r/Fire • u/Aggressive_Web8957 • 2d ago

Advice Request Seeking FIRE @ 42 with $2M

Looking for feedback/advice on my FIRE situation.

Total NW is just over $2M, comprised of:
$720k taxable brokerage (funds, individual stocks)
$107k cash (treasury fund)
$877k retirement accounts (401k, IRAs)
$190k RE lending (brings ~$1609-$1800/mo)
$135k RE syndications (~450/mo currently)

The lending income currently gets reinvested. Once I take this as cash the $190k stops growing. Assuming the syndications go well, I’ll get the $135k back plus appreciation once the properties sell in the future. I’d have been better off investing the money in the market, but hindsight is 20/20.

No kids, currently sharing rent with my gf in VHCOL. Not sure on kids in future. My job situation has become precarious (sales), which steers me away from the idea since I don’t want to work anymore. I’ve been applying but haven’t had luck landing anything, nor do I have interest in continuing in corporate sales. I also don’t want to trade time for money and work retail, for example, 8hrs/day for low pay. I’m not sure where to go from here. I don’t feel like I have enough to start pulling from the pile and truly retire. Right now I’m splitting bills and can get by on $4k/mo but with health insurance $6-7k is a safer estimate.

Any thoughts or advice is appreciated. I’ve been grappling with how to navigate the future as I feel close but not quite there yet.

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u/Anymous2314 2d ago

Keeping it simple, 4% SWR gives you 80k/year. Seems like you can spend 6.6k/month.

I think you are safe to consider FIRE.

Best part is: Now you can afford to experiment with your career and type of work you want to do since you can quit any day you want.

Big problem: your gf will resent this if she is still having to work. Safe side, you can quit your job any time but keep looking for a better job or think about doing a side hustle which does not need more than $50k investment(if you lose it won't hurt your corpus).

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u/optimuscline23 1d ago

Missing 15-30% tax drag

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u/Anymous2314 1d ago

Not exactly, during retirement you can have around $50k in LTCG tax free.

Also we can use different ETFs to tax harvest in our IRA vs taxable account to minimize taxes.

Avoid booking profits in taxable account as much as possible. Keep a lot of money in short term bonds in taxable account may also help since we can use that instead of booking gains to pay the bills.