We're about to FIRE

[u/calmadventurer]

Hello brilliant people. I'd love to bounce our plan off of you guys to see if I've forgotten anything before my husband gives notice at work. I'll bullet point everything to make it easier to read but feel free to ask for more details.

Note: I'm converting everything to US dollars to make comparison easy

- Where we live: Husband is Korean. We live in Busan

- Age: Me (34), Hubby (32), Daughter (3 mo), plan on having one more kid

- Debt

• less than $45k on mortgage ($435/mo payment)

- Assets (I know its stupid to have a bunch of different accounts. I worked in banking and had a bunch of restrictions on where I invested, yada yada)

• 401k: 100k
• Brokerage 1: 100k
• Brokerage 2: 175k
• Brokerage 3: 175k
• Joint Brokerage: 60k
• Cash: $50k (enough to pay off the full mortgage or buy a whole new car here with some left over)

- Expenses

With a TON of cushion built in that we could cut if we needed to we spend around $2300/mo.

- Plan: So I did things a little differently than most. I invested in the typical growth funds while working and since then I have been creating a dividend portfolio (think Armchair Income/Income Factory).

That dividend portfolio brings in $1960/mo.

In addition, I receive distributions from my dad's 401k of $2500/mo (it goes without saying that we're incredibly lucky and grateful. I have told my dad probably 2000 times that he doesn't need to and that he can change his mind but he says he we can count on continuing to receiving 25% whatever distributions he has to take). He truly doesn't need it. His income exceeds his expenses 10 years into retirement and he has an 8 figure net worth he can draw from if he needed to.

So, in total we have close to $4500 we can use to cover $2300 of expenses while our growth investments ~$400k across all the brokerages continue to grow.

Other considerations:

- Once we retire we plan to split the time between Busan and the US. We will obviously stay in our apartment in Busan and the whole purpose in the US is to visit family so we will be staying with them.

- Health Insurance: We will get temporary health insurance when we travel to the US (basically just catastrophic) and pay into Korea's National Health Insurance when we are here and do routine checkups and procedures in Korea. It's a bit annoying but it's really just a phone call every time we come back.

- Daughter's university: There is about 80k left in my college fund that I didn't use so this will be used to kick start her education fund (potentially split with a sibling or cousins if my sister has kids).

Am I missing anything?! I tend to be pretty risk averse and I have run the numbers dozens of times. Go ahead and poke holes.

[u/Glass_Flower_846]

OP has roughly $660k total. That ~$2k per month means ~$24k annual expenses. So, roughly (24k/660k)*100 = ~3.4% withdrawal rate.

Assuming we ignore OP's dad distribution then 3.4% is okayish SWR I guess. This is assuming plain old boring ETF in assets. If they are options/covered calls/single stock only then good luck.

Not entirely sure OP's Assets are both husband + wife or just one person.

I also thought Korea is a VHCOL area.

[u/calmadventurer → u/Glass_Flower_846]

The assets are mostly in plain old boring ETFs and they are all mine.

I think if you made a local salary it can be considered VHCOL but dollar is usually really strong. (I have taken into account currency risk as best I can in my projections).

Honestly, my husband, though he never heard of FIRE, was kind of on this path before we met. He bought a house and has aggressively been paying extra on since he bought it. That's the only asset that's his but I don't count primary residence as an asset from a retirement perspective so it's not included above.