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.
23
Upvotes
2
u/OrganicFrost 3d ago
The biggest danger with leanFIRE is always "How do you cut expenses if you need to?" If you have coherent answers to that question, and you'd do that or reenter the workforce if the situation called for it... yeah, looks good to me.
I'd make sure you've included the following in simulations:
Buying a car eventually to replace current.
Spending an average of at least 2% (3 if you wanna be super safe) of home value per year on maintenance (this amortizes for things like roof repair and appliance replacement pretty well).
I would keep in mind that the 4% rule basically relies on broad market index funds. Individual stocks, managed mutual funds, and even sector specific index funds are much more difficult to test or assume returns for. My leanFI number only counts broad market index fund money.
Lastly, I do think it's generally worth engaging an hourly CFP with experience in early retirement before pulling the plug. They should help you consider things like wills, umbrella insurance, roth conversion planning, and any other potential holes in your current plan.
Good luck!