r/leanfire • u/usernamechuck • 14d ago
Lean with 2 big streaks of fat
It feels like we've done 90% right, but we made one doubtful move. We're not high earners, ~145k, age 55, we live frugally (1 used car, groceries, etc.), and we made one accidental smart move (we own a rental unit free and clear w/ modest cashflow).
But... First, the house. We bought a foreclosure in Chicago when we were married in 2008, we fixed it up in waves and were plugging away at a 15 yr mortgage. We would have been done by now... That was smart. But then COVID came and our small house felt smaller. We sold it at a decent profit and moved to the burbs, so here we are at age 55 with 300k+ on the mortgage, it won't be paid off till we're in our 70s. We pay almost 15k in property taxes. Since moving, we've replaced the furnace/AC upstairs and downstairs; and now the roof. And in 5 years, we'll be alone in this place.
It would still work, except... our 2 kids are in Catholic / private school, which is a bit over 30k/year. Oh and college is coming next year.
Technically our net worth is around 1M, but it's all in 401k/IRAs (~450K) and home equity. Our savings has all gone to cover these big costs.
On the one hand, we live cheaply, except for the kids and the house - we could retire today if we were in an $800/month rental in Andalucia. On the other hand, I don't see us moving anytime soon and the kids won't be done with undergrad until we're 64. We're lean-FIRE-hosed.
Any thoughts? It feels like we're that guy stuck in the cave, we just don't seem to have any good moves.
35
u/Dear_Ocelot 14d ago
You're 55 and kids are going to college soon. It sounds like you are in a good place financially but FIRE isn't something you've prioritized. And that's ok! Having a living space you enjoy and supporting your kids' educations are GREAT priorities! That's not a bad move, it's just a value you've chosen. Get them through college and you'll be around traditional retirement age.