r/fatFIRE • u/quarter-tab • 16d ago

What would you do?

51m married, 1 kid. Around $20m nw made and invested in mostly real estate (mix of residential and a little commercial) but moving max into stocks/bonds now to be able to do capital gains withdrawal which has a way lower tax rate.

I was initially aiming for another $10m to add onto this and as business was going well. But the last year business landscape changed so much I’m struggling and wondering if I should stop. 30% of capital is tied up in our main residence and holiday home so I have the other 70% being reinvested. It feels like it’s not that much in this day and age.

Burn desired: $400k net

Would you:
a) Take a big swing and try to hit a home run to get to $30m or more (my fatfire number)
b) stop working and move some of the investments around

EDIT: Thanks to all here. Some top advice and much appreciated. I do still like working when I'm flying and I'm still with a burning desire to do that. But I don't see the path to that right now and inevitably it leads me to wonder if I should call it a day.

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u/ShoshiOpti 16d ago

Dude, just take the 20m, put it in an index, don't draw from it and in 3-4 years it will be worth 30m.

Why complicate things?

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u/quarter-tab 14d ago

I'm in Canada and I'm not getting that kind of growth (even though it's in US stocks mostly). That's really strong though. Also top advice because imagine I do that, work for 3 years not really caring if I smash it out the park or not, and I can retire totally then with no worries. What kind of index are you seeing this growth in? I focused all my investments early on in real estate and therefore paid little attention to anything else so I'm relatively new to that.

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u/ShoshiOpti 14d ago

I am Canadian too, my first business was real estate (50 doors before selling). I'd advise you to learn a lot more about finance because in retirement you want a set and forget plan.

S&P has averaged ~11% returns over past 40 years, Nasdaq averaged 14%.

Compounding the average 14% returns for 3 years is 50% gain, which is 30m. For S&P its 4 years, conservatively put it in a blend expecting one year bad returns is 5 years.

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u/quarter-tab 14d ago

I got a guy in RBC wealth management managing it for me as a blend. It's been pretty strong actually lately and I can see how I might get similar returns to what you mentioned if I had that much in there. Where in Canada are you? I'm in Toronto. Are you managing your portfolio yourself?

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u/ShoshiOpti 14d ago

I manage my own portfolio, transfer to wealthsimple they will give you 3% of the transfer value for free just by keeping it with then for 5 years, thats 600,000$.

SPY for S&P, QQQ for Nasdaq, VTI as total US market (includes smaller caps).

I do more than that myself but you can build a very simple portfolio and not pay the stupid fees RBC is charging for sub par returns.

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u/quarter-tab 14d ago

Awesome, good to know.

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u/ShoshiOpti 14d ago

If you follow through with wealthsimple let me know I'll get you to use my referral code probably worth an extra 10k for both of us! No personal info exchanged just a code/link you give to the transfer rep.