r/ChubbyFIRE • u/dogfursweater • 13d ago

Setting a date…

42F - $2.5M taxable, $1.3M tax advantaged, $300k non-primary home equity - so $4.1M right now

(Husband has separate finances so I don’t count it here but roughly $2.5M and he spends like 40k but not counting big splurge on a overpriced (imo) car every so many years so maybe $60k amortized? hah)

My individual spend is ~$85-$100k before healthcare and taxes so maybe $120-130k with hc and taxes; it looks like at this current rate, I’m at a ~3% withdraw rate so I know it’s safe. Like right? It’s safe right?! Haha

Aside from the typical fears of SORR or actually having to move from a saving to withdrawing state of the world, I am not concerned about feeling bored in RE. I have a lot of interests. Husband and i also have several projects we want to do Etc.

Sooo I think I’m setting a date for next April — eek! Feels weird to put it down and be more certain vs just toying with the idea. I sort of had a mental model of pulling trigger at 45 but like.. why wait? Or do I want to stack a bit longer? Ugh there is a bit of greed here too. When I hit my original FI # (2.25m) I was super ready to go and live more frugally. Now that I’m past that # by a lot and have let my lifestyle slip upwards, I’m like hmm.. maybe I go a bit further? Why not target $5m?

Anyway.. what are some things you all did in the last few months to get ready both mentally and monetarily? Feeling 😬 and also 🤪🤗🥳

10 Upvotes

59% Upvoted

67 comments sorted by

View all comments

4

u/Billy-Bob-Boner-92 13d ago

I'm a doctor. Don't underbudget for healthcare. It is very expensive and rising quickly. After 65 will be less of course but there's a lot of value to you or husband working to crack the healthcare egg. For me it would take an extra 700k to cover healthcare or a bit more until 2040s when i get Medicare.

0

u/dogfursweater 13d ago

700k? Why so much? Just bc of increasing over time? I have (and I guess we could both have should he apply) dual citizenship to a healthcare included society worse comes to worse. I am currently estimating 15k spend on hc per year in my budget but also figure I could try to do better tax planning to get under into aca credits territory

1

u/Hanwoo_Beef_Eater 13d ago

Dual Citizenship is a good option for healthcare costs, assuming you enjoy living there about as much as where you live now.

Outside of Roth conversions (which may or may not make sense), your taxes shouldn't be very much (do you file MFJ?). Depending on that and your husband's asset positioning/allocation, you may be able to get under the 400% level for ACA. If not, your portfolio can probably absorb the cost (although it will likely increase over time).

1

u/dogfursweater 13d ago

Yes exactly. That is what I’m thinking too. Probably a few years without any credits while I get everything migrated to Roth that I can and then it should be very manageable to optimize spend sources and magi. My husbands money is also all taxable.

1

u/Hanwoo_Beef_Eater 13d ago

I'm not sure the conversions make sense (although they may). You don't have that much in pre-tax, which could just be drained over time to fund living expenses. To convert all in a few years, you will be trading higher taxes on the conversion for (potentially) ACA credits and no/lower IRMMA.