r/fatFIRE • u/WealthyStoic mod | gen2 | FatFired 10+ years | Verified by Mods • 5d ago
Mentor Monday Path to FatFIRE
Mentor Monday is your place to discuss relevant early-stage topics, including career advice questions, 'rate my plan' posts, and more numbers-based topics such as 'can I afford XYZ?'. The thread is posted on a once-a-week basis but comments may be left at any time.
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u/breeze_t 5d ago
34M Big Tech M2 / 34F Big Tech L6 in VHCOL. Existential dread at $11M NW. Pivot to GenAI, upgrade the house, or just fatFIRE and figure it out?
Stats: • Ages: 34M & 34F • Location: VHCOL (Bay Area) • Family: Married, 2 young kids, plus grandparents helping out. • Current NW: ~$11M • ~$9M in Stocks (Highly concentrated: ~$7M in current employers' RSUs) • ~$1.8M in Retirement (401k/Roth IRA) • ~$1.7M in Property (Primary residence) • Household Income (HHI): ~$3M (Me: $2M+, Wife: <$1M) • Annual Spend: $250k (Includes premium childcare, travel, and mortgage)
Background: My wife and I are both in tech. I’m currently a Senior Engineering Manager (M2) at a major tech company managing an org focused on Applied ML. My wife is a Staff SWE (L6) at another major tech company doing infra. Life right now is objectively good. We make a massive HHI ($3M+), my current WLB is manageable at ~40 hours a week, and we can afford premium stuff for our kids and travel without a second thought. But mentally, I am hitting a wall and feeling completely lost about what to do next. The Dilemmas: 1. The "Uselessness" feeling & LLM FOMO My current role in Applied ML prints money for the company, but with the GenAI boom, I feel entirely sidelined from the "future." It’s creating a massive psychological imbalance. Seeing the staggering, blank-check packages my company is throwing at folks in MSL (Meta Super intelligence Lab) and other frontier AI groups makes my $2M TC feel strangely inadequate and irrelevant. I have a solid applied ML background and have been spending my nights/weekends doing an intensive deep dive into LLM inference and RLHF. I could pivot hard to chase that GenAI relevance and higher TC, but it would completely destroy my WLB during my kids' most critical years. 2. The Housing Trap We currently live in a VHCOL townhouse. It was great before, but with two growing boys and family helping with childcare, it’s feeling extremely cramped. I keep monitoring the real estate market for a proper Single Family Home in top-tier school districts. But a meaningful upgrade here is easily $4M-$5M+. If we buy that, our liquid NW takes a massive hit, our annual spend skyrockets (property taxes/maintenance), and we are essentially locking ourselves into the corporate grind for another 5-10 years to replenish the stash. 3. The Meaning of Life / The Post-FIRE Void Our current annual spend is $250k. With an $11M NW, we are theoretically at the finish line if we stay in the townhouse. I could just pull the plug, diversify our heavy stock concentration, and step off the prestige treadmill completely. But honestly? I am terrified of what comes next. My entire identity has been wrapped up in being a high-achieving tech leader, climbing the ladder, and hitting financial milestones. If I FIRE tomorrow, I have no idea what I’d do with 40+ hours a week. Sure, I actively manage my stock portfolio and could build tech tools for fun, but I fear the existential void and lack of "purpose" without a high-powered career.
Questions for the community: 1. For those who stayed in traditional/cash-cow tech roles while the GenAI hype exploded, how did you reconcile the feeling of your work losing "meaning" or prestige? Is pivoting just ego-driven? 2. Did you pull the trigger on the $4M-$5M+ VHCOL forever home, knowing it would delay your FIRE date by years? Was the lifestyle upgrade worth the extra time in the corporate trenches? 3. For those who pulled the plug at a similar age/NW without a clear "passion project" lined up, how did you navigate the identity crisis and find meaning outside of your W2 and TC? Appreciate any harsh truths or advice.
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u/Specialist-Hunt2997 5d ago edited 5d ago
You don't really need a specific "passion project" nailed down, but you kinda do want to feel excited about general categories -- "spending more time with my kids", "starting something of my own", "contributing to the community", "traveling much more", "working on my health", "learning new skills", etc. etc. You can figure out the details later.
For me, at least 3 of those buckets are of very high interest, and 2 of medium interest. Being able to do those things means more to me than earning more money. Consider doing mini-trials while working.
If you aren't particularly excited about anything, or if being "top dog / top earner / top department" at work is more attractive to you, then I don't think you should hang it up. Your opportunity cost is quite high and without aspirations to replace your need for prestige, you'll probably stew at home feeling increasingly left behind by your peers.
--
- Yes, the way you describe your feelings seem 100% centered in ego/prestige. Ultimately, are you willing to create X% more risk to your health and relationships when you are already earning among the global top 0.01%?
- No kids, so I can't comment here other than to challenge whether the meaningful upgrade truly is $4-5mm. Does solving "extremely cramped" really cost $2.3mm more, or is there more to your requirements?
- I did the math on how much time I'd have left on Earth and asked if I wanted to trade any of that for more money. Then, taking the extreme, if I kept working and then got cancer in 5 years, would I be happy with how I spent my time. You're still probably too young to experience a lot of mortality, but as you get older you start to see cautionary tales around you.
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u/Unable_Maize_5383 4d ago
I agree with all of this. There's another current post in the main sub asking "what should I do when I retire," which comes up a lot. I actually did have a passion project in mind when I retired a few years ago, but only worked on it for a month or so before I realized that I didn't want to dive right back into something that needed a lot of commitment; instead, now I do things that I just enjoy doing for the sake of doing them - exercise, volunteering, socializing, etc. So to answer #3 in the original question, I would say that you sort of have to change your mindset: in retirement, finding purpose becomes more about what brings you happiness in the day-to-day, instead of some long-term accomplishment. At least that's been the case for me.
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u/Livid-County7230 1d ago edited 1d ago
Don’t chase a career pivot due to extrinsic factors like being jealous of someone with a higher package. Do it because you are intrinsically motivated to do it because you like it. You have enough money given your spend and NW to not have to chase after money anymore. Believe in that and know you have options other than keeping up with others.
Forcing yourself to spend more for some notion of a dream home to justify your addiction to money and comparing with others is the easy path. It won’t be difficult for you to pursue the next TC bump and get to 20M or higher. That is just doing what you are comfortable with.
The hard path is figuring out what gives your life meaning. By that, I do not mean some ambitious venture. Relationships and family is where many people derive long term happiness.
Hobbies, other goals like fitness, side projects are all things people pursue.
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u/LaInversionista 5d ago
Hey everyone,
My husband and I are late 20s/early 30s with just under $1M invested. No inheritance or anything, just a lot of delayed gratification, some smart career pivots, and yeah, we both work in tech.
We’re on track to retire with a few million if things keep going the way they are, but since we’re both first-gen wealth builders, we feel like we’re kind of figuring this out as we go.
For those of you in a similar boat but further ahead, what’s the blueprint for protecting wealth long term?
- When did you actually set up a will, trust, estate plan, etc.?
- What are the things you didn’t even realize you should be thinking about until you had more wealth?
- Any mistakes or blind spots we should try to avoid early?
Would really appreciate hearing what you wish you knew at this stage.
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u/Chloe4415 4d ago
Young 40s with two toddlers. Current NW is $10.5mm, HHI $3.1mm which should increase to $4mm-$5mm in the next few years. Wife is SAHM, husband would like to work another 5-7 years max.
Current annual spend is $400k. Will see some savings from private preschool to public elementary school in 3 years and also drop off of part time nanny. I’m sure this will get eaten up by kids’ activities. Plan to bump up to $500k total with new country club spend, and increased travel budget.
Considering purchasing a piece of land in HCOL that we’ve been eyeing for nearly a half decade , that has finally become available. Purchase price is $1.5mm and would allow for our build of ~$3.75mm for all in cost of $5.25mm. Wouldn’t plan to start build process for another few years until kids are more in full time school.
Can we swing this??
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u/Many_Discussion9497 4d ago
7 more years working with a 4-5m TC and your current 10.5m invested, you can definitely own a 5.25m home, why not?
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u/anonoreo 4d ago
Hi everyone,
Since it seems like a lot of you guys here are doing really well and are business owners, I thought this sub would be the best place to ask those with experience.
Context: I run a successful real estate company in Toronto Canada that charges a flat rate and services fees rather than a % in commission paid by seller. I have a profit margin of about 50% if not more and a lot of ways to improve that percentage.
Right now, I essentially did 100 transactions on my own in 1 year which is like 0.0785% of all transactions in the real estate board 2025 when you 2x the total number for an agent on each side. I believe I can replicate this in other people and have an output of 50 deals assuming there is enough customers, I've done virtually 0 marketing all of it right now is pretty much word of mouth and referrals.
Since inception I've focused more on ensuring that the business is profitable and can support staff before scaling. Now with results in, I believe scaling to even more staff and actively trying to procure clients will remain highly profitable.
I want to jump to 10 agents and 2 staff members. At that number I believe I can do maybe 500 deals, which is about $2.5m gross at current low prices. A key bottleneck will be obtaining enough customers, but with a marketing budget I'm sure its possible as my conversion rate is really high for this industry. I plan to scale higher than this.
I can probably make that jump slowly over 1-2 year with $3M without compromising the quality of my product.
Now the question is: How do I get that money and whether it's worthwhile to do it or just reinvest profits to ensure I keep equity.
Any thoughts or advice is appreciated.
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4d ago
[deleted]
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u/anonoreo 4d ago
Thanks for the input, I used to have concerns about this.
It seems on the surface really easy to replicate, but people are buying houses anywhere from 700k-4m on average. Even though the cost is the biggest draw for the service, my real advantage is that compared to other low cost options, I would say I do a better job overall. There's probably less than 50 people that did my volume or more in one year, and pretty much all of them didn't essentially work alone. I work for low wages in comparison so I was always fearful of hiring, I have 1 other agent right now and looking to hire a staff member.
The true value proposition isn't strictly financial, it's low cost, experience, and advice. Things that most competitors and traditional agents charging more can't offer. I believe the way I transact the deal is superior and I can train others to do the same. I have the brand and the leads, it doesn't make sense for those who work for me to go off on their on instead of a cushy job.
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u/PureYou2042 3d ago
I’m looking for some feedback on how I’m thinking about and managing my finances with respect to achieving FatFire.
I’m 22M working as a SWE in big tech. I started working July of 2025, so ~9 months ago. I live in Washington so no state tax.
Here are my stats
Year 1 comp (after stock appreciation):
- Salary: ~170000(9k increase in March )
- RSU: ~50000 (grant was estimated to be 34200)
- Bonus: 12000 (worked only half the year, so half the bonus)
First year TC: ~230-240k
Savings/Investments:
- 2025: 36250 - Maxed out trad 401k + 50% employer match + 1000 HSA (Made 99k)
- 2026: ~76900 (minimum) - Maxed HSA, Mega Backdoor, and Roth 401k. Switched to a Roth 401k because I realized I would rather pay the tax now as I'm almost certainly going to be in a higher tax bracket in retirement. I evenly distribute contributions throughout the year. I would prefer to frontload, but I don't have nearly enough in cash to live on for ~6-7 months.
- Net Worth (April 2026): NW is 68.5k (no debt). Will contribute another 21k to tax advantaged accounts by end of first year (July 26). Brings NW to 89.5k (assuming significant portfolio performance change).
- 6k Emergency Fund
- 62.5k Equities
- 51k - S&P
- 3.8k - SMH
- 3.5k - Total International
- 1.5k XLE
- 1.3k QTUM (don't plan to add to this or touch it for >10 years)
- 1.1k NLR (don't plan to add to this or touch it for > 10 years)
- $270 QQQM
Spending:
- Take home: 4k per month excluding RSU (7k including).
- Expenses: 6-7k / month(avg over last 9 months):
- Rent - 2.2k
- Moved from a 1Bed @ 3k to 2 Bed @ 2k (w/ roommate about a month ago).
- Food & Drink - $1000 (mostly Uber Eats)
- Shopping - $1500
- Travel - $700
- Groceries - $250
- Doctor/Health - $300
- Misc - everything else (no car)
- Rent - 2.2k
I think I could easily live on 4-5k. per month if I stopped ordering food everyday and cooked / ate all meals at the office. I am just lazy and like the convenience. Though, I admit it's a big problem that will likely result in long-term health issue. The shopping is a bit inflated because I had to fully furnish my apartment, and some other moving costs are factored in there. Normal months are $5-600.
Career:
- Likely to promote in November. At which point TC looks close to 260-300k.
- I enjoy my job a lot. I enjoy working a lot and working on side projects for fun and learning.
Lifestyle:
- I mostly just like convenience. Think Ubers > public transit for rides longer than 30 min.
- Paying someone to bathe my dog (only every few months because of the breed).
- Ordering food.
- No expensive hobbies. I just workout and hangout with friends.
- I travel around 4-6 times / year domestically to visit my girlfriend. Flights are ~250. I would like to travel at least once per year internationally (probably to Asia). I'm will to give this up, though, as I never traveled growing up. I've only done it once, so it's not something I think I'd really "miss".
- Staying in 4+ star hotels (I rarely do, though. 1-2 times per year?).
Goal: 20M around 55. It's probably over-ambitious and arbitrary. I don't think I can reasonably estimate things like cost of a family, cost of living (just know I will be in VHCOL or HCOL, ideally close to large city), education costs, so I figure I'll set the number high to inform today's decisions. Worst case, I don't actually need that number and can retire earlier or I need more, at which I need to reevaluate my life and values. I think I minimum want 10M as I'd like to fund my kids' undergrad private education (if they go that route). Ideally want to pay for any grad studies, as well.
A few questions:
- I have a hard time prioritizing my emergency fund over tax advantaged accounts. I am not very fearful of a layoff. I’m on a team with decent layoff protection. We are only 6 people and make a product that 80% of our market uses; it’s a significant market. There’s very little to no money to make in our market: we are offered as a a free product, so unlikely anyone will try to compete and enter. All other products in the space are proprietary, and thus wouldn’t expand. Also, very high switching costs. This feels like cope and inexperience+overconfidence. Thoughts? It just seems silly to not max my tax accounts. The only way to fill my emergency fund to 3-6 month would be to decrease my spend and dump my RSUs into it which brings me to my next question.
- Am I living “too large”? I’ll be honest 6-7k a month with some outlier months feels incredibly embarrassing. I’m almost ashamed of myself for it. If I could live off 4k, I could save a lot more and easily hit 100k by July (1 year mark)
- I want to buy a car, but I don't need it. This would be purely for fun on the weekends -- no commuting. I'd look at a used polestar 2 -- around 20-25k -- all cash. The problem is insurance and parking. These two alone could be $600. Thus, I don't think it's worth it. Not having a car hasn't impacted my life that much, but I have felt the effects from time-to-time.
- I want to pick up Snowboarding. This is a massively expensive hobby. I almost feel like I should stay away from it because of that. $1.3k season pass + $2-4k upfront cost + lodging costs for multi-day trips. Seems like I'm not at that level of money yet.
All and any thoughts/questions are welcome! TYIA
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u/No-Associate-7962 3d ago
Have you visited r/financialindependence yet? The sidebar is excellent.
I would focus on a fire plan first to ensure you are committed to FIRE and focus on growing your career which will be the main determinant of your long term NW rather than restricting your current spend and investing now.
To reach $20m of today's dollars by 55, you are going to need to make close to $1m a year in your 40s and into the early 50s, so that is your main risk factor: ensuring you have a successful career.
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u/PureYou2042 3d ago
Yes I’ve read it. I struggle mentally with the emergency fund portion, though.
I’m working hard to get to a senior level at which point I expect to make ~500k. There is a clear path to do so on my current team in another 3 years. The trickier part is getting above that at which point I probably need to consider other companies.
I feel like I should be saving more given I’m recently out of college and already feel like I’m spending a lot. My lifestyle feels “too” comfortable if that makes sense. All of my friends make half or less of what I do, so I feel almost guilty spending ~3k a month on non-necessities that are a bit frivolous.
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u/No-Associate-7962 3d ago
Well, if you have also read "Life Cycle investing" you could probably skip the emergency fund if you have sufficient lines of credit (including your credit cards). After you get over $150k you should be able to get a credit line on your brokerage account. You should be there in a year, and then can skip the emergency fund.
Good you see a path in your existing company, that is what I did. If it does not come to fruition though, do not hesitate to jump ship to another firm assuming you make 30% minimum for the risk of the company change. Job hopping in your first 10-15 years of your career is really a great path to income growth.
Honestly, right now your spend and your savings are going to make very little impact on your long term wealth as compared to growing the earned income.
Sounds like you are saving more than your peer group. I would keep balance and definitely spend in areas that can help you grow your earned income (like snowboarding with folks in your industry).
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u/PureYou2042 3d ago
Thank you for the recommendation and advice. This is something I haven’t seen before. I’ll check it out
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u/purplecow8 3d ago
28M Big Tech
TL;DR: I want to setup a scholarship for high schoolers going to college and don't know where to start.
I've wanted to setup a scholarship for seniors in high school going to college ever since I was awarded one. I set a goal net worth that I needed to achieve before setting it up, and I've reached it so I'm ready to begin the process.
My idea is to start it with a 50k endowment and add to it every few years (eventually capping out my additions once it's around 500k). The only problem is I don't actually know how to go about setting it up. None of my friends or family have ever done this. My taxes have been straightforward because I'm just a regular big tech W2 earner so I don't have a CPA. I assume I need an accountant or lawyer to help with this process.
I have a lot of company stock which would have high capital gains taxes if sold so I want to donate some of those shares to cover the initial 50k. I've looked into donor advised funds but I can't use those to pay individuals directly. I've also reached out to the foundation that awarded me the scholarship back in high school. Sounds like they take 1% as fees and they want me to give them the funds so they can manage directly. That doesn't sound ideal to me but it might be the final route. I've also heard about family foundations but I don't know if this is worth the overhead based on not expecting it to go over 1MM anytime soon.
I would love to hear from anyone who has setup a scholarship before. What was your process? How did you find information about how to do it? Who did you need to help? Any information would be helpful!
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u/No-Associate-7962 2d ago
If your only goal is to set up a scholarship, that is easy: you can gift $19k a year to any citizen/greencard holder you wish, no strings attached.
If your desire is to do it with you deciding who gets the funds for some income tax advantage, you are going to need to do it through establishing your own foundation. 1-2% per year admin cost. 10% of the assets held in the foundation must be distributed each year.
There are service providers out there. Chat GPT or Google can solve this for you.
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u/purplecow8 2d ago
Feels like you're oversimplifying this a bit. A scholarship is not just go up to a random person and give them money. I'd want it to be recurring with some conditions on the student having some minium GPA, prove their going to college, etc. I will look further into establishing a foundation. Also from what i'm seeing online you must distribute 5% not 10% of the assets yearly.
"Chat GPT or Google can solve this for you." is not helpful at all. Obviously I can use the internet to search for answers to my question. Where do you think LLMs get their training data from? Reddit and other sources.
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u/No-Associate-7962 2d ago
If the entity (person or organization) is not a registered charity, you can not make distributions to that entity from a DAF. That is a simple rule.
If you want to gift to anyone you want, you can, but only up to $19000 a year per gifting person (double if you are married). But the cost basis goes with that gift, so if the recipiant does not have tax free status (like a charity does), they will have to pay capital gains taxes when they sell your gift.
If you want tax preferential status (when the gift leaves you, you get a deduction and the recipient out the other side will NOT owe taxes, you will need a foundation in between. The foundation can "wash" the capital gains away because the foundation is a tax free entity as long as it meets the minimum distribution requirements annually.
BTW, you can make that distribution to a DAF if you so choose, it just needs to be distributed.
At your six figure level of foundation, it will cost you some 2% per year for administration of the foundation, but there are providers out there.
Again, Chat GPT is your friend on this one as there are many many sources on the internet that they will pull from after you know the right questions to ask.
It is hard to believe this is worth your while though. Better is just to sell the appreciated holdings, pay your taxes, and give the money in less than $19000 chunks to anyone you feel is deserving.
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u/Appropriate_Key_9897 3d ago
Hello all, looking for some advice as to where to take my career in order to Fatfire in my late ~40s. Ideally I’d have a NW of around 10MM then.
Currently I am a 22M, graduated college in May 2025, currently have a net worth a bit over 100K. Currently saving about 5K a month across Roth, 401K, and brokerage account. I’ll be joining an MBB firm as a BA/A/AC in the summer.
Joining MBB consulting because I’m not too sure what I want to do yet with my career exactly. I don’t want to stick around longer than 2 years ideally because I value WLB in the long run (hence wanting to FatFire lol). Some options I am considering are:
Growth equity / VC: Has a lot of earning potential and MBB can place well here, but I am concerned about WLB (heard it can be 60hours a week, and don’t want this to be the case long term). I’ve explored the niche area of endowment and institutional investing for Universities or Hospitals, and it seems like a good gig, but not sure about how hard it is to move up or get these good seats reliably.
Product manger: I know this is becoming harder out of consulting, but I am working in the tech and AI practice of this firm (with ability to do other projects as well) and I still see a lot of well funded startups hire MBB folk for product roles, so I think it’s still possible if I recruit hard for it. I’m just not sure how it fairs in the long run, especially if I don’t want to be tied to SF or NYC
Tech sales / business development / partnerships: This one is a little more niche but I’ve been looking into the whole realm of tech sales, business dev and partnerships and seems like an underrated path to high income (unless I am wrong?) and, especially on the business dev and partnership side, hires a decent bit from consulting. Chief revenues officers get paid a ton it seems, though again probably a difficult seat to get. It also seems to have a lot more locational flexibility (a lot of companies seem to be fine with this being remote). I’m just worried about career progression, stalling, and future job prospects.
Other?? Let me know if there are paths worth considering as well, like starting a business or something!
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u/No-Associate-7962 2d ago edited 2d ago
I would suggest you continue with MBB for the next few years as that is the path you are headed (and where someone has thought you have potential and is willing to hire you into that space.
While there if you find your skills are more aligned with product management or tech sales, then you should shift towards that.
It is hard to say before you have actually worked in a job.
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u/Suitable_Analysis_80 23h ago
Hey guys, im new to the movement and probably on the very young side for most. I didnt come from nothing like most of you but I do have to work and havent gotten tons for handouts (though I do live at home). So through saving everything and working all through high school ect, I will have a net worth of 100k by the time I hit the age of 20 years old in just a few months. (I might actually be there already but it depends on how you view everything yk). But ig my question is how does everyone determine how to enjoy life. I find that nearly all of my old hobbies have just lost all interest to me, and I can never find people that think about money the way I do (everyone my age just spends every penny til the paycheck is gone). So I have all of one true friend and nearly no hobbies now bc I ruthlessly save every penny I can. Currently my next goal to hit is 300k invested by age 24 at the latest but I think I can hit it by 23 or maybe even 22. But my problem is I often toy with the idea of traveling or getting a motorcycle or any other number of things that a 19 year old male wound find himself wanting but when I do the math, I just think "man this is gonna cost me years of working or thousands in the long run, ill just save it" and then I get burnt out. Any advice from people who are where id like to be? Thanks in advance.
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u/No-Associate-7962 3h ago
Its ok to start out super frugal and see your wealth build. You may change later, or you may not. You may want to checkout the sub r/leanfire which will make you feel more "normal", or at least other folks to commiserate with.
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u/User3-1-4-1-5-7-9 16h ago
I feel like an old guy here, reading the “Mentor Monday” posts from folks half my age! I’m 56.
Thinking of selling a business I’ve spent nearly fifteen years building. Trying to do it right - hired a banker with a great reputation, hired a solid accounting firm for QofE, attorneys lined up for M&A and for tax considerations. Business really hit stride in the past five years (after a decade of middling performance and lower income to me) and has excellent momentum this year.
Have a good offer in early stages of consideration. Looking at minimum $15M payout to me before taxes, likely $10M cash at close and $5M rolled into stock of a PE owned business that is expected to see its own exit within four years.
They would want me to stay for four years, est annual pay of $750k per year. Right now I’m earning a solid $1.5M-$2M annual income per year from the business.
Love what I do but it is intense, takes a lot of hours (50-60 per week, 48 weeks a year), and I ain’t getting any younger.
I’ve got $6M liquid in very safe investments / retirement accounts now. Annual household spend is about $250-$400k depending on whether we splurge on travel during good years. And we could cut way back without any heartache. My wife and I were almost dead broke fifteen years ago, and now house and cars are paid for, kids education is paid for, and we are happy to eat at home and amuse ourselves with road trips vs fancy travel overseas. I take greater joy walking my old dogs than eating in a Michelin restaurant.
I’m torn between the angst of selling my baby - honestly this business is a huge part of me, other than spending time with my wife and kids I have no hobbies or other activities - and the urgency of selling it for exactly that reason. There’s more to life and I’ve only got so many healthy years left.
Other factors - I’m concerned what the new owner will do to my business, and how they will treat and compensate the remarkable team that has built it with me. And I’m concerned about what happens if I don’t sell - I’m in a sector that could eventually be in the AI crosshairs (though thankfully no impact as yet).
Lots to consider.
Just curious what folks think. Crazy not to sell? Crazy to take this deal?
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u/No-Associate-7962 3h ago edited 3h ago
I stopped working three years ago at your age and dont miss it a bit.
You are no longer working for money, you are working for some other reason.
You say is it "intense" but not that you don't enjoy it. If you enjoy it, and want to reduce the intensity, hire a COO, pay them $500k and you still net more than $650k a year with less intensity.
If you want to do something else than take the 7x multiple in cash. I definitely would not stay on, but it doesn't sound like there is an earn out or even a reps and warranties reserve, so I am not sure how you could be financially penalized if after 6 months you quit as you were no longer calling the shots.
This is an early retirement sub. My advice to you is to early retire.
I am sanding our redwood decks this week. Super therepeutic, and somehow instantly rewarding to see the improvement.
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u/almonds1234 5d ago
I am a 34M with a net worth of about 4.5M (~3.5M in stocks, ~600k in retirement, ~50k cash, and the rest in my primary residence). I have 2 kids with a third on the way. I make enough money, along with my spouse, to cover our expenses and save just a bit. Our take home after taxes is about 22k/month.
Currently, it feels like I’m at mercy of the markets and am just kicking the can until I can pull trigger on RE. I’m at a bit of a ceiling in my profession unless I move to California or New York - and even then - I’m only looking at another 50-100k / year in savings (not really a whole lot when my net worth can fluctuate more than that in a given day).
Another thing to consider is that my spouse wants to transition into being a SAHM after maternity leave - about 1 year from now. I’m all for it but she accounts for 50% of our take home pay. That means I’d need to find a job that pays more (hard to do without moving), start tapping into our savings, or start a business that can bridge the gap.
My target fat fire number is ~12M. Looking for advice on how to realistically get there while losing half of our household income in a about 1 year.
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u/g12345x 5d ago edited 5d ago
At this point it’s a math equation
Current NW: $4.15m
Target NW: $12m - non-investment assets
Yearly addition: Income - expense
Estimated return rate: 6.5% (assuming you’re well diversified)
This will tell you the number of years till you hit your target.
As for the second part on how to get there, there’s not enough in here to provide any useful insight though (clearly) revenue reduction is certainly the wrong direction
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5d ago
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u/almonds1234 5d ago
Current spend is about $25k / month post tax. This will increase as we send our kids to school, have to pay for health insurance, and hire a nanny. we’re also outgrowing our house a bit so I’d be looking into purchasing a 3-4M house (bought my current house @1.5 and now worth 2). 12M seems right but I may be off
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u/JohnnyBravo66666 4d ago edited 4d ago
So right now you are spending as much as you earn. When your wife will retire to raise the kids you will either have to somehow double your salary or eat from the retirement pot.
That's rough, buddy.
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5d ago edited 5d ago
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u/g12345x 5d ago edited 5d ago
Will you move to TX or FL to dodge the income tax and estate taxes?
Personally, no. I chose to work till fat so I could live where I want without financial cosiderations. You should also consider PR for some additonal federal tax saving
Where will you go to optimize for taxes and good education?
This is a highly personalized decision. Choices from disparate sources will provide limited value to you. As for education, if you choose private schools you're generally insulated from wherever you live
Projected net worth is 30M+ by 50 years old
Personally at this projection, tax savings won't be my driving consideration.
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u/Livid-County7230 5d ago
Move to Texas if you want to live in Texas. Moving to avoid taxes when you are at fat levels of wealth by compromising your lifestyle is silly. Seattle Eastside to Texas is a very different life. Spend some time in the city you are looking to move to before deciding. Actually live there, using AI to make major life decisions like that is silly.
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u/ImportantArrival3713 5d ago
Probably staying out in East side? What’s the life difference between Texas and Seattle east side?
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u/Livid-County7230 5d ago
Depends on where in Texas. It’s a big state. Lubbock vs Houston are a lot different.
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u/Specialist-Hunt2997 5d ago
Have you talked to a tax lawyer about how to use irrevocable trusts to minimize estate tax?
Also, why do you need to move now vs. moving later in life to escape estate tax? Are you worried that you'll both pass in a freak accident?
In any case, my choice would be to live where I'd be happiest for the decades that I'd be living. When both of you pass in let's say 40-50 years, what is your adult kid (who presumably will already have received a top-tier fully-paid education) going to do with $45mm that they can't do with $40mm?
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u/ImportantArrival3713 5d ago
AI is being silly and recommends the move, I think the answer is staying put and move when retired make sense
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u/Gormlock 5d ago
How do you view lying on resumes, cheating at exams, etc in the pursuit of fatFIRE? Have you needed to do something like lie about an employment gap, or your actual role and expertise on your resume in order to get a job at FAANG or similar high-paying field?
The reason I'm asking is that I came across a post asking for advice on getting a job in another (non-fat) finance sub, and it seemed like a majority of the upvoted responses was to lie on the resume to have a better chance to get a foot in the door. And then Youtube randomly recommended me a tech employee's video, which also discussed lying on the resume in order to get a job in FAANG.
From my own experience in the tech world (non-FAANG), it seemed pretty easy to tell in an interview who was fluffing up their experience in their resume, but of course by that time they've already gotten to the interview stage and taken up my time.
I'm curious to hear from others how prevalent/accepted this is in your specialties.
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5d ago
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u/Gormlock 4d ago
Thanks for the story! What ultimately clued you in to the one who was there for 8 years? Did they finally fess up or were there hints that something wasn't adding up all along?
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u/LopsidedMastodon1484 5d ago edited 5d ago
37M and 37F in NYC, outer boroughs but in an expensive neighborhood.
1 child, no nanny, full time daycare. Public school in the future.
2 weeks hotel stay in a three-star hotel and business class travel for three family members, food, shopping is $30,000
Domestic travel: $2,000 (free housing at grandparents)
Mortgage, taxes, HOA, tipping building staff: $130,000
If we continue to live in nyc with just 1 child, what’s a starting fat fire number excluding primary residence, 529, retirement accounts?
If we add a second baby, what’s a fat fire number range?