Need help figuring this out!

[focals]

Need some help in wrapping my head around this.

My stats are as follows:


Age: 44 Yrs

Taxable Account: $222,000
Non-Taxable Account: $245,000
Debt: $0
Annual income (Gross): $130,000.
Annual expenses (Self, Wife, Child): $28,000

I guess my FI # is $700,000 [SWR: 4%]. I'm not including any Social Security here, so that'll be a bonus. Also, I might have some inheritance, but who knows. Further, I might generate income in my retirement, again, who knows. Also, I do realize this number is for a 30 Yr time horizon (according to Trinity Study).

My question:
I want to retire ASAP (just like all in FIRE community, I imagine). Working part-time would be a definite stepping stone towards full retirement.

How should I plan this out? Unfortunately, I'm not able to wrap my head around this!
I stand to be corrected over any of my assumptions above :)

Thanks for your help!

[BTDretire]

You probably won't like my help!
If I was making $130k I would not quit my job so I could live on $28,000.
My wife and I made less than half that for most of our lives and retired on 3 times what you proposing. Build your nest egg to at least $1.5M.
 OK, sermon over.

[tawyer]

Based upon what you present, you should be done in about three years. So keep on plugging away at your job, read up on Lean Fire, and resurrect this thread in August 2023 when you retire age 47. =)

[Freedomin5]

Will your expenses stay the same after you retire? The 4% rule of thumb applies to your post-FIRE expenses.

Are you planning to help your child with college expenses? If so, you need to budget for that in your post-FIRE stash.

Can you estimate how much Social Security you will be getting, and at what age you'll starting getting SS? I would try to factor in SS payments, though I would leave out potential inheritances when finetuning the target stash number.

[TheFrenchCat]

Will your expenses stay the same after you retire? The 4% rule of thumb applies to your post-FIRE expenses.

Are you planning to help your child with college expenses? If so, you need to budget for that in your post-FIRE stash.

Can you estimate how much Social Security you will be getting, and at what age you'll starting getting SS? I would try to factor in SS payments, though I would leave out potential inheritances when finetuning the target stash number.

Ditto the above.  For an example, we can live on about 25k a year now, but we assume our health insurance costs will go up after we retire.  Since we also want to pay for college for our daughter and (hopefully) travel a bit too, we're shooting for at least 1 mil before retiring. 

[LennStar]

Also, I do realize this number is for a 30 Yr time horizon (according to Trinity Study).

It is effectivly for infinity, since after 30 years your stash grows the 100% you are taking out. The few cases where after 30 years you were lower than initial was when you invested a lump sum right before a crash and now financial flexibility (lower expenses, some income).

Basically, as long as the stock market behaves roughly like the last 100 years, you are good for forever if A) you don't act dumb like Trump and B) there isn't a huge devastating event where you live.

[MDM]

A couple of things that might be worth reading:

Some Important Questions to Answer Before Asking - Can I Retire? - Early Retirement & Financial Independence Community

pre-FIRE checklist

[ender]

What is your social security estimate for 62?

You can do this on their website. You aren't that far away from social security eligibility at 44 (sorry! hah) and it can mitigate a decent chunk of the risk to a FIRE date.

The other big risk is early sequence of returns.

[Jack0Life]

If I was making $130k at 44, my goal would be to retire before 50.
Put in another 5 yrs and you're good to go. That should put you at $1 million at least.

[bmjohnson35]

FIRE isn't something I would suggest rush into or rely on random people to advise you.  Have you done your research on this site and other FIRE/Investment sites?  How many books have you read?  FIRE is a personal and subjective topic and your plan should be based on your family's goals.  You appear to have a good start and higher than average income, so you have the right ingredients for efficient pursuit of FIRE.  You have to determine where you want to live, what lifestyle you desire and what amount you will need to cover your expenses.  You also should be considering the health insurance plans for your family post employment.  Lastly, raising a child during FIRE adds other expenses/complications that you will need to address.

Good Luck,
BJ
 

[Metalcat]

I completely agree with BJ, you need to spend the next year at least reading up on this and asking questions until the concepts are so intuitive that you don't need to ask big questions like this anymore.

There's A LOT of nuance to understand when it comes to FIRE, just keep saving until you have fully grasped all of that nuance and feel totally confident in understanding your options.

You assume everyone here wants to FIRE asap, when that's not actually true. The most popular topic of discussion here is how many *more* years people feel they need to work after hitting their original savings goal for 4%.

Enjoy the process of learning, it's actually quite fun.

[focals]

Thank you all for responding to my abstract question!
I have some work to do :)