I also used a 3% number for "safe", and quit Amazon at 2.5%, which I labeled as "ultra-safe". :)
In our case, our home was paid off, and if we ever move, we'll likely move somewhere cheaper. So I ignore the home (value & future cost) in calculations. Property taxes should also be equivalent or cheaper elsewhere, so they're just part of our annual expenses.
Unexpectedly, my newsletter now pays for more than our annual expenses, so our withdrawal rate for the last 2 years has been 0%. Strange things happen in life.
Given your conservative approach to the numbers, how long you want to see your portfolio > "enough number" to quit?
Trying to understand the current situation - we had ~20%+ growth in 2023 and with FAANG stocks growing significantly, it might make one's portfolio appear closer to the "enough number"? Do you have any strategies to handle those scenarios?
Love this. I'm in a very similar place with regards to working toward an avocado or chubby FIRE number although I'd hate to move away from Cali since the quality of life is so good. I hadn't considered super-funding my kids' 529 plans. I'll have to look into the tax implications of doing that.
I also used a 3% number for "safe", and quit Amazon at 2.5%, which I labeled as "ultra-safe". :)
In our case, our home was paid off, and if we ever move, we'll likely move somewhere cheaper. So I ignore the home (value & future cost) in calculations. Property taxes should also be equivalent or cheaper elsewhere, so they're just part of our annual expenses.
Unexpectedly, my newsletter now pays for more than our annual expenses, so our withdrawal rate for the last 2 years has been 0%. Strange things happen in life.
Love this breakdown. Would 8300/month be enough with ~1300/month and ~8000 deductible/year in health insurance costs (for a family of 4)?
Thanks for the details.
Given your conservative approach to the numbers, how long you want to see your portfolio > "enough number" to quit?
Trying to understand the current situation - we had ~20%+ growth in 2023 and with FAANG stocks growing significantly, it might make one's portfolio appear closer to the "enough number"? Do you have any strategies to handle those scenarios?
Love everything you are writing and putting out there, Andre!
Love this. I'm in a very similar place with regards to working toward an avocado or chubby FIRE number although I'd hate to move away from Cali since the quality of life is so good. I hadn't considered super-funding my kids' 529 plans. I'll have to look into the tax implications of doing that.
Taxes taxes taxes - Anywhere you retire, even in states with no income taxes, you still end us paying property taxes….
Great post. How are you weighing the costs of not investing in the 529 now (taxes on dividends?) vs waiting until you move?