Author Topic: 2026 FIRE Cohort  (Read 118524 times)

Shuchong

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Re: 2026 FIRE Cohort
« Reply #400 on: January 24, 2024, 03:16:01 PM »

  • Our traditional retirement vehicles have become very well-funded, implying that we risk paying some very high taxes when we reach RMD at 75.  To lower that risk, we did a large Roth conversion this year, but intervening market gains brought our traditional portfolios back up to the pre-conversion level (I know, boo fucking hoo). 
Thanks for the welcome @elysianfields

This is indeed the saddest story I have ever heard:) Luckily, my employer has nothing but a 401k to which it contributes no match, so despite maxing it out every year, most of my investments are taxable and I have avoided this terrible problem.[/list]

Turtle

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Re: 2026 FIRE Cohort
« Reply #401 on: January 25, 2024, 08:03:28 AM »
Even with inflation, I'm still planning on pulling the trigger in March or April 2026.  That's going to work out most optimally for me.

I'm close to hitting my number, but I also still have a couple large house maintenance items which I'd like to do while still working in case there are any potential financing deals to take advantage of in the process.

Need to start making lists for the next couple years to make sure I'm not forgetting anything.

Took another look at various dates compared with annual work calendar.  Leaving the first week of June 2026 would mean health coverage for that month and HSA could be used to cover COBRA for 18 months, which puts me at a clean start to the year for ACA in 2028. 

So I may try to hang on that long.

grantmeaname

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Re: 2026 FIRE Cohort
« Reply #402 on: January 25, 2024, 11:24:16 AM »
Have you run the math on how much COBRA vs ACA is worth? I was elated the first time I priced out an ACA plan that met my needs how reasonable it was, but I know that's entirely dependent on what state you're in, family size, your ACA MAGI, and more.

Turtle

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Re: 2026 FIRE Cohort
« Reply #403 on: January 25, 2024, 02:03:03 PM »
Have you run the math on how much COBRA vs ACA is worth? I was elated the first time I priced out an ACA plan that met my needs how reasonable it was, but I know that's entirely dependent on what state you're in, family size, your ACA MAGI, and more.

As a single person, my ACA numbers are smaller.  I likely won't qualify for aid my first year for my state even only working a few months.  It's possible I'll switch from COBRA to ACA a year earlier.  Will definitely compare closer to the date.

afuera

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Re: 2026 FIRE Cohort
« Reply #404 on: January 25, 2024, 02:46:55 PM »
I just realized that my new 401K doesn't fully vest until 2026 so after 9 happy years in the 2025 cohort I'm officially moving to this one for now.

Turtle

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Re: 2026 FIRE Cohort
« Reply #405 on: January 25, 2024, 04:07:54 PM »
Happy to have you!  Maximizing personal value from company benefits is why I'm at least a month or 2 into this cohort. 

elysianfields

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Re: 2026 FIRE Cohort
« Reply #406 on: January 26, 2024, 10:03:16 PM »
I just realized that my new 401K doesn't fully vest until 2026 so after 9 happy years in the 2025 cohort I'm officially moving to this one for now.

¡Bienvenido/a abordo, @afuera!  Sorry to hear about your employer’s long vesting calendar.

Happy to have you!  Maximizing personal value from company benefits is why I'm at least a month or 2 into this cohort.

A-fucking-men to that! Following your employers’ rules to maximize those benefits simply makes sense.

elysianfields

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Re: 2026 FIRE Cohort
« Reply #407 on: January 28, 2024, 03:26:16 AM »

  • Our traditional retirement vehicles have become very well-funded, implying that we risk paying some very high taxes when we reach RMD at 75.  To lower that risk, we did a large Roth conversion this year, but intervening market gains brought our traditional portfolios back up to the pre-conversion level (I know, boo fucking hoo).


Thanks for the welcome @elysianfields

This is indeed the saddest story I have ever heard:) Luckily, my employer has nothing but a 401k to which it contributes no match, so despite maxing it out every year, most of my investments are taxable and I have avoided this terrible problem.

Go Curry Cracker has been writing about his plan to claim Social Security at the earliest possibility.  In one of the recent comments, in response to someone who wants to defer claiming SS in order to use the tax space for Roth conversions between ages 62 and 70, he says,

Quote from: Go Curry Cracker
...Big IRAs get bigger faster than you can convert them... our Traditional IRA/401k is at least 2x bigger than when I quit working 11 years ago despite all the Roth conversions along the way.

While I haven't crunched the numbers myself, we're likely to face this horrible situation on an ongoing basis.
« Last Edit: January 29, 2024, 06:45:36 AM by elysianfields »

FIPurpose

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Re: 2026 FIRE Cohort
« Reply #408 on: January 28, 2024, 08:05:19 AM »
So then would it be better to start converting earlier? Potentially even while working?

Perhaps we imagine ourselves staying under a tax bracket going forward and our estimates are far too optimistic.

If you have 2MM in IRA's at 73 when RMD's begin, you'll start at having to withdraw at least 80k, and it only goes up from there. Add the 20-40k in SS a lot. We imagine ourselves being able to arbitrage in the 10-15% tax bracket range for our retirement and controlling our income level, but that goes out the window after SS and RMD's start.

My wife isn't working atm, but might start again sometime this year. I still have my child tax credits. I've already changed my contributions to start doing more Roth than Traditional, but maybe I should start doing some conversions as well to flatten out the taxes across the next 50-70 years I have left. (And that's not even considering the potential for receiving an inherited IRA in the next 20 years that may also include RMD's at some point soon)

If someone has an article modeling some of this kind of discussion, I'd appreciate the read.

elysianfields

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Re: 2026 FIRE Cohort
« Reply #409 on: January 29, 2024, 06:30:14 AM »
So then would it be better to start converting earlier? Potentially even while working?

Perhaps we imagine ourselves staying under a tax bracket going forward and our estimates are far too optimistic.

If you have 2MM in IRA's at 73 when RMD's begin, you'll start at having to withdraw at least 80k, and it only goes up from there. Add the 20-40k in SS a lot. We imagine ourselves being able to arbitrage in the 10-15% tax bracket range for our retirement and controlling our income level, but that goes out the window after SS and RMD's start.

My wife isn't working atm, but might start again sometime this year. I still have my child tax credits. I've already changed my contributions to start doing more Roth than Traditional, but maybe I should start doing some conversions as well to flatten out the taxes across the next 50-70 years I have left. (And that's not even considering the potential for receiving an inherited IRA in the next 20 years that may also include RMD's at some point soon)

If someone has an article modeling some of this kind of discussion, I'd appreciate the read.

So I don't know how old you are, and if you're in my age bracket (born after 1959), SECURE Act 2.0 raised the RMD age to 75 in 2033 (cf. https://www.kitces.com/blog/secure-act-2-omnibus-2022-hr-2954-rmd-75-529-roth-rollover-increase-qcd-student-loan-match/).

You'd need to look at your AGI and tax brackets, keeping in mind that the TCJA expires on December 31, 2025 as it relates to individual tax brackets.

As I mentioned, Go Curry Cracker has written about this as well:

https://www.gocurrycracker.com/is-your-401k-too-big/
https://www.gocurrycracker.com/is-your-401k-too-big-part-2/

And The Finance Buff says most TSP participants should use Roth because they will receive a pension in retirement.  Exceptions: they're already in a high tax bracket, won't qualify for the pension, if they're obtaining important large tax credits which would phase out due to a higher AGI, or if they're currently in a high-tax state:

https://thefinancebuff.com/most-tsp-participiants-should-switch-to-the-roth-tsp.html

For someone whose Traditional holdings are $1 million at age 55, they could expect those holdings to double 2x in 20 years if they increase at 7% per year (the long-range stock market average return).  This would come to $4 million at the time they start taking RMDs at age 75, meaning an RMD of ~ $160k in the first year.  And who knows what the tax brackets will be when you reach 75...
« Last Edit: January 29, 2024, 04:03:06 PM by elysianfields »

Turtle

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Re: 2026 FIRE Cohort
« Reply #410 on: January 29, 2024, 07:23:33 AM »
I've done some Roth conversions while still working.  Even with those, Roth is about only 15% of what I have in stash.  Taxable retirement accounts are over half.  I do expect the RMDs to be large when I reach 75 regardless of what I do, but having a good chunk in Roth gives me flexibility for the earlier retirement years when I'm guarding against SORR and trying to keep expenses low for ACA.




FIPurpose

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Re: 2026 FIRE Cohort
« Reply #411 on: January 29, 2024, 10:11:38 AM »

For someone whose Traditional holdings are $1 million at age 55, they could expect those holdings to double 2x in 20 years if they increase at 7% per year (the long-range stock market average return).  This would come to $4 million at the time they start taking RMDs at age 75, meaning an RMD of ~ $160k in the first year.  And who knows what the tax brackets will be when you reach 75...

I expect tax brackets to more or less look the same. But what will change is my reporting status at some point. ie my kid will no longer be my dependent, at some point either my spouse or I will likely return to single filing, etc.

The link is helpful though. It looks like staying under 1.5MM (probably even 1MM) would be where IRA might max out for me.

I think I probably need to stop contributing to traditional as it is. I don't know about doing some conversions while still working, perhaps this year's taxes will help with that. There may be some wisdom at the very least maximizing the 12% bracket if I'm not already.

Turtle

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Re: 2026 FIRE Cohort
« Reply #412 on: January 29, 2024, 12:05:31 PM »

For someone whose Traditional holdings are $1 million at age 55, they could expect those holdings to double 2x in 20 years if they increase at 7% per year (the long-range stock market average return).  This would come to $4 million at the time they start taking RMDs at age 75, meaning an RMD of ~ $160k in the first year.  And who knows what the tax brackets will be when you reach 75...

I expect tax brackets to more or less look the same. But what will change is my reporting status at some point. ie my kid will no longer be my dependent, at some point either my spouse or I will likely return to single filing, etc.

The link is helpful though. It looks like staying under 1.5MM (probably even 1MM) would be where IRA might max out for me.

I think I probably need to stop contributing to traditional as it is. I don't know about doing some conversions while still working, perhaps this year's taxes will help with that. There may be some wisdom at the very least maximizing the 12% bracket if I'm not already.

Do not forget that if marital status changes, brackets will change as well.  RMDs could also possibly change depending on whether there was an age difference factored in. 

elysianfields

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Re: 2026 FIRE Cohort
« Reply #413 on: January 29, 2024, 04:00:56 PM »
I've done some Roth conversions while still working.  Even with those, Roth is about only 15% of what I have in stash.  Taxable retirement accounts are over half.  I do expect the RMDs to be large when I reach 75 regardless of what I do, but having a good chunk in Roth gives me flexibility for the earlier retirement years when I'm guarding against SORR and trying to keep expenses low for ACA.

Right, I'm not implying that one should not abandon Roth conversions, simply that if one's Traditional stash becomes too large, it will grow faster than your ability to convert to Roth at the desired tax bracket.  One should examine the details of the bet one is making - should I pay 22% or 24% today or a possibly higher bracket later?

Having Roth funds available, in addition to taxable, clearly provides flexibility, especially if you RE.

In my own case, I don't expect to use ACA as I'll continue to qualify for the FEHB once I hit the minimum required years of service.


I expect tax brackets to more or less look the same. But what will change is my reporting status at some point. ie my kid will no longer be my dependent, at some point either my spouse or I will likely return to single filing, etc.

Correct, continuing to use Traditional contributions to reduce your AGI to obtain the Child Tax Credit makes sense.  But if Uncle Sugar needs more cash, the Congress could certainly raise tax rates, above & beyond the automagic tax increase when the TCJA expires.

I think I probably need to stop contributing to traditional as it is. I don't know about doing some conversions while still working, perhaps this year's taxes will help with that. There may be some wisdom at the very least maximizing the 12% bracket if I'm not already.

Even if taxed at the highest rate, TSP matching remains free money.  You should continue to invest at least 5% of your paycheck - Traditional or Roth - to earn the match.

Turtle

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Re: 2026 FIRE Cohort
« Reply #414 on: January 30, 2024, 07:05:36 AM »
Are we getting close enough that we want to start a roll call for this thread?

I volunteer to compile it if so.


Nutty

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Re: 2026 FIRE Cohort
« Reply #415 on: January 30, 2024, 09:35:32 AM »
 A roll call sounds good.  However, my SO is getting anxious about not having employer health care.  It's a slow process getting educated about the options.

Thank you for the information about the Roth.  I need to read and understand it more.  In the process of looking for a fee only advisor.  PM me if someone has a recommendation cause I'm not understanding a lot. 

Turtle

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Re: 2026 FIRE Cohort
« Reply #416 on: February 02, 2024, 09:29:56 AM »
Initial Roll Call earburn for everyone who has posted in this thread within the past few years.

@9patch
@afuera
@alcon835
@bluzi2027
@cannotWAIT
@elysianfields
@Extramedium
@FIPurpose
@fireready
@Focus_on_the_fire
@grantmeaname
@Gronnie
@Huskerfan
@jinga nation
@JJ-
@LeftA
@lilkidjesus
@LinneaH
@LoanShark
@magus
@Milkshake
@Mini-Mer
@Must_ache
@nurseart
@Nutty
@OttawaNeal
@OurTown
@PlanetDee
@Purple_Crayon
@Reader
@regenaeb
@rockeTree
@Sailor Sam
@Shuchong
@the_hobbitish
@tj
@tomorrowsomewherenew
@TomTX
@wageslave23
@Dexterous - changed to 2028 due to new work position
@farmecologist - OYL to 2025

Please post whether or not you wish to be included in future roll calls, with month/age if you'd like that included.

grantmeaname

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Re: 2026 FIRE Cohort
« Reply #417 on: February 02, 2024, 10:29:05 AM »
I am probably March 2026, when I will be 34

afuera

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Re: 2026 FIRE Cohort
« Reply #418 on: February 02, 2024, 10:52:55 AM »
October 2026 and I'll be 35

Purple_Crayon

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Re: 2026 FIRE Cohort
« Reply #419 on: February 02, 2024, 11:12:25 AM »
December 1st, 2026 at the latest. I'll be 40.

tj

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Re: 2026 FIRE Cohort
« Reply #420 on: February 02, 2024, 11:40:17 AM »
If it's 2026 for me, I'm guessing that it'll be towards the end of the year. I'll be 41.

jinga nation

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Re: 2026 FIRE Cohort
« Reply #421 on: February 02, 2024, 11:46:47 AM »
I'm FI. But not RE (spouse has taken that glory).
New plan is to FIRE by end 2032.

tj

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Re: 2026 FIRE Cohort
« Reply #422 on: February 02, 2024, 12:31:44 PM »
I'm FI. But not RE (spouse has taken that glory).
New plan is to FIRE by end 2032.

How did you get stuck with the six extra years of work? Hopefully that is a desirable outcome for you.

rockeTree

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Re: 2026 FIRE Cohort
« Reply #423 on: February 02, 2024, 12:50:36 PM »
Hmm my spouse also left the workforce two years earlier than planned. Still might be a thing at the very end of 2026, but I suspect it will creep OMY or even two unless the markets are absolutely roaring/we are very confident of health care being a solved problem due to policy changes of some sort.

cannotWAIT

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Re: 2026 FIRE Cohort
« Reply #424 on: February 02, 2024, 03:10:24 PM »
I'm technically still with you but struggling mightily and might end up a December 2024 graduate. Even that sounds like an eternity.

Shuchong

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Re: 2026 FIRE Cohort
« Reply #425 on: February 02, 2024, 06:13:17 PM »
I'm technically still with you but struggling mightily and might end up a December 2024 graduate. Even that sounds like an eternity.

Well, internet points for an accurate username, though sorry to hear that the job sucks so much!

alcon835

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Re: 2026 FIRE Cohort
« Reply #426 on: February 02, 2024, 09:49:05 PM »
Current goal is July 2026, when I will turn 40. 

PlanetDee

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Re: 2026 FIRE Cohort
« Reply #427 on: February 03, 2024, 07:11:17 AM »
I’m in! Aiming for December 2026 when I will be 35. We will be pretty lean at that point.

FIPurpose

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Re: 2026 FIRE Cohort
« Reply #428 on: February 03, 2024, 09:35:07 AM »
I am probably on the more pessimistic side of this.

I don't think I'll be attaining FI by 2026. I think like too many Uber drivers, this board tends to hide behind hidden costs that they absorb. And thankfully the US economy continues to be strong, so those costs perhaps are easier to ignore. For example, if healthcare costs are the main driving factor of inflation, then we may be ignoring our increasing future costs while hiding behind our current health and youth. Or simply writing certain house repairs or large purchases as "one-offs" and not counting them in an annual budget. I think it biases too many people to think they're spending less than they actually are.

So rather than necessarily taking my actual spending in any given year as my expenses, every FIRE budget should include some level of annuitizing on going larger costs.

I think the 2021-2023 inflation adjusted total returns averaged something like 3-4%, which comes out to a 1-2 year delay from the standard 7-8% estimates a lot of us use.

Could there be an amazing turn around where our economy both continues to expand while our costs also deflate 1-2%? I guess anything is possible, but it doesn't feel probable.

I'll hold my opinion for another year or 2, but for personal planning, I don't think it'd be wise to consider myself FIRE'd until 2028. (I'll be 37 then)

frugaldevil

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Re: 2026 FIRE Cohort
« Reply #429 on: February 03, 2024, 10:38:25 AM »
I'm planning for summer 2026. I'll be 49.

Will probably need to dial back current spending a bit or have partner continue part time for a few more years. But there's a really nice reset in my job that makes the timing ideal for me.

wageslave23

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Re: 2026 FIRE Cohort
« Reply #430 on: February 03, 2024, 03:37:06 PM »
I am probably on the more pessimistic side of this.

I don't think I'll be attaining FI by 2026. I think like too many Uber drivers, this board tends to hide behind hidden costs that they absorb. And thankfully the US economy continues to be strong, so those costs perhaps are easier to ignore. For example, if healthcare costs are the main driving factor of inflation, then we may be ignoring our increasing future costs while hiding behind our current health and youth. Or simply writing certain house repairs or large purchases as "one-offs" and not counting them in an annual budget. I think it biases too many people to think they're spending less than they actually are.

So rather than necessarily taking my actual spending in any given year as my expenses, every FIRE budget should include some level of annuitizing on going larger costs.

I think the 2021-2023 inflation adjusted total returns averaged something like 3-4%, which comes out to a 1-2 year delay from the standard 7-8% estimates a lot of us use.

Could there be an amazing turn around where our economy both continues to expand while our costs also deflate 1-2%? I guess anything is possible, but it doesn't feel probable.

I'll hold my opinion for another year or 2, but for personal planning, I don't think it'd be wise to consider myself FIRE'd until 2028. (I'll be 37 then)

I hope no one is expecting or planning for 7-8% real returns.  I plan on 6% nominal or 4% real returns.

alcon835

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Re: 2026 FIRE Cohort
« Reply #431 on: February 05, 2024, 06:37:00 AM »
I am probably on the more pessimistic side of this.

I don't think I'll be attaining FI by 2026. I think like too many Uber drivers, this board tends to hide behind hidden costs that they absorb. And thankfully the US economy continues to be strong, so those costs perhaps are easier to ignore. For example, if healthcare costs are the main driving factor of inflation, then we may be ignoring our increasing future costs while hiding behind our current health and youth. Or simply writing certain house repairs or large purchases as "one-offs" and not counting them in an annual budget. I think it biases too many people to think they're spending less than they actually are.

So rather than necessarily taking my actual spending in any given year as my expenses, every FIRE budget should include some level of annuitizing on going larger costs.

I think the 2021-2023 inflation adjusted total returns averaged something like 3-4%, which comes out to a 1-2 year delay from the standard 7-8% estimates a lot of us use.

Could there be an amazing turn around where our economy both continues to expand while our costs also deflate 1-2%? I guess anything is possible, but it doesn't feel probable.

I'll hold my opinion for another year or 2, but for personal planning, I don't think it'd be wise to consider myself FIRE'd until 2028. (I'll be 37 then)

I hope no one is expecting or planning for 7-8% real returns.  I plan on 6% nominal or 4% real returns.

Why would you assume the current lull is infinite?

OurTown

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Re: 2026 FIRE Cohort
« Reply #432 on: February 05, 2024, 10:26:45 AM »
Hoping to make it in 2025, I will keep you posted if I OMY into 2026.

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Re: 2026 FIRE Cohort
« Reply #433 on: February 05, 2024, 10:31:36 AM »
Thanks for tallying everyone up, @Turtle. After a few years on this thread I realized I'm bad at math, and will be the 2027 cohort. D'oh!

wageslave23

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Re: 2026 FIRE Cohort
« Reply #434 on: February 05, 2024, 11:06:33 AM »
I am probably on the more pessimistic side of this.

I don't think I'll be attaining FI by 2026. I think like too many Uber drivers, this board tends to hide behind hidden costs that they absorb. And thankfully the US economy continues to be strong, so those costs perhaps are easier to ignore. For example, if healthcare costs are the main driving factor of inflation, then we may be ignoring our increasing future costs while hiding behind our current health and youth. Or simply writing certain house repairs or large purchases as "one-offs" and not counting them in an annual budget. I think it biases too many people to think they're spending less than they actually are.

So rather than necessarily taking my actual spending in any given year as my expenses, every FIRE budget should include some level of annuitizing on going larger costs.

I think the 2021-2023 inflation adjusted total returns averaged something like 3-4%, which comes out to a 1-2 year delay from the standard 7-8% estimates a lot of us use.

Could there be an amazing turn around where our economy both continues to expand while our costs also deflate 1-2%? I guess anything is possible, but it doesn't feel probable.

I'll hold my opinion for another year or 2, but for personal planning, I don't think it'd be wise to consider myself FIRE'd until 2028. (I'll be 37 then)

I hope no one is expecting or planning for 7-8% real returns.  I plan on 6% nominal or 4% real returns.

Why would you assume the current lull is infinite?

6% nominal seems to be what most of the investment firms predict for the near future.  I have no idea, so I'd rather plan conservatively.

OttawaNeal

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Re: 2026 FIRE Cohort
« Reply #435 on: February 05, 2024, 11:21:41 AM »
Even though I'm targeting March 13th, more realistically let's go with Dec 31, 2026. I will be 46.
I think it'll make good sense at that point to work until the end of the year, collect one more 10% bonus and have them pay it to me in January 2027 (taxes will be very minimal on it then).  My wife plans to continue working for a few more years after, which should cover off most of our expenses anyways.

Must_ache

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Re: 2026 FIRE Cohort
« Reply #436 on: February 05, 2024, 12:13:23 PM »
You can drop me from here.  I'm retiring in less than two months, but open to something part-time at some point.

Turtle

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Re: 2026 FIRE Cohort
« Reply #437 on: February 05, 2024, 12:46:36 PM »
You can drop me from here.  I'm retiring in less than two months, but open to something part-time at some point.

Congratulations!

Nutty

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Re: 2026 FIRE Cohort
« Reply #438 on: February 06, 2024, 07:35:26 AM »
You can drop me from here.  I'm retiring in less than two months, but open to something part-time at some point.
Congratulations!  We'd love to hear an encouraging story, if you want to share.  Even the mundane is inspiring.

I'm awestruck by the ages being posted.  Good for y'all!  I'm aiming for June 2026 after our bonus posts.  I'll be 56 with 4 kids out of the house.

We have an incentive account that I'll be walking away from if I do go before 62.  Assuming the awards stays the same, that will be a bunch of money sitting on the table.  Being FI is good and the BS tolerance has already been dropped.  Yep, I'm the old guy not afraid to say something. 

Turtle

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Re: 2026 FIRE Cohort
« Reply #439 on: February 06, 2024, 09:46:54 AM »
So far it looks like I'm the oldster of this cohort.  I've posted around on cohorts before and after this one before figuring out my most optimal date, so I'm not surprised other folks have as well.

Here's the list so far, minus any earburn this time.

9patch      
afuera       October        35
alcon835      July        40
bluzi2027      
cannotWAIT   2 YL (Maybe)   
elysianfields      
Extramedium      
FIPurpose           2MY   
fireready      March        50
Focus_on_the_fire      
frugaldevil      
grantmeaname   March   34
Gronnie      
Huskerfan      
jinga nation   OMY+   Spouse  is FIREd
JJ-      
LeftA      
lilkidjesus      
LinneaH      
LoanShark      
magus      
Milkshake      
Mini-Mer      
Must_ache           2YL   
nurseart      
Nutty            June   56
OttawaNeal      
OurTown      1YL
PlanetDee           December   35
Purple_Crayon   December   40
Reader      
regenaeb      
rockeTree       OMY+   Spouse is FIREd
Sailor Sam   OMY   
Shuchong      
the_hobbitish      
tj           End Of Year   41
tomorrowsomewherenew      
TomTX      
Turtle            June   58
wageslave23   SWAMI -   Year TBD
Dexterous          2MY      
farmecologist     OYL to 2025      

If layoffs hit my department, I'll leaner FIRE at whatever point that is though, so my date isn't set in stone either. 
« Last Edit: February 06, 2024, 03:23:03 PM by Turtle »

wageslave23

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Re: 2026 FIRE Cohort
« Reply #440 on: February 06, 2024, 12:13:20 PM »
Turtle, you can remove me from the list.  I'm not sure when I will FIRE.  Technically I'm FI now, but I'm going to keep padding the stache while I don't mind my job.

fireready

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Re: 2026 FIRE Cohort
« Reply #441 on: February 06, 2024, 02:42:13 PM »
@Turtle

Still on track for March 2026 will be 50 years old at that time. 

fireready

LinneaH

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Re: 2026 FIRE Cohort
« Reply #442 on: February 18, 2024, 09:26:46 AM »
I'd like to still be in this group, for December 2026, when I will be 54.

But to be honest, I just don't know. I have two kids, 13 & 11, and I have a really hard time understanding how much money I will need for them. When I set that date many years ago, I was still married, in a two-income family. The divorce has changed a lot, and my ex has changed a lot (or maybe he just hid it better before :-) ). I now feel I need to be able to take care of certain big-ticket items in the next ten years for the kids myself, anything from ex will come as unexpected bonus. I do have specific money set aside, so I am not worried, but it will probably delay my date up to 5 years, and may not be early at all, but at least earlier than it could have been. Some things are more expensive when one lives as single parent.

But on the other hand, I don't want to seem sad. It is glorious to make all the decisions as I want to and prioritizing without needing to take another opinion into account, I am very happy with my life.

rockeTree

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Re: 2026 FIRE Cohort
« Reply #443 on: February 18, 2024, 09:53:07 AM »
No better goal than “very happy with my life”, sounds like you are coming out of upheaval on top :-)

Redhotdog

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Re: 2026 FIRE Cohort
« Reply #444 on: March 13, 2024, 06:31:41 AM »
I am in! July 2026. I will be 53. Long time FI now time to finally RE

Turtle

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Re: 2026 FIRE Cohort
« Reply #445 on: March 13, 2024, 11:48:04 AM »
I am in! July 2026. I will be 53. Long time FI now time to finally RE

Congratulations and welcome!

Here's the current list of folks with 2026 plans:

afuera          October        35

alcon835           July        40
   
fireready           March        50
   
grantmeaname   March   34
         
LinneaH      December   54
      
Nutty            June   56   

PlanetDee           December   35

Purple_Crayon   December   40

Redhotdog           July      53   
   
tj           End Of Year   41
   
Turtle            June   58

farmecologist

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Re: 2026 FIRE Cohort
« Reply #446 on: March 14, 2024, 08:40:56 AM »
I'd like to still be in this group, for December 2026, when I will be 54.

But to be honest, I just don't know. I have two kids, 13 & 11, and I have a really hard time understanding how much money I will need for them. When I set that date many years ago, I was still married, in a two-income family. The divorce has changed a lot, and my ex has changed a lot (or maybe he just hid it better before :-) ). I now feel I need to be able to take care of certain big-ticket items in the next ten years for the kids myself, anything from ex will come as unexpected bonus. I do have specific money set aside, so I am not worried, but it will probably delay my date up to 5 years, and may not be early at all, but at least earlier than it could have been. Some things are more expensive when one lives as single parent.

But on the other hand, I don't want to seem sad. It is glorious to make all the decisions as I want to and prioritizing without needing to take another opinion into account, I am very happy with my life.

2025 will be the time for decision making for me.   I will turn 55 and at that point the "rule of 55" for my 401k is an option, as well as my company kicking in a health assistance account that only kicks in once you turn 55. 

If you have a 401k, look into the "rule of 55".  We likely won't have to tap into the 401k, but the "rule of 55" gives us penalty free withdrawal options, and it is always good to have options!

Note that the "rule of 55" starts from the year you turn 55...so for me, I'm eligible Jan 1st, 2025.   With that said, I am still waffling between 2025 and 2026.  We will see how it goes at work after 2025.  I suspect I won't make it until 2026.


« Last Edit: March 14, 2024, 08:43:12 AM by farmecologist »

elysianfields

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Re: 2026 FIRE Cohort
« Reply #447 on: March 14, 2024, 10:26:07 PM »
I'd like to still be in this group, for December 2026, when I will be 54.

But to be honest, I just don't know. I have two kids, 13 & 11, and I have a really hard time understanding how much money I will need for them. When I set that date many years ago, I was still married, in a two-income family. The divorce has changed a lot, and my ex has changed a lot (or maybe he just hid it better before :-) ). I now feel I need to be able to take care of certain big-ticket items in the next ten years for the kids myself, anything from ex will come as unexpected bonus. I do have specific money set aside, so I am not worried, but it will probably delay my date up to 5 years, and may not be early at all, but at least earlier than it could have been. Some things are more expensive when one lives as single parent.

But on the other hand, I don't want to seem sad. It is glorious to make all the decisions as I want to and prioritizing without needing to take another opinion into account, I am very happy with my life.

2025 will be the time for decision making for me.   I will turn 55 and at that point the "rule of 55" for my 401k is an option, as well as my company kicking in a health assistance account that only kicks in once you turn 55. 

If you have a 401k, look into the "rule of 55".  We likely won't have to tap into the 401k, but the "rule of 55" gives us penalty free withdrawal options, and it is always good to have options!

Note that the "rule of 55" starts from the year you turn 55...so for me, I'm eligible Jan 1st, 2025.   With that said, I am still waffling between 2025 and 2026.  We will see how it goes at work after 2025.  I suspect I won't make it until 2026.

Good reminder on the Rule of 55, @farmecologist, and glad to see you doing well, @LinneaH .

We're considering working OMY beyond 2026, or really some months into 2027, to deleverage our portfolio and ensure that my spouse qualifies for her pension.  The increase in my pension drops to a not-worthwhile level after November 2026.  I posted some detail over in the "How many Feds here hanging on for MRA" thread.  Stay tuned for further developments.

PlanetDee

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Re: 2026 FIRE Cohort
« Reply #448 on: March 16, 2024, 08:07:19 AM »
Life update from me. Was able to negotiate down to an 80% schedule at my government job, so will be starting that in a couple weeks. Boss makes it sound like it will be a long term thing. I am beyond excited! I’m also a massage therapist, so hope to use some of the extra time in the week to pursue some massage hours for fun and extra money.

I’ve been really reflecting on what I really want as I get closer to my FIRE number and that’s better balance. So I don’t think I will actually fully retire in 2026, but keeping my options open and enjoying a bit more coast on my way there.

Happy almost Spring to you all!

Turtle

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Re: 2026 FIRE Cohort
« Reply #449 on: March 18, 2024, 07:57:09 AM »
Life update from me. Was able to negotiate down to an 80% schedule at my government job, so will be starting that in a couple weeks. Boss makes it sound like it will be a long term thing. I am beyond excited! I’m also a massage therapist, so hope to use some of the extra time in the week to pursue some massage hours for fun and extra money.

I’ve been really reflecting on what I really want as I get closer to my FIRE number and that’s better balance. So I don’t think I will actually fully retire in 2026, but keeping my options open and enjoying a bit more coast on my way there.

Happy almost Spring to you all!

That sounds like the best of both worlds.  Happy coasting!