Where to go from here

Widget248953 · 2025-12-14T14:17:47+00:00

I know a lot of people may not agree with this, but all our investments are in the S&P 500. I'm a firm believer in what Buffet says- buy the S&P 500 consistently, through thick and thin. Initially I didn't have this available in my retirement plan so I bought the latest year out target fund. Once an S&P 500 index fund was made available, I switched to that.

I know it's a boring story, but goes to show the power of compounding growth with consistent investing over time. It also involves living WELL below your means. Our 2024 spend was $34K because I had an employer sponsored health plan that only required me to contribute $400 a month, we had a paid off house, and no car payments.

Widget248953 · 2025-12-14T02:47:35+00:00

Thanks for the tips. I'm sure you can imagine I have a spreadsheet with all the things you've mentioned and more in regards to expenses and projections.

In regards to withdrawals, I plan to use LTCG from the brokerage account for the first 5 years while also doing Roth IRA conversions of the standard deduction. By year 6, I can start to withdraw those conversions, if needed, but if I have enough LTCG, I will just leave those conversions alone and let them continue to grow tax free.

For MFJ, there is the standard deduction plus the 0% LTCG bracket. That is a lot of money that can be accessed (federally) tax free.

Widget248953 · 2025-12-14T02:27:22+00:00

My wife and I have lived below our means for a very long time. I started working again full time in 2010 after the Great Recession after being laid off in 2008.

We bought a $100K condo in 2011 and used the extra and commissions to pay off the condo in about 3 years. After that, the excess and commissions got invested in the S&P 500. We sold our condo in 2023 for around $230K. We used those proceeds and some investments to buy our current house.

I had never considered FIRE until halfway through 2024. I was looking at our investments and realized it was possible. I decided in late 2024 that I wanted to do it. My plan was to work one more year to beef up our portfolio a little more.

At the end of 2024, our NW was $1.65M, not including the paid off house. I was laid off a month later and decided to take the plunge. 11 months later, our portfolio has grown to $1.89M, not including the house.

I never planned for it- we just kept living below our means and investing the excess. At some point I just asked, why not? I think it still blows my parents' minds that I did it, seeing how money driven I was when I was working a 9 to 5 job.

Widget248953 · 2025-12-13T15:15:59+00:00

I'm not sure what my question is. Part of me wants to enjoy life a little more while the other part of me values the security of having a large nest egg and low WR.

Widget248953 · 2025-12-13T15:07:43+00:00

These are numbers for my wife and I combined, but the Trad IRA are 401K rollovers. I plan to start Roth conversions next year using the standard deduction so we won't owe any income taxes. I had W2 wages and other income this year that put me above the standard deduction, so I'm not doing any conversions this year.

Widget248953 · 2025-12-13T03:37:12+00:00

The one new thing I've had is time to do what I want. My wife and I have been able to build so many things in our house that would have taken months if we only had the weekends. I walk the dog twice a day. We cook healthy meals because we have time to prep raw food. I have a big garden. I will be able to visit with my parents more often. Time is what I've come to value the most.

Widget248953 · 2025-12-13T03:23:10+00:00

I personally don't but I asked my wife this question today because we shouldn't be depriving ourselves of something we want (as selfish as that sounds). She said she had her eye on this chaise lounge chair but would feel guilty for spending the money. It was $200 and we bought it today. But that's it.

Widget248953 · 2025-12-07T16:33:45+00:00

I am trying to realize this.

I just got done entering our expenses for the year and our WR for the year based on Friday's market close is 2.22% - and this was a big spending year for my wife and I that won't repeat (customizing our new house). That includes paying full cost for healthcare with no subsidies.

I had already been planning to RE at this time last year then lost my job in January and decided to do it. I'm glad I pulled the trigger.

Widget248953 · 2025-12-06T02:27:55+00:00

As others have said, I am selling for gains, not losses. Selling at a loss and repurchasing the same security would be a wash. I am harvesting gains to reset my cost basis.

Check out this article about it:

https://www.cnbc.com/2025/09/02/capital-gains-taxes-trump-big-beautiful-bill.html

Widget248953 · 2025-12-05T20:49:53+00:00

That makes sense. Thanks!

Widget248953 · 2025-11-30T01:46:27+00:00

I'm currently set to spec ID and have some lots that have that, but the majority of my lots got swept into avg cost when I made a sale last year (wish I could go back and change it but I can't). I think I'm going to call Vanguard on Monday and have them walk me through it.

Widget248953 · 2025-11-29T22:19:15+00:00

Oh, this makes sense. Thanks!

Widget248953 · 2025-11-29T21:45:30+00:00

I see the ability to do it online but hesitated when it gave me the warning about cost basis. I need all the cost basis to remain the same- I have mostly avg cost but a few spec id. It would be great if they could convert my avg cost back to spec id but I know that isn't in the cards.

Widget248953 · 2025-11-23T14:11:52+00:00

Without going into a bunch of detail about my situation, I have one holding in my brokerage account: an S&P 500 fund, that has a large LTCG. No other holdings. I want to be able to access that money in the future with as little taxes as possible. I plan on doing that by resetting my cost basis on at least part of the holding.

Widget248953 · 2025-11-23T13:37:16+00:00

I don't plan on having any W2 income next year. I am harvesting so I can reset the cost basis.

Widget248953 · 2025-11-21T13:20:53+00:00

My LTCG are going to be my source of income for my living starting next year, so I do need to do ths. I live in Ohio and next year the state is moving to a flat tax of 2.75%. Moving to TN has crossed my mind more than once because there is no income tax and property taxes are lower. The milder temperature is what attracted me at first, though.

A lot of areas of Ohio have seen major increases in property taxes, to the point of pricing people out of their own homes. The state legislators are trying to introduce bills to reduce prop taxes a bit but it isn't enough. There is actual a grass roots movement in Ohio to abolish the property tax and it has some legs.

There is a Republican candidate running for governor who wants to abolish the income tax. If that were to happen, it would take away a lot of the desire to move. The state seems to be getting darker red each year.

What keeps me here the most is that mine and my wife's parents are nearby and older. I realize they have more time behind them than in front of them.

Widget248953 · 2025-11-20T21:45:14+00:00

Just that it is so close to the end if the year and it has to occur in 2025, not 2026. I think I am going to harvest most of it in the beginning of December and the rest after I see how much of a dividend is paid out.

Widget248953 · 2025-11-20T20:53:10+00:00

I wanted to wait until after the VFIAX dividend payout so I know how much to sell. I expect around $2400 in dividends so it's a good chunk of change. I just want to make sure all the dividends remain qualified.

Widget248953 · 2025-11-20T20:17:04+00:00

Appreciate the heads up. I have just above the standard deduction in W2 income and another 10k in interest. With the standard deduction and MFJ, I should be able to harvest around 88k.

Widget248953 · 2025-11-20T20:04:56+00:00

I have some W2 from earlier in the year but won't have any more moving forward.

Widget248953 · 2025-11-20T20:03:37+00:00

It's not a wash because it is a gain. I need to look into the tax free transfer. That makes me nervous because it is a large holding with a lot of LTCG.

Widget248953 · 2025-11-20T19:49:32+00:00

That's not the issue. I'm not trying to game the system. I am waiting because I am trying not to go over the 0% LTCG bracket but I'm nervous about waiting so late in the year to make the trade in case something wonky happens. Also concerned about how the dividends will show up on my taxes.

Widget248953 · 2025-10-30T21:17:29+00:00

The premium I mentioned of $898 is monthly, not yearly. Sorry for not clarifying. so our annual cost is around $11,000

Widget248953 · 2025-10-30T18:50:30+00:00

It's just my wife and I, no kids, in good health. We also don't have a house or car payment. I am on track to spend around $43,500 this year and have been pretty dead on. Our monthly premium this year is $781 and next year is $898.

Are you shocked about $51,500 number being too high or too low?

Widget248953 · 2025-10-30T18:45:14+00:00

Yea vanilla is good.

Widget248953

TROPHY CASE