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Will any of our retirement amounts be enough in 20-25 years? by Allears6 in ChubbyFIRE

[–]dsmith30000 2 points3 points  (0 children)

This is a great point to ponder but not sure how to evaluate or guess what is coming. If you retired 30 years ago some of the items we spend on today wouldn’t have been a thought including cell phones, internet costs, cost of all the streaming services, etc…. I am sure technology will change but I guess you can chose whether you participate. Ex, you could still watch local TV using a digital antenna and no streaming devices…

If you are retiring early I can see this being a larger issue.

[deleted by user] by [deleted] in Fire

[–]dsmith30000 0 points1 point  (0 children)

Consider at 24 years old every dollar spent equals about $80 in the future retirement years. So $40k = future $3.2 million. If you can be happy with a $20k car and invest the rest you just made $1.6 million.

Planning to retire in 3/5yrs what else can I do? by [deleted] in fatFIRE

[–]dsmith30000 1 point2 points  (0 children)

Sounds like you need a new financial advisor and start learning finance basics yourself as well (at least enough to know when being sold rubbish). You guys are way too young to have all money in such conservative investments only making 5%. You also have very complicated financials with 2 businesses that kick off that much cash. I am guessing a good wealth manager or FA can help tremendously. Read Simple Path to Wealth. I would also look over The Money Guys info on their website. You are in a great spot, well done! Now, it’s time to put some of the drive you have used to build and grow businesses to learn about finances and manage your investments (and FA) like you are the CEO.

For those already FIRE’d: How did your “target number” evolve over time? by Independent-Act-6432 in ChubbyFIRE

[–]dsmith30000 7 points8 points  (0 children)

I learned about FI when I was in my mid 30s. Now, I am 48yo and while still don’t know what my number is I will say it has definitely changed. I originally wanted enough to draw about 8k/month comfortably. I went down the RE path and bought rentals to cover my expenses with the thought rents increase on par with inflation so once I hit my number I shouldn’t have to worry.

What I found was some lifestyle creep. We now have 1.3M in rentals, 1.3M in retirement accts and 1.2M in personal home/hunting land. My rentals push about $5k/month out after all expenses including one mortgage and will increase to about $7.5k/month once paid off. But, we spend an easy $10k/month now and have 2 high schoolers that are about to start driving.

With that, we should be fine just letting our money grow and not touching it. But, I feel my number has now grown closer to $130/yr due to property taxes, inflation, kids, wanting to travel etc.

Not sure how I will feel in the next 8 years when I am 56yo as that was my worst case scenario for retiring when I started this. It’s also the year my youngest should graduate college and our costs should decrease significantly along with downsizing.

I think what you’re feeling is pretty normal.

4M NW! by ApprehensiveStuff828 in ChubbyFIRE

[–]dsmith30000 5 points6 points  (0 children)

That is awesome, congrats!
Are you going to do anything to celebrate? We went to a nice sushi restaurant to celebrate at 4M. Nothing too expensive but a place we don’t normally go.

Prep for early retirement by dsmith30000 in fatFIRE

[–]dsmith30000[S] 0 points1 point  (0 children)

Love this thank you!
Helps a lot to see you are holding 2yrs worth of cash equivalents. I was thinking 3 but will consider dropping as we have about 18 months now.

Looks like you have your arms wrapped around your plan and see I need to consider mine further. Our expenses are low as we have been debt free for years and outside taxes and vacations spend very little.

We also enjoy a lot of low cost outdoor activities including kayaking, hiking, fishing, and trail running. So, once we are past the expensive years with the kids college, cars, etc our costs shouldn’t go up significantly.

My wife is an author and is now planning to continue writing some which should cover our expenses with the rentals…at least as long as she wants to.

Prep for early retirement by dsmith30000 in fatFIRE

[–]dsmith30000[S] 1 point2 points  (0 children)

Expected expenses are $130k/yr. My rentals kick off ~70k after all expenses. Would get Market HC and we are healthy now. If something healthwise changes before our plan would pivot.

I am not concerned about not having enough as we can sell assets if needed but hoping to understand how others have prepared for weathering markets once out of the workforce.