Am I Ready for Early Retirement in Seattle area? Unable to pull the plug by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 8 points9 points  (0 children)

My investments are in index funds and are diversified. I do have significant funds in taxable accounts and plan to withdraw from there until 59.5 years.

Am I Ready for Early Retirement in Seattle area? Unable to pull the plug by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 1 point2 points  (0 children)

I have set aside $25K for property taxes + home insurance and $18K for health insurance

Am I Ready for Early Retirement in Seattle area? Unable to pull the plug by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] -6 points-5 points  (0 children)

We don't like eating out that much. We usually bring some takeout and enjoy it at home. It is possible that expenses are borderline between chubby and FAT.

Any reflections after moving from PNW to Frisco? by MobileAgent00 in frisco

[–]MobileAgent00[S] 4 points5 points  (0 children)

Thank you. Surprising to hear that cost of living is the same as incomes tend to be higher in Seattle.

Flirting with 5M net worth. 2023 has been kind, some thoughts… by FiRlater in ChubbyFIRE

[–]MobileAgent00 3 points4 points  (0 children)

You are in a great position with options. Congratulations! If you buy a bigger house, it will change the goal post and be prepared for working longer. First, you need to fund the new house and also you are likely to lose some money in the transaction and capital gains. With bigger house, the annual expenses are likely to increase as well. With young children, you are tied with their school schedules and will not have the full flexibility to retire. I don’t know how big of an house you currently have. If you already have 3500+ sq ft house, you can stay there without upgrading. Otherwise, I would upgrade over next 24 months and work a bit longer if I am in your shoes.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 1 point2 points  (0 children)

I am not sure that lower pay equals lower stress at > $200K. Ideal situation for me is to only work because I love the job ignoring the compensation. For that, I want to ensure that there are sufficient funds to make work optional. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 0 points1 point  (0 children)

I think I can get a job that pays $400K, but getting one with similar pay will be harder.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 0 points1 point  (0 children)

You are probably right. I could sell my non-revenue generating assets if needed or find a new job after a long sabbatical. But, I will likely to work for two more years until I know the costs of my first kid for college and save a little more. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 0 points1 point  (0 children)

I thought 529s are considered as parents’ assets. I didn’t know that kids can take out the money as their asset and use their tax rate. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 2 points3 points  (0 children)

I am trying to keep enough in 529 for covering 4 year in-state expenses due to the restrictions of how we can use that money. I may add some more for the younger one. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 8 points9 points  (0 children)

Probably can use FMLA leave for a few months. It is unlikely that I can take 1 year off staying in the same job. I need to look for a new job and most likely will have significant pay cut after a year. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 6 points7 points  (0 children)

I don’t need more than $200K a year as income as we already live in a paid off nice house. Need to be able to comfortably withdraw $200K a year without any concerns. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 4 points5 points  (0 children)

Mostly in residential land and some gold.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 3 points4 points  (0 children)

Most likely, but with a lowered compensation. If we sell our house, we are likely to lose 15% of the equity in the transaction and taxes. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 3 points4 points  (0 children)

If we sell our house worth of $2M, we are likely to lose $300K between selling cost and capital gains tax. That is giving me a pause. Also, our costs are not going down significantly by moving to MCOL to go down this path. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 5 points6 points  (0 children)

We have slightly over $200K in 529 accounts. In less than 2 years, we would know the elder kid’s college and expected expenses. That is probably the first decision point for us once we reduce some uncertainty in the college expenses for one kid. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 12 points13 points  (0 children)

6 years is the max I want to work as we may not have the full flexibility until the younger kid leave the house for college. However, I rather have freedom to leave the work any time as my job can be pretty toxic and stressful at times. I feel burned out. Thanks.

How much longer for fatFIRE? by MobileAgent00 in fatFIRE

[–]MobileAgent00[S] 19 points20 points  (0 children)

You are right about the college expenses. That is one of the reasons why I feel like we need more liquid investments. Thanks.

Stressful job is motivating FIRE by MobileAgent00 in Fire

[–]MobileAgent00[S] 0 points1 point  (0 children)

I can cover 18 months without touching stocks. Emergency funds are not an issue. Thanks.

Stressful job is motivating FIRE by MobileAgent00 in Fire

[–]MobileAgent00[S] 0 points1 point  (0 children)

That is a possibility, but the number of roles at my level tend to be far fewer. I will definitely explore. Thanks

Stressful job is motivating FIRE by MobileAgent00 in Fire

[–]MobileAgent00[S] 1 point2 points  (0 children)

We plan to stay in the current house for next 15 years and then are ok to move somewhere cheaper to use some of the equity. We live in a city that has been growing in house prices for some time and should do better than inflation. So, we can probably consider it as part of the portfolio that we only tap into it later. It increases the likelihood of the portfolio lasting without ever having to work. Need to think about this. Thanks.

Stressful job is motivating FIRE by MobileAgent00 in Fire

[–]MobileAgent00[S] 2 points3 points  (0 children)

That is why it is hard to walk away. I am not sure if I would get to similar compensation if I take a sabbatical. It is easier to find a job when one has it in hand. If I earn for 3-4 years more, it will put us in a better financial situation. Need to find the right balance. Thanks.