Reply to Is FIRE next to impossible with children?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think you're ok, you have $1 million and assuming you're 35 and both max out your 401Ks with a 5% match, at 7% you'll have around $5.8 million in 20 years at 55.  That would be $233,000 per year based on a 4% withdrawal rate.

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Oops forgot to add that if you're interested in FIRE then at your income, you can drastically cut expenses and aggressively save now, even with kids.  Live off $250K and save the rest including maxing out 529s and saving for kids' futures, and you can still retire by 50. [/quote]

Op’s HHI is 350-400k (presumably gross) so they’re already going to be below 250k net after taxes/maxing 401k contributions before even factoring in 529s or additional retirement savings [/quote]

This is true but the PP's original point still stands -- even if they just continue to max out 401ks with employer match, they will be close to 6m by 55. It's not as young as most FIRE plans aim for but it's still very young for retirement. They could also potentially do a partial retirement at 50 if college is paid for by then and they were willing to continue working on a part-time basis for a longer period of time (say until 60) and could secure reliable income doing consulting or another flexible or part-time job. If they had college paid for they could live off a decreased salary for a time without touching retirement assets (say around 200k gross). If kids are out of the house they could also downsize or move somewhere lower COL and even be able to continue to invest and save some portion of that income.

For us the key has always been to get rid of mortgage and college savings by 50 (our kid won't go to college until we are mid-50s but we want enough saved for college to where we no longer have to set aside money for it by 50 which is feasible if you start early). If we have no mortgage and no college costs by 50 we can either stay in our current jobs a few more years and save aggressively into retirement accounts to top them off OR we can shift to easier or or more flexible jobs and save less but not need to touch retirement until 60 if we are willing to work in those "retirement jobs" until then. Things open up considerably once you can cross mortgage and college off your financial priorities because then you only have to think about retirement and if you can continue to cash flow your living expenses in a kind of partial retirement then your retirement accounts can continue to grow before you ever have to touch them.[/quote]

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