[USER]

Hello everyone! Currently 43, looking to go part time (aka Barista FIRE) at 50. In the process of building a bridge account (aka brokerage account/HYSA) to support me and my child from 50 to 59, totaling $700k.

Yearly expenses estimated to be $51k or so. Would have about $1.2 mill in retirement accounts I would leave to compound until 59.

Questions:
1. Does Barista FIRE seem doable?

2. Any recommendations on how to allocate funds for this bridge account? I would like to buy a house in cash at 50 and pull 4% from the bridge account for some income.

This combined with part time income to cover expenses.
3. Any thoughts on doing a 72t for more income so I could work even less?

Thanks!

[Steve]

1. Yes, it’s doable. You can get a $22/hour job right now at Amazon and that would cover most of your expenses and insurance needs, so expect that to increase in 7 years.

2. Don’t buy a house in cash, borrow against your brokerage account.

3. It’s always an option.

So is leaving a small amount in a 401k and getting a barista job at 55 to roll it to if you want rule of 55.

Options are always good to have in your plan. Hopefully you won’t need them.

[Wendy]

We have found that with the effect of inflation and ‘unkowns’, we have consistently outspent our optimistic monthly draw. Life happens so make sure you are budgeting for all your possible expenses.

We have been FIRE since 2016.

It can be done but just know that.

[Mandi]

Insurance and medical can become challenging. Having funds in HSA will help. We are still 10+ years away from retirement, but are aiming for 60 and that 5 year bridge period we have been told is EXPENSIVE.

The medical insurance (premium) and unknowns are what we have been told challenge people the most.

[Author]

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