Hi there, team FI. I've been following this community for a long time, but using a throwaway account this time around. 48M, no kids or spouse. Basically, I'm burned out at work. I think I'm close to making this work, but would like you keen-eyed financial folks to take a look at my numbers and see if this works. The online calculators are all over the board on how prepared I am. Most seem very conservative.
Current spending is ~$150K with a good bit of that discretionary (travel, expensive hobbies, etc.).. I could probably cut that back $25K without crimping my style much. Sale of some assets related to that would generate cash (maybe $150K of the "other assets below") and reduce expenses. HH income of ~$330K, with limited upside from here.
Assets:
HCOL house: $1.2MM (owe $485K, fixed at 5.75%). Ignoring this asset since I need somewhere to live.
Cash: $640K (over-indexed on this at the moment, see below)
Brokerage (taxable accts): $900K - all equities
401k/IRAs: $1.7MM (mostly in 401k, so possibly could access at 55).. roughly 40% bonds / 60% equities
Roth IRAs: $88K - all equities
Other Assets: $200K (reasonably liquid, but no guarantees)
No other debts, aside from house.
Social security is a wildcard - I'm ignoring that. I definitely qualify, but not sure what will be available when I get there.
No pensions.
My plan is to put 3 years of living expenses ($450k) in a series of US Treasuries that cover my expenses over that time, then replenish every year to keep the runway long. If the market drops, I'll wait to replenish. I think this will help reduce the sequence of returns risk.
The rest will be invested 65% equities / 35% bonds. Equities 70% US / 30% Intl.
The way I figure, I could live off the cash/brokerage long enough to make it to 59.5 and start tapping the rest. Could also pick up part-time work for health coverage.
I definitely want to take a year off and do some travel and other hobbies, then decide what's next. If I cut ties at work, I doubt I can find something that pays as well or as flexible as what I have - so I need to be sure this will work before mailing it in. What do you guys think?
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