Mortgage is slightly over $3,000 per month, included in the expenses. Payments will be done in 25 years.What are the details on your house including the value, mortgage details, and if moving you are in a high cost of living area.$2.1 million (excluding home equity)
What would your expenses be if you paid off your house?Does that include income taxes? If not then you need to include your taxes and redo your numbers since you might need something more like $75K before taxes.2023 annual expenses: $64K (excluding health insurance)If something happened like you were disabled without any disability insurance then you could could be just fine but you might need to settle for a more modest lifestyle than you would want.Can I FIRE now?
Something to keep in mind is that if you retire then you will have a lot more time to spend money of things like travel,pets, and hobbies. For most people the point of retiring early is so that you can do stuff with the extra time so don't underestimate this impact on your spending.
You might also get into a relationship and maybe have kids since you are only 35.
Your Social Security is based on your 35 highest inflation adjusted years of earnings so you will likely get a modest SS check because you will have a lot of low or zero years in the benefit amount calculation.
You may have looked at various retirement calculators like FireCalc to see what they say your percentage chance of success are. There is a big problem with those though since you are looking at a 60 year retirement if you plan to live to be 95. The reason this is a problem is that there is limited useful data and the last full 60 year data set started in 1964. When you model your retirement on that you are basically asking if you would be ok if you retired sometime before 1964 which may not be a relevant question since the world has changed so much since then.
I don't think that retiring would be a wise choice for you right now. Some alternatives would be to do things like; take a gap year, work part time, find seasonal work like at a ski resort, etc.
Very good point on income taxes (or probably capital gain taxes are more relevant?). I need to manage my income each year to make sure I optimize. Will discuss with accountant. Speaking of taxes, once my income drops next year I will qualify for a property tax reduction. I'm not sure what the exact amount would be because I never qualified for it due to my income.
I will look into disability insurance. I probably don't need life insurance because my siblings and parents do not need my support.
I agree that I should not completely retire. After reading all the responses I should probably do some part time work or find a lower stress job (difficult to do in my profession though).
Statistics: Posted by Guilty2022 — Sat Sep 14, 2024 9:48 pm