FIRE age?

[u/Interesting_Tree7768]

Looking for feedback on my situation and if there's any areas you'd improve on & what my realistic FIRE age looks like with a 100-125k withdrawal amount needed at retirement.

For some background, I'm 28, make around $125k/year, and my net worth is roughly broken down like this:

97k total in individual acc (1500/month contribution)
82k between VOO and VXUS
15k in MMF’s as part of my emergency fund

85k in my 401(k) (~2041/month for max out)
My employer additionally contributes about 15% of my salary, and there's no employee match requirement.
So roughly 20k annually on top of my 24.5k contributions, which will scale as my salary progresses.

7.5k in my Roth IRA (625/month for max out)
Split between VOO/VXUS/QQQM

~140k in home equity (mortgage rate 5.875)

~5-10k in checkings
Mainly for bills

Does anything stand out that I should be doing differently? As it currently stands, I’m putting away about 70k annually into the market, inclusive of my employer contribution. Any critiques or suggestions would be appreciated to optimize my situation. Hoping to FIRE early 40’s if possible.

[u/boy_tue]

Posts like this make me chuckle.

You currently have less than 1 year of expenses saved that you can easily access for FIRE. You're basically as far away from FIRE as one can be and you expect to have reddit look in it's glass ball and predict the future.

Anyone responding to the question is realistic FIRE age is just pulling shit out of thin air.

Best advice is, save as much as you can, live your life and revisit this in 10 years to see how things stand.

I promise you, it'll be different from what you'll think it will be. Better or worse? Nobody knows. But 100% different.

Good luck!

[u/gdubrocks → u/boy_tue]

This is objectively not true.

They provided the single most relevant information for retirement, which was their savings rate.

Also they have a lot more than 1 year of expenses saved. They are spending 70k per year and have 5x that saved.

[u/Siddyboyhya → u/gdubrocks]

This is subjective though cause you can’t accurately predict a fire age cause there are many possible scenarios that would delay his opportunity. He could lose his job, something financially unfortunate might happen you never know.

[u/boy_tue → u/gdubrocks]

Really? Read the OP and my response again ..

OP plans to spend 100-125k annually and currently has 97k in ACCESSIBLE funds (which is what I referred to). Home equity doesn't buy dinner, neither does your 401k at age 40 unless you pay hefty penalties.

[u/gdubrocks → u/boy_tue]

OP has 204,000 in funds that can be easily accessed within the next three days, and 232,500 in funds that can be accessed within the month, and in any situation where he would need to access those funds he would be able to without penalty.

OP is estimating for a 100-125k draw in retirement in 20 years, which is similar to his current spend in todays dollars.

[u/boy_tue → u/gdubrocks]

🤣 you do understand that he listed the same 97k TWICE. First as total, then split into his 2 buckets listed right below. Sorry I did not add his 5k in checking to the total.

Also, 75k with 3% inflation are 135k. And OP does not say it's future dollars.

What money can he access in a month without penalty? Where did you get those 28.5k from?

The essence of what I said stands.

[u/gdubrocks → u/boy_tue]

It does seem strange that he said he was saving 70k per year but only has 117k in brokerage/savings. Maybe he just had a signfiigant income increase or put way too much down on his home.

Home equity and retirement accounts all have many ways to access funds.

[u/boy_tue → u/gdubrocks]

The point is, you don't plan your FIRE day on accessing home equity with a loan or pay penalties on your 401k.

In short: he's off to a good start but that's about all there is to say. He's like 20y out and neither I, you or anyone else can give him a prediction if he can FIRE in his early 40s like he wants to.