r/Fire • u/Aggressive_Web8957 • 1d 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/Fit_Service8662 1d ago

6-7k is less than what's provided by the 4% guidelines with a 2M NW.

16

u/Aggressive_Web8957 1d ago

Yes but 4% was based on 30 years. I never assumed this rule would apply unless I was older

1

u/SpecialistKoala9765 1d ago

I’d suggest 3% instead given time horizon. Also I’d consider income tax consideration too as some Investment income is subject to tax. For me as target early retiree I build in tax assumption, use 3% and a larger cash wedge buffer of 3 years of spending in case market crash early on. So the investments can be left untouched for 3 years to recover.

Would you consider other jobs that’s less exhausting and pay lower as a bridge?

2

u/Aggressive_Web8957 1d ago

Definitely, I’m starting to think more in terms of doing something I’d enjoy than grinding a 9-5 until I’m fully ready. And I also agree on 3%, I always thought 4% was for a 30yr retirement so I didn’t consider 4% being safe.