Mid 30s couple + 1 toddler. HHI ~450k with a 40/60 split on income
As the title suggests, we're thinking of taking the rest of 2025 to plan out an open-ended sabbatical that would start around Q2 2026, and would love Reddit's thoughts. Our indefinite sabbatical will most likely include moving to a specific country where I can potentially get citizenship which would include universal healthcare, but there are other options if I don't want to do that. Depending on how things go, we may move back to the US for the kid's education. We do have aging parents, but they have sufficient retirement income.
We want to try and save as much money as we can this year to try and hit or exceed 3MM in investable assets, which would be our FIRE number @ 3.25% SWR. Aside from maxing our 401ks for this year, we will be splitting new paychecks between buying bond funds and paying additional principal on the mortgage.
We owe around 450k on our property @ 5.00%, but are unsure what to do with it.
My questions / sanity check:
- Should we Keep/Sell/Pay off our property assuming we'll be moving abroad to a lower cost of living country? Would paying the mortgage off now and then renting the property out reduce our SORR? Similar places are renting out around 6k, which would cover the majority of our monthly expenses.
- Also for SORR, we're putting new money in bond funds. Our asset allocation is <3% in bonds. Should we sell some VTSAX to rebalance and get closer to an 80/20 split?
- For Health Insurance, we'll try and take advantage of the universal healthcare mentioned above, and if we end up back in the US, we'll see the state of the ACA. We will do our best to modify our AGI to get a good amount of subsidies. This is not my forte and could use more education. This isn't really a question, but it's on my mind
- With a kid, we're expecting the expenses to increase, but not sure by how much. Any tips from other FIRE parents?
- Are we nuts to pull the trigger this early, especially with a kid?
Overview (in USD)
Assets
- $1.6M in Taxable Brokerage (90% VTSAX, <10% in RSUs + maybe $100k in BND)
- $1.2M in Retirement 401K/IRA (VTSAX or Target Dates)
- $50k Cash for bills/emergency fund
- Not included in calculations, but ~75k in kid's 529
Debt
- 450k Mortgage - 15yr @ 5% , Zillow estimates property value at $900k-$1MM.
Expenses
- PITI + HOA + Utilities + est. maintenance costs - $6.5k/mo
- Everything else - ~$3k/mo
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