Hello community,
This is my first post here after I recently found this amazing forum.
I’m in my mid 40s, dual income, no kids. We are financially independent and for last 5 years I’ve cut down heavily on my work hours to 25-30 hrs a week with goal of 2 months of vacation which we’re stretching further to 4 months from this year. Although we are big believer of FI, the RE part is difficult to absorb for us right now as we’re not willing to give up on doing any work since it gives us a structure, routine and some form of identity.
Here is my scenario and I would appreciate any suggestions. This is in case we decide to retire today.
Current NW is with a 90/10 (stock/ bond) portfolio in diversified low cost mutual fund: (includes taxes and health insurance):
1. 20x for a Fat FIRE lifestyle.
2. 24x for current lifestyle which is very very comfortable.
3. 28x for lifestyle with some compromise from current, bust still quite comfortable.
By only working 20 hrs a week and a profession with a high demand, we can easily support the above FatFiRE lifestyle with a <3% SWR. Given our age and both quite healthy, we can comfortably work another 10-15 years. I have not included a possible 7 figure windfall in the next 10-15 years which will lower our SWR even further.
Despite this, I still wish to feel comfortable that I have enough to retire with current or FatFIRE lifestyle NOW. I know for a fact that even if my NW grows to a level that I can have a FatFIRE lifestyle with a 2.5% SWR now, I will still be working minimum 15-20 hrs a week which will cover for my health insurance and most of my travel expenses and will lower my SWR even further.
Is this thought crazy or absurd?
Am I wrong in wanting to be able to retire when my current job and lifestyle is well supported with what I have?
This is my first post here after I recently found this amazing forum.
I’m in my mid 40s, dual income, no kids. We are financially independent and for last 5 years I’ve cut down heavily on my work hours to 25-30 hrs a week with goal of 2 months of vacation which we’re stretching further to 4 months from this year. Although we are big believer of FI, the RE part is difficult to absorb for us right now as we’re not willing to give up on doing any work since it gives us a structure, routine and some form of identity.
Here is my scenario and I would appreciate any suggestions. This is in case we decide to retire today.
Current NW is with a 90/10 (stock/ bond) portfolio in diversified low cost mutual fund: (includes taxes and health insurance):
1. 20x for a Fat FIRE lifestyle.
2. 24x for current lifestyle which is very very comfortable.
3. 28x for lifestyle with some compromise from current, bust still quite comfortable.
By only working 20 hrs a week and a profession with a high demand, we can easily support the above FatFiRE lifestyle with a <3% SWR. Given our age and both quite healthy, we can comfortably work another 10-15 years. I have not included a possible 7 figure windfall in the next 10-15 years which will lower our SWR even further.
Despite this, I still wish to feel comfortable that I have enough to retire with current or FatFIRE lifestyle NOW. I know for a fact that even if my NW grows to a level that I can have a FatFIRE lifestyle with a 2.5% SWR now, I will still be working minimum 15-20 hrs a week which will cover for my health insurance and most of my travel expenses and will lower my SWR even further.
Is this thought crazy or absurd?
Am I wrong in wanting to be able to retire when my current job and lifestyle is well supported with what I have?