MedSaver's Journal

[MedSaver]

Thanks for explaining your story!
Experiences are very important for us. This can confirm.

What's your advice from your POV, to someone who'd like to FIRE, or just live FI, and it's thinking about swapping career, or just start a career that never started?

I'd say to switch as few times as possible and as early as possible, if you want FI. Obviously, the more invested you are in a career path, the harder it is to switch. For example, very few doctors end up switching into completely different careers because they have committed serious time, money and effort. I know a few who did and don't regret it, but you need to hate your current job/career path very much AND be passionate about something different. One med student I know ended up dropping out because his family is extremely wealthy and the effort just wasn't worth it in the end.

[DutchGirl]

Yeah, you crossed the $3M line... and immediately by a big margin, ha ha. Congrats, and well done!

[MedSaver]

July 2023 Update

Assets:

IRA/Brokerage/403b/457/cash: $2,735,775
Estimated Home Worth: $1,150,000

Liabilities:
Mortgage: $674,330 @ 2.75% fixed

Net: $3,211,445

[MedSaver]

Yeah, you crossed the $3M line... and immediately by a big margin, ha ha. Congrats, and well done!

Indeed. Stock market rally mostly.

[DutchGirl]

Vreeeeoooommmm. Wait, what is that in the rear view mirror? Is that your target $3M? Yup, it is.

It is true, the first $1 million is the hardest. If you don't add another cent and just let this $3M (and cents) do its job in peace, it will probably be $4M by 2028, $5M by 2030 and $11M in 20 years.

Congrats and well done!

[MedSaver]

August 2023 Update

Assets:

IRA/Brokerage/403b/457/cash: $2,700,751
Estimated Home Worth: $1,150,000

Liabilities:
Mortgage: $673,030 @ 2.75% fixed

Net: $3,177,721

[MedSaver]

Vreeeeoooommmm. Wait, what is that in the rear view mirror? Is that your target $3M? Yup, it is.

It is true, the first $1 million is the hardest. If you don't add another cent and just let this $3M (and cents) do its job in peace, it will probably be $4M by 2028, $5M by 2030 and $11M in 20 years.

Congrats and well done!

Thanks. We plan to spend it before it gets to $11 million though.

[thedollar]

Thanks. We plan to spend it before it gets to $11 million though.

What's the plan from here?

[MedSaver]

Sept 2023 Update

Assets:

IRA/Brokerage/403b/457/cash: $2,633,207
Estimated Home Worth: $1,150,000

Liabilities:
Mortgage: $671,730 @ 2.75% fixed

Net: $3,111,477

[MedSaver]

What's the plan from here?

Work full time for 3-4 more years. Then part time for another 3 years. Then either completely retire or work part time and donate large amounts of earned income to charity.

[MedSaver]

Oct 2023 Update

Assets:

IRA/Brokerage/403b/457/cash: $2,603,908
Estimated Home Worth: $1,150,000

Liabilities:
Mortgage: $670,430 @ 2.75% fixed

Net: $3,083,478

[DutchGirl]

Ah, your investments also went slightly down in value.
I had updated my investment valuations on Oct 25 or so, all looking good, and then on Oct 30 or so things took a small nosedive. So yeah, I also ended the month with red numbers compared to the month before. Oh well, it happens.

[MedSaver]

Nov 2023 Update

Assets:

IRA/Brokerage/403b/457/cash: $2,802,440
Estimated Home Worth: $1,150,000

Liabilities:
Mortgage: $669,100 @ 2.75% fixed

Net: $3,283,340

[MedSaver]

Ah, your investments also went slightly down in value.
I had updated my investment valuations on Oct 25 or so, all looking good, and then on Oct 30 or so things took a small nosedive. So yeah, I also ended the month with red numbers compared to the month before. Oh well, it happens.

Yes. We are at the point where market swings are usually much greater than our salaries and/or spending any given month.

[MedSaver]

Annual Update

INCOME:
MedSaver gross W2 income 2023: $686,000 (2022: $717,850 ), down 4%. Not down as much as expected for reasons I can’t get into. Nevertheless, the previously described income drop may occur in 2024 or 2025.
Net income 2023: $350,485 (2022: $390,011), down 10%. I may have over estimated deductions to compensate for wife's raise, but that’s fine. I’ll just get a return.
Monthly net: $29,207

Mrs. MedSaver gross W2 income 2023: $196,665 (2022: $180,932), up/down 9%.
Net income 2023: $28,514 (2022: $25,980), up 10%.
Monthly net: $2,376

Tax Refund (prior year): $8500

Retirement/Deferred comp/Pension/Dividends/Interest Income Not Already Specified: ~$209,000. This is a new line item I have included for this year, but it is very difficult to actually calculate given all the accounts at play.

Total gross annual earned income: $882,665
Total net income: $595,499

EXPENDITURES:

Spending breakdown (monthly):
Food (groceries+restaurants): $1800 (Up from $1700)
Mortgage (principal/interest/insurance): $4400 (up from $4300 due to change in taxes and homeowners insurance)
Other Insurance: $950 (Up from $800 due to new car)
Utilities: $270 (up from $240)
Gas: $150 (previously $570) - we expected some savings from the new EV, but this is crazy
Internet: $85 (no change)
Cleaning service: $360 (Up from $320)
Cell phone: $125 (No change)
Travel: $3000 (previously $3950) - traveled a lot, prepaid for some trips for 2023
Other: $6800 (previously $8100)

Total monthly recurring expenses 2023: $17,870 (previously $21,190)

Total annual expenses: $212,500. This is much less than last year, mainly because we have finished all the major improvements needed for the new home. I expect that this is close to our new baseline.

ASSETS:
IRA/Brokerage/403b/457/cash: $3,124,863 (Jan 2023 $2,253,091)
Estimated Home Worth: $1,150,000

Mortgage: Mortgage: $682,370 (2021: $683,669) @ 2.75% fixed

Total Net Worth: $3,592,493. (Jan 2023 $2,403,091), which is +$99,117/month (previously -$38,539/month)

[MedSaver]

Jan 2024 Update

Assets:

IRA/Brokerage/403b/457/cash: $3,216,087
Estimated Home Worth: $1,150,000

Liabilities:
Mortgage: $667,800 @ 2.75% fixed

Net: $3,698,287

[MedSaver]

Feb 2024 Update

Assets:

IRA/Brokerage/403b/457/cash: $3,349,249
Estimated Home Worth: $1,150,000

Liabilities:
Mortgage: $664,686 @ 2.75% fixed

Net: $3,834,563

[rube]

You're going as a rocket, + 989K in 12 months!

[Biscuits and Gravy]

Thanks for posting so consistently, and congrats on nearing $4mil!

Not that reducing this line item matters financially at your income level, but I am intensely curious how two people manage to spend $1800/month on food. Is there some waste reduction that could happen here?

[MedSaver]

March 2024 Update

Assets:

IRA/Brokerage/403b/457/cash: $3,434,825
Estimated Home Worth: $1,200,000 (very similar comp recently sold)

Liabilities:
Mortgage: $663,386 @ 2.75% fixed

Net: $3,971,439