[Zohar]

I am 35 years old. Have $460k in savings across brokerage, Roth, Traditional and 401K, $200k in house equity, $250k in random small investments.

My goal is to reach $2.5 million to achieve my FIRE number.

I can make 6% to 8% on $2.5 million (combination of index funds, bonds, options trading and e-commerce) to meet my $100k annual expenses.

Currently working full time, goal is to save $100k per year (comfortably doable as it represents 33% of my gross income) to achieve my FIRE goal in the next 10 years.

Am I missing something, ask the experts.

[Jason]

Similar situation to ours except we’re heavily invested into real estate.

I like being able to see the consistent, steady returns real estate offers

Great job man!

[Aaron]

Congrats on your success. My main thoughts
I have no idea how to evaluate options trading and e-commerce in your evaluation of your fire number.

But that seems like where your risk is. If you just had 4 percent rule you’d be right up against your expenses number snd no margin for even taxes. Wich wouldn’t be good.

So, id do some pre Mortems and stuff to see where your vulnerabilities are there and how to mitigate them.
Working 10 more years sounds like a lot to me.

If you love your job and are happy with then plan I guess its solid. I was in a hurry to be unemployed so I took a different plan.

But that plan had a lot more risk (rental real estate)

Oh, also you said the money is in a mix of accounts but if that’s heavily weighted into tax advantaged accounts you may want to also evaluate what you will be able to access at 45 when you hit your

[Kara]

What do you do for work? I’m seeing so many high salaries around here and need to figure out how to get there!

[Dustin]

No mention of reducing your tax liabilities.
Develop a tax optimization plan and strategy to offset both gains and losses.

[Martin]

My advise to a 35 year old in your situation is to make sure you have a plan in place for the stock market dropping 30%.

History shows that the stock market dropped by 30% five times since 1950.

More than likely it will happen again at least once in your lifetime.

If you have $2 million dollars in the stock market that could be a $600,000 hit which is very frightening.

After 1987 34% drop I should have had a plan in place to prepare me for 2000-2002 but I did not.

In the end, I did alright but I would have done a lot better if I had a plan that would have kept me from making stupid decisions on the spot.

It is very scary seeing your portfolio drop by $100,000 in a single week.

[Hana]

You’re getting there! I’ll add that you’ll want to get a good sense for your min spend too.

Don’t forget to consider large one-time expenses throughout your retirement in your target number either.

Of your $100k/yr you invest, make sure you have enough going into a brokerage acct so you have enough to last you til you reach 59.5.

[Author]

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