Reasonable FIRE target

LinkedIn / Eng
fhehjdjhbv

Go to company page LinkedIn Eng

 fhehjdjhbv
Dec 19, 2021 66 Comments

For a couple, what should be a reasonable target (not blind level target) to retire in Bay Area.
Assuming, kids (education and other) expenses are taken care of.

I think if you have a paid house + 2.5 million should be enough to retire in Bay Area for a middle class lifestyle.

Please let me know if this looks reasonable.

We are planning to retire by 45.

Age : 35
Net worth : 1.2 million (Currently renting)
Household TC : 500k

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 TOP 66 Comments
  • HP
    NjhQ72

    Go to company page HP

    NjhQ72
    Why do you want to retire in the Bay Area? Seems like a very unaffordable area to comfortably retire. The target is always shifting
    Dec 19, 2021 7
    • Google
      qnLs67

      Go to company page Google

      qnLs67
      No, sorry - but I'm sure many other people who feel this way will be happy to. This has been asked and discussed a few times in Blind. See if you can find an old thread, or may be start a new one? It's a very polarizing topic - so prepare for a heated set of points from both sides.
      Dec 19, 2021
    • @Linked Google said for some..coming from the east coastโ€ฆatleast to me everything was better there except, may be, weatherโ€ฆI always wanted to try bay area cause of all the hypeโ€ฆand now I know this isnโ€™t for meโ€ฆplanning on moving pretty soon..
      Dec 19, 2021
  • Roblox
    edzn45

    Go to company page Roblox

    edzn45
    No, your number is not reasonable. You can live but not a comfortable middle middle class life style. 10m NW excluding primary house
    Dec 19, 2021 8
    • New
      NXQv67

      New

      NXQv67
      10m sounds right if you want to retire rn
      Dec 19, 2021
    • Roku
      Soph14

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      Soph14
      10m = 400k annually, dafuq are you spending on that you need 400k annual excluding primary house?
      Dec 23, 2021
  • Amazon
    XUrE37

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    XUrE37
    I feel people talking about these kinda numbers have no vision for life or the world as a place where they live and are simply privileged. Just coz you got a good paying job, you feel can go retire and do nothing ๐Ÿคทโ€โ™‚๏ธ

    If you have overflowing money, please think of solving some problem affecting society. To begin with, what you can do to contribute to world problems like global warming, homelessness, lack of jobs etc.. Donโ€™t have to come up with a ground breaking idea, maybe start with changing your personal choices to better options (like reducing your carbon footprint). Then start supporting organisations (including government) with your bucket load of money to help solve the problems they are trying to solve.
    Dec 19, 2021 5
    • Twilio
      faxmachina

      Go to company page Twilio

      faxmachina
      I know how Amazon works. I used to work there. Point is, working for someone else you will always be working on their priorities not yours. Retiring doesnโ€™t have to mean do nothing, it means you have a lot more freedom to decide how to spend your time.
      Dec 19, 2021
    • Why do you feel entitled to other people's lives?
      Dec 19, 2021
  • Amazon
    KnIY47

    Go to company page Amazon

    KnIY47
    Whatโ€™s your glide path to doubling your net worth and buying/paying off a home in the next 10 years?
    Dec 19, 2021 3
    • Amazon
      KnIY47

      Go to company page Amazon

      KnIY47
      Ok well make sure you have enough passive income annually to cover:

      Homeownership:
      +$12k-$20k for property tax
      +$1.2k homeowners insurance
      +$3.6k utilities (power/water/waste)
      +$5k maintenance

      Weโ€™ll Being (Assumes family of 4):
      +$6k-$10k for health insurance
      +$10k-$12k for food (assumes groceries only)
      +$1.2k deductible

      Transportation (assuming 1 car)
      +$1.4k for car insurance
      +$30k-ish every 6-8 years for a car
      +$1.8k for gas
      +$1.5k maintenance

      Data/Telecom:
      +$2k for a cell phone family plan
      +$1.2k for internet

      This is the bare minimum you would need to spend each year in todayโ€™s $$. It would be likely much higher because hey, what would be the point of retiring early if you canโ€™t enjoy it eating out, traveling, and occasionally indulging in other experiences.

      Factor in 15% LTG tax on any investments needed to be cashed in order to cover living expenses along with a 2-3% annual inflation eating into your returns.
      Dec 19, 2021
    • LinkedIn / Eng
      hevevgdv

      Go to company page LinkedIn Eng

       hevevgdv
      Thanks for the detailed response. Much appreciated ๐Ÿ˜Š
      Dec 19, 2021
  • New
    mxKj85

    New

    mxKj85
    My rule of thumb: Using the 3% rule, and assuming 15% tax rate (LTCG) and monthly spend x, FIRE number is roughly x*12/(0.03*0.85)

    Donโ€™t forget cost of healthcare in monthly spend
    Dec 19, 2021 0