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Sooo AMC.. who’s in?
😂
Decided to payoff my mortgage.
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Mentor
Reality check - you're probably unlikely to FIRE in the next few years if you plan on having kids. Kids are extremely expensive (mine are college aged, so I've been there), and you really need to consider how much money a child truly costs. Even before college (you probably want $250k in today's dollars per child in a 529), just basics like school (private can be $30-$40k a year - do you live in a great district where your kids can go public?), insurance, food, and clothing can be expensive. If they get into competitive sports, that could be another few grand a month. This is stuff I wish people had told me before I had kids.
I am imagining that you don't want to be the 'selfish parents' that choose not to work and therefore deny their kids these types of opportunities. One of my eldest child's friends was in this position, and she resented her parents for choosing to putter around the house instead of working like 'normal' parents. She wasn't allowed to join a competitive sports program (and she was really good) because her parents chose not to work. I'm not saying it is right, but it did cause deep resentment.
I ended up working a bit longer than my original plan, but still am retiring in my 50s. I was able to make it work with proper planning. Please do think about this stuff. Good luck!
Ya even just car insurance I’m paying for 5 people. And phones. My kids help out but it’s crumbs lol.
Coach
72(t)
Rule of 55 and Rule of 72t. https://www.reddit.com/r/Fire/comments/1i8x5c6/how_does_the_rule_of_55_work/
There is a link inside the reddit thread for rule of 72t
You can withdraw your principal from your IRAs tax free. You can also take a withdrawal from your 401k for first time home, though I think it’s limited to 50k
Subject Expert
Roth Conversion ladder is likely your best option.
Every year, you convert a portion of traditional 401k & IRA’s to Roth (paying taxes). You can then withdraw the converted amount 5 years later tax free.
- Contributions to Roth can also be withdrawn tax free.
Others mentioned 72(t) & rule of 55 however based on your age these are likely not the best approaches, as you would have to withdraw a scheduled amount every year until age 59 with very little flexibility, (or wait until you are 55)
Also you have significant post tax assets. You can spend those first.