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What's your FI/RE Target?

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  • Seroma
    replied
    My number is 3.5 million and hope to be able to get there at age 50. I think I will be able to make it happen and then probably will transition to part time work, instead of full retirement.
    I'm trying to enjoy life as much as I can now....having had a "heart problem" in my 30's that required an intervention (which thankfully cured the condition) and seen many young people die or diagnosed with cancer, my thinking of early retirement has been stronger than ever.
    Eat well, exercise and spent time with friends and family.
    And of course retire early. We only live once

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  • nyu04
    replied
    PhysicianOnFire - even with growth of current assets, I am impressed by your discipline.

     

    We are actually very close to each other in terms of living costs vs take home pay.  I hope to have your discipline to carry on for another 7-10 years then we should be good to go.

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  • PhysicianOnFIRE
    Member

  • PhysicianOnFIRE
    replied




    PhysicianOnFIRE wrote:I agree that $5 million is more than enough.  I’d probably be alright with $2 million, but I think I’ll be willing to work an extra 5 or 6 years to have twice as much.  If it would take an extra 10 or 15 years, I might think differently. 
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    Work an extra 5-6 years to have another 2 m?  You, sir – are my hero!!! <img src=" />
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    I'll be expecting the 1st $2 million to do some of the work for me.  At 7% growth, $2 million becomes $3 million in 6 years.

    Being debt-free and living a relatively frugal life (by doctor's standards anyway) allows us to live off of about 25% of take home pay.  The rest is invested.

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  • nyu04
    replied

    PhysicianOnFIRE wrote:I agree that $5 million is more than enough.  I’d probably be alright with $2 million, but I think I’ll be willing to work an extra 5 or 6 years to have twice as much.  If it would take an extra 10 or 15 years, I might think differently.
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    Work an extra 5-6 years to have another 2 m?  You, sir - are my hero!!!

    Leave a comment:

  • Zaphod
    Physician

  • Zaphod
    replied




    I guess I don’t think of it in terms of a numerical goal. My estimation is that every so often I will pass some obvious financial milestones, and when I do I plan to stop and survey my situation and see how adequately I’ve been saving and see what my income needs are.  Some example milestones would be: paying off all student loans, paying off my house, $2M in retirement assets, $3M total net worth, and so on.  I hope that one day I’ll look at my situation and realize I don’t need to work any longer, or maybe I could cut back a lot. For the time being though I’m nowhere near any of these milestones, so its full-time work and business as usual, and I just stick to my retirement savings goals and don’t think about it otherwise.
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    I think thats probably the hardest part about all of this. Many of us feel like we didnt know anything about finance and dug a little hole to start life, than you slowly educate yourself (with the help of sites like this), and put a grand master plan in place and....boom! not much for a while, we have to sit and wait it out. Cant do much about that but let it come to you I guess.

    One thing thats nice to see change is my debts worksheet, I update it every year and its sadly enjoyable to see whats been paid off, principals reduced and the quickly contracting average interest rate we pay. It will be even better when I dont have one.

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  • Josh0731
    Member

  • Josh0731
    replied
    I guess I don't think of it in terms of a numerical goal. My estimation is that every so often I will pass some obvious financial milestones, and when I do I plan to stop and survey my situation and see how adequately I've been saving and see what my income needs are.  Some example milestones would be: paying off all student loans, paying off my house, $2M in retirement assets, $3M total net worth, and so on.  I hope that one day I'll look at my situation and realize I don't need to work any longer, or maybe I could cut back a lot. For the time being though I'm nowhere near any of these milestones, so its full-time work and business as usual, and I just stick to my retirement savings goals and don't think about it otherwise.

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  • Kennyt7
    replied
    just understand what the marginal utility of wealth means as you near retirement

     

    do your homework when converting to a roth-its not always favorable

    Leave a comment:

  • WealthyDoc
    Member

  • WealthyDoc
    replied
    Very long story made too short:  The FI target or "my number" changes over time - usually upward as we make more money and get more comfortable spending.  Mine is no exception.  My thinking at this point is 10k/Mo to spend spun off from $4M.  The math on that is 120k/year x 33.  It also works out to about 3% annual withdraw.  The rate is controversial and can be debated but if one retires before age 55 and takes repeated withdrawals for four decades the balance can go to zero if unlucky.  It depends more on your sequence of returns, reverse dollar cost average, and luck even more than asset allocation.

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  • Zaphod
    Physician

  • Zaphod
    replied
    A goal is just a goal. No way related to not having to work anymore. At some point when you start to accumulate more I worry about the risk/reward from practicing. Agree if you can hit numbers that will make you basically FI and then continue to work and let it compound even for a few years...thats golden.

    Leave a comment:

  • PhysicianOnFIRE
    Member

  • PhysicianOnFIRE
    replied




    wow.  I mean I can see setting the bar at 5M for comfort or just to hit a “goal” like Zaphod suggested…but that’s a ************************ lot of money.  As stated, that’s $200k per year spending.  Right now in the peak of our spending with kids and car payments and a mortgage and loads of insurance and college funds, our annual spending is 120-130k/year.  I cant imagine having expenses that high without any of the costs mentioned above.  Seems like 3M is plenty for me.

     

    One thing not mentioned here is the inflation issue.  Given that, my goal is retire with net worth of 4M, which will be roughly equivalent to 3M in todays dollars 20 years from now
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    You make an excellent point about inflation.  If inflation inches along like it has the last few years, your estimation of needing $4 million in 20 years to match $3 million in buying power today may be true.  However, at a fairly modest 2% inflation rate, you'll need $4.5 million and at a 3% rate you would need $5.4 million in 20 years.

    I agree that $5 million is more than enough.  I'd probably be alright with $2 million, but I think I'll be willing to work an extra 5 or 6 years to have twice as much.  If it would take an extra 10 or 15 years, I might think differently.

    Leave a comment:


  • PTM
    replied
    wow.  I mean I can see setting the bar at 5M for comfort or just to hit a "goal" like Zaphod suggested...but that's a ************************ lot of money.  As stated, that's $200k per year spending.  Right now in the peak of our spending with kids and car payments and a mortgage and loads of insurance and college funds, our annual spending is 120-130k/year.  I cant imagine having expenses that high without any of the costs mentioned above.  Seems like 3M is plenty for me.

     

    One thing not mentioned here is the inflation issue.  Given that, my goal is retire with net worth of 4M, which will be roughly equivalent to 3M in todays dollars 20 years from now

    Leave a comment:

  • uptoolate
    Member

  • uptoolate
    replied
    Yes, the number can shrink as time goes by.  One of the few docs at my place who had the same desire to FIRE (or maybe the one who actually seemed to have a plan as everyone seemed to have a desire) and I used to get together over lunch or dinner now and then and joke about how the number seemed to be coming down to meet us.  It was all a question of time v money.

    Leave a comment:

  • asmallchild
    Member

  • asmallchild
    replied
    Same as everyone else.

    Aiming for $10M but I suspect the current climate in healthcare won't allow for that to be a realistic goal.

    Would be obviously ecstatic just to hit $5M and would return to academics or go part time once that number is reached

    (Also, I'm young. I suspect as I grow older and wiser/bitterer, that number will continue to shrink and I'll just make do with more frugality)

    Leave a comment:

  • VagabondMD
    Radiologist (retired)

  • VagabondMD
    replied
    Put me in the $5M club. A lot has to do with the timing, however, as reaching the goal before you have launched the kids from the nest means that you have not really reached the goal.  :?

    In the mean time, my wife and I continue to toil...  :x

    Leave a comment:

  • uptoolate
    Member

  • uptoolate
    replied
    Mine was 5M similar to others above.  Once I hit it, it didn't take long for the buckets to fill up and for me to call it a day.  Also similar to above, I didn't make a big distinction between taxable, tax deferred and corporate money.

    Leave a comment:

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