FIRE - I am there yet feel I can't quit
This is going to be a longer post - mainly because I would like to get an advise and feel I need to share most of the details. I am in early 40s with 2 young kids (1st and 2nd grade) and wife who only works part time (negligible income). We live in one of the expensive coastal cities and I have been saving for the last 15 years - not eating out, not buying luxury items, but fair amount of travel, including international and experiences i.e. sport camps, skiing, scuba etc.
Below are my numbers but I can't find a way to make it work. Ideally I would work hard for 7 - 9 months each year and take it easy, travel learn new stuff in between. But even for the 9 months of work it is not going to be anywhere close to what I am making now. We got no debt (outside of mortgages) and my TC ~ 500k (290 base, 20% bonus, 150k RSUs annual vest).
If I would move to lower cost country, we could probably get by but I am thinking the area where we are right now has some of the best schools, is safe, short commute for me, so for my kids future it is better to stay here until they are done with high school. (do you agree or disagree?)
It seems my problem is both monthly cashflow and the type of investments I made. What should I change? How did you structure your income when you FIRE, did you wait for kids to go to college?
Asset . Value . Liability . Monthly cash flow . Assets if sold . ROI 5 year avrg
Primary house . 1.6M . (660k) . (4400) 900k . 7%
Rental house . 750k . (320k) . 500 . 400k . 7%
Rental oversees . 1.2M . (900k) . 1000 . 300k . 16%
Hedge fund . 550k . N/A Reinvesting 550k . 8%
My investing . 250k . N/A . Reinvesting 250k . 9%
Crowd landing . 150k N/A . Reinvesting 150k 8%
IRA self invest . 250k . N/A . N/A - age restricted 250k . 9%
IRA managed . 200k N/A . N/A - age restricted 200k . 5%
Private shares 150k . N/A . illiquid - Uber, ABNB . 150k N/A
I also bought real estate during after the 2008 crash in Detroit - thinking it was going to be my golden ticket at I got 15x SF for 200k in cash. It was good for the first 3 as we did a rehab but started to be a nightmare after. I could never find reliable management, perhaps some of the houses were too close to troubled areas, but I wrote off 100% of that 200k, so I am trying to be careful...
I have unvested RSUs (4 years, today value about 800k pre-tax). But in the overall I don't think it matters that much.
How should I change the investment strategy so I can FIRE?
Would you stay in the expensive area and keep working or sell and move to a low cost area? (we have been here for 20 years, so have friends, connections etc.)
For those in FIRE - how do you make sure that you have adequate monthly cash to cover expenses?
I know I am in a good spot compare to many others, mainly thank to hard work, saving a lot and having decent returns. I would like to hear from those that found a way to FIRE - HOW?