Class of 2038

[catch1690]

Hi all,

Didn't see a 2038 thread, will use this as my update thread as well. New to MMM but always lurked. 

First post - Aiming to FIRE by 2038.

Currently Aged 25, Married

- FIRE Goal 1.8m
- Withdrawal Rate 3.3%
- 100% VTSAX currently until closer to date, switch to 20% bonds + a slight amount in international.
- Yearly savings projected currently 60,000 USD on my own. Spouse is doing Bachelors in Comp Sci, should finish mid 2024.
- Salary 150k USD

[Turtle]

Welcome to the forum!  Great first post and great to be planning ahead!

[RWD]

2038 has some significance in computing

[catch1690]

2038 has some significance in computing

Ha! The Y2k38 bug is a new one to me.

Thank-you for the kind welcome.

[sailinlight]

2038 has some significance in computing

Ha! The Y2k38 bug is a new one to me.

Thank-you for the kind welcome.

Thanks for that. Hoping I might be able to capitalize in a decade!

[catch1690]

Hey Gang,

Small update from my side - i'm at 60k today even after the recent market tumble. I believe I will be closer to 70k-80k (Bonus dependent) by end of the year.

[Loren Ver]

You are doing great starting so early!  It is so much easier when you have a long runway and can really get going.  Trying to cram a whole new way of thinking and a new lifestyle into a life right at the end is far less enjoyable. 

Way to go!  Now no matter what happens you can keep falling forward, and if nothing bad happens, you can just keep gaining speed. 

Also, the market doesn't tumble, it just goes on temporary sale.  Look, stocks are on Fall Sale, better stock up hehe.

Loren

[catch1690]

@Loren Ver thank-you for this!

Signing-in just over a year after making my initial post.

How right you were the tumble was temporary before we hit new highs.

Status
I have 75k in 401k/taxable and close to 10k in my HSA.

New Purchases
I just bought a house so I haven't contributed the past couple months. Managed to do so without taking any money out of investments!
Currently have a 7% mortgage on a house I bought just under 300k around Raleigh NC - it matches my old rent in the state I use to live in, salary has increased slightly.
I did buy a new car, which I at times feel guilt for but know it was the correct choice for the market at the time. 2024 Mazda cx-5 with 0% apr - planning to own until wheels fall off.

[Loren Ver]

Sounds like progress.  Congratulations on the house, sounds like you got something reasonable in a crazy housing market. 

Keep us updated!

[markbike528CBX]

As a member of the class of 2018, I can say, that if you sign up for this cohort, you’ve got FIRE covered.

You will have experience to giggle at the panic caused by a 10% drop, yawn at a 30% drop, and sigh yourself to a restful sleep at a 50% drop.

There will be much gnashing of teeth over whether or not to OMY or worse.
Then, after FIRE, the realization that OLY or better was in your grasp all that time will be sheepishly realized.

Proof? Any Class of… thread.

——  Mark, OP of 2019 thread, OLY

Have Fun People!

[catch1690]

Checking in -

The Numbers
I'm officially about to hit 100k in investments (401k, Roth, Taxable) - $113k if we add HSA.
7% mortgage with 275k left on the loan 30 yr w/ PMI - thinking of splitting disposal income with investment contributions and paydown of principal (Thoughts? Maybe a refi opportunity comes up if the noise from markets is anything to believe)
$33,000 left on the car at 0% apr (Still feel guilty about this 1, 5 yr period)

Home
After purchasing the house, we of course had to kit it out with furniture and many small runs to Home depot and such, but i'm compensating now by maxing out 401k by end of year + adding every dime I can to my taxable, I've already contributed my 7k Roth contribution for this year.

I think we've done okay - our house has Solar so we've been enjoying the $15 a month electric bill (full electric house, no gas for cooking etc)

I am concerned about an aging 22yr old HVAC, I don't care so much for the efficiency as we generate far more electric than we use but worried about needing to replace soon.

Income
I got a 10k pay raise and I'm now on a promotion year and pushing for it
My spouse just finished her college degree which is great (no student debt)! Now actively searching for job 

Splurges

The guilt of buying the mazda still hasn't left seeing the payment amount leave my account each month hurts as I think of all the compound growth on the table. But, I counter this with the fact that we are car dependent where we live and the decrease in tax from moving state mitigates a lot of this.

Still, we could be doing better now that used car prices are finally falling.

We drove East coast to West coast and back over 3 weeks from NC visiting; Nashville Tennessee, Bentonville Arkansas, Oklahoma City OK, Amarillo TX, Santa Fe and Albuquerque NM, Grand Canyon, Zion, Las Vegas Nevada, Death Valley CA, Yosemite CA, San Francisco CA, LA CA, San Diego CA, Phoenix Arizona (stayed a few days to WFH a week with a nice pool, summer time Phoenix is fairly cheap), Houston TX (this was a hell of a drive), Birmingham AL (through Mississippi)  and back to NC

This was an amazing trip, probably the best i've ever done and a roughly 7,500 miles round trip. We kept it cheap by sleeping at rest stops (Planet fitness Gym showers) and camping when at Grand Canyon.

I wouldn't have undertaken such a trip without a reliable vehicle so very grateful for it enabling this trip!

Fun fact - Cheapest fuel was in Oklahoma at $2.65 a gallon in Costco! California, particularly driving through the hard-to-reach mountains after Death Valley was insanely expensive for gas at $6-7.00

The Best News - Wife is at early stages of pregnancy! I found out at SF Golden gate bridge, couldn't help but think the timing of the trip was perfect as no way I'm doing that with a newborn in the future. Slightly concerned that it will affect my wife's chances on the job hunt, but she is still not showing and its early enough yet to not face physical discrimination on that front from employers.

The new car probably doesn't hurt for safety in this case but as someone whose most modern car before this was a 2008 stick shift hatch back, I can't help looking at old $3000-5000 cars as I have a soft spot for cheap cool eco cars from 90's - 00's

[catch1690]

Well its around that time again, checking in -

Around the $150,000 mark on investments, currently sitting at $148k, not bad considering we were at 113k in August really shows the recent market hike.

Now that we've hit that mental milestone, will focus paying off Mortgage to get to 20% and to reduce PMI soon.

I am considering diversifying my holdings from 100% VTSAX to 80/20 international split.

[41_swish]

I do not know if 2038 is my true fire year but let's roll with this ballpark range.

- FIRE Goal 1.25m
- Withdrawal Rate 4.0 %
- 100% VOO in Roth IRA, 70 % SP 500, 10 % Small/Medium Cap, 20 % international in 401(k), SP 500 in HSA.
- Yearly savings projected currently 40,000 USD.
- Salary + Bonus 100k USD

This gives me ~13-14 years. I am probably closer to the 15–16-year range, but a lot can change by then. I am single with no children so who knows what the future has in store.

[deek]

I'm chiming in here - would be lucky to get out of the rat race in 2038, but it's possible!

Wife and I are 33 now, we have about $120k in investments (IRA & brokerage). By the end of 2025, we'd like to have that number closer to $190k once we re-arrange some money.

We anticipate be able to invest anywhere from 2500 to 4000 a month from here on out depending on the events & circumstances.

Looking forward to following along!!

[Dicey]

No cliffhangers. How is your wife?

[catch1690]

Very happy to see some others on this journey! @41_swish  and @deek look forward to reading updates.

@Dicey Shes been a champ! Will write a better update when I get proper time to sit down.

[41_swish]

Thank you, @catch1690 ! This community is great, and I look forward to sharing my journey :)

[FireGinslia]

Dropping by from class of 2023, but without discovering FIRE, 2038 would be my “normal retirement” year!
Best of luck everyone

[WiiUAmibo]

Hello,

Joining the race for 2038 retirement from rural France. Aged 26, single.

Every numbers are in 2025 €.

Theoretical maths:

Annual expenses required: 18 000€
==> Fire number at 4% SWR: 450 000€

French taxes on capital gain : 30% (general case, you can get 4600€/year + a special account with only 17,2% of taxation, but it will be for more in-depths maths when I will be closer to target)
==> Fire number accounting for country taxes: 650 000€

I aim for a barista fire with 4000€ yearly income, since you need to pay extra money and taxes for health insurance if you live only on withdrawals. With this in mind, we have :
Final Fire number accounting for country taxes, and desired income: 550 000€

Current situation:
Yearly wage after income tax and taxes not deductible from income tax: 30 000€. Don't forget, in France, our health and unemployment insurance is deducted from our wage and taxable income, so you won't see anything related downward.

Yearly expenses by category:

• House mortage: 6000€
• Flying: 2000€
• House and car insurance: 1832€ (YIKES, didn't see it was so high)
• Property taxes: 1584€
• Utilities (electricity and water): 1552€
• Housekeeper: 1326€
• Groceries: 1200€
• Garden OR bike expenses OR books, let's sum that in leisure: 1200€
• Highway tolls: 1000€
• Outside eating: 550€
• Internet: 350€
• Mobile plan:  72€

==> 18 666€, let's round it to 19 000€, thanks to my bank for the accounting.

==> 36,7% saving rate. All savings go on investing accounts.

Current assets:
124k€ on an ETF tracking MSCI World Index.
24k€ on a secured account (2,4% net yearly interests, but you can use your money anytime).
300k€ house with 40% of the value left in a 0%-rate mortgage that I pay to my father.

Prospective:

Increasing income: got a 10% raise that will enter into effect in July 2025. I'm entering the 30% income tax bracket, so I may need to put the income taxed at this rate in a "Compose now, pay your income tax at exit" account.

Decreasing expenses:

• Flying only every other year: 1000€ saved annually, very efficient, yet unlikely, I'm fond of that
• Finding cheaper insurances: current insurances are all-risks, and I haven't found cheaper insurances for similar guarantees elsewhere. I'm not at ease with going with less covering options.
• Highway tolls: paying those to visit my family once a month (2H30 drive). Will disappear since my father is now paying for the whole family from his own account.

Other:

• Solar panels (9 kWc) are online since last November, and injecting electricity to the grid since middle January. It will decrease the electricity bill and bring more or less 600€ annually in electricity bought by local electricity operator.
• Current car is a cash-paid Tesla Model 3. I expect it to run smoothly for the next 6-7 years at least.

FIRE wishes:

• As already stated, 4000€ income through work or a consulting business.
• I wish to grow an edible food forest on 1 ha (2.5 acres) + building a house (not myself, I'm totally incompetent). Cost of terrain + construction will be offset by an inheritance (that I hope to be in the longest time possible).

At this pace, it gives me 14-15 years to retirement. With pay raises, let's target a 2038 retirement. :)

[wageslave23]

Hello,

Joining the race for 2038 retirement from rural France. Aged 26, single.

Every numbers are in 2025 €.

Theoretical maths:

Annual expenses required: 18 000€
==> Fire number at 4% SWR: 450 000€

French taxes on capital gain : 30% (general case, you can get 4600€/year + a special account with only 17,2% of taxation, but it will be for more in-depths maths when I will be closer to target)
==> Fire number accounting for country taxes: 650 000€

I aim for a barista fire with 4000€ yearly income, since you need to pay extra money and taxes for health insurance if you live only on withdrawals. With this in mind, we have :
Final Fire number accounting for country taxes, and desired income: 550 000€

Current situation:
Yearly wage after income tax and taxes not deductible from income tax: 30 000€. Don't forget, in France, our health and unemployment insurance is deducted from our wage and taxable income, so you won't see anything related downward.

Yearly expenses by category:

• House mortage: 6000€
• Flying: 2000€
• House and car insurance: 1832€ (YIKES, didn't see it was so high)
• Property taxes: 1584€
• Utilities (electricity and water): 1552€
• Housekeeper: 1326€
• Groceries: 1200€
• Garden OR bike expenses OR books, let's sum that in leisure: 1200€
• Highway tolls: 1000€
• Outside eating: 550€
• Internet: 350€
• Mobile plan:  72€

==> 18 666€, let's round it to 19 000€, thanks to my bank for the accounting.

==> 36,7% saving rate. All savings go on investing accounts.

Current assets:
124k€ on an ETF tracking MSCI World Index.
24k€ on a secured account (2,4% net yearly interests, but you can use your money anytime).
300k€ house with 40% of the value left in a 0%-rate mortgage that I pay to my father.

Prospective:

Increasing income: got a 10% raise that will enter into effect in July 2025. I'm entering the 30% income tax bracket, so I may need to put the income taxed at this rate in a "Compose now, pay your income tax at exit" account.

Decreasing expenses:

• Flying only every other year: 1000€ saved annually, very efficient, yet unlikely, I'm fond of that
• Finding cheaper insurances: current insurances are all-risks, and I haven't found cheaper insurances for similar guarantees elsewhere. I'm not at ease with going with less covering options.
• Highway tolls: paying those to visit my family once a month (2H30 drive). Will disappear since my father is now paying for the whole family from his own account.

Other:

• Solar panels (9 kWc) are online since last November, and injecting electricity to the grid since middle January. It will decrease the electricity bill and bring more or less 600€ annually in electricity bought by local electricity operator.
• Current car is a cash-paid Tesla Model 3. I expect it to run smoothly for the next 6-7 years at least.

FIRE wishes:

• As already stated, 4000€ income through work or a consulting business.
• I wish to grow an edible food forest on 1 ha (2.5 acres) + building a house (not myself, I'm totally incompetent). Cost of terrain + construction will be offset by an inheritance (that I hope to be in the longest time possible).

At this pace, it gives me 14-15 years to retirement. With pay raises, let's target a 2038 retirement. :)

Is the housekeeper really worth it? It's more than you spend on groceries.

[41_swish]

A house keep is a HUGE luxury. You have to be making an insane amount of money to justify that. I get that cleaning sucks and everything, but it is not an efficient use of resources.

[mistymoney]

A house keep is a HUGE luxury. You have to be making an insane amount of money to justify that. I get that cleaning sucks and everything, but it is not an efficient use of resources.

it really depends on so much else going on in a particular person's life though. And in some cases ROI can be very high.

an extreme case is some of those hoarder episodes where the person actually ruined the structural support of their houses. maybe if a weekly cleaner kept them on track they would be ahead financially.

Or someone either going for the gusto in their career or working 2 jobs. If they get paid more hoursly in the second job than the housekeeper costs, they are coming out ahead too.

Also - can be a divorce preventative :). I hear those are expensive.

[41_swish]

A house keep is a HUGE luxury. You have to be making an insane amount of money to justify that. I get that cleaning sucks and everything, but it is not an efficient use of resources.

it really depends on so much else going on in a particular person's life though. And in some cases ROI can be very high.

an extreme case is some of those hoarder episodes where the person actually ruined the structural support of their houses. maybe if a weekly cleaner kept them on track they would be ahead financially.

Or someone either going for the gusto in their career or working 2 jobs. If they get paid more hoursly in the second job than the housekeeper costs, they are coming out ahead too.

Also - can be a divorce preventative :). I hear those are expensive.

I do not discredit that there is a time and place for outsourcing your choires, but that is a very niche senario. If that truly makes sense do it. However, most people time is not worth $40 an hour outisde of work

[WiiUAmibo]

To be exhaustive, housekeeping is 2H/week, roughly 18-20€/hour (I get a 50% income tax rebate on gross housekeeper salary, and net > gross is tedious to calculate).

The use case here is that the only well-insulated and ready to inhabit house I found in a reasonably nice area not so far from work was a 2500 sqft home. That's WAY too big currently for myself, so I am ready to trade a year or two of added work to make sure house remains quite tidy.

[deek]

Wife and I just completed our first month of tracking every expense (for January). Feels good to see where all of the money is going, and encouraged that we do in fact have plenty left over to save/invest.