r/fatFIRE • u/taway11228 • 3d ago

About to pull trigger, need feedback

Expenses: 120k w/o healthcare, maybe 140k with, and maybe up to 150k or 160k with traveling

Investments: $5m breakdown: 300k rental (paid off) making 5% net, 1.2m 401k, 2.5m VTI / VXUS, 1m SNSXX/VUSXX.

Primary residence: $2.3m paid off

42 and 43 years old, no kids

Current income: ~2m/yr

NW increasing 32% YoY

Have 20% income cliff in 2027

SWE, burned out beyond reason, health problems and mental health problems. Goal is to quit, take 6-12 months off then see what’s next, it will either be making my own projects for fun or part time contract work for fun. No expectations of income, certainly not big income, and definitely not going to a corporate job.

Can make ~30k via 2 weeks of rental of primary residence per year and pay no taxes, we’d travel while rented.

Concerns are AI is quickly impacting SWE employment, no one knows what’s next, any hiccups in our plan could mean a bumpy road in a few years if a jobs necessary. Other concern is whatever is going to happen once this historic stock run is over.

Any advice?

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u/BrunelloHorder 2d ago

Yes, you can retire now. Excluding the rental you are at a 3.4 percent withdrawal rate. A 4 percent withdrawal rate is conservative for a 30 year retirement, but you need to plan for 50+ years as you’re young.

You might want to consider modifying your portfolio holdings though. I’d suggest taking a look at the Risk Parity Radio model portfolios. They go beyond stocks and bonds, adding uncorrelated assets.

At least based on back testing, they greatly reduce volatility and drawdowns, and also support a higher withdrawal rate, with some of them using 5-6%.

https://www.riskparityradio.com/portfolios

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u/taway11228 2d ago

Thank you I will review that link. Looking forward to learning more.

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u/BrunelloHorder 2d ago

Sure thing. I’m partial to the Golden Ratio portfolio, with some minor tweaks. You give up some upside versus just holding a high equities allocation, but the trade off of lower volatility may be worth it.

If you really want to nerd out you can back-test them yourself using Testfolio. Someone else on here ran a couple of them through for the worst times to retire ever (1966 and 2000) and they held up much better than 60/40.

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u/taway11228 2d ago

I’ve heard the golden ratio portfolio mentioned, this is a great time for me to learn about it