Genuine question…
I have about $3M in net worth (retirement accounts, stock market investments, checking and savings account) Additionally, I have two homes about $1.2M in average market worth. Have been thinking about FIRE but at 2.5% rule I’m looking at about $100K in income annually and about $28K from rental income. Age is 48 going to 49. And one kid yet to start school = $200K college expense. What would you suggest possible options can look like for retirement?

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Uh I'd send my kid to a Public State college

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Then I’d move

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I’d start with how you cover healthcare, what you like to do with your time, skills you want to learn/hobbies and cost, how you develop social networks and will maintain friendships KX and how you derive self worth

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Thanks both A1 and MKC2.
Sabbatical is a great idea…

I’m hoping to do freelancing PMO type stuff to keep myself busy OR start some sort of low investment business.

Actually own those two houses outright?

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SE1… good point. The 8% is gross… not adjusted for inflation or deduction of taxes

I believe you would be fine using 4% rule, starting right now, which would give you a lot more income to play with.
But it depends on controlling your expenses, which you didn't mention details of. In particular, what the mortgage payments are, when they end, and if the 28k from rentals is net expenses (I'm guessing yes)

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Is this figure in USD ?

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Yes

Use the 4% rule, get a budget, understand that each item you own costs you time and decide whether or not the tradeoff is worth it.

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Based on what you provided, I would use a very conservative 3% withdrawal from investments and if you are planning to rent out a property, use that as additional income for retirement.

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I know this is a highly personal question and depends on the individual preferences etc. but interested in hearing how others are thinking about it. How you think about retirement income streams. Thanks in advance.

Isn’t this the time you can retire?

Unfortunately not yet A2.

You are an inspiration! Can you tell us how you got to that point?

Thanks D2.
Lot of grit, hard work I guess.
Initially my wife and I moved to the US 20 years ago with $40 in our pockets and a single paycheck of $40K total.

Both of us went to instate and night schools. Earned our masters degrees.

Moved into consulting (me), had two kids with wife being a home maker for first 10 years of her career.

Saved like crazy (we didn’t even go to pizza hut or Taco Bell - not proud of it)… once our little baby boy wanted a slice of pizza and we said no… pains me to think of it. When kids grew up a bit wife started working as well and between the two of us we started saving more.

Bought our first home. Saved on rent I guess.
Started investing in growth stocks (like almost all spare income). Then moved to a nice part of town for better school for kids - got lucky with real estate in buying this second home as it almost doubled in price. Sold the first home many years back but enough to recover the purchase price. Interestingly bought a townhome about 18 months back which also saw a 40% increase in price. A few years back put about $30K in ETH and Bitcoin which appraised to current value of about $75K or so… few months ago it was at peak of $150k.

If the above details are boring, short version is that make money, max out savings including 401K, 529, life insurance and any other vehicles u can get your hands on. Invest in the market for long term growth.

We go out now, but nothing extravagant but not as miser as the younger days. Kids are responsible thankfully and I hope one day they will make a good life and Me and my wife will have good retirement nest egg. Good luck to you and hope this helped.

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