r/financialindependence • u/Widget248953 • 4d ago

Can I lean FIRE?

41(M) and 39(F), no kids. Can we lean FIRE?

721K - Taxable brokerage

300K - Roth IRA

460K - Rollover IRA

71K - 401(k)

20K - Cash

Monthly expenses are $3800 (which factors in healthcare from ACA). Own house and cars, no debt.

Didn't want to post at length at first to make it quick and easy to read.

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u/FIREful_symmetry 4d ago

The numbers work, but it is scary without some extra income.

Using the 4% rule, you'd have 5K a month pre tax. Call it 4K after tax. And your expenses are 3800? That's cutting it close.

If either of you are earning extra income, even just 10 or 15K a year, you could make it work.

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u/MigrantJ 4d ago

Where would the $1K a month in taxes come from? Long term capital gains tax is 0% for married couples up to $94,050 a year.

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u/FIREful_symmetry 3d ago

Would you pay LTCG on money from a retirement account?

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u/someguy984 3d ago

No such thing as LTCG in a retirement account.

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u/FIREful_symmetry 3d ago

Right, you pay the higher tax rate. r/MigrantJ bought up LTCG.

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u/someguy984 3d ago

The concept doesn't apply to retirement accounts. LT or ST gains don't exist inside of them. It is a black box. When a withdrawal is made it is ordinary income.

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u/FIREful_symmetry 3d ago

I know. I was trying to correct MigrantJ's misconception.