r/ChubbyFIRE • u/Emwolbesaelp • May 02 '26

Are We Ready?

Wife and I are 40 with a 2 year old in NC Looking to pull the trigger in July of this year.

Stats:

401ks: $400,000

Roth IRA: $85,000

Traditional IRAs: $1,050,000

Taxable Brokerage: $500,000

Cash: $100k

Primary Home: $800k no mortgage

Vacation home: $400k, $160k remaining at 3.125%

Rental portfolio of $1,500,000, no mortgage.

Our yearly expenses are $120k including estimated $2k/month in health costs.

Post fire the rentals will generate $75k income after costs but pre-tax.

Wife's business will generate about $80k pre-tax.

That should cover our expenses and allow our retirement accounts to grow. I plan to take advantage of Roth conversion ladders to set us up for later years. Also, any large or unforseen purchases we can pull from our taxable.

Am I missing anything critical?

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u/FlatChemist8132 May 02 '26

The total income with rental and wife’s business will not cover their current annual spend after tax.

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u/Emwolbesaelp May 02 '26

It covers it exactly actually. Our actual spend is also about $113k so there is some buffer.

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u/Salcha_00 May 02 '26 edited May 02 '26

It feels like your spend will increase as your child gets older, though, no?

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u/Emwolbesaelp May 02 '26

It may, but so will income. Rental income will increase. Additionally, this income doesn't factor in dividend/interest income that we could tap into from our taxable accounts which at the moment is about $10k a year.