Countdown to FIRE

Where are you and where are you going?
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LiveSimply
Posts: 7
Joined: Fri Mar 30, 2018 3:18 pm

Countdown to FIRE

Post by LiveSimply »

I stumbled upon this forum and immediately felt a sense of belonging.. want to think of this as Serendipity, maybe my naivety - that this is a sign of some sort from a universe of some sort!!?

I am in my mid-40s, no SO, no kids, and have always had the notion that there is more to life than just the 24-12-365 existence. Additionally, I guess the whole mid-life crisis is not helping rid this notion :)

So..where am I and where am I going?

I am a mid-career 40-something Gen-Xer. Growing up, the achievement of financial independence and academic excellence was ingrained. This, along with strong middle-class values, helped develop a frugal lifestyle without actively pursuing it as such. It also helped counter some significant financial setbacks in the mid-thirties.
Career-wise, nothing extraordinary - Fortunate / blessed / <fill-in-adjective> to be able to earn more than enough to fulfill basic needs and no desire for extravagant expenses. I do know that I get 'bored' with long-running projects and am at my best with short-term projects where I can "figure this out and leave the execution to those who are good with it" I also immensely enjoy learning new stuff- however bizarre, as well as problem-solving esp when I can support it using data..

I got bit by the travel bug a few years ago and ever since I have dedicated all the 'disposable' income towards being able to travel when I want, where I want, for how-ever long I want..
Over the past few years (<5) this <obsession?> has become more pronounced - directly proportioned to the realization of my mortality :)
So I did some analysis, set some targets and started putting away taxable $$ into a brokerage, although limited to mutual funds

Last year I decided that 2018 was going to be "The Year I Quit" and as 2018 raced into end of Q1, I started getting cold feet! :( I don't have anyone in my current F&F that 'gets' this and I was guessing and second-guessing myself to the edge of stress and insanity.
So when I stumble upon this forum, I suddenly felt - relief? sense of belonging? validation that"I-am-not-completely-out-of-my-mind"?

Nuf foreground, onto the numbers

Planned FI - Trying to decide between June/July/August of this year - 2018

Expenses
Housing - 300
Utilities - 100
Vehicle (loan/ins/gas) - 600 (Paying down 5 -yr loan with xtra contrib to Principal)
Phone/net - 100
Food - 150
other - 50
Total = 1300/m

Travel = 1300/m
(Approx Annual Travel Budget - ~15000/12 = 13oo rounded up)

Income - 5600/m

Savings
Investments (10% avg return)
401k - 600k (33% Roth, 66% Traditional)
Taxable - 270k (index funds 70/30 SB split)
Emergency funds - 6m living exp - 8k checking a/c
Liquid assets - cash/MM - 50k (I was looking at June/July/Aug - JJA - as the start of no-more-paychecks and wanted to have a safe place looking at market volatility/common sense)

Planned expenses post-JJA
If I was to live as I do now, I can get by with 1500/m = 18000 post tax
HOWEVER - the travel bug will not allow me to sit still, and I would like to begin traveling as soon as I can
I have not been able to figure this one out yet, knowing that there are frugal travel options but not knowing exactly what I will end up doing until I get started in my travels

FIRE Desire
1) Peace Corps/Service Corps
2) Something in the non-profit area that will leverage my skill-set - and maybe let me travel / live in a flexible arrangement
3) Freedom to spend time traveling just for leisure without being extravagant

I have done some reading/research into COL, Expat lifestyle etc.. but like I said my current work-life (im)balance does not leave me with a lot of energy to do as much


My challenges -
I have a few physical/health challenges (Hip/Neck/upper extremity pain> that have intensified in the past few years. A few years of pouring $$ down the drain have left me discouraged that I may not ever be 100, or even 90 % back to my prior fitness level.

I am trying to get healthier and achieve a somewhat realist level of weight/fitness that enables me to travel and move freely without pain

Due to the pain/health challenge my housekeeping skill have taken a nose-dive. I find myself in the midst of some valuable possessions and some clutter that I cannot (will not?) seem to rid of / dispose in an un-wasteful manner. The rationalization is that "I wont be having an income soon so if I dispose of 'things' I don't want to spend $$ buying them again". I have tried a few different 'hacks'/methods for de-cluttering but have not been able to "get it"! :x
Ideally I would like to recoup some of the costs of an expensive business wardrobe, electronics, books etc via re-sell channels but time and energy are the challenges

I have conflicting thoughts about whether I should 1) downsize, plan 1st and then quit OR 2) quit 1st and then dedicate the time needed to downsize/plan

The current reality is that by the time I am done with my desk job I am mentally and physically exhausted to the point where I come home, eat and crash..

Weekends are spent catching up on basic minimal chores and my procrastination does not do me any favors either.

By stating these harsh truths in black and white on this forum , I am trying out the whole "accountability" thing, even though it has not necessarily worked for me in the past - with fitness/weight loss programs

I plan to put in updates at least monthly if not more often if for nothing else than keep myself sane :) I am also hoping to learn from those who have gone before as well as those on or planning to be on a similar journey

Thank you for patiently reading through the rather long-winded rambling - any thoughts / pointers are greatly appreciated.

DutchGirl
Posts: 1646
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: Countdown to FIRE

Post by DutchGirl »

So you've got 930k of assets, probably more like 950k by August.
You want to spend $31k in retirement per year.

That's a 3.2% withdrawal rate. Should be okay.

Two things to think about:
1. Most of your assets are in retirement accounts. There are ways to tap into them before official retirement age. Or you can decide to only drain the taxable account before you're retired, plus earn a bit of money every year to make up for the gap. (Let's say 20 years before you can tap into the retirement funds, $350k in non-retirement savings means that you're short roughly $12k/year).
2. Healthcare costs. I don't see them mentioned in your current or planned expenses. The truth is that most people at some point in their life will need some healthcare. How are you planning to do that?


I'd consider hiring some help for the months of April to June (or July?) for basic cleaning, gardening if you have a garden. Yes, that will probably cost, I don't know, $1000 or so total. However, use that free time to work on sorting your possessions, to work on your health and on the upcoming retirement plans.

LiveSimply
Posts: 7
Joined: Fri Mar 30, 2018 3:18 pm

Re: Countdown to FIRE

Post by LiveSimply »

@DutchGirl

Good points, here are my thoughts (and some ramble)
1) I started reading about laddering, etc, and think that might work out, after I exhaust my taxable $$. I am not sure what tax bucket I will land once I quit, so in terms of laddering,it would be a small amt this year if at all, just to get me something for 2022.
Instinctively I prefer laddering to SEPP, but further research might change my mind

2) Healthcare - you made me un-bury my head out of the sand :)
In all seriousness, that is one of the things I have not figured out at a 100%. The options I know about (ACA, self-insurance, COBRA) seem to be out-of-reach.
I plan to get travel/health insurance if I end up traveling internationally for this year, to avoid buying on the exchange. Later on I may "need" to have some sort of work-generated income, but I'd prefer it to be my choice, not necessity

I also have not figured out what other means of income I might 'happen' upon in my travels
I considered teaching English, but do not have the 'official certifications" needed for that. My formal education is in Computer Science - but I have not written a single line of code in over a decade, or more. I found that I enjoy trying out different 'careers' for a year or two and then move on - that might be a blessing and a curse!

I don't want to postpone this year if I can help it - Even if it means I get to travel for a couple of years, then try and find some temporary / consulting gig.

As far as hiring help for cleaning, I considered it - I think I am too OCD to let others control any aspect of my personal life, even as insignificant as cleaning..I am also embarrassed at the mess. I might have to unlearn some bad habits before I truly become 'free'

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Viktor K
Posts: 364
Joined: Sat Jul 30, 2016 9:45 pm

Re: Countdown to FIRE

Post by Viktor K »

I teach English abroad so if you want to do that you can get an online TEFL done in a couple weeks tops for a couple hundred USD and then you'll be qualified and offered numerous positions in any of the major ESL countries. At your current withdrawal rate, assuming you start to withdraw your retirement accounts in the efficient manner you've described knowing about, then you should be able to afford many of the cheaper, popular expat countries, and in some of the cheaper ones you could even afford quite an extravagant lifestyle.

If that's what you want, I suggest nailing down which country/countries you're interested in starting out in, then figuring out best health insurance/care options. If you do go the teach English route, some countries offer included social insurance. Where I'm at, we can go to the nearby hospital and get doctor's appointments and treatment all in the same day. I caught a bad cold, it evolved into a sinus infection, and after a month of trying to tough it out I went to the doctor and was prescribed antibiotics. This cost me less than 50 USD (medicine included), my health insurance premiums are paid out of salary (something like 10 USD/year), and I was supposed to send in a rebate voucher with my receipts to get some of that 50 USD hospital bill back but never did.

LiveSimply
Posts: 7
Joined: Fri Mar 30, 2018 3:18 pm

Re: Countdown to FIRE

Post by LiveSimply »

@Viktor
Its great to read about your personal experience living the expat life. I search ESL and found so many opinions and options that I was not sure if I should do the $ <cheap> course or the $$$$ < credible?!? >one, and how to make sure I don't get scammed

I'll start looking at location options - I know I am not too excited about being in cold-weather places - haves pent enuf time hating the winters and putting up anyway

Would you be open to sharing your preferences in terms of 1) the ESL course provider and 2) location(did you stay in one location or move around, if move, where all have you been)

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Viktor K
Posts: 364
Joined: Sat Jul 30, 2016 9:45 pm

Re: Countdown to FIRE

Post by Viktor K »

We used one called LoveTEFL.com because it was online, cheap, and had no face-to-face requirements (classroom time, video chats). It took us about 3 months, but we drug our feet and finished about 80% of it the week before our company needed it. We teach in China and the reason we went with the cheap course is because actually the TEFL isn't really organized like some other certifications are. One company's TEFl is just as good as any other as far as Chinese employers are concerned.

As for location, we chose China because I studied the language in college, had old classmates there, and it was one of the better paying to cost of living to minimal hours/week countries at the time. Some other countries are a better deal now I think, but you can find that information online (it changes each year or two). We're considering Spain next.

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Chris
Posts: 773
Joined: Thu Jul 22, 2010 2:44 pm

Re: Countdown to FIRE

Post by Chris »

LiveSimply wrote:
Fri Mar 30, 2018 11:58 pm
So when I stumble upon this forum, I suddenly felt - relief? sense of belonging? validation that"I-am-not-completely-out-of-my-mind"?
Welcome to our oasis (-:
LiveSimply wrote:
Fri Mar 30, 2018 11:58 pm
The travel bug will not allow me to sit still, and I would like to begin traveling as soon as I can I have not been able to figure this one out yet
I don't know what your housing situation is (renting?), but it looks like most of your expenses would be eliminated if you went full-nomad while traveling. That would free up ~16/day in housing costs, plus whatever your car is costing you on a daily basis. If you slow travel, that could cover your housing expense (depending on location).

Re: health insurance: yeah, this is a tricky one. IIRC, the Peace Corps covers you for health insurance, if you go that route. And there is an alternative to ACA and self-insurance: non-ACA compliant insurance. Since the individual mandate is in flux, you could look for a cheaper insurance plan that does not conform to the rules of ACA, if you're just looking for catastrophic coverage (something like this).

LiveSimply
Posts: 7
Joined: Fri Mar 30, 2018 3:18 pm

Re: Countdown to FIRE

Post by LiveSimply »

Update 04/19
OK, so after a couple of bouts of the Flu and some major Tax filing procrastination, I am finally getting 'some' sense of a break.
A heartfelt Thank you to those who stopped by and/or gave input, for taking the time :) @ Chris, @ Viktor, @DutchGirl...
@Chris - I was under the impression I would still need some form of 'roof over my head' and suspect its NOT going to be $450 (Incl utils) unless I am in SEA.The car - I am considering selling it - have a loan + depreciation = not much 'income' at the end of the day. Am I missing something in terms of saving $$ off my living costs post FIRE
I took look at the link you gave - thank you.. So far I had been considering just normal, long term Travel insurance..so this is something else to keep in mind. I sometimes get overwhelmed with all the choices and decisions to be made, aah the joys of being grownup :)
Peace Corps is a tough one to crack - the acceptance rate is pretty low and I am mostly targeting the PCV(?) option vs the 2-year regular service
@Viktor - Thank you for the ESL information. I added that option to my list of top 5. I have started looking into this seriously. Of course the amount of options is mid-boggling.. And that is before TESOL/CELTA!
I recently read some information on MM2H and it sounded quite appealing. I think some expats have taken the path of getting the approval while having a job and then traveling for year (or 4) and then 'settling' in Malaysia... That is becoming a top5 option right now, along with the ones listed above

So other progress made
1) On the financial front, I have not made any huge strides, just staying on track for savings.. The closer I get to Aug, the less risk - according to all the investment advice
2) On the health side, this has been a crappy month so far. I am not anywhere close to resolving the pain issues OR making a decision on medical insurance
3) On the downsizing aspect, no progress either
4) Research / shortlist - MM2H and ESL are 2 new options to look into - kind of exciting to have a few more options

Overall, it is sounding like a somewhat non-productive time :( I have tried putting down my FIRE date and backtracking into when things need to be done by, but I am not getting anywhere beside having a strawman
So I have been wondering if any kind of "countdown plan" would help me focus.. I tried self-monitoring, obviously besides the financial discipline I don't seem to have any discipline in any of other areas :(
Thank is all I have for right now..As always please keep the ideas and feedback coming!

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Chris
Posts: 773
Joined: Thu Jul 22, 2010 2:44 pm

Re: Countdown to FIRE

Post by Chris »

LiveSimply wrote:
Thu Apr 19, 2018 3:52 pm
I was under the impression I would still need some form of 'roof over my head' and suspect its NOT going to be $450 (Incl utils) unless I am in SEA.The car - I am considering selling it - have a loan + depreciation = not much 'income' at the end of the day. Am I missing something in terms of saving $$ off my living costs post FIRE
My thinking is this: if you can cover your daily expenses in your current location without working, you can do the same in any location. So selling the car suggestion was not to generate income, but to free up daily expense. For me -- even with a paid-off car -- the daily expense of owning it (insurance+gas+maintenance) was my second-largest expense category after rent.

SEA is certainly affordable, but there are other places (1, 2) with sub-$450/mo rent. You can search around for other ideas.

LiveSimply
Posts: 7
Joined: Fri Mar 30, 2018 3:18 pm

Re: Countdown to FIRE

Post by LiveSimply »

@Chris! I see what you mean, makes sense..

I am always humbled by the amount of knowledge people on this forum have - the links you provided were immensely helpful..not to mention reassuring! I think my research skills have gotten rusty because none of the links showed up on my radar in all these years that I have been contemplating 'what to do"
I did recently come across the site "http://www.the-penny-pincher.com/" which was helpful to me.. I found a few ideas on 'side-hustles' for partial / supplemental $$, along with the ones on this forum.
Upwards and onwards.....!

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