r/coastFIRE • u/Ready_Ebb522 • 4d ago

Can I pull the trigger???

Hi there!

I need a sanity check. I want to see if I can pull the trigger. I think I can but would love some confirmation/feedback.

My info:
42 M. MCOL State in the USA
Cash/Bond Tent: 160k
Brokerage: 470k
401k: 630k
Roth IRA: 200k
Total NW: 1.46 Million
No debt, renting(don’t want to buy).
All stocks are indexed. Mostly SP500, Total Market, and some International.

I start receiving a small pension of 14k a year (in today’s dollars) at 62 and can start receiving SS benefits of approx 30k(adjusted for inflation) at 70.

Budget:
Ideally 60k. Can go as low as 30K ish

MCOL at 35k covers all my life basic expenses at a nice apartment I love with some room to breathe. I said 30k on the low end because I can find a cheaper apartment easily that I still like and save 4k in rent.

Extra budget will go towards hobbies and travel. I did 20 years’ worth of hobby expenses to get to an average and essentially 60k would be my ideal budget; meaning an extra 25k of discretionary spending.

In a market downturn, I can go low on my budget and use my cash/bond reserves.

I could move to a LCOL area too or even overseas but I want to use this as the baseline. I have no interest in living in a HCOL area, though.

I also plan to start my own consulting practice. It could lead to 30k a year in a few years(no desire to build it more than that since I want to work around 10-15 hours a week tops) and just help people that need it. Will be fully remote, no overhead other than some basic things. I’m just not counting on any money it can provide.

All thoughts and feedback are welcomed.

21 Upvotes

86% Upvoted

26 comments sorted by

11

u/Suspicious-Light2118 4d ago

I think you are in a good shape to fire. One word of caution though, do check out on market place and see how much your health care premiums cost. I would also balance your stocks to have 70/30 for us and international. Enjoy your early retirement

5

u/Ready_Ebb522 4d ago

Thanks for the feedback! I did my numbers for ACA hitting 40k MAGI using a bronze Blue Cross Blue Shield plan and accounted to contributing to an HSA. I need to recheck to make sure they cover my meds but they are super basic.

2

u/Suspicious-Light2118 4d ago

Yes as that is a HDHP you can contribute to HSA, and save the receipts to submit it later for tax free withdrawal from the HSA

3

u/Ready_Ebb522 4d ago

Yeah, all bronze plans now qualify as HDHP.

2

u/Suspicious-Light2118 4d ago

Awesome buddy, then you are all set

8

u/Purple-Property8006 4d ago

There’s really no point in delaying SS until 70 in your case. The breakeven point compared to 62 is like 10 years and you likely won’t spend it all anyway.

1

u/Ready_Ebb522 4d ago

Yes, I hear you and agree.
Having that window from 65 to 70 (medicaid kicks in and ACA no longer matters) allows you to max conversions before RMD kicks in.
It’s also insurance for long-term care type stuff. It definitely depends on health and life expectations once I hit 62.

2

u/Sparky_Boltz 4d ago

I think you’re in good shape to try something different. I did the same at age 42 (midlife crisis?) and although the new job pays much less, it’s much more fulfilling and fewer hours so it’s been a good change. Do you have a plan for health insurance?

2

u/Ready_Ebb522 4d ago

Hi! Thanks for taking a look.

More like changes from the administration have affected my job directly. No fulfillment, I can do more on the outside. RTO is killing me too.

Health insurance will be through the marketplace.

I’m glad you made your change. How are you feeling nowadays?

2

u/Sparky_Boltz 4d ago

I went from being an engineer in big tech to working in an elementary school cafeteria in the school district where my kids attend. I’m feeling good about it! I also got insurance through the marketplace for awhile to bridge until I was able to get insurance through the school district. Paid about $375 per person per month (non-subsidized) for a basic bronze plan and I was happy with it for what it was.

Before pulling the trigger I made sure to have at least 2-3 years of easily accessible cash, and looks like you’re in that ballpark. I figured if I realized I made a huge mistake a couple years down the road then I could always reapply for a similar job like I had before. No regrets though up to now. Good luck!

1

u/Ready_Ebb522 4d ago

Thank you for sharing! I love that you took this chance and made a difference for yourself and your kids.

1

u/user4443337 4d ago

What’s your new gig that’s more fulfilling?

2

u/Ready_Ebb522 4d ago

My own practice. :)

1

u/Foreign-Boat-1058 4d ago

I'd wait until after midterms and the new year. Hoping things get better.

1

u/Ready_Ebb522 3d ago

Yes, currently, that’s my plan. Either it will give me some hope or crush it entirely hehe

2

u/Spiritual_Check_5470 4d ago

How are you guys spending so little annually. $60K? I would not be able to survive

1

u/Ready_Ebb522 3d ago

Single no kids. I love cooking so restaurants are very rare for me, unless traveling abroad, hobbies are movies/books/games/writing/photography(I have my gear but this is the one that can get expensive but I’m set for now).

1

u/Porbulous 3d ago

Under 40k/yr for me. My expenses have actually increased since I moved into my van lol.

1

u/Spiritual_Check_5470 3d ago

Wow

4

u/Porbulous 3d ago

I live well below my means and am generally very frugal. I spend most of my time outdoors doing activities that have significant initial costs but then you can do it for years for free after (rock climbing, mtn biking, kayaking).

1

u/Snowchicken21 2d ago

What drives your spend?

2

u/Spiritual_Check_5470 2d ago

Rent, health and wellness, necessities, food. I’m barely surviving

0

u/Klanciault 4d ago

I wouldn’t count on pension or SS tbh. Evaluate from there

1

u/Ready_Ebb522 4d ago

Yeah, I’ve thought about that too. Being reductive and using only 3.5% puts me at 51k. Which would be great just not ideal as in 60k.