FIRE target

Aug 2, 2021 26 Comments

I am a new FIRE enthusiast. There is a lot of information online and trying to wade through all the complexity has been challenging. Can someone help with a simple target net worth number I should aim for with the following parameters:

Age of FIRE: 40
Family: 1 wife and 1 kid (assume wife and I don't want to work beyond 40)
Yearly Expenses: $110k + health insurance
Location: lower COL city in the south (Atlanta, Tampa, Houston etc)

#investment #retirement #tech #money

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TOP 26 Comments
  • Wayfair
    Efve00

    Go to company page Wayfair

    Efve00
    I really don't like the current FIRE assumption of 4%... Inflation will make that worse and worse every year so you need enough in that 4% to cover you at the end of your life not at the beginning of retirement. The money guy show did a great video on this and showed calculations for different FIRE ages. Your 110 expenses will be 230+ at the end after Inflation so you probably want to aim for a network of 7M at least to be safe. The worst thing that can happen is that you run out of money 80+ and can't continue working so may as well be as safe as possible and potentially leave a nice inheritance to your child
    Aug 2, 2021 9
  • (110+20)x33+300k = $4.6mm. 110k yearly expenses, 20k health insurance, 300k for college. 3%swr for 50 year retirement.
    Aug 2, 2021 3
  • BTW op how is your yearly expenses 110k? Mortgage/rent will be 2300/month max in MCOL. Where are you spending the rest 7k if you don't mind?
    Aug 3, 2021 2
    • OP
      It's projected yearly expenses, heavily buffered, to be safe. I live in a high COL city at the moment and our family expenses are close to 7-8k per month.
      Aug 3, 2021
    • Makes sense. If you live in MCOL and house is paid off your monthly expenses will not exceed 5k if one is are budget aware. Thiugh there will be months where it may not be true.
      Aug 3, 2021
  • Walmart
    rex213

    Go to company page Walmart

    rex213
    Lucky are those who can retire early by age 45 because in corporate world, it’s a shit show n politics all the way up to Sr VPs n CTO level —/ been an executive at Faang n non Faang for long -/ everytime a New CTO comes, he brings his own set of boot lickers as VPs n VP then brings his or her boot lickers as directors n the chain of boot lickers continues !!
    Aug 3, 2021 0
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