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Looking for advice to stop spending $$...
401k Roth or traditional 401k?
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I agree that most people need FAR less than the $10M+ fishes seem to feel is the baseline here. I plan to retire around $3-4M liquid. However, I’m not sure your case is the best proof. Your income is equivalent to a $10M investment portfolio, regardless of whether you are working part time or not. Full FIRE usually means living off of your passive investments, which I don’t think you could do as it sounds like most of your net worth is in RE. I’m glad you’ve been able to find an amazing compromise, but few have such opportunities.
I mean I’d work forever if I was making 300k for 10 hours/week
Mentor
@OP: Congrats! Care to share your journey - how you got there and what you did along the way to be able to afford homes in multiple locations? Also - what are you doing now for 10h/week?
The kids work! How do you think OP gets by??
Answers to some questions above:
Have one kid. Had him quite young so was able to spear head through work in my 30s without worrying about daycare costs. He had started kindergarten/school by then.
Bought a small piece of land in an upcoming area early 20s (almost all my savings at the time) . 7-8 yrs later it became very well commercialised and upscale residential. By now I was earning in GBP, sold the land and bought house adding in some cash outright. Currency leverage was a massive contributor to this.
France - cosy modern 2 bed with 20% down payment, ~600k EUR. Is on short term rental or AirBnB when I’m not living there. Rental income pays off the mortgage.
Work as freelance consultant in a niche area in life science. Has been 100% remote work. Being in a company setup allows me to send everything to pension hence being very tax efficient. Annual turnover is ~£300-400k. What I withdraw is for day to day living and kid’s tax free savings account.
Rent in London is main expense. Intentionally didn’t buy in London. Next expense is travel. Eat at home 90% of the time. Minimalistic in clothes/belongings. Kid goes to state school so no fees. Am in London for now because of kid’s schooling. Part of the year we home school when spending time in France or Asia.
Agreed, people are gonna be trying to retire at $1.5M wondering how the heck OP is making it work. Only to find out that they wouldn’t lol
Subject Expert
Thank you OP for bravely exposing the uncommon truth that if you have millions of dollars you can relax and have a good time. ;)
Subject Expert
Yeah, I am joshing you a little but it's a good reminder. In the USA or in France, you don't need to spend hundreds of thousands to live. You can just live.
Yeah, you personally aren’t the best example since you are still commanding a high income. Few can do that and extremely few while working limited hours. Your overall point is true. But speaking for those of us shooting for a higher net worth to step away (at least some): we know. I take comfort that I could move to lower cost areas cut costs and prob step away at any time. But it doesn’t align well with my goals. People also have great differences in how much they dislike working as well. Many paths.
Op, what % is your liquid asset (stocks etc) vs value of your 2 houses?
What are your expenses?
Surfing in the south of France?
Yes. Basque region. On the French side.
youre 35 and retired on $1.5m? is that 1.5M producing passive/investment income? i dont see how thatll last for the next 45 to 50 years. maybe 15 to 20 years?
Bro has never heard of compounding interest🤦♂️
Tell us everything. What kind of work do you do?
Mentor
I'm 99% sure everything after the "context" part was in jest.
If you rather I had said “Have 5Mn NW and unsure if that’s enough” then sure.
I think it’s very do-able to stretch your money in a very global world. And that’s what I’m trying to show by my example.