Plan to FIRE in 10 years. I need some suggestions...

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Splenda88

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Will my plan be ok to be on the path to semi retired in 10 years post graduation? Semi retired for me means working 2 days/wk at most.
My expected net worth to accomplish that should be 2.5+ mil

I am PGY3 IM resident; will graduate June 2021.
Expected salary: 250-300k/yr
Expected spouse salary: 50k/yr

Current net worth breakdown:

Student loan: 340k
Credit card debt: 30k



Primary residence: 280-290k equity... (home is worth 340-360k with an outstanding balance of 54k)
Rental property: Generate ~$500/month cash flow. 80-90k equity... (home is worth 210-220k with an outstanding balance of 130k)
401k from prior employment before med school: 130k
Other investment (e.g. index fund etc...): 12k


Net worth: ~130-150k

Plan:
1) Pay off all loans in ~7 years (Mortgages, student loan and credit card)
2) Max out 401k/yr (combined employer/employe contribution 57k/yr).
3) Max out back door Roth IRA
4) Max out HSA every year
5) Invest 30k+/yr in index fund (VTSAX or VYM)

Is there anything else I should do? Will I reach that $2.5 mil mark if market return averages 7-10% in the next 10 years?

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Will my plan be ok to be on the path to semi retired in 10 years post graduation? Semi retired for me means working 2 days/wk at most.
My expected net worth to accomplish that should be 2.5+ mil

I am PGY3 IM resident; will graduate June 2021.
Expected salary: 250-300k/yr
Expected spouse salary: 50k/yr

Current net worth breakdown:

Student loan: 340k
Credit card debt: 30k



Primary residence: 280-290k equity... (home is worth 340-360k with an outstanding balance of 54k)
Rental property: Generate ~$500/month cash flow. 80-90k equity... (home is worth 210-220k with an outstanding balance of 130k)
401k from prior employment before med school: 130k
Other investment (e.g. index fund etc...): 12k


Net worth: ~130-150k

Plan:
1) Pay off all loans in ~7 years (Mortgages, student loan and credit card)
2) Max out 401k/yr (combined employer/employe contribution 57k/yr).
3) Max out back door Roth IRA
4) Max out HSA every year
5) Invest 30k+/yr in index fund (VTSAX or VYM)

Is there anything else I should do? Will I reach that $2.5 mil mark if market return averages 7-10% in the next 10 years?
Firecalc.com is your friend for sorting out scenarios like this
 
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1: Refinance the main house to as little liquidity as possible on a 30 year loan and put the cash towards student loans.
2: Take out a 401k loan for the rest of the student loans.
3:Save 135k a year while you pay your bills and live life.
 
1: Refinance the main house to as little liquidity as possible on a 30 year loan and put the cash towards student loans.
2: Take out a 401k loan for the rest of the student loans.
3:Save 135k a year while you pay your bills and live life.
401k loan probably not worth doing. Cash out refi to get rid of credit cards and a big chunk of student loans probably is. Refinancing the student loans that are left would probably be better than the 401k loan.
 
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I didn't calculate anything, but shooting from the hip, do you plan to have a 2.5mil net worth in 10 years after graduating residency or 2.5mil of liquid assets? Keep in mind, a lot of your net worth is going to be in your retirement accounts and house, it sounds like.

I think that the best way to achieve an income that'll let you be semi retired is to grind for 10 years working toward 500k/yr. I don't know your specific circumstances, but if you're planning to slow down the work place already, you may want to consider a field that'll continue to stimulate you and ensure a long career. Just my $0.02. also, make sure that you have own specialty disability insurance
 
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I didn't calculate anything, but shooting from the hip, do you plan to have a 2.5mil net worth in 10 years after graduating residency or 2.5mil of liquid assets? Keep in mind, a lot of your net worth is going to be in your retirement accounts and house, it sounds like.

I think that the best way to achieve an income that'll let you be semi retired is to grind for 10 years working toward 500k/yr. I don't know your specific circumstances, but if you're planning to slow down the work place already, you may want to consider a field that'll continue to stimulate you and ensure a long career. Just my $0.02. also, make sure that you have own specialty disability insurance
2.5 mil net worth... I will continue to work part time though (20-24 hrs/wk)
 
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401k loan probably not worth doing. Cash out refi to get rid of credit cards and a big chunk of student loans probably is. Refinancing the student loans that are left would probably be better than the 401k loan.

Agreed that 401k loan is in general a really dumb idea.
1. It unplugs good investments.
2. Most 401k loans have to be repaid within 60 days of when you leave your job. You will leave your jobs when you a. Retire, b. Find a better jobs, or c. Die. If you can’t pay it, its considered an early withdrawal with a 10% penalty plus your tax rate. .
3. They have to be paid off in a lump sum.

Your assumed employer 401k plan gives you max employer contributions? Or are you going to have a solo 401k?
 
Agreed that 401k loan is in general a really dumb idea.
1. It unplugs good investments.
2. Most 401k loans have to be repaid within 60 days of when you leave your job. You will leave your jobs when you a. Retire, b. Find a better jobs, or c. Die. If you can’t pay it, its considered an early withdrawal with a 10% penalty plus your tax rate. .
3. They have to be paid off in a lump sum.

Your assumed employer 401k plan gives you max employer contributions? Or are you going to have a solo 401k?
Not sure if the op is employed or self employed
 
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$200-$250K Seems low for self employed.

Also, I’d dump the rental property, doubly so if it was an old house in a different location.

But that is me.

EDIT: I think the OP’s plan is a little ambitious with the numbers he/she has. They would have to save/pay down debt like $150k/year off of $200-$250k. That’s pretty touch considering at least $40k-$50k goes out in taxes.

I’d also be real tempted to sell both houses, pay off the student loans/credit cards and rent for a couple years and then buy a house that fits your desired lifestyle/cost.
 
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Will my plan be ok to be on the path to semi retired in 10 years post graduation? Semi retired for me means working 2 days/wk at most.
My expected net worth to accomplish that should be 2.5+ mil

I am PGY3 IM resident; will graduate June 2021.
Expected salary: 250-300k/yr
Expected spouse salary: 50k/yr

Current net worth breakdown:

Student loan: 340k
Credit card debt: 30k



Primary residence: 280-290k equity... (home is worth 340-360k with an outstanding balance of 54k)
Rental property: Generate ~$500/month cash flow. 80-90k equity... (home is worth 210-220k with an outstanding balance of 130k)
401k from prior employment before med school: 130k
Other investment (e.g. index fund etc...): 12k


Net worth: ~130-150k

Plan:
1) Pay off all loans in ~7 years (Mortgages, student loan and credit card)
2) Max out 401k/yr (combined employer/employe contribution 57k/yr).
3) Max out back door Roth IRA
4) Max out HSA every year
5) Invest 30k+/yr in index fund (VTSAX or VYM)

Is there anything else I should do? Will I reach that $2.5 mil mark if market return averages 7-10% in the next 10 years?

What is your expense?

If you have paid off all debt, have money in retirement funds, HSA and rental properties then of course you can retire early just as long as your expenses do not exceed your reduced income.

I think as healthcare professionals, we often overthink things. We can have a good life just as long as we keep expenses down and not take on bad debt. The median household income is just $60 k/year and they have a mortgage, car payment, student loans, etc. If you don’t have any debt, you are in a good position to retire early.
 
What is your expense?

If you have paid off all debt, have money in retirement funds, HSA and rental properties then of course you can retire early just as long as your expenses do not exceed your reduced income.

I think as healthcare professionals, we often overthink things. We can have a good life just as long as we keep expenses down and not take on bad debt. The median household income is just $60 k/year and they have a mortgage, car payment, student loans, etc. If you don’t have any debt, you are in a good position to retire early.
My expenses are pretty basic right now... Rent, food, utilities, etc... I have not calculated it but I would guess it's around 3 to 3.5k/month.
 
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My expenses are pretty basic right now... Rent, food, utilities, etc... I have not calculated it but I would guess it's around 3 to 3.5k/month.

If you do retire early, what would you do with your time?
 
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If you do retire early, what would you do with your time?
I will not completely retire... I will work 20-24 hrs wk. Will use the rest of my time to do other things and spend time with love ones.
 
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Will my plan be ok to be on the path to semi retired in 10 years post graduation? Semi retired for me means working 2 days/wk at most.
My expected net worth to accomplish that should be 2.5+ mil

I am PGY3 IM resident; will graduate June 2021.
Expected salary: 250-300k/yr
Expected spouse salary: 50k/yr

Current net worth breakdown:

Student loan: 340k
Credit card debt: 30k



Primary residence: 280-290k equity... (home is worth 340-360k with an outstanding balance of 54k)
Rental property: Generate ~$500/month cash flow. 80-90k equity... (home is worth 210-220k with an outstanding balance of 130k)
401k from prior employment before med school: 130k
Other investment (e.g. index fund etc...): 12k


Net worth: ~130-150k

Plan:
1) Pay off all loans in ~7 years (Mortgages, student loan and credit card)
2) Max out 401k/yr (combined employer/employe contribution 57k/yr).
3) Max out back door Roth IRA
4) Max out HSA every year
5) Invest 30k+/yr in index fund (VTSAX or VYM)

Is there anything else I should do? Will I reach that $2.5 mil mark if market return averages 7-10% in the next 10 years?

Ten years is not enough time to let compound interest from passive indexing work its magic toward your goal. It’s possible but unlikely. You will need to 1) make lots more income than your projected 250-300k a year and/or 2) aggressive and riskier active investing

You don’t mention kids which will throw your plans off

You also don’t tell us whether this is inflation adjusted returns and/or goals; getting inflated net worth of 2.5 million is very different than nominal net worth of 2.5 million
 
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Its doable. I doubt the market returns 7-10% going forward. We are setting up for a lost decade in stocks. If you pick individual stocks then maybe.
 
This is stupid and extreme. Something I can count on Millennials to attempt.

Why not just work hard for 10 years and then work 1/2 time?

You want better advice? Dont get married.

You want to stay yoked to the plow for 40 years, get married.
 
This is stupid and extreme. Something I can count on Millennials to attempt.

Why not just work hard for 10 years and then work 1/2 time?

You want better advice? Dont get married.

You want to stay yoked to the plow for 40 years, get married.
Unless you marry someone who also makes good money and you stay married without kids. In which case net worth rises quickly despite working part time soon after residency.
 
Unless you marry someone who also makes good money and you stay married without kids. In which case net worth rises quickly despite working part time soon after residency.

False. Do a deep dive into the US tax code and report back.

2 high earners will pay far more in taxes filling as a married couple than they will EVER save on combining common expenses like a house. This will go stratospherically bad for you under the Biden tax plan.

This is the most stubborn mythology of finance of them all. This depends how seriously you are taking this.

If you are serious, there is NO math that makes getting married make sense given US tax code. And dont tell me you save money on dates, clothes, eating out etc if you are married. That is false.

Stable relationships are fine, but keep your finances separate. Keep the details of your finances separate and non-disclosed. If you do co-inhabit a residence then allocate expenses like you would a roommate in college.

You are making the "romanticized dude fallacy" that your wealth + your spouse's wealth is one big pile of wealth you can both equally claim. This is a false narrative. Its one big pile of wealth you are 50% owner of and if you work harder and earn more than your spouse, you are worse off mathematically.

If you are serious about FIRE, then you are single. If you are married, dont even mention FIRE. You've already failed.


Also I don't see you anywhere near the milestones of being able to accomplish this unless you are earning a significant income stream from NON W-2 income, meaning you are a S-corp and sole owner. If you are a W-2 wage earner, you are NOT FIRE ready, not even close.

So to recap:
W-2 wage earner-->FAIL
Married---->FAIL
Kids---->FAIL
 
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False. Do a deep dive into the US tax code and report back.

2 high earners will pay far more in taxes filling as a married couple than they will EVER save on combining common expenses like a house. This will go stratospherically bad for you under the Biden tax plan.

This is the most stubborn mythology of finance of them all. This depends how seriously you are taking this.

If you are serious, there is NO math that makes getting married make sense given US tax code. And dont tell me you save money on dates, clothes, eating out etc if you are married. That is false.

Stable relationships are fine, but keep your finances separate. Keep the details of your finances separate and non-disclosed. If you do co-inhabit a residence then allocate expenses like you would a roommate in college.

You are making the "romanticized dude fallacy" that your wealth + your spouse's wealth is one big pile of wealth you can both equally claim. This is a false narrative. Its one big pile of wealth you are 50% owner of and if you work harder and earn more than your spouse, you are worse off mathematically.

If you are serious about FIRE, then you are single. If you are married, dont even mention FIRE. You've already failed.

Also I don't see you anywhere near the milestones of being able to accomplish this unless you are earning a significant income stream from NON W-2 income, meaning you are a S-corp and sole owner. If you are a W-2 wage earner, you are NOT FIRE ready, not even close.

So to recap:
W-2 wage earner-->FAIL
Married---->FAIL
Kids---->FAIL
I suppose one could instead cohabitate with the partner instead of marrying and dealing with the tax penalty (though it would then require contracts regarding owned property and other things that a marriage takes care of by default) but to prevent one can't FIRE because of being married is stupid. I have already hit my number part of which was helped by being able to allocate some of my sole proprietorship income to my husband and increasing the amount of pre tax money we could save for retirement. Would not have been able to do so without being married without complicating our taxes.
 
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I suppose one could instead cohabitate with the partner instead of marrying and dealing with the tax penalty (though it would then require contracts regarding owned property and other things that a marriage takes care of by default) but to prevent one can't FIRE because of being married is stupid. I have already hit my number part of which was helped by being able to allocate some of my sole proprietorship income to my husband and increasing the amount of pre tax money we could save for retirement. Would not have been able to do so without being married without complicating our taxes.

listen if your version of FIRE involves eating canned food and living a make shift shelter in rural Montana for the remainder of your days, you can actually do that right now.

But if you are planning on not coming back to medicine after time X with Y pile of loot, then you better be razor sharp serious about eliminating ANY variables in your equation as you thread the needle of future uncertainty.

The cold hard reality is the NUMBER ONE source of future uncertainty for guys is your spouse. Not your health, not your risk of malpractice, not Medicare cuts, not car accidents, not tax changes, not being stuck in the CHAZ on the night of the Purge, none of that...its your wife. Pick foolishly and you are doomed. And hindsight is always 20/20.

This is the reality, you want to go full FIRE your single best chance of success (if at all) is going to be single unmarried, no kids.
 
listen if your version of FIRE involves eating canned food and living a make shift shelter in rural Montana for the remainder of your days, you can actually do that right now.

But if you are planning on not coming back to medicine after time X with Y pile of loot, then you better be razor sharp serious about eliminating ANY variables in your equation as you thread the needle of future uncertainty.

The cold hard reality is the NUMBER ONE source of future uncertainty for guys is your spouse. Not your health, not your risk of malpractice, not Medicare cuts, not car accidents, not tax changes, not being stuck in the CHAZ on the night of the Purge, none of that...its your wife. Pick foolishly and you are doomed. And hindsight is always 20/20.

This is the reality, you want to go full FIRE your single best chance of success (if at all) is going to be single unmarried, no kids.

It’s is sad that you see a spouse and kids as a liability. Family and friends are a much bigger asset than any retirement fund.
 
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I guess we can call his version sad FIRE. He sleeps alone on his pile of money, most of which will go to the government when he dies.

Of course its Sad FIRE, its all we have here now in California: Sad FIRE or die on the financial treadmill of a heart attack, pick your death.

Work harder, watch them cut Medicare reimbursements, make less, work 3x as hard to run in place and watch taxes eat everything to zero eventually, but I wont let the government have one dime when I pass. If I have to drop my "pile of money" on a Vegas hotel room full of hookers and a giant pile of blow I will. Live free and die.
 
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Of course its Sad FIRE, its all we have here now in California: Sad FIRE or die on the financial treadmill of a heart attack, pick your death.

Work harder, watch them cut Medicare reimbursements, make less, work 3x as hard to run in place and watch taxes eat everything to zero eventually, but I wont let the government have one dime when I pass. If I have to drop my "pile of money" on a Vegas hotel room full of hookers and a giant pile of blow I will. Live free and die.
I'm in California and am not doing sad FIRE, running the treadmill, or eating canned food in a makeshift shelter. I am working part time doing stuff I enjoy and could stop now without much change in my comfortable lifestyle. Perhaps your lifestyle is extravagant enough to prevent that or your income isn't high enough to allow a similar accumulation of assets. Or perhaps your target number is needlessly high. Whatever the cause, don't presume it is universal.
 
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why even pretend it is FIRE when the plan is to work 20-24 hours a week. That isn't retiring early or retiring at all. It's becoming financially independent (sort of) and working a little less.
 
why even pretend it is FIRE when the plan is to work 20-24 hours a week. That isn't retiring early or retiring at all. It's becoming financially independent (sort of) and working a little less.
The reason to have it as a goal is so that if the job gets to be not enjoyable you go from semi retired to just retired. But you are correct that it is more appropriate to just say FI.
 
The reason to have it as a goal is so that if the job gets to be not enjoyable you go from semi retired to just retired. But you are correct that it is more appropriate to just say FI.

well sure, just don't pretend it is FIRE. The plan is to save a lot of money in order to work less in the future which is infinitely easier than FIRE.
 
well sure, just don't pretend it is FIRE. The plan is to save a lot of money in order to work less in the future which is infinitely easier than FIRE.
Yeah but the real goal is to not have to work unless it is enjoyable. So enough money to FIRE and then doing whatever you want to do which first some might be work a little.
 
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How much do people retire on? If you plan to do FIRE at say 55, then you likely have 30 years of life ahead of you. If everything's paid off etc. people say 80 percent of pre retirement income a year in retirement? So that means if making 300k, you would need 7.2 mill a year... sounds kind of harsh?
 
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How much do people retire on? If you plan to do FIRE at say 55, then you likely have 30 years of life ahead of you. If everything's paid off etc. people say 80 percent of pre retirement income a year in retirement? So that means if making 300k, you would need 7.2 mill a year... sounds kind of harsh?

Typically most FIRE proponents (and I am not one, though I have a goal to reach financial independence) may make say, 300k per year, but live only 100k per year. So you'd use that 100k number for calculating your retirement needs. Presumably your lifestyle doesn't go up in retirement.

The biggest keys to retiring early are saving a lot and minimizing your expenses. The less you spend, the less you need to save, so the sooner you can retire/reach financial independence.
 
Typically most FIRE proponents (and I am not one, though I have a goal to reach financial independence) may make say, 300k per year, but live only 100k per year. So you'd use that 100k number for calculating your retirement needs. Presumably your lifestyle doesn't go up in retirement.

The biggest keys to retiring early are saving a lot and minimizing your expenses. The less you spend, the less you need to save, so the sooner you can retire/reach financial independence.

Ahh. So basically it's your monthly expenses that you use 80 percent in...
 
Ahh. So basically it's your monthly expenses that you use 80 percent in...

That’s what’s I’d recommend, unless you expect your retirement expenses to go up (like if you plan to do a lot of international travel).

One of the perks of a high income is if you can live on a low percentage of it, you can put so much away in savings and become financially independent much faster.
 
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That’s what’s I’d recommend, unless you expect your retirement expenses to go up (like if you plan to do a lot of international travel).

One of the perks of a high income is if you can live on a low percentage of it, you can put so much away in savings and become financially independent much faster.

My biggest issue is if someone does retire early say 45-50 and was spending 100k/yr presumably before retiring they could have spent a lot more if they were off 52 weeks in a year especially if traveling is a big interest.

In a case such as one above I think you have to shoot for 2x (200k or 260k yr before taxes) which makes the nest egg needed closer to 6m. Again, this is if your going to travel a lot.
 
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My biggest issue is if someone does retire early say 45-50 and was spending 100k/yr presumably before retiring they could have spent a lot more if they were off 52 weeks in a year especially if traveling is a big interest.

In a case such as one above I think you have to shoot for 2x (200k or 260k yr before taxes) which makes the nest egg needed closer to 6m. Again, this is if your going to travel a lot.
It is helpful to have a present budget and then look at a projected retirement budget. Travel and healthcare costs likely go up (unless your employment doesn't provide health insurance in which case it stays about the same), vehicle expenses may go down (unless travel involves road trips). Certain expenses may go away (medical license, dea, malpractice insurance) unless you decide to keep it going for a while (and/or if the malpractice insurance requires you to pay a tail). I have a few budgets that I use for decision making. I have the bare bones not lose the house or have to eat cat food budget. That I used to decide how much disability income my insurance should cover (I consider it unlikely enough to happen that I am ok with it affecting our lifestyle if it does in return for paying less money now). I have the what we spend now budget (which is more of an estimate because I don't specifically limit myself in any of the categories, but rather use it to figure out what my emergency fund should have in it). And I have the what we will likely need in retirement budget which is where I got my goal number from. For people with kids there might be more variations to consider (to decide how much life insurance to get for example).
 
It is helpful to have a present budget and then look at a projected retirement budget. Travel and healthcare costs likely go up (unless your employment doesn't provide health insurance in which case it stays about the same), vehicle expenses may go down (unless travel involves road trips). Certain expenses may go away (medical license, dea, malpractice insurance) unless you decide to keep it going for a while (and/or if the malpractice insurance requires you to pay a tail). I have a few budgets that I use for decision making. I have the bare bones not lose the house or have to eat cat food budget. That I used to decide how much disability income my insurance should cover (I consider it unlikely enough to happen that I am ok with it affecting our lifestyle if it does in return for paying less money now). I have the what we spend now budget (which is more of an estimate because I don't specifically limit myself in any of the categories, but rather use it to figure out what my emergency fund should have in it). And I have the what we will likely need in retirement budget which is where I got my goal number from. For people with kids there might be more variations to consider (to decide how much life insurance to get for example).

Exactly. It is so difficult to predict. If one was 55 years old with a paid off mortgage, married kids maybe the 25x rule applies the best since IRA's would be available very soon and SS would kick in not long after.

For those in the 35-45 year range so many variables especially since most will have young kids in this age group. I simply think you use the 25x number in this more common scenario to go part time. Perhaps the exception would be if one has 25x in after tax accounts then perhaps a different ball game.

I think 50x is a much better target for anyone trying to fully retire under 45.
 
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Exactly. It is so difficult to predict. If one was 55 years old with a paid off mortgage, married kids maybe the 25x rule applies the best since IRA's would be available very soon and SS would kick in not long after.

For those in the 35-45 year range so many variables especially since most will have young kids in this age group. I simply think you use the 25x number in this more common scenario to go part time. Perhaps the exception would be if one has 25x in after tax accounts then perhaps a different ball game.

I think 50x is a much better target for anyone trying to fully retire under 45.
You can own some dividend ETF...

In my case, I will keep working even if I achieve FI, but I will drastically cut back my hours... That number for me will be 2 mil plus a house paid off with no outstanding debt. My plan is to achieve that in 10-12 yrs.


The good thing about our profession is that 20 working hrs/week still can get us 6-figure salary.
 
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False. Do a deep dive into the US tax code and report back.

2 high earners will pay far more in taxes filling as a married couple than they will EVER save on combining common expenses like a house. This will go stratospherically bad for you under the Biden tax plan.

This is the most stubborn mythology of finance of them all. This depends how seriously you are taking this.

If you are serious, there is NO math that makes getting married make sense given US tax code. And dont tell me you save money on dates, clothes, eating out etc if you are married. That is false.

Stable relationships are fine, but keep your finances separate. Keep the details of your finances separate and non-disclosed. If you do co-inhabit a residence then allocate expenses like you would a roommate in college.

You are making the "romanticized dude fallacy" that your wealth + your spouse's wealth is one big pile of wealth you can both equally claim. This is a false narrative. Its one big pile of wealth you are 50% owner of and if you work harder and earn more than your spouse, you are worse off mathematically.

If you are serious about FIRE, then you are single. If you are married, dont even mention FIRE. You've already failed.

Also I don't see you anywhere near the milestones of being able to accomplish this unless you are earning a significant income stream from NON W-2 income, meaning you are a S-corp and sole owner. If you are a W-2 wage earner, you are NOT FIRE ready, not even close.

So to recap:
W-2 wage earner-->FAIL
Married---->FAIL
Kids---->FAIL
This is an incredibly sad perspective, I hope you’re being facetious for your own sake
 
Will my plan be ok to be on the path to semi retired in 10 years post graduation? Semi retired for me means working 2 days/wk at most.
My expected net worth to accomplish that should be 2.5+ mil

I am PGY3 IM resident; will graduate June 2021.
Expected salary: 250-300k/yr
Expected spouse salary: 50k/yr

Current net worth breakdown:

Student loan: 340k
Credit card debt: 30k



Primary residence: 280-290k equity... (home is worth 340-360k with an outstanding balance of 54k)
Rental property: Generate ~$500/month cash flow. 80-90k equity... (home is worth 210-220k with an outstanding balance of 130k)
401k from prior employment before med school: 130k
Other investment (e.g. index fund etc...): 12k


Net worth: ~130-150k

Plan:
1) Pay off all loans in ~7 years (Mortgages, student loan and credit card)
2) Max out 401k/yr (combined employer/employe contribution 57k/yr).
3) Max out back door Roth IRA
4) Max out HSA every year
5) Invest 30k+/yr in index fund (VTSAX or VYM)

Is there anything else I should do? Will I reach that $2.5 mil mark if market return averages 7-10% in the next 10 years?

FIRE in the next decade? Start buying ETH or BTC, and autonomous driving tech. There are three companies right now at the autonomous driving technology and you have probably heard of all of them.
 
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Rental property: Generate ~$500/month cash flow. 80-90k equity... (home is worth 210-220k with an outstanding balance of 130k)
I'm curious, when did you get your rental property, during residency? I've been contemplating whether or not I would do the same, because it seems reasonable to think that if you get a place near a hospital where there is residents, there's going to be enough demand for the house/property to grow in value.
 
I'm curious, when did you get your rental property, during residency? I've been contemplating whether or not I would do the same, because it seems reasonable to think that if you get a place near a hospital where there is residents, there's going to be enough demand for the house/property to grow in value.
I got that place before med school and it's in a different state from where I am now... I would not advise someone to buy a house during residency unless your residency is 5+ years. However, one of my colleagues purchased a place at the beginning of residency and it has worked for her so far. She has gained some equity and her mortgage payment is ~$400 less than what I pay in rent.
 
I'm curious, when did you get your rental property, during residency? I've been contemplating whether or not I would do the same, because it seems reasonable to think that if you get a place near a hospital where there is residents, there's going to be enough demand for the house/property to grow in value.
I bought a condo to live in during med school because I had a working spouse and a plan that would allow us to carry the mortgage when we moved for residency even if I couldn't rent it out (but so far I have had under six months without a tenant in the 14 yrs I have been renting it). In residency I bought a house to live in that was priced low enough that again if we moved after I finished our combined incomes could carry both mortgages if needed. I ended up staying in the same place as an attending for a year then changed to private practice in the community so eventually moved to a nicer home (but still one where we could afford to carry the mortgage if we moved, I know too many people who lost homes to foreclosure to try to stretch my budget too far and rely on rental income). I have been extremely lucky with tenants who haven't been deadbeats and who are willing to be at home for the plumber or whoever so i don't have to make a drive (I don't have a property manager). I was also lucky that the places I have purchased were all bought from very motivated sellers (two because of divorce and one because the family trust didn't want the house after mom and dad died) so I got good deals. It isn't always going to work out like that.
 
You can own some dividend ETF...

In my case, I will keep working even if I achieve FI, but I will drastically cut back my hours... That number for me will be 2 mil plus a house paid off with no outstanding debt. My plan is to achieve that in 10-12 yrs.


The good thing about our profession is that 20 working hrs/week still can get us 6-figure salary.

inflation adjusted 2 million now in 12 years is going to be close to 2.5 million for the same buying power this assuming inflation stays at 2 percent which is on the lower side. Figured that is what you mean.
 
inflation adjusted 2 million now in 12 years is going to be close to 2.5 million for the same buying power this assuming inflation stays at 2 percent which is on the lower side. Figured that is what you mean.

I honestly think 2 mill is a woefully low number to retire on, especially if you are young (50s). Different if you plan to work part time, I suppose.

You could live 40-45 more years so safe withdrawal number on 2 million is probably 50-60k. While many Americans live on this, it’s a low-middle class income which I don’t think many physicians are used to. I don’t think I’m extravagant (no 2nd home, no luxury cars, don’t fly 1st class, don’t drink expensive liquor or eat 200 dollar meals)— but I spend more than that in 3 months of the year.
 
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I honestly think 2 mill is a woefully low number to retire on, especially if you are young (50s). Different if you plan to work part time, I suppose.

You could live 40-45 more years so safe withdrawal number on 2 million is probably 50-60k. While many Americans live on this, it’s a low-middle class income which I don’t think many physicians are used to. I don’t think I’m extravagant (no 2nd home, no luxury cars, don’t fly 1st class, don’t drink expensive liquor or eat 200 dollar meals)— but I spend more than that in 3 months of the year.
You spend 20k per month? And that’s not extravagant? Lol
 
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I honestly think 2 mill is a woefully low number to retire on, especially if you are young (50s). Different if you plan to work part time, I suppose.

You could live 40-45 more years so safe withdrawal number on 2 million is probably 50-60k. While many Americans live on this, it’s a low-middle class income which I don’t think many physicians are used to. I don’t think I’m extravagant (no 2nd home, no luxury cars, don’t fly 1st class, don’t drink expensive liquor or eat 200 dollar meals)— but I spend more than that in 3 months of the year.
I have a friend who retired with less than that in his early 40s... House paid off and was getting ~$3000/month from his real estate investment. You just have to live a modest life.

If my house is paid off and I have 2 mil in investment, I can fully retire easily.

You spend more than 50-60k in 3 months!
 
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I honestly think 2 mill is a woefully low number to retire on, especially if you are young (50s). Different if you plan to work part time, I suppose.

You could live 40-45 more years so safe withdrawal number on 2 million is probably 50-60k. While many Americans live on this, it’s a low-middle class income which I don’t think many physicians are used to. I don’t think I’m extravagant (no 2nd home, no luxury cars, don’t fly 1st class, don’t drink expensive liquor or eat 200 dollar meals)— but I spend more than that in 3 months of the year.
Unless you are counting business expenses or something I am going to say your gauge for extravagant is different than most (or you are spending on lot on housing and expecting to keep paying that much)
 
You spend 20k per month? And that’s not extravagant? Lol

More than that, although given — a lot now is on kids.

It’s highly dependent on where you live. I’m not into the luxury cars etc. but I do like a nice house in a great/safe area with lots of trails and with some land. There are some areas of the country where you can’t get that for less than a million- and I’m not even talking Manhattan, San Fran or LA (where a million won’t get you anything).

In retirement, won’t have to pay for house/kids, but I anticipate vacation/travel expenses to be much higher (and I take 3 nice vacations a year now and that could easily be 15k/pop); also, even with house paid off, expect a major renovation or project every 3 years - that could easily run 2k/month even if the project isn’t a new kitchen or basement (could just be fence+ landscaping).

Obviously you don’t need to do this if you are happy with an aging house close to other places or are ok in a low-cost neighborhood.

20k/mo is about 6 million in retirement accounts, by the way— which I think is a very attainable realistic goal for vast majority of physicians if they are not terrible at saving and aren’t trying to retire with a super-short career.
 
More than that, although given — a lot now is on kids.

It’s highly dependent on where you live. I’m not into the luxury cars etc. but I do like a nice house in a great/safe area with lots of trails and with some land. There are some areas of the country where you can’t get that for less than a million- and I’m not even talking Manhattan, San Fran or LA (where a million won’t get you anything).

In retirement, won’t have to pay for house/kids, but I anticipate vacation/travel expenses to be much higher (and I take 3 nice vacations a year now and that could easily be 15k/pop); also, even with house paid off, expect a major renovation or project every 3 years - that could easily run 2k/month even if the project isn’t a new kitchen or basement (could just be fence+ landscaping).

Obviously you don’t need to do this if you are happy with an aging house close to other places or are ok in a low-cost neighborhood.

20k/mo is about 6 million in retirement accounts, by the way— which I think is a very attainable realistic goal for vast majority of physicians if they are not terrible at saving and aren’t trying to retire with a super-short career.
20k per month is extravagant by any account, how much does your house cost?
 
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