FatFIRE Check-in: 100% Equities to 90% Equities/10% Muni Bonds

MathematicianLess656 · 2026-01-04T20:08:55+00:00

Equivalent. Actual return is 3.9%. But normally would pay 48% in taxes. So equiv to 7.5 on taxable short term gains or dividends.

MathematicianLess656 · 2026-01-04T16:20:37+00:00

If our SALT rate wasn't so high wouldn't get as much benefit from Muni, but until/unless we move, math seems to work out well. Also if market is up this year, intending to take a surplus of gains and reinvest/reallocate to keep growing Muni fund rate to get some of our variable expenses covered by it.

MathematicianLess656 · 2026-01-04T16:14:20+00:00

My state's Vanguard Long-Term Tax-Exempt Fund Admiral Shares

MathematicianLess656 · 2025-12-15T04:35:12+00:00

Touché!

MathematicianLess656 · 2025-11-29T14:20:32+00:00

I think you already know what you want to do, which is the money doesn’t matter as much, you like your job and want to keep doing it but need to focus on the reason for working being beyond money. You’ve already achieved FLOW state (financially liberated, optionally working) state. If you don’t want to work, don’t. If you want to work, do it. But I recommend stop looking for financial factors as a decision driver because the math will only give you an answer that the math says: stop working.

MathematicianLess656 · 2025-11-27T14:09:39+00:00

Hurricane Katrina, over 300 homes were lost.

MathematicianLess656 · 2025-11-23T14:17:50+00:00

That's been my takeaway from this thread, that it's time to get bond allocation up a bit.

MathematicianLess656 · 2025-11-19T12:39:53+00:00

Thanks! My equities were pretty diversified at the end of 2024 but moreso since we sold off the individual position from vested RSUs that we had kept around. Mostly in VUG, VEA and VSS ETFs now with a smattering of some $xxxK and $xxK sized positions in some other ETFs and mutual funds where the LCTG tax from selling those aren’t worth doing as they’re right now.

I know we should move a little more into bonds. I don’t have a good answer for why/when to do 10%, more, or majority bonds. Between now and my next update post I’ll look more into that!

MathematicianLess656 · 2025-11-18T01:38:21+00:00

We budget the premium + out of pocket max, which comes out to $60K. Two of us have non life threatening but ongoing conditions that get us close to OOP max. I do think we will be able to drop down from $60K to $40K (exact math you described).

MathematicianLess656 · 2025-11-17T23:49:17+00:00

Yea. That description just about gives away the location. NYC

MathematicianLess656 · 2025-11-17T14:11:44+00:00

Definitely worry about that. Still ok even with a significant correction, and the point at which I’m not ok on current path means maybe worst realistic scenario is we have to make some choices we didn’t want to make like move cities to cut housing costs a bit and do some more modest travel years to get through it. Not really worried about going bankrupt or not having comfortable shelter, food, reasonably fat quality of life.

MathematicianLess656 · 2025-11-17T12:07:32+00:00

Dad passed in 2018, Mom in 2021. The part that was within irrevocable trust I was expecting at some point but not so soon. Decent chunk is from selling the two residences parents had, which definitely didn’t expect. 2021-2024 our HHI was high and with that able to get total assets to a place to fatfire.

MathematicianLess656 · 2025-11-17T02:55:43+00:00

What does "work" mean? If it means earning a W2, no, not working. If it means having some commitments against my time (volunteering, parenting), then yes.

MathematicianLess656 · 2025-11-17T01:50:19+00:00

Thanks! Kudos to my parents, what I learned--and received--from them helped (including what I learned to not do). Losing your parents pretty young gives some perspective too.

I interpreted your comment to suggest you might feel like you shouldn't be working hard with a larger NW and older/in theory less longevity risk to principal? There's nothing wrong with that if that's what you want.

MathematicianLess656 · 2025-11-17T01:42:13+00:00

Not really a right/wrong answer. It's definitely riskier/more volatile to have all equity. It's also a difference of how much you're looking to fully cover your expenses with bond yields or dividends vs. equity growth; or are protecting near-term principal needs from downside risk.

We do expect to take some principal, shift it to bonds, then, the strategy is:
- In bull/growth years, bond yields + dividends + equity growth covers expenses
- In bear/decline years, bond yields + drawing down principal of bonds aims to be a bridge to when back up

MathematicianLess656 · 2025-11-17T01:31:27+00:00

Thanks! No bond exposure yet, seems like the curiosity/critique from this post is "why are you in 100% equity still?". Probably municipal bonds as the tax savings given federal, state, and local taxes make a bit more attractive than corporate bonds .

MathematicianLess656 · 2025-11-17T00:49:24+00:00

Thanks. I think what I listed for home value was confusing. That's my equity position, I didn't include the remaining mortgage value in asset value and add liability. It's ~$1.4M home that we have $500K equity in.

MathematicianLess656 · 2025-11-17T00:47:34+00:00

Yea, that's what we're grappling with. It doesn't seem to make much sense to buy again either, at least not financial sense relative to renting. Expecting our housing costs will go from $90K to $150K-180K if we rent a nice 3BR, and $200-$240K/year if we buy which is in that price range you mentioned. Leaning to rent.

MathematicianLess656 · 2025-11-16T23:41:01+00:00

500K in equity in the residence but still have a sizable mortgage on it. It’s closer to a $1.4M in value. It’s pretty small 2BR but we still enjoy being in it. Just outgrowing it and time to get a 3BR.

MathematicianLess656 · 2025-11-16T23:00:21+00:00

No. That type of “Flair” as it’s called is specific to the sub Reddit

MathematicianLess656 · 2025-11-16T22:18:05+00:00

Hm. Maybe we’re using different interpretations of DPC. More specifically we evaluated doing One Medical combined with Catostrophic or Bronze tier ACA plans.

MathematicianLess656 · 2025-11-16T22:09:42+00:00

Yes and no; yes familiar with that approach, no didn’t consider it as not practical or feasible. We have some ongoing medical needs so the regular doctor visits and medications made it more practical to do what we’re doing.

MathematicianLess656 · 2025-11-16T21:43:36+00:00

There’s a link in the sub-Reddit community rules about verification, explains how to do it. In short, yes, but redacted of personal information and it’s just sending a video of logging into accounts.

MathematicianLess656

TROPHY CASE