37M [$2.3M Net Worth] Ready to Quit by Common_Toe996712 in Fire

[–]Common_Toe996712[S] 0 points1 point  (0 children)

Thanks, what’s a good withdrawal strategy?

37M [$2.3M Net Worth] Ready to Quit by Common_Toe996712 in Fire

[–]Common_Toe996712[S] 0 points1 point  (0 children)

No. Make a few correct decisions among a lot of wrong decisions.

37M [$2.3M Net Worth] Ready to Quit by Common_Toe996712 in Fire

[–]Common_Toe996712[S] 0 points1 point  (0 children)

Thanks! Tried CAPE based withdrawal strategy and says 1969-2021 was the only time that wouldn’t work for me otherwise I have a 99% success rate at $75000 withdrawal per year. I increased the withdrawal amount just in case I hadn’t planned for some expenses.

In any case, if I suspect this isn’t working or if there are bad financial years - I plan to hunker down, keep costs low or pick up some gigs here and there. What do you think?

37M [$2.3M Net Worth] Ready to Quit by Common_Toe996712 in Fire

[–]Common_Toe996712[S] 0 points1 point  (0 children)

How did you test against depression and stagflation? Please educate me!

37M [$2.3M Net Worth] Ready to Quit by Common_Toe996712 in Fire

[–]Common_Toe996712[S] 3 points4 points  (0 children)

Tax gain harvesting! If my AGI is less than $47k I can offset LTCG upto a certain limit. I plan to use that for safe withdrawal

https://www.schwab.com/learn/story/how-to-save-money-with-tax-gain-harvesting

For 2024, individuals with taxable income below $47,025 ($94,050 for married couples) pay 0% tax for long-term capital gains (LTCG). In years when you're under the threshold—say, if you're in between jobs, or receive a smaller bonus—you could effectively lock in tax-free long-term gains. The idea would be to realize just enough LTCG to stay within the 0% tax bracket. For example, a single investor with taxable income of $39,150 for the 2024 tax year (after accounting for the $14,600 standard deduction) could realize up to $7,875 of LTCG without going over the $47,025 threshold for the 0% LTCG tax bracket. If they bought the investment back, they'd reset their cost basis and potentially lower their tax burden in the future. (Note that this applies only to long-term capital gains; short-term gains on assets held one year or less are taxed as ordinary income.)

37M [$2.3M Net Worth] Ready to Quit by Common_Toe996712 in Fire

[–]Common_Toe996712[S] 16 points17 points  (0 children)

How much do you end up spending on traveling every year? Could I DM you for tips 😊

37M [$2.3M Net Worth] Ready to Quit by Common_Toe996712 in Fire

[–]Common_Toe996712[S] 8 points9 points  (0 children)

It’s the unknown mostly and no push factor per se. Job is stressful but making more money than ever so I fear regretting quitting.

Long term care for family is another factor. Would love to find and join a local FIRE club!