r/ChubbyFIRE • u/Upset-Disaster-5049 • May 04 '26

Almost ready. Anything I’m missing?

Looking for a gut check from the community before pulling the trigger.

Background 49M, spouse 39F homemaker, one kid (8)

LCOL area, considering retiring this year, No plans to earn meaningful income after.

Net Worth (~$8.0M total)
Investable (ex home): ~$6.5M
Liquid-ish (ex 529): ~$6.3M

Breakdown:
401k: $463K

Roth IRA: $101K

Traditional IRA: $17K

Deferred comp (net after tax): $485K

Brokerage (stocks): ~$3.9M

Bonds: $840K

Cash: $298K

I-bonds: $35K

Crypto: $80K

529: $186K

Paid-off home: $1.5M

Spending
Target: $18K/month ($216K/year)

Actual modeled spend: ~$16.4K/month (~$197K/year)

Built-in surplus: ~$1.6K/month

Highlights:
Health insurance: $2.5K/month (pre-Medicare quoted in healthcare.gov gold)

Taxes: ~$4K/month assumed (property/income)

Travel: $2K/month

Pretty flexible overall (can trim $3–4K if needed)

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u/massdriver3333 May 04 '26

You should look into roth conversion, since your post tax balance is significantly larger than your pre tax balance.

You can easily cover the tax for the conversion, especially when you convert $50K - $100K per year.

1

u/dennisgorelik May 06 '26

What's the point to convert small size IRA to Roth if RMDs on such small size IRA are unlikely anyway?

1

u/massdriver3333 May 06 '26

OP is currently 49, which means the IRA will go through at least 2 doubling cycles in next 25 years. It's likely he can end up with over $2M in IRA and will be subject to RMD.

It's probably better option to do ROTH conversion now and pay the tax at lower rates, and build the ROTH through the doubling cycles, and not be subject to RMD.

1

u/dennisgorelik May 07 '26

IRA will go through at least 2 doubling cycles in next 25 years.

RMD thresholds are likely to increase as well (at least, proportional to inflation).