Where is the tipping point?

When do believe you will have enough wealth that it will grow inevitably and create the lifestyle you ultimately want.

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When I started my FIRE journey, my annual spending was about $25k, so I figured I needed 625k assuming a 4% withdrawal rate.

Now that I'm close to that number, I'm targeting $1.2m ($36k a year at 3%)

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SA1- agree. With having kids. OB bill was reasonable. Cut her a check. Anesthesiologist wanted 2k for 15 mins of work. $5/mo payment plan for you. Assume anesthesiologist spent total 1 hour on prep, patient, and charts. 2k/hr = 4MM annually. Those docs make around 4-500k. Malpractice premiums are 120k/year. all in = 600k. That would be $300 for services rendered in 1 hour. Add some overhead and it bumps up a bit. At $2k an hour. You’re stealing. Where does that extra $1,700 PER HOUR go?

Remember that physician billed separately from hospital and other care.

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My partner & I have agreed we'll start seriously considering it at $6M combined and probably pull the trigger at $10M combined. Those are the numbers where we'd feel comfortable never worrying about salary again & still be able to support luxuries we enjoy & help out less wealthy family members

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With a partner and assuming we’re all working towards a certain standard, I think these numbers start to sound right.

Thanks for sharing.

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I will likely never reach that point

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I feel that.

I’ll do something else at $2.5M, but growth and comfort would really be at $4.0M. If I get married, this will be harder.

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Great thing is if you hit your first MM early, your money works harder than you can. Good #s A1

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Expenses = growth, come on man it’s simple

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K1, my apologies — I see where you’re coming from. My thinking is along the lines of G1’s.

Thanks both for chiming in!

2.5 to consider if the job is still fun. At that point the growth outpaces any contributions.

4MM to sleep real easy

6MM to give back in a meaningful way

likesmart

Conservatively, 2M spins off about 100k/yr. Calibrate accordingly.

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I thought $2M translated into $80k for a traditional age retirement. Talking with a (free) FA from Fidelity, it seemed like the 4% rule was a bit dated and that it needed to be adjusted downward if you were planning to retire early (so say only withdraw 3%).

Around $2m makes it possible when spouse hits pension at 50. $4m would help me sleep better.

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2m

Is the number for a household?

$2 Mil if I'm retiring around 55 and plan to entirely stop working. Maybe even less because I'm seeing a lot of jobs with healthcare coverage for retirees (I'm in Pharma).

However, I don't want to work another 20 years, so I'm looking at a very diversified plan.

I think I'll go partime when I have 2 investment properties and $500k in retirement.

I'll continue to contribute to the 401k at a much lower rate and give it time to grow for maybe another 10 years or so and add a few more rental units.

Then by 50 I'm ready to further reduce hours, but should still be able to support myself with the rental income and partime income.

Then by 55 reduce hours further and maybe pull out of 401k for health expenses.

By the time I'm fully retired, I can sell some of the houses and my 401k will have grown. I probably will be up to $2-3mil. And i don't think I'll need more than $80k per year for myself to really enjoy life.

At the end of the day, I can just power away for another 10 years and retire completely. But that's 10 years of missing out on a huge chunk of happiness. So i would rather do a phased approach so i can pull the trigger earlier, while maintaining my sense of financial security. I'd rather have $500k more than i need and leave a nice chunk to family or charity than to stress about running out of money or not being able to do what i want to do.

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