[USER]

48 yo, single, one in college, one in high school and about to head into college. Their 529’s have enough for modest in-state 4 year degree.

I have a total of $1,083,000 in retirement of which $614,000 is in Roth 401K/IRAs, and $442,000 is in traditional 401K/IRA.

I also have a paid off modest home and $27,000 cash in HYSA. About $6000 in HSA.

Working hard to build up cash savings and HSA while contributing $23K to workplace Roth 401K. Budget is tight with my current savings rate.

I need about $5k a month for expenses for lean fire but would prefer about $8K a month for fat fire.

What age do you think I can at least have the option of retiring?

And do you recommend a roth conversion ladder at some point or just stay the course?

[Misty]

You might already know this as you have one in college. But there are SOOO many things that the 529 will not cover…. travel/visits, off campus housing (above the allowable cost of attendance), clothing, personal care items, to name a few.

We thought we had plenty but the extras really add up!

[Kevin]

I’m new here so I am really interested in your situation because I am in somewhat similar place. You’re a couple hundred thousand ahead though. Congrats.

I’m trying to figure out my FI. If you don’t mind me asking, you have 5K expenses monthly.

If you have no house payment, no car payment, no credit card debt, what is 5k expenses.

And maybe up to 8k. I’m trying to figure out if I’m missing something, I do get employer paid healthcare.

Lights, gas, water,trash,food,cable, cell phone, etc. That’s nowhere near 5-8k monthly and I just want to figure if I’m missing something or if you’re padding a lot.

If you’re not comfortable answering that’s ok. I’m still learning

[Kendal]

At your pace you could probably let up on the 401k contributions to what your company match is and build up your HYSA and HSA.

[Jule]

Assuming that you are only saving $23,000 on your 401k, with no employer match, you’d be able to have enough to withdraw $8,000 from your retirement accounts in almost 9 years.

[Rick]

No debt. No mortgage. And need $5k for lean fire? VHCOL area where everything is expensive?

Assuming you want or will work for 4-5 years till last kid leaves college, it seems reasonable and even likely you will have over $1.5m in investments.

5% withdrawal rate give you about $75,000 annually and possibly closer to $90,000 depending on growth over next few years.

If your first reaction is omg no that is not 4% rule, definitely research this further and determine if your portfolio construction and your very personal situation now or in the future will support well over 4%.

Next I would determine if the paid off house is a win and break even or a loss. I expect it’s a win or break even.

But if it’s a loss vs other housing options….

evaluate a 5% withdrawal on the after sale value and how that impact your plan making sure to add in housing cost as you will need to buy again elsewhere or rent.

[Author]

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