Investment allocation for FIRE
My wife (Japanese citizen) and I (US citizen, Japan PR) are both in our mid 40s. We have two kids around middle school age. We live in a small city on the West coast where the cost of living is pretty reasonable.
There's a high likelihood I'll be laid off this year. Even if I don't get laid off, I might quit. I have no intention to work again, though if an interesting opportunity came up I would consider it. My wife is also unemployed.
I have about $3M in US stocks - all pretty much invested in Broad Market ETFs (e.g. VTI). About $500K is in a US IRA account, with the rest being in a post-tax US brokerage account. I have about $70K in cash (after I pay a fairly substantial estimated tax payment that is due this year). And about ¥8M in a Japanese "defined contribution" retirement account.
Our house and cars are paid off.
I think I should be eligible to receive US Social Security - though the amount will probably be fairly small since I just barely hit the required number of years to be eligible. I should also be eligible for Japanese Nenkin - which I also understand will pretty minimal. I think my wife also qualifies for Nenkin via my employer, though I really do need to have her log in and verify they have been making payments on her behalf all these years.
At some point in the future (hopefully not any time soon although my parents are getting up there) I will likely inherit a few million dollars (pre-tax).
The picture on our living expenses is a bit hazy right now. In a given year I pretty much blow through my entire ¥20M (gross) salary. But a lot of that goes toward paying taxes incurred on vesting RSUs, and some large purchases in the way of cars, home improvements, real estate, travel, etc.
To be honest I don't really know what our monthly living expenses are, and I know I need to do some work here to get a clearer picture. I think that the amount that we actually *need* to live comfortably is more like ¥600K/mo. That being said, based on my my math I think I would be able to cover even ¥1M/mo with a 3% withdrawal rate if needed.
I know this is all a bit sloppy, and I have some work to do to get my financial house in order. FIRE has always been something that I've dreamed about in the back of my mind, but this year it's like a flip has switched, and now I rather suddenly feel like it's time.
What I'm looking for now is some advice on next steps/preparations. Recommendations for asset allocation. Any rude surprises that I might be in for? (I know resident taxes and health insurance are going to suck in the first couple years, for example) Any other thoughts, advice, or suggestions for further reading?