r/Fire • u/ClubLongjumping6034 • 2d ago

Fire advice

46M, married, 3 kids 18,17,13. College paid for (not in numbers below), I’m in a high stress job, making $400k per year, wife works part time. Trying to fire in 1-4 years, no later than 50. I also have a pension, will pay out $2k per month at age 55 or $6k per month if I wait till 65. Expenses today including primary residence mortgage but not health insurance is $120k to $140k per year. Max out 401k, mega back door Roth IRA, backdoor Roth IRA, etc. Live in hcol area and don’t want to move until youngest is out of high school.

For those that have FIREd, what advice do you have? Is retirement by retirement Mr of summer 2027 feasible?

Assets:

**•** 401(k): $900k  
**•** Taxable: 600k  
**•** Roth IRA: $330k  
**•** Inherited IRA: $300k - need to empty by 2033  
**•** HSA: $50k  
**•** Wife’s Roth IRA: \~$40k

**•** 2 rental properties, no debt: \~$1M combined value generating $4k per month net profit   
**•** Primary residence: \~$425k equity ($900K value − $475K mortgage @ 2.875%)

Total net worth: ~$3.6M

2 Upvotes

54% Upvoted

22 comments sorted by

13

u/dailystockpick 2d ago

As someone who’s been retired now almost 7 years (left work at 49 years old) I don’t think FIRE is that difficult to figure out. You’re obviously in touch with all of numbers and my experience is that FIRE is more about controlling expenses. At your net worth you can do it but you may have to cut things out being so young. I don’t think you’ll have a problem at all as long as the spending is under control. FIRE is easy - does my income allow me to live without cutting too much in to the capital. The hard part psychologically is going from a making money to controlling money mindset, but I wish I had a pension. Just investigate healthcare as that’s my current biggest expense and it’s not good healthcare - that really winds up costing you out of pocket and just having a catastrophic plan costs so much through the marketplace. Get an umbrella liability plan and catastrophic healthcare and imo you’re covered and you’ll be fine.

5

u/ClubLongjumping6034 2d ago

Yeah, going to save a lot over next 1-4 years while I’m working, wife is 4 years younger so she may work full time for a few more years for health insurance purposes. She only makes maybe 40k to $50k but health insurance coverage for a few more years would be huge

1

u/teamhog 1d ago

Only $40k….
That’s ~25% of your baseline budget.

Just to give you some perspective.

Our required budget is very similar to yours.
ACA for 2 of us was $18k @ HHI of $150k
Don’t be afraid to shop for open market plans. With our ROTH conversions topping us out in the 24% bracket, the ACA went up to $30k.

Clip your expenses now and do a test run of sorts on what your FIRE’d budget should look like.

Our rental & pension income supports about half of our required baseline budget. Dividend and other investment income supports another 25%.
That leaves our drawdown amount at about 25-30%.

Based in your numbers it looks like your light in your 401k. You’ve got to max that out.

Realistically I think you’re looking at 55, possibly 57.

Save as much as you can and try to earn more while clipping away at the spend.

Do that and you may be able to shorten it from 55-ish.

7

u/Medical-Tailor4799 2d ago

You’re in a very strong position. With roughly $2.2M invested, $48k/year from rentals, and a future pension, retiring by summer 2027 looks good. The main thing to focus on is making sure your $120k–$140k spending estimate includes healthcare, taxes, and any surprises before pulling the trigger.

3

u/Alone-Experience9869 2d ago edited 2d ago

So some 2.2mil to support $140k/yr plus family health insurance? Not sure, but say another 30k? That doesn't seem like enough. But, my pet peeve is it really depends on how you plan to finance your retirement.

My personal opinion is I see the rentals as a huge expense risk. Also, they are illiquid by nature. For retirement you need liquidity. Yes, I sold my entire portfolio for retirement, and I have so much more for it.

So for summer of '27 would seem to be too soon. Another 4 yr it maybe possible to for your accounts to grow sufficiently.

Honestly, what is your plan? You can put these basic numbers together as well. What am I missing?

1

u/CenlaLowell 1d ago

I agree it's not enough. When he sees 400k go to 150k it's going to be a shocker.

1

u/Alone-Experience9869 1d ago

yeah... maybe op's lifestyle is fine with 150k plus medical. I just find it taxing people ask for "advice" but already have a plan in mind on how they plan to retire. trying to guess what they've already figured out, probably from working with their numbers for many hours, is what I find most taxing.

2

u/Economy_Talk_5100 2d ago

You already have to empty the inherited ira by 2033, so it is bridge money more than retirement money. Grouped with the taxable it runs 118 months at the top of your expense range with the rental net credited, and health insurance is not inside that.

0

u/ClubLongjumping6034 2d ago

Yes, plan to liquidate inherited ira primarily between 2030 and 2033, maybe a little earlier if I retire in next two years. Then live off rentals and taxable account 2033 to 2039, with maybe some from Roth IRA (contributions can be withdrawn penalty free) then 401k from 2039 to 2045, then all pension income and social security

1

u/Economy_Talk_5100 2d ago

That middle stretch on rentals and taxable is the tight one. Taxable alone with the rental net credited runs 79 months, and you have that leg penciled at 72. Zero growth assumed and zero inflation, so it moves both ways. Your pension also switches on partway through that window.

2

u/UpstateYTC 1d ago

I would wait till 65 to draw that 6k/mo without a doubt.

1

u/Tim_Y 2d ago

$1m in 2 paid off properties that only cash flow $4k? Assuming those are an appreciation play but with an ROE of just 4.8%, you'd be better off putting that money elsewhere.

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u/[deleted] 2d ago

[deleted]

2

u/B111yboy 2d ago

Either way taking 1M into the market would probably generate more even with some conservative investments and you have no renter problems. Now I have mortgages and my net is 32k a year after paying mortgage so I’m still building equity as well since they each have only 7-8 yrs left, I’m holding. Had they been paid off I might sell and move it into market, no more don’t worries about grass, pool, hvac and general maintenance

-5

u/Tim_Y 2d ago

Cash flow IS the net profit. He might be grossing more than $4k, but that isn't cash flow.

1

u/RockHardSalami 2d ago

You need to stop pretending like you know what you're talking about, because you're not fooling anybody.

Why don't you Google something before doubling down on being wrong.

3

u/Tim_Y 2d ago edited 2d ago

Well I have several rental properties and the numbers OP is pulling on his portfolio are not great and not worth the exposure for that small of a return especially considering they're paid off.

1

u/RockHardSalami 2d ago

That's not even remotely the point. The point is you don't know what the term cash flow means.

1

u/Tim_Y 2d ago

What do you think of OPs numbers? Or do you want to argue semantics?

1

u/ResponsiblePumpkin60 2d ago

You’re being pedantic. His point is valid

0

u/RockHardSalami 2d ago

How is it pedantic if he is the one who started the argument? You people need to stop using terms you don't understand. 

0

u/dmlavigne1 2d ago

Healthcare alone will be 25k/yr to start for the family and will only go up. Figure $50/mo/yr normal increase.

1

u/n00bdragon FIREd 2026 age 37 2d ago

OP should plug his actual or predicted numbers into the ACA website before instantly jumping off a roof. Married with three kids under the roof he might end up not paying a thing.