A lot of people end up with their savings heavily concentrated in their company's stock through RSUs/ISOs/ESOPs. At what point (concentration percentage) do you think it's worth taking the tax hit in order to reduce your company stock holdings?
30M/F, married by EOY 2026
NW: ~1.3M
Partner essentially at 0 NW. Will complete school for nursing end of 2027.
Historical and expected income
We are currently undecided about trying to have kids. We don't have specific retirement goals, especially given the impact of choosing to have kids, or other major life decisions down the line. Obviously the sooner we retire the more we need to cover until age 60. We live fairly frugally but don't hesitate to travel or make purchases we want (annual expenses ~65-75k)
I am interested in moving out of tech and into a social impact industry but I have fantastic WLB and great compensation. Hard to say goodbye to. I also want my partner to begin building their own net worth for financial security and general comfort.
Some scenarios/decisions include (not necessarily mutually exclusive):
Incredibly fortunate to be where we are at but having trouble feeling fulfilled at work; and deciding what is enough before taking a hit to our income; and will a different job even feel more fulfilling or should i just focus on building the fulfilling hobbies while continuing as is: or do I really just need to switch from remote to in person/hybrid to feel more fulfilled at work? And so on. How do y'all think about these questions?
Using the traditonal 4% swr, my $2.5m nw at age 53 would seem like it could spin off $100k gross spend per year, and maybe roughly $84k of net spend of taxes per year, but if you add in social security, roth conversions, and a guard rails approach, I found that I could safely spend $120k net ($133k gross) with a 90%+ chance of never running out of money before age 90.
$133k gross withrdrawal would be equal to 5.3% swr in the beginning. The key elements that made my withdrawal rate sustainable was:
Social security kicking in at age 67 substantially lowering swr from there on out.
Guardrails approach means if i am willing to lower my net spend to about 9k on leans years, and 10k / month on good years, ups my success rate quite a bit.
with a starting pre/post tax mix of 60pre / 40post tax accounts, doing a good amount of roth conversions from age 55 - 70 means my net tax rate will go down to about 7-8%
Point is, If i used standard calculations of an 8.3k / month spend on $2.5m nw, at net, you would think you can spend $7k/month net of taxes, but the real number if you plan it correctly, you can really spend between $9k - $10k per month and have 90% success rate.
Its worth it to dig into the details...
I am planning to call it quits this year after 29 yrs of working. Ran numbers and 72t is the way I am going.
I know brokerage will code it as early withdrawal on 1099-r and its our responsibility to file 5239 and maintain proper SEPP withdrawal to avoid 10% penalty retroactive. Those you are on SEPP and are filing taxes each year, what is your go to documentation? Did you do SEPP yourself or went thru CPA?
I’m looking for a gut check on whether my FIRE plan seems reasonable or if I’m missing major risks. I personally feel like it’s looking good, but the level of my mom’s angst has me hoping for some feedback.
I’m currently 46 (turn 47 in August), single w/ no kids, live in a low-medium COL area, and am targeting retirement in August 2029.
Current assets:
401(k): $789k
Roth IRA: $170k
Taxable brokerage: $160k
HSA: $48k
RSUs: ~$32k (vesting over 3 yrs)
Paid off house ($315k)
No debt other than a 0% car loan
Total investable assets (excluding RSUs) = $1.1M
I’m saving like crazy:
~$2,200 biweekly into taxable
401(k) up to employer match approx. $8.5k per year + $8.5k match
annual bonus/RSUs mostly invested
additional investing after hitting SS wage cap
Estimated additional investing before retirement:
Total annual savings = $100k-ish
Most of the savings are going into SGOV in my taxable account right now because my biggest concern is SORR, plus I need to bridge to 59.5. My bridge plan includes the taxable account, Roth laddering and maybe SEPP while also managing taxable income.
My planned spending is average $92k per year all in with taxes, health insurance and accounting and including stuff like home maintenance and vehicle sinking funds. A good $20k+ of that is discretionary spending so I have levers to pull if needed.
Annual expected income
Social security: $27k @62, $39k @67, $48k @70
Pension (not inflation adjusted): ranges from $13.5k if I start taking it at 55 to $59k at 70
Does my plan seem reasonably viable? Anything missing?
Growing up with parents that were anxious about money, remembering the '08 recession, and now the current state of world and inflation I always feel anxious about if I'm doing ok and recheck my numbers if I'm doing "enough". Now wondering if others feel similarly. Like things could be worse but I still still feel insecure. I grew up hearing the saying "If you fail to plan, you plan to fail." My biggest fear would be not making my parents proud/ failing financially and ever having to move back home or asking them for help out of a hole.
I was looking to get feedback on my budget of where I could improve things and how to deal with the anxiety I get around spending even when I'm hitting my savings goals from those who have are closer to retirement.
Context:
31M Nurse, live alone. 1 full time job (36hrs/wk) , 1 per diem job (2-3 shifts/month)
On average I do ~48 hrs /wk between both depending on if FT has overtime or not.
Income from this year is projected at 135K between both jobs and including interest income on MM (~4k/yr) in high COL USA.
Monthly Expenses:
Rent 2770
Heating 30
Electric 35
Water 25
Internet+Streaming 40
Gas 80
Car Insurance 180
Union dues 90
Health Insurance: 87
Dental: 29
Groceries+eating out ~600
Total: ~3950
After taxes, If I just worked my regular 36hrs FT without any OT or per diem I have 800 leftover per month, w/ extra shifts can be about 2-3k left per month (depends on # and if overtime rate or not). I tend to buy $200 in groceries every ~10days but I also buy out a lot at work. It's hard to resist when coworkers are getting uber eats and you have a boring sandwich but I do make coffee at home now. I also am more likely to buy out if it's an extra shift because it feels easier to justify...
I'm trying to sustain putting 14% in my 403b and maxing out my IRA. No car or student loans. Bulk of savings is in a money-market, 152k, which I add ~2k/mo to. Planned for a house down payment but I've been hearing it's better to keep renting and just continue saving since loan APRs are so high right now, and I'll make more putting money in stock? and about 2k in a checking account. 403b is around 60k and IRA around 30k (index funds). Outside of my budget and food, if there's a "want item" that I'm buying I will pick up extra to pay for it so that it doesn't come out of my savings or expenses budget if that makes sense. E.g. A vacation is ~5 extra shifts. Gaming console 2 shifts. etc.
Thanks for your input!
Hey ya'll. Been doing my retirement math and I never thought it'd apply to me, but turns out it does - I am over invested in my IRA and 401k. Planning on retiring in a couple years at 40. I am no longer adding new investments as I want a solid cash buffer for the first few years. Even accounting for pulling IRA principal and converting my 401k to Roth IRA and pulling principal, I probably won't have enough to make it until 55 (when I believe there are some tricks to be done?).
All this to say, do the math and figure this out earlier than later if you're planning a rather young RE and have been pumping $ into 401k and IRA.
I have a large sum in a Target Date Fund in my rollover / traditional IRA . The reason was because the company I was with had limited options in their 401K and it made sense at the time.
Now, I'm considering whether this FIOFX. Fidelity Freedom Index Fund 2045, is still the right fit for me at this stage. As I’ve reviewed the allocation, I’m wondering if the target-date structure — particularly the bond and international exposure — may be creating more return drag than I really need given my risk tolerance and goals.
I’m considering simplifying the portfolio into something more intentional and US-focused, roughly:
65% FXAIX
20% QQQ
15% SGOV
I'm more aggressive in general with my Roth (100% stocks) - still have my current 401K in another TDF but my thinking is that this would give me more control over the allocation while still keeping a conservative anchor through SGOV rather than the broader target-date approach.
Would appreciate any thoughts and feedback.
For context, I am currently contributing to a roth 401k with my employer. I'm in the 24% tax bracket today with an annual spend of about 60k.
I'm curious as to which option this community thinks is best
Hello fine folks of Reddit! Welp, my last day was last week. After 25 years in marketing (the last 7 as an executive) I (50M) do not plan to work again. My wife (44F) plans to work another 8 years—even so, I now consider myself FIRE’d, even if she is not. I know some will quibble with calling myself Fire’d if she’s still working. ¯\_(ツ)_/¯
First, the numbers, then some other details:
$10.5MM NW
- $4MM house (VHCOL, paid off)
- $3.3MM in retirement accounts (mostly 401ks, - with a bit in IRAs and HSAs)
-$3.2MM in brokerage accounts—about $2.7 MM in index funds, the rest in fully vested RSUs from a former employer
- $90k in cash
We also have $550k in 529s for our 3 kids, but not including that in NW.
Looking at those number, we’re certainly overweight on illiquid real estate and retirement accounts. However, as mentioned, my wife is continuing to work. She’s a managing partner of her firm, and conservatively will pull in $2MM/year over the next 8 years. Post that period, she’ll be able to sell her equity in the firm to other partners, which we think should bring in about $800k a year pre-tax. With a paid off house, we’ll have relatively low yearly spend (~$120,000), so we’ll be able to invest much of that income. After taxes and expenses, we think about $1MM a year in additional investment the next 8 years, and $300k after that. So we’re quickly on our way to fat. We’ll be on her health insurance and she may be able to stay on in a very fractional role after “retiring” to maintain health benefits.
Anyway, I wake up everyday marveling at where we are, and don’t take any of this for granted. Per many posts on FIRE subs, I don’t have anyone else to tell, so thanks for being my audience.
I just want to be done man, hate my clients, hate my job, want to sit in my house, play video games , hang out with my pets, cook for my parents and garden for the rest of my life. Please tell me I’m close.
I'm doing my own math in a google sheet and I can't for the life of me figure out how withdrawing 4% of the starting balance every single year would ever deplete the retirement balance.
What am I missing? I know the market isn't going to grow every single year but it's also not going to be flat over 30 years?
Sorry if this is the wrong sub for this question.
New to FIRE and trying to sanity check whether my assumptions/math are reasonable or if I’m missing something obvious.
I’m 40, married (finances are split equally with partner 5 years younger), living in the NYC area. Current annual spending is roughly $72k/year on my side, including ~$2600/month for my portion of rent. Currently, making $186K annually. No mortgage currently.
Current individual net worth is about $1.265M:
- ~$598k in 401k
- ~$87k Roth IRA
- ~$450k taxable managed brokerage
- ~$32k TOD brokerage
- ~$55k HYSA
- ~$42k checking
Currently saving about $52k/year:
- maxing 401k
- maxing backdoor Roth
- remainder into mega backdoor Roth
From what I’ve been reading, my estimated FIRE number seems to be somewhere around:
- ~$1.8M using 4%
- maybe ~$2M-$2.2M if being more conservative due to retiring early and healthcare concerns
One thing that surprised me is learning that I may already be at Coast FIRE territory based on current investments + age.
Using rough assumptions (~7% growth and continuing current savings), it seems like I could potentially:
- hit lean/basic FIRE around 45-47
- hit more comfortable FIRE around 48-52
Does that seem realistic to folks here, or am I being overly optimistic?
One thing I’m still trying to mentally work through is healthcare and the idea of retiring “early” while potentially living another 40-50 years. I also don’t know if I’d ever fully stop working. Honestly, I could see myself doing something lower stress later in life, even something random like becoming a flight attendant just for benefits/travel/social interaction.
Curious how others here would evaluate my current position and whether my timeline assumptions sound reasonable.
I’ve been thinking about this seriously lately and I’m curious what the FIRE community thinks (let’s not consider current geopolitical situation, just normal everyday)
I work as cabin crew in the Middle East, 23 years old, (Gulf airlines type of setup). The big advantage is that accommodation and transport are provided, and income is tax-free.
Example numbers:
At an 80% savings rate, that’s roughly:
Compared to many Western countries where rent alone destroys savings potential, this feels almost “cheat code” level for accumulation in your 20s.
So I’m wondering:
I know $39k/year is not a huge salary in absolute terms, but keeping 80%+ seems rare almost anywhere else without a very high-paying tech/finance career.
Curious to hear thoughts from people deeper into FIRE math than me.
Hi folks! I'm mentally preparing myself to chubbyFIRE next year as a 51 year old divorced guy.
I'm trying to figure out what my dating life might look like. My guess is that everyone will still be working, and probably not have retirement on the near horizon. I'm predicting awkward conversations around careers and work.
Has anyone else here retired as a single person, and had dating experiences? How did it go? Any tips? Any experiences you'd like to share?
Thanks!
We can all see in the distance the looming AI winter building up, AI becoming more powerful by day and making more jobs obsolete.
So realistically, how many more years do we have to save before the full blunt of the AI winterstorm hits and makes saving money much more difficult?
I mean, we all need to hit a certain number before we are financially secure, but if AI fully hits, it will get MUCH harder to make/save the amount of money we need to get to FIRE in a realistic number of years.
If AI/robots become so advanced, we will see widespread unemployment; and whatever few human jobs are left, will see significant salary reduction due to much more humans competing for the few jobs that are left.
How much time do we have left before the FIRE dream becomes statistically much more difficult, and perhaps no longer available in a realistic timeframe?
I have been retired for a year now. I’m in my 40s. Just curious what surprises any of you experienced after you stopped working? How are you managing your money? I’m living off stock dividends but trying to reduce overall expenses by purchasing a home. I rent now and can probably save 10K a year if I buy. Mostly I overestimated how much free time I would have. Time seems to fly by if I don’t manage my time. I’m trying to reduce taxes by tax harvesting too. I’ve looked at software like Boldin but it doesn’t seem to add much I already use excel. I don’t have a financial planner but have considered using one to just offer critiques of my plan. I don’t have a formal plan but I may try filling a simple one out
I'm not sure if it will, really, but as my kids are becoming adults, I feel like I'll be doing the following:
Beyond this I had a realization that if I want to go on vacation with my adult children, and I do, I should probably be ready to treat them. I saw this a couple years ago on a cruise: This really nice family was behind us waiting for photos. I asked this 22 yo how he liked vacationing with his parents, and he said, "dad wants to take me to Bermuda, I'm not saying no."
The dad said his only ask is that they have dinner together and have a nice photo together.
ETA: And, of course, I plan to leave them everything when I die. Don't think there'll be a whole lot, but at least a house to sell and my accounts
Myself (41) and my wife (39) are pretty on track to Fire. Her plan is to stop working between 45-50. My dilemma is that i have a government job and will lose out on a pension and subsidized health insurance for life if I do not stay till my 57th birthday. I question if it is worth it to work past 50. An extra 7 years sounds like an eternity to me in my 50s. I know that with the pension and health insurance and whatever money i made in between will put me way beyond a comfortable retirement. So what would your advice be? Feel free to ask for any details since this post was not super in depth.
In trying to find your FIRE number, how did you determine your monthly spend and how that increases/decreases over time?
I know I'll probably get roasted over this question. My wife and I have lived well below our means for many years now. So, I am aware of regular monthly bills and even annual/semi-annual bills.
Most of what we spend is on our credit cards that are then paid in full every month.
How did you break it down to get your monthly/annual spending needs?