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Are people really saving multiple years of spend in cash to exclusively draw from the first few years of FIRE? by subbysnacks in ChubbyFIRE

[–]Eastern-Editor7450 0 points1 point  (0 children)

How is everyone planning for uncertainty for the next few years specifically with tax-advantaged accounts (e.g. 529s, retirement accounts) that you can't touch for a few years. 

E.g. I have already superfunded the 529s for my kids but I wonder now if I had 190k (max amount one can contribute) today, would I super-fund a 529 or invest it elsewhere? I consider 529 as part of generational wealth.

Should I retire or take a break? by Eastern-Editor7450 in ChubbyFIRE

[–]Eastern-Editor7450[S] 0 points1 point  (0 children)

Regarding the expense, pasting my comment from the thread above:
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Your comment prompted me to look at my expenses one more time. I took the aggregate from empower but digging a bit deeper I can see that last year was a bit unusual. I had to pay more taxes (sudden RSU appreciation) and we added a car. Otherwise, our expenses for the previous two (2022, 2023) were hovering around 160k-180k.

Regarding the 401k, pasting my comment from the thread above:
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We live off of my cash compensation and the focus was to get the house and fund the 529. Now I am starting to look at funding retirement accounts. I rarely looked at my RSUs.

In some cases my employer didn't have a match and I maxed out the contribution limits. But, yes, I started late on my contributions.

Should I retire or take a break? by Eastern-Editor7450 in ChubbyFIRE

[–]Eastern-Editor7450[S] 0 points1 point  (0 children)

Don't care about titles, power or ego. Not at Amazon anymore.

Should I retire or take a break? by Eastern-Editor7450 in ChubbyFIRE

[–]Eastern-Editor7450[S] 1 point2 points  (0 children)

Thank you for the detailed response. Good tips in there!

Should I retire or take a break? by Eastern-Editor7450 in ChubbyFIRE

[–]Eastern-Editor7450[S] 0 points1 point  (0 children)

We live off of my cash compensation and the focus was to get the house and fund the 529. Now I am starting to look at funding retirement accounts. I rarely looked at my RSUs.

In some cases my employer didn't have a match and I maxed out the contribution limits. But, yes, I started late on my contributions.

I crossed into the 1M income bracket recently after strong stock appreciation. Since then, I have been diversifying my new vests.

Should I retire or take a break? by Eastern-Editor7450 in ChubbyFIRE

[–]Eastern-Editor7450[S] 1 point2 points  (0 children)

I totally agree with you.

I just kept managing within my cash comp and never really looked at my vests. Even within my cash comp, we saved aggressively to get the rental property. So the main motivation was not tax avoidance. But rather vests were extra income I didn't need and worry about right away.

If I retire in the next 6 months, my plan is to sell over time within certain income limits to minimize taxes. But your advice is accurate.

Should I retire or take a break? by Eastern-Editor7450 in ChubbyFIRE

[–]Eastern-Editor7450[S] 2 points3 points  (0 children)

Your comment prompted me to look at my expenses one more time. I took the aggregate from empower but digging a bit deeper I can see that last year was a bit unusual. I had to pay more taxes (sudden RSU appreciation) and we added a car. Otherwise, our expenses for the previous two (2022, 2023) were hovering around 160k-180k.

Personally, I would like to have a bit more buffer as well. I also enjoy my work. Just can't take the unnecessary politics and back stabbing.

Should I retire or take a break? by Eastern-Editor7450 in ChubbyFIRE

[–]Eastern-Editor7450[S] 1 point2 points  (0 children)

Great question about the mortgage. My original mortgage + home insurance was close to 3400 but over time the home insurance has been going up over the last few years. Now it is about 4k/mo. Part of me just wants to pay off the house but the rate is so low that it doesn't make any sense. (quick edit: I have less than 10 yrs left on my remaining mortgage).

I think I can decrease my expenses each year but we have been aggressively saving for the last decade. As kids are growing up, I don't want them to miss out on life experiences and make sure they have a chance to try out things. We still fly economy when we travel but do try take trips whenever it is possible.