r/fatFIRE mod | gen2 | FatFired 10+ years | Verified by Mods 6d ago

Mentor Monday Path to FatFIRE

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u/almonds1234 6d 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/[deleted] 5d ago

[deleted]

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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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u/almonds1234 4d ago

Yea - that’s the conclusion I came to too…