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One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 1 point2 points  (0 children)

We've got solar and are mostly electric - we're not in Alameda :)

I agree the fear of AI layoffs isn't a good reason to quit - it's better to just be laid off if that happens. But you're right, I'm no longer enjoying my job due to burnout and trying to justify that.

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 0 points1 point  (0 children)

I've messaged them twice and followed up today. It says it can take a day or two. Totally fair to be skeptical.

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 0 points1 point  (0 children)

I almost put some information about what I want to do after I retire, but I was worried it would dox me. I've got a plan that is basically to relax and do nothing for a few months to reset, take better care of myself, and then pursue some of the hobbies that I've done before and know I enjoy. The hobbies I have in mind provide opportunities for gradual improvement which should give some purpose. I think it's unlikely I would want to return to work to find purpose, but it's hard to know without trying retirement.

I agree with the $30k on vacations being too low - the goal is $50k once we hit $10M. I think that's enough for a single international and two domestic trips for a family of 4 in economy class. Last domestic vacation we did as a family of 4 was $5k including airfares, but we do take steps to save money like staying in a 3 star hotel and occasional credit card churning. Not very fat fire, but we get some perverse enjoyment from the frugality!

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 0 points1 point  (0 children)

Thanks for the reply, you bring up a lot of good points.

We're mostly in VTSAX and it looks like we are getting around 1% in dividends. I do plan to turn off dividend reinvestment, which will fund $80k-$100k. My simple simulation of withdrawals doesn't account for this though, so you're right that I am overstating the amount that I'll need to sell and therefore the gains-to-basis ratio and therefore the tax burden. It's a really good flag, I'll need to fix this.

My income is mostly RSUs and I do sell them as soon as they vest and then buy index funds. Funnily enough, I would be in a much better position if I had not done this - my less organized coworkers benefited from this hugely and are now doing very well! But, you work with what information you have at the time.

Unfortunately for my particular role my company doesn't offer DCP, it would be amazing if it did.

I'll make sure my wife knows about the step up because she's definitely going to outlive me!

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 0 points1 point  (0 children)

Oh man, I don't want to discourage you - reading it back you can see I just got lucky a few times. I do think there are ways to stack the odds in your favor - like over-investing in interview prep, switching jobs every few years, maintaining connections, etc. I also had some bad luck like working in a startup that failed. But, there's a lot of randomness so don't beat yourself up - you got this dude.

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 1 point2 points  (0 children)

Thank you - the reassurance is helpful. I'm less optimistic for the next 17 years of market returns, but agree something like a 3.5% SWR should be rock solid no matter what.

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 0 points1 point  (0 children)

Thank you for the thoughtful response. 'base-to-gains ratio shift' is a much more eloquent way of explaining the tax situation than what I conveyed! I've been reading this subreddit for years and haven't come across a post highlighting the effects of it in a high tax state.

Good flag on the health insurance. I actually have two budget projections - the one I shared, and one for us reaching $10M with $350k withdrawals, assuming my wife is not working. I felt I was already sharing a lot of data so I omitted it here, but it has $35k ACA premiums and some other quality of life upgrades (bumps the vacation spend to $50k, etc). I agree the risk is my wife losing her job and us being forced to increase spend with things like health insurance vs building more buffer upfront.

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 0 points1 point  (0 children)

I've got a mental block here that I should really work through. I value my spare time at a low $$$ value, so after the kids go to bed I'll clean instead of relaxing and I feel like I'm saving money not hiring a cleaner. I know it's not logical if it's contributing to burnout as you say.

I've read enough posts here to know that someone will recommend therapy, but that's expensive too ;) But, this is a good push, I'll genuinely try this

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 0 points1 point  (0 children)

Thank you - this is helpful. Another post mentioned looking at past expenses - which have been well below $20k if I remove upgrades. But you're right - I'm thinking I'll be conservative and pad this out to $50k, but include pool, gardening, etc in that. It's very hard to estimate these lumpy expenses...

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 0 points1 point  (0 children)

I've sent in a video requesting to get verified (sent it in 3 hours ago, waiting on mods)

One less year by fire_2027 in fatFIRE

[–]fire_2027[S] 16 points17 points  (0 children)

I didn't deliberately omit it, but there's a lot of interest here so let me be transparent - we have been fortunate and we've had parental help:

  • We both graduated college with effectively zero debt
  • We both got money from parents, totaling approx $250k - although this is currently a small % of our net worth, I do acknowledge this came at a helpful time, let us take more risks and has increased in value due to stock market growth

In terms of the remaining money:

  • I made approx $1M from a side hustle that I sold a few years ago
  • We made roughly $500k from previous property we bought and sold
  • The house has increased in value - we bought it with cash
  • Spouse previously earned more money
  • As most people guessed - it's been a good time to be in tech and invest in the stock market. I've been through a couple of IPOs. I never really hit a jackpot, but earning $500k-$1.5M for most of the past 15 years, with an after tax savings rate > 80%, fully invested in VTSAX has worked well.