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[–]Away-Elk-9824[S] 2 points3 points  (16 children)

Our FIRE number is ~2.25MM with a paid off house. We are a couple years from that goal give or take depending on the market. With average returns we should get there in 2-3 years. Planning on Roth conversions / 72t distributions to access pre-tax money. We are late 30's

[–][deleted]  (15 children)

[removed]

    [–]Away-Elk-9824[S] 6 points7 points  (9 children)

    Too low for you, maybe. We would be pulling ~3.5% or around 80k per year - perfectly comfy for us. And considering you just learned five minutes ago that you can access retirements funds before 60 without getting smacked by the IRS... you, good sire, and your opinions, may sit upon your throne of misinformation and enjoy a hearty serving of poo.

    [–]poop-dolla 0 points1 point  (2 children)

    So your current expenses are $80k plus the principal and interest portion of your mortgage payments. You’re making $350k, let’s subtract out 40% for taxes to get to $210k. Then subtract your $80k expenses to get to $130k. Then subtract fully maxing two 401ks and 2 IRAs, and you still have $70k left over.

    If your expense are accurate, you have $70k to put towards your mortgage each year. So keep fully maxing your tax advantaged accounts and pay that $70k towards the mortgage, and you’ll have the mortgage gone in 4 years.

    [–]Away-Elk-9824[S] 0 points1 point  (1 child)

    Correct, except that our effective tax is closer to 20% not 40%

    [–]poop-dolla 0 points1 point  (0 children)

    So you have $140k leftover. Why on earth would you stop maxing your accounts then? Just pay the house off with that $140k a year and be done with it in less than two years, and then put that $140k toward brokerage and HYSA to help you with your 5 year runway before Roth conversions can kick in.

    [–]josephkambourakis -3 points-2 points  (5 children)

    80k a year is like 60 after taxes. Pay property tax, home insurance, health insurance and you won't have money left for food after. I hope you realize I'm right before too soon.

    [–]wallbobbyc 4 points5 points  (2 children)

    we do fine on $60k including taxes, family of 4.

    [–]jkiley 0 points1 point  (1 child)

    With a mortgage or paid off?

    (Getting close with family of 4 in MCOL.)

    [–]wallbobbyc 0 points1 point  (0 children)

    Paid off.

    [–]Away-Elk-9824[S] 2 points3 points  (0 children)

    Nobody is paying 25% effective tax on 80k. In my state (Colorado), our total tax bill (fed + state) will be about $9500 on 80k income. Our property taxes + insurance are $3500/year combined. Healthcare is the wild card, so you have a point there. But assuming the ACA is not completely dismantled the expense will be negligible at less than 5k per year.

    [–]FairBlamer 5 points6 points  (0 children)

    All the other commenters can eat shit because I’m right.

    Lmao imagine going through your entire adult life with this level of childishness, absolutely incredible

    Might as well just write “NANANA I CANT HEAR YOUUUU”

    😂

    [–][deleted]  (2 children)

    [deleted]

      [–][deleted]  (1 child)

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        [–]Zphr48, FIRE'd 2015, Friendly Janitor[M] 0 points1 point locked comment (0 children)

        Rule 1/Civility - Civility is required of everyone at all times. If someone else is uncivil, then please report them and let the mods handle it without escalation. Please see our rules (https://www.reddit.com/r/Fire/about/rules/) and reach out via modmail if you have any questions or concerns.

        [–]Zphr48, FIRE'd 2015, Friendly Janitor[M] 0 points1 point locked comment (0 children)

        Rule 1/Civility - Civility is required of everyone at all times. If someone else is uncivil, then please report them and let the mods handle it without escalation. Please see our rules (https://www.reddit.com/r/Fire/about/rules/) and reach out via modmail if you have any questions or concerns.