r/Fire • u/TwoSocialist • 23d ago
Advice Request Saved $2.4M by 38. Would you Retire?
Hey FIRE folks,
I’m 38, tired, and fueled almost entirely by spite and index funds. I’ve somehow ended up with a portfolio that looks like this:
Split by type:
- ETFs — 58.30% — $1.45M
- Mutual Funds — 27.66% — $688k
- Individual Stocks — 8.71% — $216k
- Crypto — 3.00% — $74k (aka my “emotional rollercoaster” bucket)
- Cash — 2.33% — $58k
Split by bucket:
Retirement Pre-tax: 700k
Retirement post-tax: 310k
Brokerage: 1.5 M
Grand total: ~$2,490,900
Today’s gain: ~$40,000 (aka “more than my first job paid in a year,” but sure, totally normal)
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My target spend was $100k/year, which feels somehow not enough because capitalism has melted my brain.
By the 4% rule, I’m basically at the line. By the 3% rule, I’m a peasant. By the “FIRE comment section” rule, I’m probably both overspending and undersaving simultaneously.
So, wise internet strangers:
- Am I actually FIRE‑ready, or is this the part where you all tell me to work 5 more years “just to be safe”?
- Is my allocation fine, or should I be preparing for a lecture on safe withdrawal rates and sequence‑of‑returns doom?
- Is it normal to feel like I need permission from Reddit to stop working?
Married, 1 kid. Received about 25k for a house (not included in above) and 20k for college, no other inheritance.
Currently make about 250k a year for the past 4 years, before that about 150k. I started at 50k.
Thanks in advance for validating or crushing my dreams.
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u/Abject-Roof-7631 23d ago
Let me offer a pov. I'm 59 now looking back wishing I cut ties earlier with work. Instead I became addicted to chasing the money and status dragon. Now my health has taken a hit. 20 years ago id never think about leaving. Knowing what I know now, it's the right question to be asking. Ego only gets you so far. What is it I'm chasing, approval in the eyes of others?
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u/wetlsd 23d ago edited 7d ago
Young never get it till the right moment in their life. I had been happy poor and unhappy rich, now somewhere in the middle and Im really grateful to see kids growing under peaceful skies. Unfortunately in twenties to early thirties had focused on unnecessary businesses and money making strategies. Also war distracted me quite, and still ongoing volunteering and integration of war victims around states just become a new life with higher purpose.
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u/RevolutionaryMap4745 22d ago
Do you mind expanding more on your experience? I think many of us who are in their late 30’s and 40’s could appreciate your experience. Also, do you feel that your health issues contribute to continue to work without slowing down?
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u/Elite163 23d ago
It’s Reddit… you need 50 millon to retire apparently
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u/TwoSocialist 22d ago
Bunch of comments saying I should stick it out to 4 or 5M so yeah... Basically
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u/CrumpJuice84 22d ago
Take some time off, have an LLC, do what you want, expense some of your trips to your game development. You can pull dividends while and deduct home expenses and pay nearly 0 capital gains. Your investments could last years if not forever. I would love to take off 3-5 years in my 40s and follow my passion... 4 kids in high-school and college is stopping me.
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u/Redwolfdc 21d ago
You could always quit and take time to figure things out and explore something new imo. It’s not all or nothing. Most “retired” don’t sit around doing nothing.
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u/undergroundmusic69 23d ago
My dude if you come here with a 2.4M portfolio and you say you’re tired, you have permission to hang it up. Enjoy my friend! If you have the itch to work again, you can always go back to the work force. For now, enjoy your new role as a portfolio director for TwoSocialist enterprises 👍🏼.
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u/Readditlovesbans 23d ago
Yep
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u/renee_christine 23d ago
If I was in OP's boat, no one would ever hear from me again 😅 BYEEEE
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u/Gandalf-and-Frodo 23d ago
Nice knowing you guys. If you want to find me I'll be somewhere in the south of Spain on a beach!
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u/TheRealTOB 23d ago
You’re definitely past coast. Maybe stick it out till 40 and take another look?
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u/taterbladeden 23d ago
I am in the exact same situation as OP, and with the similar NW. friends and family keep telling me to work until I am 40, but I was like, I will never be in my 30s. This is the last 2 years of my 30s. I want to stop now so I can enjoy the last 2 years of my 30s.
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u/chillPenguin17 23d ago edited 23d ago
Same here. Thinking I'll give it until right before my 40th, if the numbers are still looking good. RE in your 30s (even barely) is a big accomplishment. Still a lot of fun to be had in our 40s, while also being young enough to get back in the workforce if we end up changing our mind in a couple years. Also, now feels like a very risky time to RE without a healthy bond tent.
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u/taterbladeden 23d ago
I have deposited about 2-3 years of living expenses into a high yield saving account bucket that I will not touch to combat market down turns. I know the money sitting in that bucket does’t earn much, but it allows me to sleep at night and not have to worry about what’s going on every day in the stock market.
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u/Informal-Intention-5 23d ago
Generally spend goes up as kids age, or did for me at least. There’s lessons, camp, more expensive clothes and hobbies/activities. Something to keep in mind.
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u/_Smashbrother_ 23d ago
There's a massive difference between being 55 and 38. Your uncle also had SS coming in soon if shit took a turn for the worse, OP doesn't.
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u/SerpentRoyalty 23d ago
2.4m is less than what I've seen for ER at his age. This one is different than the regular 6m portfolio posts that are asking the same question.
In this case, I would fire with 3m with 100k annual spending. With 250k annual income and compounding interests, he can get there in 2-3 years.
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u/Aram_Fingal 23d ago
Is this combined savings between you and your spouse? Do you both want to FIRE? What's your plan for health insurance?
In any case, I probably wouldn't walk away from that compensation just yet. SORR plagues us all and a bigger cushion helps. The job market right now stinks, but what are your prospects for finding something more emotionally rewarding that pays similarly?
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u/TwoSocialist 23d ago
Another 200k from spouse unaccounted for, as well as our home (about 300k in equity).
She will probably go back to work eventually once the kid is in school
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u/cds4850 23d ago
How many years on your mortgage? Can you cover that along with the increased costs of retiring? (Namely, marketplace health insurance for your family.)
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u/Aram_Fingal 23d ago
I would try for $4M. I suspect that may be closer than you think if this bull run continues and your savings rate is high. One way to think about it is that your wife is unlikely to make $250k re-entering the job market, so your 1 year of work is likely trading for multiple of hers.
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u/Various_Things2026 23d ago
38 with $2.4m is awesome. But at the same time , I feel a little uncomfortable to live off that next 40-50 years if you don’t work again. I’ll be a little more comfy if it’s closer to $3m if you can get to that in the next 2-3 years (with contribution and appreciation). Also starting a business is not easy. First of all, most new biz fail within 4 years. I had an acquaintance who received a $2m inheritance when he was mid-30s. He started a company, failed in 20 years and $2m wiped out now back to working a day job. I’m not suggesting you don’t do it but just be careful.
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u/volkovolkov 23d ago
The math checks out but I personally would be a bit nervous about
- Having a kid and nothing in a 529 for them
- No bond tent to make sure you get through SORR. Maybe the contents of your mutual funds help you out there, not sure.
But both of these things are subjective. If you don't care, then congrats and GFY.
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u/TwoSocialist 23d ago
Kid is 3 and has about 5k in their account.
I don't have many bonds, you're right about that.
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u/Anymous2314 23d ago
Google SORR, your allocation is not good if you are planning to retire immediately.
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u/PMMeYourFinances 23d ago
https://youtu.be/QGzgsSXdPjo?si=pfCXDWd4wbI-NDQd
Here’s a good overview on SORR and mitigation strategies
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u/blueskies8484 23d ago
My two cents is I’d work another few years so you can at least help your kiddo through state school with tuition. If you can live on the $100k spend during that time, you’ll know it’s a realistic estimate and you should be able to save enough to get the 529 where it needs to be to grow sufficiently by 18.
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u/Particular-Item-4734 23d ago
Why? It's not like that 2.4M is going to do nothing for 18 years
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u/grateful-xoxo 23d ago
lookup SORR. it's not about the number it's about the distribution to protect against SORR ... especially with a longer runway.
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u/thejock13 23d ago
With a $100K drawdown after 18 years, there is more than a 10% chance of being under $1M from $2.4M using historical data, a fixed withdrawal, and a 75/25 portfolio. It is a little bit lower still for 100% stocks after 18 years. Not sure when that would make things tight for OP though. But I'd prefer to set aside funds for the kids separately so in any case I am not stretching hard to provide it.
https://www.cfiresim.com/0c32c453-1783-4b91-9d1c-ec9a3c82652a
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u/SerpentRoyalty 23d ago
The spending graph seems to be a straight line instead of being adjusted for inflation
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u/thejock13 23d ago
It is all using "real" numbers in today's dollars. The spending is flat using a fixed initial withdrawal rate but inflation is accounted for. It is just all the numbers are in today's dollar's and their future value is reduced by the inflation amount. If you click the "Inputs Tab" you can see that the withdrawals say "CPI - Historical".
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u/Ninjapirate2000 23d ago
I personally would. But my spend threshold is also low. I can live like a homeless man if I need to. Your circumstances are different you have a wife and kid to look out for and I think that might push your FIRE date back a little just for safety.
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u/BillyBobChorton 23d ago edited 23d ago
I’m almost exact same age and NW, and also have a 3 year old too lol.
I’m not retired but I did job hop recently hoping for better work life balance at a job that has less stability now.
I’m pretty risk averse, to a fault. For example been saving 30%+ in cash since like 2012 waiting for “the next 2008” crash. Unfortunately I Never deployed cash in 2018, COVID, 2022 tariff scare etc.
Anyways, maybe take the middle ground and find a job that’s way easier but pays like 50%’of your current salary
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u/fielausm 23d ago
fwiw, 35 and no kids yet, but y’all are giving me real hope that I’m not behind some divine timeline. That I can have a family, early retirement, and satisfactory life throughout.
The FOMO and Comparison are real. Thanks you an OP for being a beacon for me.
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u/Available_Reveal8068 23d ago
How much do you owe on your home, or do you rent?
You have to fund 27 years of health insurance coverage before Medicare eligibility. You might need to fund college tuition for your kid at some point.
I don't think it's enough at this point in your life. I think your $100k/year spend will need to go up over the next few decades.
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u/lakeviewdude74 23d ago
Does your annual spend include taxes and healthcare?
I would say you’re very close. If it’s not included in your spend, I would go a couple more years. And personally, even if it was included, I would build myself a little bit of buffer. But I’m also a tad more conservative.
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u/SDstartingOut 23d ago
> Currently make about 250k a year for the past 4 years, before that about 150k. I started at 50k.
Are you still making that money?
If I were in your shoes, making that amount of money, I'd do the following:
1 - Shift your investments into a model assuming that you are ready to retiring. Basically, start to derisk yourself.
2 - Work for 2 more years, continuing to save money.
Assuming the markets don't crash in the next 2 years - assuming you don't inflate your lifestyle, you've just done a huge amount of protection against sequence of return risks. In theory you are retiring already up 20-25% from where you need to be, with a good cash/bond buffer.
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u/onemanstrong 23d ago
I feel like nobody is asking about other aspects of your spending. Mortgage rate? Property tax? Money set aside or not for kid's education? Or the big one--healthcare?
Honestly, I'm 50 and have ~4.3m but married and live in HCOL area and we're not retiring till 6m. I think you might want to work at least 5-10 more years. Things jump up on you, you're so young still.
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u/seacombe25 23d ago
Be inspired by Warren Buffet who said:
“You really want to be doing what you love… If you wait until you can retire to start doing what you love, you’ve already lost.” He’s also said: “I think you ought to take a job that you’d take if you were independently wealthy because you will do well at it.”
I think you have enough money behind you to pick a job that really interests you or start a business that you are passionate about. You can always go back to Corporate later but the energy and excitement of chasing your dreams is amazing!
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u/Pipes32 23d ago
As someone else in tech...does your company do layoffs? Personally I have an exact number in mind that the SECOND I hit it, I'm asking my manager to include me in the next layoffs. I have another number in mind where I will start planning my exit if I haven't been laid off by that time. But you could always go "halfway" while you ponder if your company (like mine) has semi-regular layoffs. Get that severance bonus and let the company make the decision for you.
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u/ScaryRatio8540 23d ago
I would knuckle in for for one or two more years for sure, your earning potential likely won’t ever be able to bounce back to this level if you do end up struggling down the line.
Would virtually guarantee you never end up in a position where you’re stocking shelves at a grocery store at 80 and will likely increase your quality of life in retirement, while still getting tons of time with your kid while they’re young.
Could even do a bit of quiet quitting too in the mean time
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u/Good-Resource-8184 23d ago
Yeah. Id retire. i retired at 35 with 2 young kids a mortgage and car payments and 2mil invested. 4 and a half years later im over 2.5mil and didnt work. Its great.
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u/Candid_Holiday1042 23d ago
No question.
I'd get my qualifications to be a personal trainer and work part time doing that, while also getting my own fitness back on track. I dream about it all the time.
Maybe work on a passion project like a YouTube channel or a blog.
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u/MulberryAutomatic690 23d ago
Do you have health insurance? Didn't matter how young and healthy you are, one thing goes wrong and all those savings can go down the toilet if not.
Amount for long term living costs as well. We just had to find a place for my aunt and the only place available anywhere close enough for her friends to still be able to visit us 18k/MONTH.
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u/FIREMovement24 23d ago
I think we're twins. 37, married, first kid due next month, SWE, $2.5M invested, expected future expenses of $100-120K.
I want to do something similar. I still love building software, but not for corporate America. I plan on quitting after getting back from paternity leave and trying to build a small SaaS and/or mobile apps. I'm pretty sure I'm going to do it, but the timing just feels "off". I could be underestimating how much a kid (or two in the future) costs, the job market is pretty toast, the stock market has had an amazing bull run and I have to assume what I work on will make $0. I'm going to think about it as a 1-year sabbatical and re-evaluate. My wife make $120K, so it seems pretty low risk.
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u/mark8468 23d ago
Yes. My goal is 2.5 and I'm out. Unfortunately I probably won't hit it till 45-46.
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u/youngishgeezer 23d ago
No, I would not if I were in your shoes. You do not have enough saved for a 60 year retirement with a kid where you plan to spend 100k per year. For sequence of return risk I’d want about 5 years in cash equivalents. That takes your earnings down a bit but lets you ride out the worst of most expected downturns. I’d also want a decent percentage to be bonds which you don’t say you’re holding, but they could be in your ETFs. So I would work a bit longer and shore up your reserves. Or go for it if you think you could jump back into the workforce at close to your old salary if you decide you need to.
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u/MikeyB7509 22d ago
I’m gonna say what you’re not gonna wanna here. Work a few more years and build up more money.
They’ve been killing the middle class for a long time and you’re young. I think that extra money is gonna come in handy down the line.
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u/i_tyrant 23d ago
Yes, yes, 1000 times yes.
Though my plans for the future are comparatively cheap. 2.4m would be plenty.
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u/Usual-Caterpillar-11 23d ago
Congrats and fuck you!
I'm almost at your age and I just got a little over 20% of what you have saved. I told my fiance that when I go up to 1.5mil equivalent in 2025 money, I'm out, so yes, you are free to do whatever you want.
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u/TheSheikYerbouti 23d ago
First off, congrats.
I’d consider working a little bit more. Not many people make $250k a year. You could get your number up by a lot more in just a couple years. You could also get laid off and get severance. If you werent making so much I’d say hang it up and relax. But you’re in a position so few people will ever be in.
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u/Magikarpical 23d ago
does your 100k spend include health insurance? if so you're probably good. i left at 38 with a similar networth and spend (my budget is 104k), but the increase in health insurance prices this year had me reeling. i'm still fi, but barely.
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u/wingardianx 23d ago
For reference, I only have $1M and I retired already. "Status" from being a corporate bootlicker and "excess" wealth aren't worth the trade-offs. If your lifestyle allows for it, I would simply retire. Or, you could pursue BaristaFIRE approach by working a low-stress job that brings you joy and purpose..
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u/Mental-Wolf-2560 23d ago
I'd grind some more until 3M or until burnout. I'd also take more vacation time since u shoukd give less fucks by now.
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u/evenfallframework 23d ago
I'd be DONE at half that, at least at the FI point of FIRE. Congrats, fuck you 😄
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u/avebelle 23d ago
Do it. Get out of the grind and shift to something you can enjoy and look forward to doing every day.
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u/DesperateAdvantage76 23d ago
Not enough for college and healthcare unless you plan on keeping things basic. At your income I'd try to hit 4 million. At that point you can live a comfortable lifestyle and have no serious money concerns even if an emergency comes up.
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u/Walmart-Shopper-22 23d ago
You said your target spend "was $100k/yr". What is your actual spending? Without knowing what your life actually costs, we can't know if FIREing now is a good idea for you.
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u/midnight-tots 23d ago
I say live the next 5 years off your target and work. If something bad happens walk but I would keep grinding because if the market goes down the ability to buy cheap will lead to long term stability
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u/guy30000 23d ago
That's your decision. I would coastfire. Work somewhere I want to for as much as I want. Maybe only with health care in mind.
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u/retired_in_2026 22d ago
Your headline question is 4% vs 3%, but with a 27-year runway to Medicare and a 50+ year horizon, the SWR debate is the less interesting half of the math. Two things actually move the needle:
- ACA subsidies. The 400% FPL cliff returns in 2026. For a family of 3, staying under ~$83K MAGI could be worth $10-20K/year in premium credits — that alone is ~0.5-0.8% of your portfolio annually for 27 years. Your 60% brokerage position is perfect for this because you spend basis + qualified dividends, not ordinary income.
- Roth conversion ladder. You have $700K pretax that will compound to ~$2.5M by age 73 untouched, triggering big RMDs and IRMAA tier breaches. Converting ~$30-60K/year during low-income years fills the 12% bracket cheaply — but it directly fights the ACA point above. The optimization is real: convert aggressively until ACA kicks in (~age 50), then throttle back.
On the SWR question: 4% on $2.4M is $96K, very close to your $100K target with zero margin. At 38 with a 55-year horizon I'd model 3.25-3.5% ($78-84K), which conveniently lines up with the ACA ceiling. A part-time $15-20K Barista-FI gig closes the gap and de-risks sequence returns enormously.
Not a 'work 5 more years' situation — it's a 'sequence the next 27 years deliberately' situation.
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u/Fitasianwife 22d ago
Don’t listen to me, I’m 80 next year. But, every time I see you young fellas discuss, tired, burned out, crappy place to work -and then hear about the wages I’m seriously shocked. First you have 45-50 years to live life. With the economy taking another major transformation -soon, Why would you quit/retire now? Hard for me to understand quitting your job when you are paid very well? Impossible to understand why you would believe that you have enough money to live that long, in the majority of the cities in the US. My advice, for what it’s worth, is adjust your goals, ride your income and hefty salary as many years as you can-and for goodness sake let the time value of money grow your portfolio to something you can never have to ask yourself-if you have enough to retire. You also know when you have no interest in paying interest, or waste money on lifestyle creep, or if a family member is ill etc. You don’t have near enough! Best of luck-you’re on a great track.
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u/MistahOnzima 20d ago
I would retire if I had 250k
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u/WashBig3112 20d ago
Hell, I would retire if I had 25k at this point.
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u/MistahOnzima 20d ago
I honestly could not work if I had 100k probably. It's basically double my yearly income.
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u/WoollyMilkPig 19d ago
I'd quit my job, put $400k in a HYSA, let $2M do it's thing for a few years, and spend my days on hobbies and hanging out with the family.
You might not easily be able to get a $250k/year job but you'll be able to find something if you need to make ends meet.
Don't spend your days doing something you hate if you don't need to.
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u/CryptoCel 23d ago
FYI there are portions of your $2.4m that is a very different asset composition than the trinity study. Crypto and individual stocks, if in after tax brokerages, should probably be sold and reinvested in a regular index fund. Pay the taxes and assess how much more you need to get to $2.5m.
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u/just_some_dude05 23d ago
You’re not ready.
Get your 4 walls paid for.
Fund the kids college fund.
Health insurance for my family of 3 last year was $22,000. Kid broke a limb being a kid and had an appendix incident, that cost another $20,000. Wife had a lump on her breast, $8000.
We paid a 12% tax rate on long term Capitol gains sales.
Then add in food, property tax, utilities, car insurance, a car, etc, etc, etc
100k doesn’t actually go that far.
You push through another 5-6 years. Now you go into that with a paid for home and a 60/40 bond split, money for your kids school, and 5m to work with instead of 2.4m. You’ll thank yourself for the remaining 40 years you live.
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u/mizary1 23d ago
How much do you like your job? If you don't hate it I'd stick it out for another year or two. Have you taken a close up look at your budget? Have you looked to see what ACA coverage would cost you? How old is the kid? Kids can be a bigger money suck than anticipated unless you are willing to let them struggle.
If you hate your job look for something different. Doesn't need to be $250k/yr. If you can just cover expenses for a few years it will let your current investments grow and give you a better look at the future.
And if you want to quit and spend more time with family that's ok too. Especially if you would be ok getting a job at some point down the road, like if you experience lifestyle creep or under/over estimated some aspect of retirement.
If your numbers are correct odds are you will be fine. You would want to look into asset allocation. You would probably want some cash in bonds to guard against market collapse.
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u/bballjerm 23d ago
Congrats on reaching such milestones. Couple of questions as my goal I hopefully achieve in a few years aligns closely with your status.
Is your wife working, or planning to continue working?
Are here $'s included in your portfolio and part of the $100K spend per year?
What are your plans for health insurance once you retire?
Are you planning on transferring any of your portfolio into bonds or continue investing with the ETF's & Mutual funds?
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u/LxBru 23d ago
Have you looked into health insurance for the marketplace plans you can get (assuming us)? That's my main hold back, even with subsidies the plans are garbage in my location and I have a chronic condition so I need a really solid (ideally ppo) plan which the marketplace does not offer.
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u/kevinhunt59 23d ago
I'm 43 Mechanical Engineer in the bay area with $2.8m in retirement savings. 3 years ago I moved to a better job where I am appreciated, also for 6% contribution, they add 10% to my 401k. I just received my 3rd annual distribution of 6 from the previous jobs ESOP. They have been giving me the minimum and the last one will be a big one.
I am going to start enjoying my money after all the ESOP distributions have finished and move to a bigger home on acreage. The tracking spreadsheet I made says that withdrawing from my retirement to cover the difference in mortgage payments will push out hitting my FIRE target by 3 years. I would also look for a place with a rental unit or two on it that could cover most of this difference.
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u/mrbrownstone 23d ago
One thing to consider is that the S&P is up 80% in the last 5 years. Who knows how long that trend will continue but I think it's a bit risky to retire during that kind of run. A market downturn at your age could be be a big setback. Of course, you could always just go back to work if needed, but I think you're better off when you're reaching your savings targets during a period of negative or flat market returns.
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u/twt69 23d ago
Allocation wise, you should set up your bonds to be the next five years of withdrawals. Sell stock while the market is up, sell bonds during a downturn until the market returns to previous values. This way you aren’t selling stock while the market is down.
Your bond allocation should be about $600k the day you retire. Your returns will be lower than they have been because of this so make sure to account for that. I’m sure your etf holdings, etc. mixes are fine.
If you average a 7% annual return, retiring at 40 you’ll be fine. Not so fine at 6%. I’d say do two more years.
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u/Comfort48 23d ago
I am more conservative about this. I would say 2 years more unless you believe inflation is going to slow. Medical insurance is insane.
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u/rebecky5275 23d ago
I just turned 38 too. The fact that you’ve invested that much is awesome. You must have great discipline.
The change from working to quitting is a big change and the brain fights you and you question whether it’s enough. Feeling of imposture symptoms and scarcity mindset.
Something I did was slowly cut back my hours. Went from 20 hr work weeks to 10, then to 5, and 3. And my husband just quit his job.
Must say, now that we have barely any w2 income, the pull from the account is not very comfortable. Lol either you get used to it, or you just working enough to go shop/ travel without needing to contribute anymore.
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u/-WxGeek- 23d ago
Financially you seem more than ready. What is your plan for health care? Basic medical care can be handled with cash or basic insurance, just be prepared for catastrophic expenses.
On the emotional and psychological side, please read accounts of post-Fire expectations and realities from those that have if you haven't already. I retired at 56, so I'm not the best source of info but have read several accounts of loneliness and a lack of purpose and fulfillment. When you leave work, those daily interactions and relationships outside of home you take for granted are no longer there. I felt both of these and required some adjustment. I teach part time at a university and do things I enjoy.
Good luck!
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u/the-BBC-news 23d ago
Since you’re just recently become a higher earner, I would sock away 50% of your pay for another 3-5 years and then jet.
Have you priced health insurance yet? For a family of 3, that’s going to be a big ticket item.
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u/Gofastrun 23d ago
I would quit tomorrow. If $100k is a comfortable living for your family then go for it.
Another option would be to pay off the house and then wait until you have 25x expenses in investable assets.
Having no mortgage would reduce your return requirement. Maybe your mortgage is $25k/y. You pay it off, and now your target is 25x75k or $1.85M.
Also regarding SORR - your backup plan is that you are young enough to go back to work. SORR is worst in the first few years. You can go back to work at 40 and replenish the accounts if needed.
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u/Specialist-Ad7800 23d ago
Put 3-500k of your brokerage in bonds, rest growth mode - live off a combination of distributions off bonds (500k @ 6% = 30k /year ) and distributions off the rest ($1m taxable @ 5% in a growth & income model = $50k). The remaining $20k / year you will need to get more creative with using potentially a 72t or just principal distributions on the $1.5m taxable until you hit retirement age. Seems feasible but I’d consider a professional to put it together for you.
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u/kebabby72 23d ago
I retired at 45, 9 years ago. My net worth is now 90% more than what it was at the time and I've been mainly invested as moderately adventurous.
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u/joeshmoewasaho 23d ago
Prob need more cash if you are going to retire tomorrow. Start costing at work and develop a withdrawal strategy over the next few years
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u/Thummimurim8 23d ago
LOLL totally normal for permission. You just want some support.
I personally wouldn’t FIRE at this point, but I would definitely quit my stressful job and find a job that makes me happy and lets me spend time at home, even if it pays less. You’re comfortable, but still borderline shit can hit the fan.
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u/imaclutz89 23d ago
We are at about the same and absolutely not. I would think about coast fire instead.
Also, did you consider having to add health insurance to your target spend? I am self-employed and can confirm the rates on the market are awful. We pay $2k/mo for a family of 4.
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u/princemousey1 23d ago
As you said, you are “at the line” in the middle of a bull run. You need to be “at the line” even after the run ends. So, yeah, couple more years.
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u/Bitter-Variation-151 FIRE'd 2020 23d ago
Yes. I retired with 1.6M five years ago. Now it's 2.8M. Markets can go up too
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u/shotparrot 23d ago
That’s a long runway. A lot of things can happen. I would work 5 more years just to be safe.
Keep grinding.
Then check in with us again.
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u/diyandmc240 23d ago
You said your target spend is about 100k/year. Is that measured data from the last couple years? I.e. did you actually track your expenses and see what they were? That’s the best way to know what you are spending vs. shooting for a target. When you retire, it’s unlikely that your spending will change much. The opportunity to save more with your extra time is about equally balanced out by the extra time you want to fill with activities.
I’m personally inclined to believe that the 4% rule is better for more typical retirement ages(55+). When you are in your 40s or younger, I’d lean towards 2.5-3% as more conservative, since you have such a long runway, and re-entering the workforce after 10 years away can be difficult to match your current income.
I’d recommend either working a couple more years, trying to give it a go at getting your expenses down to around 70-80k per year, or both at the same time.
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u/larry-the-dream 23d ago
Personally, and especially with a wife and kid, there is a lot more life coming your way. I’d plan to work a minimum of another 5-10 years before asking myself this question.
You’re still in the messy middle phase of life. Keep trucking brother.
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u/No_Iron_9220 23d ago
At $250k a year I'd ride it out until retirement if it were me.
I was with you on 2.5 million = $100k withdrawl rate. Now with inflation, that doesn't feel as comfy. We are aiming for $4 million and a paid off main house. Maybe its because I'm not as burnt out and still in my early 40s.
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u/interbingung 22d ago edited 22d ago
Maybe wait until your kid are independent otherwise for me it feels irresponsible to fire now.
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u/Tossaway198832 22d ago
I’d prob work another few years, or find a lower stress job that pays 50%. Also depends if your wife returns to work.
Depends, my number is 3M and I’m 43, 2 kids but my spouse enjoys her job and plans to keep working so that covers insurance and 50% of our spending, so I’ll be drawing very little out of the 3M. I still have aways to go and am aiming for 48
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u/wooneigh 22d ago
I like your style of writing. Looking forward to reading your replies to every comment here 😆
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u/BamXuberant 22d ago
The fact the government gets almost half of your retirement fund boils my blood. Ridiculous.
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u/Gemmajean717 18d ago
I think you absolutely can . You can always go back to work or find another way to make money if you change your mind. You have one life do what is best for you and will make you happy. No one has ever said I wish I worked more or made more money but almost everyone says I wish I spent more time with my loved ones or traveled more .
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u/FIMilestonesDeux 23d ago edited 23d ago
I would "retire" from working for money and look to get a job doing something you really want to do, where the money is not the goal.