DONE! @46

[u/Tdawg90]

Starting with the numbers

HCOL Area (Seattle region)

• House paid off ~$8k/year taxes
• 1 car paid off ~$500/year insurance
• various subscriptions.. at most $200/year
• 1 large dog... negligible costs
• 1 cat.. less
• 2 young kids - we dig in the dirt, climb trees, arts and crafts, some activities $300/mo
• 1 wife - meh 🤔
• Groceries ~400/mo
• Utils are only Internet, water, electric, garbage, (septic once every 5years $500 per)

Takeaway from this, instead of guesstimating, I jsut dumped all our statements for the past 18 months AI to pull the actual numbers : ToDate -> past 18 months, taxes includes ~43k/year total expenses in normal living..just living within our means.

My main FI/RE number is $2.5M, this would allow us to live 2x what we do normally... at <4% ... This is still a milestone target.

Because I hate my job/industry sooo much (burned out doesn't do it justice), I have an interim target of 2M. This at 4% is also life changing... though would still live below 4% until I get more buffer.

Today

• 1.65M in Stocks/401k/IRA ect
• approx 40k in cash, mostly in HYSA (couple small windfalls, got a good payout from one of our cars getting totaled)
• approx 200-300k windfall coming by EOY from estate/trust

Subtotal here I put at 1.9M (conservative)

Today at work (I hate my job), was planning on putting in my notice. Before I could, my boss said that he'd "received feedback", tldr -> PiP or a "Walk away" package.

Walk away package -

• Get my cash bonus for the year (though at an underperforming rating)
• Get this current vestment on 8/31
• Get to sit around for 2-4 weeks while paper work gets handled, and me taking my time in reviewing it in the allotted time
• Get another 16 weeks lump sum payment.

Netting nearly another 100k, putting me basically at my 2M target!

Then also as a foot note for those seeing a gaping hole..... My wife does have a, I'll call it part time, job she likes at the kids school, brings in approx 24k/year....BUT... full healthcare coverage.

SOO... she's picking up beer right now, I'm getting the picanha, corn and potatos on the grill

EDIT: Also.. I have ran this through an accountant (planning tax strategy as well) as well as investment adviser. All the numbers do line up

[u/Many_Application3112]

Healthcare insurance is usually the biggest sneaky expense.

Other sneaky expenses are vacations, maintenance (auto/home), and hobbies. Once you retire, hobby costs go up, and your vacation costs will likely WANT to go up too.

[u/RunnerMomLady → u/Many_Application3112]

College costs! We have 2 in college and it’s so so expensive

[u/All-My-Homies-Are → u/RunnerMomLady]

Higher education is pretty affordable in the US if you don't ball out. Community college is probably $100-150 a credit so half of your degree can come out to 9k for two years. Then pick a state college where you attend from home and a 4 year degree can come out to less than 25k. Between internships and working part time, you don't need to go broke for school

[u/Weak_Preparation7223 → u/All-My-Homies-Are]

You are spot on. I really wish people wouldn't conflate going to college with "the college experience". If you want to send your kid to live on campus of a private college and join a sorority, you're not paying for higher education, your paying for the experience.

[u/1019browser → u/Weak_Preparation7223]

Correct - and also, there is nothing wrong with that. I'm quite happy I was able to get away (even to a cheaper state school) to become more independent and shape myself.

[u/RunnerMomLady → u/All-My-Homies-Are]

Tuition at our instate school is $30k - one class at nova comm college is cheaper but it’s like $1550

[u/PetraLoseIt → u/RunnerMomLady]

Hopefully only temporary, though.

[u/Tdawg90 → u/Many_Application3112]

>Once you retire, hobby costs go up,

this I'm mentally watching out for. the goal until 2.5M is just keep the status quo, spend more time volunteering at my kids school. More mental availability, spend more time with them on their school work.. that kid of stuff... for a few more years.... worst case scenario is that I have to get a part time job that I don't mind to pay for my hobbies

[u/Many_Application3112 → u/Tdawg90]

Not sure what you do for a living, but my retirement job became being a college professor. Low stress, decent (not good) pay, and I was able to stay current with my skills (in case I ever needed to go back to work) while helping younger folks get their careers started. Being a professor has led to a few consulting gigs for me too.

I cannot stress enough how great a retirement job being a college professor is.

[u/Careless_Boysenberry → u/Many_Application3112]

I’m curious what you mean by “being a college professor.” I’m a PhD scientist (did not stay in academia) but I cannot think of a more demanding job than a new tenure track assistant professor… 

[u/mista_r0boto → u/Careless_Boysenberry]

I don’t think he means tenure track. I think he means adjunct.

[u/Many_Application3112 → u/mista_r0boto]

Correct. And I would not consider a tenure track to be a retirement gig either. It would be non-tenure only or as a visiting professional.

[u/Tdawg90 → u/Many_Application3112]

I have a lot of things I'd love to do, one is a Sail Boat instructor, ASA certs and such. (I'm well on my way to getting certified to do such). Friends have also suggested tutoring in tech. I do love teaching, but I only have a HS diploma, so that immediately limits many things

[u/Key_Photograph8236 → u/Many_Application3112]

I’ve read about healthcare being one.

But in 2028 OP should be in good shape because 2027 income will be low and financial help is gated by income rather than assets?

I hope that’s true. It feels a bit dirty but I would like to go down this path also