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What's your FI/RE Target?

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  • CM
    replied
    Originally posted by VagabondMD View Post
    I have reached my financial target (at age 50), and I am planning to cut back ASAP, and leave the medical practice for certain within two years. I do not want to retire, but instead, transition into a career, job, or business that gives me more control of my time and wears me down less physically and emotionally. Ultimately, in five years, my goal is to be in a location-independent position or business that involves no clinical care and might be completely outside medicine.

    I have a wife (age 51) that is in a corporate position where she has a physician-like base salary, but bonuses and stock incentives that vary, sometimes wildly. This year, she will be paid like an orthopedic surgeon (woo-hoo!). She plans to work until at least age 55 (where retiree medical for employee AND spouse kicks in), and our youngest of two children is off to college. Worst case scenario is that I leave the workplace entirely, and she shoulders the load. We can live reasonably well on her income and not draw down our assets--with kids in college, we just won't be saving beyond her 401k contributions.
    *******************

    ...and did Ms Vagabond retire in the spring of 2020 as planned?

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  • CM
    replied
    Originally posted by STATscans View Post
    4 years out. Anyone change their number??
    My number depends on working conditions. I was taking call every other night and every other weekend when this thread started. Things are much better now, so I kept working and raised my number.

    Leave a comment:

  • FIREshrink
    Member

  • FIREshrink
    replied
    Originally posted by VagabondMD View Post
    I have reached my financial target (at age 50), and I am planning to cut back ASAP, and leave the medical practice for certain within two years. I do not want to retire, but instead, transition into a career, job, or business that gives me more control of my time and wears me down less physically and emotionally. Ultimately, in five years, my goal is to be in a location-independent position or business that involves no clinical care and might be completely outside medicine.

    I have a wife (age 51) that is in a corporate position where she has a physician-like base salary, but bonuses and stock incentives that vary, sometimes wildly. This year, she will be paid like an orthopedic surgeon (woo-hoo!). She plans to work until at least age 55 (where retiree medical for employee AND spouse kicks in), and our youngest of two children is off to college. Worst case scenario is that I leave the workplace entirely, and she shoulders the load. We can live reasonably well on her income and not draw down our assets--with kids in college, we just won't be saving beyond her 401k contributions.

    The bottom line is that for me, the concept of FI/RE is not to get out of working, but get out of work that I do not enjoy. Life is too short to burn out doing stuff that you no longer want to do, especially if you have the resources to make changes or leave the job entirely.
    Did you quit and leave?

    reading my post just above, I did not go down to 2-3 days a week by age 45-46. Instead I took a more demanding role with somewhat more flexibility, slightly higher pay, and new professional challenges. I've pushed out my date for going down to 2-3 days per week to age 50.

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  • Tim
    replied
    If money is the measure, probably 2x’s.
    If value is the measure, you will be just fine.
    https://awealthofcommonsense.com/202...y-is-enough-2/

    Leave a comment:

  • STATscans
    Physician

  • STATscans
    replied
    4 years out. Anyone change their number??

    Leave a comment:

  • FIREshrink
    Member

  • FIREshrink
    replied




    I’ve benefitted from a friendly market in my ten-plus years as an attending, but I’ve got every dollar I’ve earned in my career. Earn, Save, Invest, and hope for the best. Worked for me.
    Click to expand...


    I have performed this analysis on my own finances. It is most accurate to use your Social Security statement's Medicare earnings, and to adjust each past year for the cumulative inflation factor. Obviously also include any financial gifts or inheritances along the way and adjust those for inflation as well. Done in this way, I have proposed this is the most accurate metric for one's efficiency of wealth creation. In my analysis I did not take into account taxes.

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  • FIREshrink
    Member

  • FIREshrink
    replied
    I work 200 days per year at age 43 and plan to go to 150 by age 45-46. Then 2 days by 50, etc. I don't have a date when I want to quit entirely.

    We have >20x expenses plus college done for and don't plan to reduce our expenses at all (mortgage will continue for 29 more years). I expect to be 25x at age 45-46 and that will be my trigger to go down to 0.8 FTE. I expect by 50 it will be close to 30x. After that it's just health insurance and gravy.

    Leave a comment:

  • eyeballboy
    Member

  • eyeballboy
    replied
    My personal investable assets target is $12mm (year 2030 dollars) by age 55 which equates to about $8mm in today's dollars, assuming 3% inflation.  I like to look at the target in future dollars so I don't let myself think I'm getting closer than I am and don't need to constantly be adjusting for inflation.  If I hit my target sooner, all the more valuable it will be.  I plan on a 3% withdrawal rate.

    Leave a comment:

  • smartmoneymd
    Member

  • smartmoneymd
    replied




    That sounds right to me. Property tax = $25000; Home, car and umbrella insurance = $6000; Health insurance = $23,000. I’m at $54,000 before spending a dime for living. Granted I don’t live in the Midwest.

    While I’m not going to retire early, that’s why I’m looking to come up with $225,000 per year in retirement.

     
    Click to expand...


    Property taxes in the East Coast are insane. Anyone in a Grade A school district in NJ can agree. The healthcare market in the area is quite competitive too.

     

    The only redeeming aspect is that you don't have to pump your own gas in NJ. :-)

    Leave a comment:

  • VagabondMD
    Radiologist (retired)

  • VagabondMD
    replied




    Speaking of health care cost, for those going for early retirement what are your plans for health care?

    Love the idea of early FI but think will still need to do part time at least to get the health coverage especially if any pre-existing. Heck may even have the fallback of Starbucks to get coverage plus not to mention discounts on some joe! .

    Or are you just factoring this in with just a larger nest egg? We all know how much just a single visit to the ER or heaven forbid a day in ICU costs!
    Click to expand...


    My wife's company currently (historically) covers retiree (and spouse!) health insurance, as if you were a current employee, after age 55. That is a HUGE benefit. We hope that it is still in place in three years when we plan to retire.

    Leave a comment:

  • PhysicianOnFIRE
    Member

  • PhysicianOnFIRE
    replied
    Retire By 40 covered this topic recently. There are more questions than answers right now, of course.

    I just plan on overshooting the FI target and expect to pay a lot for healthcare. Paying most costs out of pocket / HSA won't bother me. Spending $30,000 in a particularly bad or unfortunate year won't ruin me. $300,000 or $1,300,000 on the other hand would have a profound effect on our circumstances. As long as I can insure against bills like that, we should be alright.

    Interestingly, a number of FIRE fans participate in health care sharing ministries, which aren't true insurance and do have caps. The last thing I would want is a plan with a maximum coverage amount.

    Leave a comment:

  • PenguinMD
    Member

  • PenguinMD
    replied
    Speaking of health care cost, for those going for early retirement what are your plans for health care?

    Love the idea of early FI but think will still need to do part time at least to get the health coverage especially if any pre-existing. Heck may even have the fallback of Starbucks to get coverage plus not to mention discounts on some joe! .

    Or are you just factoring this in with just a larger nest egg? We all know how much just a single visit to the ER or heaven forbid a day in ICU costs! ...

    Leave a comment:


  • Antares
    replied
    We have a fantastic library. Not kidding.  :?

     

    My property taxes here in the suburban New York City metro area are not exceptional, and I'm not living in a mansion. But it is a fairly upscale community. When I sell the place and downsize in a lower COL area, the taxes will feel like I'm getting an unbelievable deal!

    Leave a comment:


  • G
    replied




    Antares I am still blown away by $25000 for property taxes  you don’t want to know what I pay
    Click to expand...


    Yeah, but Antares gets a lot more benefit from that huge property tax.  

    Leave a comment:

  • Hatton
    Moderator

  • Hatton
    replied
    Antares I am still blown away by $25000 for property taxes  you don't want to know what I pay

    Leave a comment:

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