I just hit my lean fire number but am hesitating to pull the trigger, so was hoping to run it by people smarter than me:

- I have a few rentals that bring in ~$1800/mo cash flow, taxes are negligible, Capex incl.
- My paper assets will bring in ~$1200/mo at 3% draw
- I get free Healthcare at the VA
- No plans on kids
- My expenses haven't topped $30k/yr ever
- I could always reenter the workforce if needed (albeit probably not in consulting)

Please point out the flaws here, what am I missing?

likeuplifting
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Honestly, that sounds fine. I think the other posters probably have higher yearly costs, which is why this sounds low for them. There are plenty of people who FIRED on less. Plus your flexibility to re-enter the labor market if needed is a huge safety net.

likehelpful

If your house is paid off and you have free healthcare like you say, you will be fine. Have some reserves for when the rents are late. Else, All good. Enjoy your life !!

likeupliftingsmart
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Im curious about your "paper assets". Can you provide more details? Also remember to factor in capital gains tax if appropriate.

Thank you for your service 🇺🇲

likeupliftingsmarthelpful

SFA1, that's right it would be net rental income and withdrawals from non-Roth accounts

For the rentals, net income also takes into account the claimed depreciation, so most years my income from the rentals is "negative" despite having positive cash flow

helpful

hmmm…Doesn’t seem like a lot to live off of.

You don’t have great income numbers..you just live really cheap. 

like

I think you don’t have enough buffer for future downside / expenses. What if you change course on family plans? I think maybe keep up the momentum or do a year in Lean FIRE mode to test.

I’d run the numbers to see what another couple years of work gets you in terms of buffer or extra income considering your statement above about your recent increase in annual savings

likesmart

Also, I realize 2 more years in certain fields is miserable. I’m in biglaw and if someone told me that I’d laugh. Just a thought considering 2 years while you’re young could mean an 33% increase for the next 50+ years.

likehelpful

My $.02 is that there is too much emphasis on rental income. I just watched my dad get taken advantage of by a crappy tenant and seeing that makes me want to swear off rental properties. And definately not hinge my livelihood on it.

Have you thought of "barista fire?" Where you take on an easier part time job and give yourself more time to pursue passion projects? At least that will give you a little something just in case you have issues with rental income

like

How much are you adding to your nest egg annually? At your age, I might think about working 3-5 more years to build some additional cushion. But if the annual cash flow difference isn’t material, I would think about FIREing now

likehelpful

I only started making decent money the last two years or so and have averaged saving ~$100k a year since then. Before that it was still a high percentage but considerably less in absolute terms.

That's one of my major reservations; the savings potential over the next several years is huge compared to the last 10

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Your numbers seem fine. My only question is what are you planning to do with your time after retirement? Since you are young and presumably active, you are probably not going to stay home and watch TV all day. Without a day job, would you be doing more activities that cost more money?

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Not cliche at all. You are essentially doing coast FIRE, it seems to work well with your lifestyle. Since you will be working in some capacity and likely going to bring in income to cover your expenses, your assets can continue to grow until true retirement.

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In your situation I’d be wary of banking on the stability of the rental market for the next 3-5 years if I didn’t own the properties free and clear. I also don’t know who your renters tend to be but it wouldn’t hurt to shore up against that possibility before retiring formally.

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Great post OP - very inspiring

uplifting

Is a flexible work schedule an option for you? Just curious what everyone here thinks about that as a possible way to lower your working hours but keep a revenue stream. Or does that defeat the purpose as you won’t be making as much in that scenario?

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I say go for it OP. Most on this app have unrealistic views on the amount of money needed to live. And if there was a small amount of money that you did need, you could always get some gig work.

uplifting

How do you feel about the VA healthcare? I qualify but am hesitant to use it. I have kids though so don’t k so if they’d be covered anyway

like

Kids likely wouldn't be covered; maybe at the higher disability ratings but I don't think so


The quality of the VA Healthcare really depends on the city/clinic. It was fantastic when I lived in San Diego, terrible in Manhattan - but it's hard to argue with "free"

Only extra caution I'd add is that if you get in an auto accident, have a stroke, etc., emergency services will take you to the closest hospital whether it's VA or not. I've tried to mitigate that risk by getting a super cheap plan with a huge deductible to serve more or less as "disaster debt insurance"

Do a little freelance consulting (work with an agency and just go some projects when you feel like). Would be a nice step in the right direction without the total plunge.

helpful

That's an interesting suggestion; do you know of any in particular that you'd recommend?

$1800 per rental or total?

Wow, how many rentals is that?

What’s the percent equity owned for rentals ? Do you own your own home ?

I just don’t think the buffer is great. If you were older and had social security you could touch that if market turns down. Or if some of these houses were paid off that would provide flexibility.

What are you making now ? How much more could you save if you worked another year ?

Not knowing you at all that seems like a very smart move to work for 2 more years. Perhaps coast, take all your vacation time, work hard but don’t overdo it. Nice transition out ?

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