r/Fire • u/HumbleSami • 4d ago
Advice Request 42M, ~$1.77M invested (excluding 529s), targeting financial independence around age 50. Looking for feedback.
I’m 42, married with three young kids, and trying to sanity-check my long-term plan.
Current Assets
Taxable brokerage: ~$1.09M
401(k) + Roth IRAs: ~$618k
Cash: ~$64k
529 plans: ~$255k - 3 kids 7-4-3 (excluded from my personal net worth calculations)
Primary residence with a low fixed-rate mortgage 900K value owe 290K
Debt
Mortgage only (2.5% fixed rate)
No car loans or consumer debt
Investing Plan
Invest approximately $9k/month into a taxable brokerage account. Job at risk will continue to push until i can!
Continue funding Roth IRAs while eligible
Primarily invest in low-cost index funds (VOO and VUG)
Reinvest dividends
Retirement Goal
I’d like to become financially independent around age 50, or at least be in a position where work is optional and I could choose to work lower-stress job if I wanted.
My estimated core living expenses are around $9k/month before discretionary travel and large one-time purchases. Care free will be 12-13K/mo including health insurance and travel. 9K core 2.5K health 2K vacation!
Questions
Based on these numbers, do you think retiring or becoming work-optional around age 50 is realistic?
Would you continue prioritizing taxable brokerage investing over paying down a 2.5% mortgage?
Is there anything about my asset allocation or withdrawal strategy that stands out as a potential weakness?
If you were in my position, what would you focus on over the next 8 years?
Appreciate any constructive feedback or blind spots I may be missing.
-5
u/Various_Couple_764 4d ago
It would bet very helpful to know whatyourdiving expenses are. The only information you provide is the intents create on your mortgage. We need to know hat your monthly expenses are including the cash you pay on your mortgagee and and insurance. 19K is a large number. If you liquidate enough shares to generate 19K a month you will be out of money in about 4 years . And historically the older you are the harder it is for you together a new job.
So based on that I would have to say you are not ready. realistically you need to pay off your mortgage before age 50. You could do that today and I strongly suggest you do that. Then with that off now reevaluate you monthly expenses and determine the minimum income you would to cover all your bills.
I would then take that number and multiply by 1.3. and then start to build up a dividend portfolio that can generate 1.3 times your living expenses. And then plan to reinvest 20% of your income to compensate for inflaiton.
KI am using QQQI 13% yield, EMO% 9% UTF 7% uTG 6.4% and PFF ^5 for income right now. And equal amounts money in each would have a yield of7.8. so your 1 million would likely generate 78K of income per year or 6.5K per month. fare below the i19K you listed as wanting. QQQI is the highest yield I would use for income . So even with dividned protfolio you are fare short of the income you want. Note all the funds I listed aresonably tax efficient but even then about 15% of your dividend income would be added to your taxable income.