Seeking FIRE Advice: Am I Ready?
I was recently laid off and am trying to determine if I can pursue FIRE (Financial Independence, Retire Early). Here's my current situation:
Age: 35, single
Assets as of 9/1:
$2.1 million (excluding home equity)
70% in equity
20% in international equity
10% in bonds/savings/emergency/iBond
Of my assets, ~$350K is in pre-tax accounts, and ~$300K is in Roth accounts.
Expenses:
2023 annual expenses: $64K (excluding health insurance). This was higher than usual due to a one-time "bucket list" trip.
YTD expenses for 2024 (as of 9/1): $36K
Projected 2024 expenses: $50K (excluding health insurance)
Health insurance through ACA costs around $500/month or $6K/year (UPDATED).
Total annual expenses going forward: Approximately $56K ($50K + $6K for health insurance) (UPDATED), though I could reduce this a bit if needed by making more economical choices.
Addition information (UPDATED):
I do have a 1099 gig that pays about $8,000 per year. And in 30 years (age 65) I'll have a small pension of $500 per month / $6,000 per year. I do qualify for Social Security if it still exists when I'm 65, I have not looked into the exact amount yet.
Given this breakdown, I'd love to hear your thoughts on whether I’m in a good position to FIRE now. Any advice on sustainability, drawdown strategies, or important factors to consider would be greatly appreciated!
Thanks in advance!
I was recently laid off and am trying to determine if I can pursue FIRE (Financial Independence, Retire Early). Here's my current situation:
Age: 35, single
Assets as of 9/1:
$2.1 million (excluding home equity)
70% in equity
20% in international equity
10% in bonds/savings/emergency/iBond
Of my assets, ~$350K is in pre-tax accounts, and ~$300K is in Roth accounts.
Expenses:
2023 annual expenses: $64K (excluding health insurance). This was higher than usual due to a one-time "bucket list" trip.
YTD expenses for 2024 (as of 9/1): $36K
Projected 2024 expenses: $50K (excluding health insurance)
Health insurance through ACA costs around $500/month or $6K/year (UPDATED).
Total annual expenses going forward: Approximately $56K ($50K + $6K for health insurance) (UPDATED), though I could reduce this a bit if needed by making more economical choices.
Addition information (UPDATED):
I do have a 1099 gig that pays about $8,000 per year. And in 30 years (age 65) I'll have a small pension of $500 per month / $6,000 per year. I do qualify for Social Security if it still exists when I'm 65, I have not looked into the exact amount yet.
Given this breakdown, I'd love to hear your thoughts on whether I’m in a good position to FIRE now. Any advice on sustainability, drawdown strategies, or important factors to consider would be greatly appreciated!
Thanks in advance!
Statistics: Posted by Guilty2022 — Sat Sep 14, 2024 3:39 pm — Replies 18 — Views 572
