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

[CocoMelon0531]

He's right, guy I was referring to uses Coinbase and has never had problems getting funds to his bank account. Sells 3-4 coins or something of that nature at a time when needed. Tons of liquidity. I have been meaning to ask how he deals with the tax implications, its something I haven't looked into really.

long term capital for position held > 1 year

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[mvenus929]

That salary is painful. If it's academics, it makes sense. But an academic career in a high CoL area is basically trading a job you love for never being able to afford leaving it

It is academics, but it's not a high COL area, relatively speaking. I'm in a city, so it's higher than many places, but it's not California or NY.

But I'm a peds subspecialist. I'm not going to find much significantly higher than that, though more private practice jobs run in the 200-220K range, which would bring my take home salary up to ~130K (after taxes and 401k contribution).

That's not to say that I won't live comfortably or be able to save a significant amount (after I pay off my loans) with the potential to retire early. Unless I go work for Mayo.

 

[Cranjis McBasketball]

750k is A LOT for a home. I always think anything above 500k is outrageous even if one makes 300k-400k/yr. It's safe to say I can never live in the northeast or the west or the Washington DC area.

I agree, but it seems like its pretty rare to find homes that cheap now with rates as low as they are

 

[doctalaughs]

This is not a place I'd recommend for the FIRE crowd though, more an example of I don't know how a person could burn through 20k a month if you can live in a really nice area for far less

Most physicians probably shouldn’t be aiming for FIRE.... most probably want moFIRE:

What is moFIRE (morbidly obese FIRE) and why do I want it? - The Darwinian Doctor

Read on to learn about "moFIRE," the morbidly obese flavor of the Financial Independence, Retire Early movement.

thedarwiniandoctor.com

Also don’t forget these 25x numbers are if you plan to live 30 years after retirement. If you are retiring at 50 better up that to be sure it will last.

 

[FlowRate]

Most physicians probably shouldn’t be aiming for FIRE.... most probably want moFIRE:

What is moFIRE (morbidly obese FIRE) and why do I want it? - The Darwinian Doctor

Read on to learn about "moFIRE," the morbidly obese flavor of the Financial Independence, Retire Early movement.

thedarwiniandoctor.com

Also don’t forget these 25x numbers are if you plan to live 30 years after retirement. If you are retiring at 50 better up that to be sure it will last.

"moFIRE" seems most relevant to double-income high earners and highly paid specialists. I feel extremely comfortable living on about $80k after taxes and plan for a "fat" retirement number.

Agreed that 4% is not appropriate for anyone who truly plans to fully stop working early. That's the withdrawal rate that only runs out of money under rare circumstances over 30 years. But it gets close to 0 toward the end in many circumstances. 3% (33x) almost never hits 0 over any time frame which is why I prefer it as a rule of thumb. I also support a more flexible and somewhat returns-oriented approach to retirement withdrawals, sticking to a fixed percentage leads to significant under-spending risk. (If you care about such things.)

 

[Mad Jack]

"moFIRE" seems most relevant to double-income high earners and highly paid specialists. I feel extremely comfortable living on about $80k after taxes and plan for a "fat" retirement number.

Agreed that 4% is not appropriate for anyone who truly plans to fully stop working early. That's the withdrawal rate that only runs out of money under rare circumstances over 30 years. But it gets close to 0 toward the end in many circumstances. 3% (33x) almost never hits 0 over any time frame which is why I prefer it as a rule of thumb. I also support a more flexible and somewhat returns-oriented approach to retirement withdrawals, sticking to a fixed percentage leads to significant under-spending risk. (If you care about such things.)

4% withdrawals can never be depleted, you just have lean years and chonky years. The only time you run into issues is if you have fixed income distributions instead of percentage withdrawals.

 

[FlowRate]

4% withdrawals can never be depleted, you just have lean years and chonky years. The only time you run into issues is if you have fixed income distributions instead of percentage withdrawals.

You're right, a percentage withdrawal will never hit 0. I was inadvertently mixing a couple of definitions when my point (had I explained it) was that I think a lot of FIRE planners also make that same mistake. So to explain: if you're retiring early then you probably want to feel confident you're going to be able to live on $X amount annually, which is a fixed distribution and can lead to portfolio failure. So if you want to FIRE on $X annually, I like using fixed withdrawal equal to 3-3.5% as an initial starting point because it almost never fails even over 40-50 years as a fixed distribution. 4% percentage withdrawal is very safe but can leave you, in uncommon but not super rare circumstances, with much less annual income, which is why I don't think it's super appropriate to early retirees who may have more necessary expenses/need for reliable income.

(apologies if you caught this while I was editing, bad habit.)