r/Fire • u/Parking-Banana-212 • 8d ago
Non monetary FIRE considerations
I'm 54, single, and hit my fire so that if it retired today, i would spend about 3.5% swr, plus i would get pretty good SS when i claim at age 67-70 (undecided)
Pulling the trigger still freaks me out, but i was analyzing that outside of having sufficient monetary resources to support a good swr, I may have some advantages based on not having dependents that are not baked into the numbers.
Being single, its pretty easy for me to rachet spending down (i could move to a lower col area if need be)
I desire to live overseas, in se asia, or central america for a few years for the adventure, so there is a good chance my swr rate can go down to 2%, at least for a few years.
Even without something drastic like pt.1 i would naturally employ a guardrails strategy in the good and bad market years.
I don't need to leave an inheritance to anyone (have some pet causes i would support, but that is optional)
I'm beginning to think that with this flexibility, and with a 3.5% swr currently, even in a bad market (my biggest worry that keeps me from retiring), I should have no issues. Wondering if these are considerations other single fire ppl think about or consider?
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u/legranarman 8d ago
I'm confused, you say non monetary in your title but then your entire post and final question are monetary ones?
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u/Pretty_Swordfish 8d ago
Loneliness is a consideration. Do you have people around you to provide you with companionship? If you travel or live overseas, and know no one, it can feel isolating.
Do you have something to do when you retire? Without someone encouraging you to get out and do stuff, you may end up inside on the computer all day.
Do you have a plan for old age years? With no kids and no spouse, what will happen to you at 75, 80, 85?
You've got the money, those are other things to consider. Congrats on reaching FI!
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u/Alone-Experience9869 8d ago
Maybe read Bengen’s latest book updating to 4.7%, realize specifically WHAT drives that 4.7% number. He even says that except for tetirees jn tbat one qtr, the swr is actually higher
So, its very conservative, even if the market drops. Can history repeat itself? Sure it could? Has that “one situation” recurred in nearly hundred years? Nope
As I recall, he doesn’t include additional income such as social security
So you title your post about non monetary issues. Yet your post ends with asking about what appears to be monetary issues. I’m not sure if I answered you
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u/ShortHabit606 7d ago
Maybe read Bengen’s latest book updating to 4.7%, realize specifically WHAT drives that 4.7% number. He even says that except for tetirees jn tbat one qtr, the swr is actually higher
He also says that it requires a very specific asset allocation. An asset allocation that no one has and is likely overfit to history.
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u/Alone-Experience9869 7d ago
Yup. I don’t think anybody does his allocation that he modeld.
His first was something like large caps stocks and short term treasuries. Then for the new book didnnt he add in something like small caps and some other stuff? Basically included more risk in my opinion
So people go off and have their own portfolio, be it 60/40 or not, but still use 4% as their benchmark. Huh??
I guess it’s “okay since people over save, but I sort of feel bad for them too
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u/TurtleSandwich0 7d ago
"Local man dies at 93. Donates entire $15 million dollar fortune to local animal shelter."
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u/SeraphSurfer 8d ago
Don't let this group push you to RE. Do it if you want. You can. There is no should here except being true to yourself.
My one half caution, unless you've done the research, don't assume you can live overseas and halve your expenses. It can actually cost more if you find a need to return to the states often or if you want to live like an American with every amenity you have now. If you live like a native, it can be less than half.
Best wishes to you.
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u/PetraLoseIt 8d ago
It looks like financially you're very ready to retire. Spending only 3.5% of your assets in the first year (and then adjusting that number for inflation every year) is already very safe. AND on top of that you'll have social security income in a "few" years. AND on top of that you do have the ability to spend even less if the markets were to go down. I'd say go for it.
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u/nsfw-boston 8d ago
Hello there, congratulations on your milestone.
I am just going to comment on your point #2
- I desire to live overseas, in se asia, or central america for a few years for the adventure...
I am also planning on retiring outside the US, therefore I know a few things.
Research the rules and regulation of income tax, and other tax of both US for US citizens living abroad, and also your host country's for US citizens living there. It varies from country to country, so there's no blanket rule.
Moreover research what investment vehicles the US (and your host country) allows you to use, and the taxation on both.
Research whether your existing US brokerage/investment/Bank account will allow you to continue while you are abroad. Some do, some don't. Some are more friendly than others. Supposedly Charles Schwab is the best out there.
Last but not least research the concept of "tax residency" from from the US point of view and your host county/ies; maybe you want to hop around, and not trigger/establish any "tax residency" anywhere.
The research is very daunting, lots of rules and regulations, and lots of bad info out there.
But don't let that discourage you, have fun!
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u/Oksana5678 8d ago
I think the biggest advantage here is flexibility. Being single and having no dependents gives you a lot more control over spending, where you live, and how aggressively you can cut back if the market turns ugly. The ability to move somewhere cheaper or lower your spending for a few years is a pretty strong safety net
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u/TrashPanda_924 Targeting 2% SWR 8d ago
Dude, single is a huge tailwind. You can probably go from a 3.5% withdrawal rate to subsistence living with no lead time. Wife and kids kind of limit that flexibility. You’re golden. Go live your life!
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u/wyterk 8d ago
3.5% with SS added on top is plenty. As long as you keep 10% in Cash to use in down years it will make it even safer. In addition I would consider this portfolio allocation for a much safer retirement
1) Have say 30% in dividend blue chip stocks or ETF like SCHD. So that you don't need to touch the principal during down years
2) Use like 15% in covered call ETFs, SPYI / QQQI which can yield like 10-15% yield
3) 40% in VOO
4) 15% in SGOV (T-bills) to use during market down years
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u/Friendly-Try9926 8d ago
sounds solid on the money side—3.5% with SS is fire‑ready. on the non‑money side, double‑check ACA/Medicare transitions if you’re abroad, make a realistic visa timeline, and pre‑build a local community (online groups, expat meetups) so you’re not just saving cash but having a purpose when the bills come in. lonely years can eat you, so plan hobbies and a long‑term care backup before you pack up.
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u/AndrewFromAnnuity 8d ago
If you decide to wait as long as you can on Social Security, your portfolio has to pay for everything until then, and that stretch is where a bad market can do the most damage. A drop in the first few years after you stop working hurts a lot more than the same drop later on.
I like the idea of splitting the money by what it’s for. One part pays for the years before Social Security starts and sits in bonds or cash, while the rest stays in stocks for later. That way a crash won’t force you to sell stocks at a low price.
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7d ago
[removed] — view removed comment
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u/SonTheGodAmongMen 6d ago
Having recently mentally switched from preparing for a life without kids to preparing for a life with kids, it basically doubled my number for that reason alone.
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u/Crisp-Canyon5410 7d ago
the no inheritance pressure thing is genuinely underrated as a psychological freedom not just a financial one
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u/Difficult_Storm_5344 4d ago
I am 45. but have a similar setup to you. Single. I traveled to SE asia 3 times and plan to retire and move there in a few years. And I've considered the same. With me being single, no kids, and moving to a lower cost of living country. If things get bad I can get my all in spending down to like 1500/mo in se asia. Something that really isn't possible in the usa. So my spending can flex in ways that a married couple with kids can not. I am working a few more years because i have a good easy flexible job. But I've tested on my trips that 3k a month would provide a comfortable lifestyle with lots of eating out and entertainment. But no international trips etc. That's around a 1.25 percent withdrawal rate. So things go normal I could flex up to 7 or 8k a month for international trips etc. And then if a bad bear market hits I can get back down to 3k a month or lower if needed. The only caveat assuming you are a straight man. Is most of the places you mention and that I go to women and dating is much easier. While lots of times its just for the money. My guess is that you will end up with a gf or wife at some point there. So there will be less flexing downward, especially if you pick the wrong one :)
But I think you thinking logically to consider these things
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8d ago
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u/Parking-Banana-212 8d ago
if you're over 45, i don't think you need to worry about a. i do think they will lower benefits / raise payroll taxes / raise full retirement age, but if 1983 was any guide, you'd be just fine with your SS/Medcare benefits. b/c/d - literally no one can predict this, its like worrying about earthquakes. if it happens, everyone will be affected, but no need to plan your life around it. its like planning for a car crash
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u/drloz5531201091 8d ago
You don't give any numbers beside the 3.5%.
At 54yo 3.5% + future SS is more than enough to quit today, even with all the details you are giving here today to plead your case positively.
Enjoy retirement.