goes according to plan, I will be signing an early retirement deal to retire by December 2025. Assuming no major climate disaster, zombie apocalypse, pandemic fallout or hyperinflation will strike - and tbh, I am getting increasingly concerned about either of such dystopian trajectories. It's been a pretty shitty year for many people around here. I have been lucky so far. 

[pasadenafr]

Truly the boring middle for many on this thread I'd imagine.  It's the point where you've absorbed all the FIRE concepts, have the calculations down cold, and have investments and savings fully automated. 

Indeed. The plan is in place, it's executing slowly but surely, and the most exciting thing happening on the FIRE front is when I update my spreadsheet 😂

+1

Having said that, I may move to an earlier retirement date than 2029. If all goes according to plan, I will be signing an early retirement deal to retire by December 2025. Assuming no major climate disaster, zombie apocalypse, pandemic fallout or hyperinflation will strike - and tbh, I am getting increasingly concerned about either of such dystopian trajectories. It's been a pretty shitty year for many people around here. I have been lucky so far.

These are things you have zero control over. All you can do is keep going so you can weather whatever happens.

[HeadedWest2029]

Pretty much every generation is convinced they are living in the end times. I remind myself they've all been wrong when I'm feeling pessimistic about humanity.

[pasadenafr]

Pretty much every generation is convinced they are living in the end times. I remind myself they've all been wrong when I'm feeling pessimistic about humanity.

+1

[SotI]

Pretty much every generation is convinced they are living in the end times. I remind myself they've all been wrong when I'm feeling pessimistic about humanity.

Thank you 😊
You are probably right - and yes, this would be outside my circle of control.
Time to go for a walk (after breakfast).

[markbike528CBX]

Pretty much every generation is convinced they are living in the end times. I remind myself they've all been wrong when I'm feeling pessimistic about humanity.

Thank you 😊
You are probably right - and yes, this would be outside my circle of control.
Time to go for a walk (after breakfast).

And if the walk doesn't help enough or you can't do it due to weather, the "Top is In" thread is good fun and confirmation of the futility of being Chicken Little.

[SotI]

And if the walk doesn't help enough or you can't do it due to weather, the "Top is In" thread is good fun and confirmation of the futility of being Chicken Little.

With that in mind, I signed my corporate "early retirement" deal today.
So, based on the financial arrangement with Corp HQ, I expect to retire in Dec 2025.
I guess I will sign up to the 2025 cohort now.

As I would miss this level-headed group here, though, I hope you won't mind me hanging around here a bit, still ☺

[pasadenafr]

And if the walk doesn't help enough or you can't do it due to weather, the "Top is In" thread is good fun and confirmation of the futility of being Chicken Little.

With that in mind, I signed my corporate "early retirement" deal today.
So, based on the financial arrangement with Corp HQ, I expect to retire in Dec 2025.
I guess I will sign up to the 2025 cohort now.

As I would miss this level-headed group here, though, I hope you won't mind me hanging around here a bit, still ☺

Without doxxing yourself, would you mind explaining a little what this "deal" is?

[SotI]

It's a mix of essentially a subsidized part-time deal (I work a few years, get paid some more, at almost full salary). Plus a severance package to cover the gap to formal retirement age. In addition, I remain covered by the company's pension plan..

All in all, this means I can stop working in 2025 but get stable income on top of pension plan, my stache and later social security. Mind you, I am in Europe, not sure how this translate to US conditions.

[pasadenafr]

It's a mix of essentially a subsidized part-time deal (I work a few years, get paid some more, at almost full salary). Plus a severance package to cover the gap to formal retirement age. In addition, I remain covered by the company's pension plan..

All in all, this means I can stop working in 2025 but get stable income on top of pension plan, my stache and later social security. Mind you, I am in Europe, not sure how this translate to US conditions.

That's an amazing deal. So basically you start working part-time now until 2025, at which point you officially stop working?

My uncle got a similar deal. I think he was between 55 and 57. Paid full salary until 60 for zero hours worked, at which point he was eligible for unemployment until 62 (FRA) without being expected to look for a job. Something like that. That was like 15 years ago, and obviously not in the US either 😉

[SotI]

That's an amazing deal. So basically you start working part-time now until 2025, at which point you officially stop working?

My uncle got a similar deal. I think he was between 55 and 57. Paid full salary until 60 for zero hours worked, at which point he was eligible for unemployment until 62 (FRA) without being expected to look for a job. Something like that. That was like 15 years ago, and obviously not in the US either 😉

Yes, sounds quite similar, indeed. My company praises itself for being a socially responsible and ethical employer (and imo they mostly hold up to that standard where I live). They have been very good handling the corona pandemic, as well.

[DeskJockey2028]

That's amazing! Of course you can and should still hang out here! Keep us up to date on how it goes and when 2025 rolls around, let us all know what it's like!

Having said that, I may move to an earlier retirement date than 2029. If all goes according to plan, I will be signing an early retirement deal to retire by December 2025. Assuming no major climate disaster, zombie apocalypse, pandemic fallout or hyperinflation will strike - and tbh, I am getting increasingly concerned about either of such dystopian trajectories. It's been a pretty shitty year for many people around here. I have been lucky so far.

[henramdrea]

@SotI   That's fantastic news!  I'm sure you can (and should) continue to post up here and let all us slow-pokes know how you get on.
My plan is to pull back a little before 2029, likely 2027, but still remaining firmly in the "work-fully-optional" by 2029 as that's the first year I'm eligible for Social Security.  My spouse has been chomping at the bit to return to some full-time employment, and that should be about the right time to make that a reality for her.

I too think about whether society is going to hold-up long enough for me to retire.  Think back to WWII and Satan himself was ruling Germany (and Italy at about the same time) and then realize we're all still here thanks to a vast majority of sane people willing to do what it took to regain peace.  Hopefully the vast majority of sane people rise up before we reach that point again and say, "enough already!" let's solve problems instead of bitch about them on fringe news networks and dark social media sites.  That helps no one.  Contine to be an encouragement, care for those around you, do good, but don't get stomped on either.  That's the end of my rant!  Be well! :)

[SotI]

Thank you, all. Part of me is already going like "omg, this is too soon" - but ofc it isn't. When I did the number crunching with the tax adviser, I said I could always go back to work if the numbers don't work out - he just groaned and said "no you won't, don't be silly" lol.

@henramdrea : Good luck with your plans, and good that you can find a common timeframe with your spouse. ☺

@SotI
Hopefully the vast majority of sane people rise up before we reach that point again and say, "enough already!" let's solve problems instead of bitch about them on fringe news networks and dark social media sites.  That helps no one.  Contine to be an encouragement, care for those around you, do good, but don't get stomped on either.

And "Amen" to that. I will try to contribute my small part to make things better, at least within my limited cirvle of control.

[talltexan]

@SotI   That's fantastic news!  I'm sure you can (and should) continue to post up here and let all us slow-pokes know how you get on.
My plan is to pull back a little before 2029, likely 2027, but still remaining firmly in the "work-fully-optional" by 2029 as that's the first year I'm eligible for Social Security.  My spouse has been chomping at the bit to return to some full-time employment, and that should be about the right time to make that a reality for her.

I too think about whether society is going to hold-up long enough for me to retire.  Think back to WWII and Satan himself was ruling Germany (and Italy at about the same time) and then realize we're all still here thanks to a vast majority of sane people willing to do what it took to regain peace.  Hopefully the vast majority of sane people rise up before we reach that point again and say, "enough already!" let's solve problems instead of bitch about them on fringe news networks and dark social media sites.  That helps no one.  Contine to be an encouragement, care for those around you, do good, but don't get stomped on either.  That's the end of my rant!  Be well! :)

Indeed these kinds of tail-risks are what we have to manage once the main-line numbers are in place. I recently visited with elderly cousins who'd been in Central Europe during the war, and what they described was a life of day-to-day uncertainty and suspicion.

[DoneFSO]

Hello, fellow 29’ers.  1/1/2029 will be my retirement date.  I will be 49 years old.  I have a thread in the case study section if you want to know my back story, but the gist is that I was going to FIRE last year; I even sent a resignation letter to my agency, but they responded with an offer for remote work, so I stayed on.  They just offered to extend my remote work agreement until 2023, so I have made the decision to continue working until full retirement in 2029.

My retirement will be a regular federal retirement, and the date is likely to actually be 1/1/2029 because I can retire on any date in the year in which I turn 50, and so why not retire on the first available day?  That puts me solidly in the 2029 cohort unless I decide to continue my career past 2029, which is not currently in the cards, but who knows what the future holds.  Technically, it is a normal retirement, but since I will be 49, it is FIRE to me.  Assuming 4% real growth and continuing to max out Roth IRA and TSP contributions, and contributing at least $10k to the taxable account every year, I expect to have $1.7 million in the investment accounts (TSP, Roth IRA, and taxable) by 2029.  Better returns mean a bigger nest egg, but I prefer to plan with more conservative estimates (noting that some say 4% is too optimistic).  I will receive a federal pension of approximately $45,000 a year, and I will keep my healthcare for life (continuing to pay the employee portion).  I will receive Social Security at normal Social Security age.

To be clear, I do not feel that I need $1.7 million in addition to my pension, but I have decided that I don’t mind sticking with my job for another seven years and change – it’s something productive to do, and I am not unhappy about having more money than I need.  If I left earlier, I would lose the health insurance for life, a large portion of the pension, and a few other significant benefits.  The juice is worth the squeeze, in my estimation, and the consequence will just be that I end up with more juice.

On my path to financial security and early retirement in 2029, I endeavor to stay positive and charitable of spirit toward those around me, and to embrace the grind to the extent possible… then, I believe, the time might pass quickly and productively, with happy memories made along the way.  I am looking forward to the coming seven years and change and wish all fellow 29’ers success in their endeavors.

[rockstache]

Welcome! Congratulations on the federal remote work. I have not heard of anyone with that benefit before, so they must have really wanted you. The health insurance is a great benefit, and (I think) worth sticking around for if you don't mind what you do.

[DeskJockey2028]

Welcome! Sounds like you've got quite the setup going, and that's great!

[DoneFSO]

Welcome! Congratulations on the federal remote work. I have not heard of anyone with that benefit before, so they must have really wanted you. The health insurance is a great benefit, and (I think) worth sticking around for if you don't mind what you do.

Thank you for the warm welcome.  I'd like to think I was exceptionally valued, but the truth is probably that they esteemed I was resigning due to other factors in 2020 and wanted to offer a solution for me to stay.  I was very surprised when they offered me a remote work agreement.  I had been outside of the Department bubble for a long time on Leave Without Pay at that point, and I didn't know that they had added flexible work options due to COVID.  I agree that the health insurance is a great benefit.

[BuffaloStache]

I haven't been around these parts in a while, but I'm all caught up.

@SotI - Congrats! Sounds like a great deal and I'm happy for you. Definitely stick around these parts; as others have said before we definitely are in the 'boring middle' phase, so I think it would be really valuable to get your perspective (someone actually doing it and RE).

@DoneFSO - Welcome! Agreed with others, that's amazing that you got a remote work agreement through 2023. I have one through ~April of 2022, and to be honest I need to plot out how to extend that longer, haha. I also think it's totally understandable to hang on to working life until you get your health insurance picture sorted out. My Mom still works (and plans to for another 2 years), solidly so she can get a lifetime Health Insurance benefit like the one you are describing. 

[DoneFSO]

... @DoneFSO - Welcome! Agreed with others, that's amazing that you got a remote work agreement through 2023. I have one through ~April of 2022, and to be honest I need to plot out how to extend that longer, haha. I also think it's totally understandable to hang on to working life until you get your health insurance picture sorted out. My Mom still works (and plans to for another 2 years), solidly so she can get a lifetime Health Insurance benefit like the one you are describing.

A few years ago, I thought 10 years was too long to wait for the health insurance (as well as other rather significant benefits).  Then three years passed, and suddenly I was looking at 7 years, vice 10, and now it just doesn't seem too far away.  The extended remote work agreement helps, too, because that cuts the time frame down to 6 years, in a manner of thinking.  At this point, I'm approaching this like a footrace.  Behind me are the hardest parts:  the resolving to endeavor to race, the getting of my feet under me, and the persevering during the long middle slog.  Now I feel like I am getting my second wind, and I am seeing the final bends ahead of me.  I can hear the cheering in the stadium in the distance.  I feel that I must simply continue to put one foot in front of the other and keep breathing, no matter what, and I will get to that finish line and claim my prize.

[maisymouser]

... @DoneFSO - Welcome! Agreed with others, that's amazing that you got a remote work agreement through 2023. I have one through ~April of 2022, and to be honest I need to plot out how to extend that longer, haha. I also think it's totally understandable to hang on to working life until you get your health insurance picture sorted out. My Mom still works (and plans to for another 2 years), solidly so she can get a lifetime Health Insurance benefit like the one you are describing.

A few years ago, I thought 10 years was too long to wait for the health insurance (as well as other rather significant benefits).  Then three years passed, and suddenly I was looking at 7 years, vice 10, and now it just doesn't seem too far away.  The extended remote work agreement helps, too, because that cuts the time frame down to 6 years, in a manner of thinking.  At this point, I'm approaching this like a footrace.  Behind me are the hardest parts:  the resolving to endeavor to race, the getting of my feet under me, and the persevering during the long middle slog.  Now I feel like I am getting my second wind, and I am seeing the final bends ahead of me.  I can hear the cheering in the stadium in the distance.  I feel that I must simply continue to put one foot in front of the other and keep breathing, no matter what, and I will get to that finish line and claim my prize.

Wow. You made me want to go outside on this beautiful day and take a run, that was so motivational.

I have a solid 6+ years minimum, probably more if I pursue the lifestyle inflation I have been staving off successfully thus far. It still feels like a long ways away but I am sure the time will fly.

[BuffaloStache]

...
I have a solid 6+ years minimum, probably more if I pursue the lifestyle inflation I have been staving off successfully thus far. It still feels like a long ways away but I am sure the time will fly.

I'm in the same boat as you, maisy, although maybe not as successful at staving off the lifestyle inflation. But certainly trying to!
I feel that most of us are now solidly in the "boring middle" part of our FI journeys, and it's appropriately named because it is rather boring, haha. 

[maisymouser]

...
I have a solid 6+ years minimum, probably more if I pursue the lifestyle inflation I have been staving off successfully thus far. It still feels like a long ways away but I am sure the time will fly.

I'm in the same boat as you, maisy, although maybe not as successful at staving off the lifestyle inflation. But certainly trying to!
I feel that most of us are now solidly in the "boring middle" part of our FI journeys, and it's appropriately named because it is rather boring, haha.

Yeah, "lifestyle inflation" might not be the best term for what I am experiencing- mainly, I think we will have a second child  within a few years, which makes the target date even blurrier than it was before. I still think we'll achieve FI by 2029 but it kind of depends on how much support/funding we want to have for our kids for when they become adults.

[Edubb20]

Joining the '29 crew.

Nice to meet you all.

'29 will be my/our full FIRE date, but our strategy could morph into some sort of lean, coast, single income FI abomination in the preceding years. We shall see!

[henramdrea]

Welcome aboard @DoneFSO  and @Edubb20 !   '29 is an odd year to retire for sure, but it beats waiting until '30!

Best wishes to you both as you plough ahead!  May your plough be big and powerful!

[rockstache]

...
I have a solid 6+ years minimum, probably more if I pursue the lifestyle inflation I have been staving off successfully thus far. It still feels like a long ways away but I am sure the time will fly.

I'm in the same boat as you, maisy, although maybe not as successful at staving off the lifestyle inflation. But certainly trying to!
I feel that most of us are now solidly in the "boring middle" part of our FI journeys, and it's appropriately named because it is rather boring, haha.

Yeah, "lifestyle inflation" might not be the best term for what I am experiencing- mainly, I think we will have a second child  within a few years, which makes the target date even blurrier than it was before. I still think we'll achieve FI by 2029 but it kind of depends on how much support/funding we want to have for our kids for when they become adults.

We just had the second kid, and I'm definitely calling it lifestyle inflation! I'm hopeful that it's mostly that convenience spending that one does in the first months of the shock of having a new baby (and toddler at home), and that it will settle down a bit.

DH might pull the plug in a year or so and SAHD, but I'm planning to go about 6 more - maybe some combo of full time for a few and then dropping to part time, markets willing. Therefore our *real* RE date is probably in 2027, but I joined this thread first, so here I will stay.

[BuffaloStache]

...
Yeah, "lifestyle inflation" might not be the best term for what I am experiencing- mainly, I think we will have a second child  within a few years, which makes the target date even blurrier than it was before. I still think we'll achieve FI by 2029 but it kind of depends on how much support/funding we want to have for our kids for when they become adults.

We just had the second kid, and I'm definitely calling it lifestyle inflation! I'm hopeful that it's mostly that convenience spending that one does in the first months of the shock of having a new baby (and toddler at home), and that it will settle down a bit.

DH might pull the plug in a year or so and SAHD, but I'm planning to go about 6 more - maybe some combo of full time for a few and then dropping to part time, markets willing. Therefore our *real* RE date is probably in 2027, but I joined this thread first, so here I will stay.

Our second kid just turned 2, so maybe some of this "lifestyle inflation" is actually attributed to that. But I still think of it as lifestyle inflation, because it's permanently altering how I look at things. Car selection is a perfect example; we still don't have a massive 3rd row $50k SUV or anything, but buying a very small, efficient, compact car is also something that we've decided we don't want to look into (but was something we were interested in before kids). So I do consider it somewhat lifestyle inflation... Also, @rockstache , you'll always be welcomed here even if you pull the plug in '27! As we get closer to our FI/RE dates it'll be great for the rest of us to have some insight and perspective from those who have been able to pull the plug early.

Finally, welcome @Edubb20 ! Excited to hear how your journey goes. 

[talltexan]

When my wife and I contemplated adding a third (we concluded we should not), we were talking about it as a $100,000 impact. As a crude estimate, I guess you could divide that by your annual addition to your stacks, and there's your answer about its impact on timeline.

[maisymouser]

When my wife and I contemplated adding a third (we concluded we should not), we were talking about it as a $100,000 impact. As a crude estimate, I guess you could divide that by your annual addition to your stacks, and there's your answer about its impact on timeline.

I think that's a fairly reasonable estimate for sure! Maybe a bit lower than what I'm planning. Full-time daycare/preschool is clearly the biggest cost and runs ~10k for ~4 years where I'm at, so that's 40k right there and doesn't include opportunity loss from not investing that money long-term. Upgrading a car would probably add a good $5k beyond what we would select otherwise. And then of course, there's all the little stuff that adds up (extra toys, clothes, extracurriculars... and eventually teenager-level stuff like added vehicles, eek!).

I'm feeling super positive about our financial situation, but when the topic of another child comes up DH has (totally legitimate) non-financial concerns like the amount of free time we have, how long we will be parents, loss of sleep, etc. Oh, and the biggie is climate change. Definitely a downer when we talk about kid #2.

[FI4good]

Hey all ,
 Still saving , still trying to live my best life despite having to go to work.

Getting an electric nissan van for work , looking forwards to it, traffic belching fumes has always been something i’ve found horrifying.

I might have to expand my solar array, i have about 1kw of generation which makes the home on an average sunny day not import any power . I think payback on the capital cost after about 5 years.

 i may yet make the house like a large UPS with a 16 or 24kw inverter system. and about 16kw of battery. no rush for the moment.

keep on keeping on . 1/4m usd in the rearview , motoring towards 1/3rd , if i keep my job and my health it all looks fine .

[DeskJockey2028]

Yup, it's certainly the boring middle for me, in terms of FI that is. We're doing the same, plugging along, still investing, still sticking to the plan. And it's working! How do I know? Because we're still out of debt (except our mortgage) and still increasing our investments.

Spending some time now with both kids (one's 18 and the other's about to be 16) working on the concepts of saving and investing. They're both natural savers though so are lucky in that respect. I know they're starting to get it because they're asking good questions.

So... yeah. That's it! As long as we don't suddenly decide to buy a very, very small yacht or get into street racing, collecting vintage motorcycles, Warhammer or any other ridiculously expensive hobbies, we're on target! 

[chaskavitch]

So... yeah. That's it! As long as we don't suddenly decide to buy a very, very small yacht or get into street racing, collecting vintage motorcycles, Warhammer or any other ridiculously expensive hobbies, we're on target!

I love that you added Warhammer to your list of expensive vehicle-related hobbies :)

[BuffaloStache]

Agreed. Some of my cousins were really into Warhammer, and basically all of them have given up the habit due to financial constraints. :-D

[DeskJockey2028]

I don't personally play Warhammer, mostly because any mini's I paint come out looking like greyish blobs with extremely wide eyes. It's just not my thing. :) Though I do know plenty of folks who play and have invested thousands and thousands of dollars into it. Still cheaper than taking up smoking.

[DeskJockey2028]

40% of our journey through the start of this thread to January 1st of 2029 has been completed! Happy December everyone!

35% done.

Welcome to this last day of April, 2021! We are now over a third of the way to 1/1/29 since the start of this thread.  Go us!

Tomorrow, Saturday the 26th of September, we will reach our 30% milestone! 30% of the time from the start of this cohort thread to 1/1/29 has passed. Remember when we passed the 2% mark? Now we're nearly a third of the way to 2029, which is a nice milestone to hit! I hope everyone is doing well and keeping safe.

Today's at 2pm local time, we have hit 25% of the way to 1/1/29, from the start of this cohort! ONE QUARTER DONE! Three to go! If our FIRE process was a dollar, this is the first time we'd get enough change out of it to feed a parking meter. Go us!

Today, at 4am local time, marks 20% of the way to 2029! That's 1/5th of the way there! We're starting to show some serious progress here. 3,452 days to the first day of 2029! Less than 9.5 years and way less than the nearly 4,300 we started this cohort with.

Welcome to 15% of the way to 1/1/29! Hope everyone had a decent year and that 2019 brings more good things and more retirement funds!  In 215 days or so, that is, next July, we'll be 1/5th of the way there! We're currently 3,665 days away from 1/1/29. If anyone's interested, we're also 646 days from the day I started this thread!

And just like that, we're in double digits. Happy 10% day! 1/10th of the way to 2029!

Hey all! Tomorrow, Saturday the 14th, is 5% day! Look at that, we've already more than doubled our previous 2% milestone. :) Hope to see you all again on May 18th, 2018 for 10% day!

Happy 2% day!

[HeadedWest2029]

Time for end of year numbers, 2029ers… 
Our savings rate in 2021 was 51.79%. 
Since we started down the FIRE path in 2014, we've averaged a 60.34% SR.
2919 days until 2029

Happy New Year!

[DeskJockey2028]

Wow, awesome job @HeadedWest2029

I've only got a rough estimate on what our SR was for last year - somewhere in the low 30%. We don't really have a strict budget, we just make sure to invest before we do any spending, and then do what we will with the money we have left. The vast majority of that goes to the mortgage and bills, with some entertainment and home improvement thrown in.

[HeadedWest2029]

I think that's a healthy approach to FIRE.  We don't get too worked up about spending, but I do like crunching numbers. 

[BuffaloStache]

Agreed, it seems like a good approach. I still haven't run our numbers yet, but I need to. I'm decently sure our SR is north of 30%, but not sure if we were all the way to 40 this year. Having 2 young kids with significant childcare costs make it tough! I'm really happy I discovered FI/RE and set my goals up several years before this era of my life. Happy New Years all!

[caracarn]

So perhaps I'm not nerdy enough for this group to enjoy my presence.   :)

I honestly have no idea how I'd even calculate our savings rate.   I know our NW rose $250K in one year and we're nearly at $1.2M.   Do I use my net income and then what we save (would seem logical since I cannot save federal taxes for example) so my take home should be what my savings rate is from right?   But then would I include 401(k) and then do I add that back into my income as now it is pre-take home savings?   If include 401(k) do I include employer match, and if so do I add THAT back into income too, otherwise seems I'd be gaming the math a bit as I'd be getting $3K (max match my employer gives) of savings against a lower income level thereby inflating my savings rate buy the over 100% savings that provides.   Beyond that do I only include what was moved into investments which we intend to tap for FIRE but avoid savings accounts where we have high balances (five figures) but that might or might not make it into investments?   Do I include what is in our HSA though that tends to get spend for medical but last year we had not used it all so is that $1,700 "savings"?

I guess you see why I've never done the math.  Might be the "lying with statistics" course I took in high school that showed me you could make any number look great if you just measure it favorably.   So maybe I'm at 51% savings.   Maybe I'm at 5%.   Who knows?   Clearly not me.

[HeadedWest2029]

People calculate it differently, but I'd say the most common way is spending as a percentage of your take home pay after taxes have been removed (so net, not gross).  This is also the way MMM calculates it FWIW.  Yes, I include my 401(k) contributions and employee match so that gets added to the take home pay part.  It doesn't matter what you do with those savings (investments or checking), it's still savings either way, but the calculations in the famous "The Shockingly Simple Math Behind Early Retirement" is probably assuming this gets invested (see https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/).  If you have HSA contributions as part of payroll deductions, I think that's probably fair game to include as well.  I suppose that one depends on if you consider that part of your stash or not, but I think most people around here consider it part of the stash because it reduces future yearly spend or grows like a normal investment which can be withdrawn later.  I don't include passive income like dividends and interest from the stash.  Some people do include rental income.  I think the nuance depends on if you include it in the retirement stash or not.  I don't know why, but I include rental income in my savings rate but exclude it from the stash...mainly because I'd never sell my land.  You're right though, you can easily massage the number up or down.

[mizzourah2006]

Personally I don't calculate my savings rate. I keep track of our expenses and assume the rest of my income has to go to taxes and savings. I know on average we spend about 1/3rd of our gross incomes. So our savings rate is likely somewhere around 40-50% after accounting for taxes.

[PDXTabs]

People calculate it differently, but I'd say the most common way is spending as a percentage of your take home pay after taxes have been removed (so net, not gross).

Me too since that is the way that the BEA calculates it:

How is it calculated?
To calculate the personal saving rate, BEA starts with personal income, and subtracts from that personal taxes to derive “disposable personal income.”
Then, personal outlays are subtracted from disposable personal income—this results in an estimate of “personal saving.”
The saving rate is personal saving divided by disposable personal income.

So if you do it the same way you can compare your savings rate to the data they publish.

[talltexan]

How are sales taxes figured in that?

I believe BEA deducts them as "taxes" in the macro sense, but I'm not convinced that an individual methodology would be correct doing that.

[PDXTabs]

How are sales taxes figured in that?

I believe BEA deducts them as "taxes" in the macro sense, but I'm not convinced that an individual methodology would be correct doing that.

I don't think that the BEA does count sales (or property taxes), but I could be wrong. I've always thought that "disposable income" is government speak for "income that you aren't compelled by law to give to us as payroll or income taxes."

[DeskJockey2028]

Hey, five days ago we landed at 2,500 days until 1/1/2029! So we're less than 2,500 days until we're actually in the year 2029. Yay!

Also, my portfolio's performance for 2022 is negative so far, but I do own a bunch more shares than I did at the start of the year.