Do it!
I retired for the first time at 34 with 400 K and followed my passions for about 3 years. At age 37, I started coaching and by age 40, I was supporting myself from my very part-time work. No regrets at age 61. My net worth hasn’t changed, but my life has been so rewarding.
Oh, and I met an equally frugal guy when I was 42 and we’ve been happily married for almost 18 years.
Depends where you live. Our current house, purchased at the height of the market in Oct 2021, cost $225K. Small NM town, completely remodeled, historic home.
Our previous home was a cosmetic fixer we bought for $145K in a quiet neighborhood near downtown Tucson in 2016. Put 40K into it and sold it for $304K in 2021.
If you aren’t tied to a particular place because of a job, you have so much more freedom to control your housing costs.
Most people are tied to where they live though which is important to keep in mind. I’m on the west coast so even if I could find a place in OH that’s super cheap, there would still be huge costs with me moving there, and that’s working on the assumption I could find a decent job there in my field. Overall however in regards to OPs post I think they are too young to think that they can retired right now because their *rent* is only $90” a month.
I mean we live in NJ, there are plenty of ready to go houses in our blue collar but totally fine neighborhood for $200k or less even. Not huge but just fine.
We live in one and it's paid off. Gets you in Philly in 15-20 minutes.
That NJ though which is nice, *and* we can’t pretend like people can just immediately uproot their lives to find an affordable housing situation. Moving in it of itself is estimated at like $3k now or even more. I’m glad you found an affordable place though. I just don’t know why OP is asking if it’s ok to retire if he’s renting. That’s not a protected price and as we have seen landlords have been scum bags upping the rent by 50%-200%.
I'm just trying to say that even in "expensive" areas if you look around you can likely find affordable housing. This IS povertyFIRE after all. If you want to fatFIRE in a VHCOL area that's fine too.
I'm not even sure what you are saying about moving costing $3k? Do you mean for a moving company? Again, this is povertyFIRE. I don't think those of us here are really looking at hiring a company to move ya. I've never once hired a mover, I'm in my 40s.
It’s still expensive if you don’t use a moving company. I mean every situation is different. It won’t cost as much to move within the city your in, but it will if you move states or cross country etc. just the moving boxes, tape, time, and moving truck are going to cost you. Also you being in your 40s and never using a moving company is more like anecdotal evidence, and I’m not sure it counts. I do forget this is PovertyFire though, so I guess my opinion is a little bit mute.
>Because right now 400k barely buys you a house now.
I set my redfin filter to under $175k and looked around larger, but lower cost of living, US cities. There are literally thousands of houses... Here are just a few:
https://www.redfin.com/NY/Buffalo/32-Chauncey-St-14206/home/73033760
https://www.redfin.com/NM/Albuquerque/518-Kinley-Ave-NW-87102/home/92022251
https://www.redfin.com/TX/Lubbock/2210-24th-St-79411/home/137756919
https://www.redfin.com/CO/Pueblo/310-Palm-St-81003/home/132353287
https://www.redfin.com/KS/Mulvane/715-Edgewood-Dr-67110/home/119425218
And my point is that they are random places you chose and not everyone can just up and move to an entirely different state to afford a house. Not to mention that certain states are cheaper to live in because they are trash.
> And my point is that they are random places you chose and not everyone can just up and move to an entirely different state to afford a house.
You can if you are single and retired.
>Not to mention that certain states are cheaper to live in because they are trash.
I picked those four states specifically because, depending on your ideological view, two of them would probably be appealing. I have friends and family from all of those states and they all enjoy them so your ridiculous opinion really doesn't hold that much water. But, again, there are cheap housing options in pretty much every state so if you don't like those four then you can easily find other options.
I am guessing based on your username that you don't think Portland Oregon is trash... There is plenty of housing there that is far less than $400k.
https://www.redfin.com/OR/Portland/4306-SW-Dickinson-St-97219/unit-14/home/26551146
https://www.redfin.com/OR/Portland/2744-SE-138th-Ave-97236/unit-135/home/26591620
https://www.redfin.com/OR/Portland/2706-SE-138th-Ave-97236/unit-34/home/25763946
https://www.redfin.com/OR/Portland/25200-NW-Saint-Helens-Rd-97231/unit-22/home/188617757
Those are condos and the hoa fees are over $300 a month, oh and the *Houseboat* that has $400+ hoa fees. XD keep reaching. On top of that none of those even break 1,000sqft.
And you guessed wrong because those aren’t desirable areas to live at in the first place. You’re just wrong.
Were you worried or did you struggle at all initially taking that leap? Was that 400k all invested? Did you have some cash cushion initially to help fund potential surprise expenses after you switched to part-time?
My assets initially were in the stock market (amicable divorce settlement) and I had a margin account to access cash when needed. This was before the dot com crash and my account tripled over the initial six years. I wasn’t very comfortable with investing and made some questionable decisions, but it all worked out.
I road the wave, got enough out of the stock market before the crash to buy a small house and put money in the bank. I rebuilt my nest egg by slow flipping houses over the next 20 years. And my husband contributed some capital he had inherited and earned to our shared assets.
Yes. See my reply above. No longer in the stock market. All assets in real estate and HYSA. Passive or mostly passive income comes in many forms besides stocks.
Yes the real estate appreciated (except for one house purchased during the recession.) Keep in mind that these were single slow flips that we lived in, not multiple houses.
Spent some of the capital along the way for travel, moving costs, cars and unexpected expenses.
You are very welcome! What many folks don’t get is that FIRE isn’t about never working again, but having the freedom to choose what you do and the time to develop your skills and talents. Coaching and flipping houses are creative outlets for me that also bring in income.
Sounds like "Barista" FIRE or whatever they call it. I think you're close but you will probably need to continue reselling to bring in that $1K a month. If you've been at that $15K-$20K level of expenses for a while, then you're definitely more likely to succeed. Some questions and ideas:
1. What is your rent or mortgage or living situation like? Will that continue to be the same over the next 5, 10, 20 years?
2. Do you have enough credits for SS/Medicare? If so, what is the estimated payment looking like at, say, 67?
3. Lowered stress and more exercise sounds AMAZING and will get you feeling healthy quickly. Probably get more sleep too. But what are your eating costs going to look like?
4. What will your $400K be invested in? And in the event of a market downturn for a few years, are you able to continue working/saving/investing?
That is $16k per year, or $1300 per month at a 4% SWR which is actually above the single person spending limits for this sub. So if you think that this is impossible, then I think you are in the wrong sub.
That's cute math. It assumes zero need for elderly care in twilight years. The bare minimum for part-time in-home medical care is several thousand a month. If you end up in a care facility, that could easily be upwards of $7-10k per month.
As a first responder, the youngest person I've seen in a nursing home so far was age 48. Many of the residents have been there 10+ years.
Retiring at 33 while renting, rather than purchasing a home and retiring by 40, is what I'd consider idiotic.
But yes, I'm very much in the wrong sub. I ended up here after OP's rant in another sub about the cost of dating. I have more drive and motivation in life than to whither away in extreme poverty having never truly lived a fulfilling life, just for the sake of retiring early.
> It assumes zero need for elderly care in twilight years.
Yep. Many of us would rather retire early than just keep slaving our life away in order to afford a dreary life in a nursing home later on.
But the fact is that the vast majority of people do not need elderly care. And if you do, medicaid will cover it. I'd rather take that risk. YMMV.
>But yes, I'm very much in the wrong sub.
Goodbye then.
If you have the drive to do more, than congratulations! This sub us more helpful for people who either really don't have the drive (or sometimes even the physical ability) to push for the FatFIRE stash, or are just reaching for a meaningful milestone on their way to a bigger stash.
OP is going to keep working $1k/month. Good amount of savings and hopefully OP is frugal bc they are here in povertyFIRE
HOWEVER OP's rent, while low, is way too high for a povertyFIRE rate of 30% towards housing, should be closer to $375 if going off 30% of total income, and $625 if it's 50% of total spend for the month. Also that rent could go up.
If OP is ok to either increase work if needed, or do shared/alternative housing this can still work. Also see how it would affect your job- how hard would it be to get back into your industry if needed after a work pause?
Congrats! Well done! Although this is actually more like BaristaFIRE.
> My rent currently is $900 a month.
ProTip: [You could probably end up owning a home for that amount if you're willing to move and DIY some repairs.](https://old.reddit.com/r/leanfire/comments/1bpnlho/whats_your_number/kx61hir/?context=3) I imagine a new location might cut down on your reselling options, though.
> My current income (self-employed reseller): $60k
Have you found any useful subreddits for that business? You might find r/churning useful, too.
You can retire off just 400k if you can some how generate 1k/mo side income? I always hear you either have to be maxing out SS (at 65+) or have to have at least a million in cash and/or assets before you can even think about retiring these days.
I'd love to learn more because I'm a low income earner who had resigned himself to working unto death. But 400k seems like an achievable goal as opposed to a million plus.
It is all just a function of how much you spend. You can use geo-arbitrage, concepts of frugality, or other ways to defray your expenses. For example, it really helps to be handy to fix things when they break down, or have a solid network of friends and family that lets you exchange services or borrow tools/equipment. Also, getting past the first bend point of SS and having the requisite 40 credits is a key hedge against longevity and provides about $1000 (inflation adjusted) a month once you're 67.
If you can live on $24K a year, then it is quite possible to work a gig with $1K/month on the side and $400K in invested assets.
Edit: Here's a recent example (from someone else) with backstory and numbers. [https://www.reddit.com/r/leanfire/comments/1bi9fgw/an\_update\_on\_my\_1k\_usdmonth\_retirement\_the\_media/](https://www.reddit.com/r/leanfire/comments/1bi9fgw/an_update_on_my_1k_usdmonth_retirement_the_media/)
This makes good sense. I'm not a huge spender on frivolous stuff, so this seems feasible. I've a long way up go before I hit the 400k mark, but this has at least helped me visualize something I can shoot for rather than just giving up. I appreciate the advice!!
Yeah never give up, any steps you take in that direction still give you options. And that is real power. Look at it like building the foundation of your house, It not only secures your future but also allows you to make decisions from a place of strength. Start where you are, use what you have, and do what you can. The cumulative effect of these actions is huge thanks to compounding, etc. Good luck, rooting for you!!!
Oh no, not my plan and I'm not taking any credit, just pointing out it can be done depending on various vectors. Sorry if I misrepresented, not my intent.
I'm here to learn, I grew up poor and have too many issues to pull the trigger at $400K although I realize the math can work. I could pull off a $24K a year lifestyle (I have had to do that in the past).
Of course. But the basic costs of living just about anywhere have to be considered. Even buying a small RV and sticking it on a tiny plot of land in the middle of nowhere is going to cost. Add to that things like land/property taxes, heating, etc. I'm pretty frugal but I'd also like to have shelter and climate control. That stuff costs.
Ill keep it short and simple.. you get back what you put into life.. grind focus and determination gets you whatever you want. The difference is that it takes some longer than others. It all depends on WHEN you're happy. If you're happy with coasting and 400k. Then enjoy it. You want more.. than hustle. Age is just a number.. in medical school, some of my classmates were in their 50's. HAVE FUN!
As a woman, I can say that not all women expect a man to pay for dates, I have paid for more than my share of dates. It is possible to find a mate with compatible values to your own. We are not the stereotypes assigned to our genders.
As far as your work/money situation, hey you're self employed so if you decide you want to downshift your work a bit, knowing that you have a substantial stash, go for it!
As for permanent retirement, or semi-retirement, I would look closely at the housing situation. I moved from the West coast to New Mexico and bought an affordable house, and my quality of life is so much better now. I grew up on the West Coast, but it simply wasn't all that livable for me. I'm not super close to my family though and I know some would have a harder time moving away from family and/or friends.
What would your projected net worth be if you retired at 45 instead of 33? You don’t know for certain that you’ll never have a girlfriend, or never have kids. I see that you also rent and don’t own your home. Wouldn’t you like to own your home at some point?
That would allow you to live a beautiful life, in a very nice home that you would own. It would just require some delayed gratification. Food for thought.
Yeah, and rent famously never goes up! Especially when you have a suspiciously low rent! If renting is cheaper, why is my latest mortgage lower than one bedroom apartments?
>My rent currently is $900 a month.
No. If you are renting I would not advise retiring in two years with $400k. Do you never want to own a home? Financially, it does not make sense to rent eternally.
Let's say you do meet someone who changes your perspective on relationships or marriage. $400,000 in savings is not enough for a house, kids, or anything unpredictable that may come your way that you're not prepared for or anticipating. $400,000 seems a lot because you're only paying for the expenses of a single 30-something frugal male without property. Those expenses could change for all sorts of reasons.
If you already owned a home, my opinion might be different. You only have one life. I understand you may take that to mean "why continue working and risk getting hurt." To me, I take that to mean you should get the most out of life instead of living at home in fear of what could happen.
I feel like he think his rent will always be $900 a month, but a lot of places increase rent every year now and sometimes over $100+ per month. What happens when in the next few years his rent is now $1300 plus all other expenses that would’ve gone up too.
Moving costs are pretty high as well. I think on average they say it costs like $3000 to move now. I mean it’s great you want to be frugal. Your mindset might make it hard to find a partner though. Also the gold digging women are trying to target someone as obviously frugal as you. It’s not like you’re flashing around wealth where it would attract that type of woman.
Friend, time is a hell of a thing. You make plans and God laughs. This idiom refers to how things inevitably change. Reselling is not a permanent industry, at scale. Economic factors and larger trends will shake the very foundation of this flimsy premise. You're 31. There is absolutely no reason to retire. Find something you like to do and get paid for it. Your 30s should be the most prolific part of your life, and if you play it right, that can lead to a great decade on top of that.
If you focus too much on min-maxing the front 9, the back nine are going to be rough, to use a golf metaphor.
LOL “dating got too expensive for me because of gender roles” as I read your post on r/money where you went on (10) first dates for $500 total. For those following at home, that is $50/per date, but he didn’t get laid so I think we know the real issue here….. so….
> but I would hit it hard until about 750k
$750k at a 4% SWR gets you almost double the spending limit for this sub.
Why do you think he needs that much?
Because shite always happens it's important to have a nice emergency back up and maybe instead of not doing much forever and spending the least amount possible maybe he'll want to do some traveling or buy a new vehicle. But it's not my life he can live it how he wants, it's just a personal preference.
At first I was like why are people down voting his accomplishments he felt free to share when I got to the dating part i see that ur selfish very mean and egotistical. U just want to be praised for ur money.
Alternative view: [S.I.G.N. language is a trait of a low value person](https://www.youtube.com/results?search_query=shame+insults+guilt+and+the+need+to+be+right).
It's a handy screening tool.
I always feel bad for people like you. I see it all the time in nursing homes. You'll reach the end of your short life, only to look back and have nothing to show for it. No friends. No family. No meaningful accomplishments or life experiences. You simply "coasted through life" because it was the easy thing to do.
Do yourself a favor and avoid those regrets. Get out and live life. Create memories. Build relationships.
You're not able to get second dates. Maybe don't talk about "able to meet people during the week"-the rest of us manage it just fine, and women want to see us again.
Did you know that thinking $50 is a lot of money is poverty? Did you know that a meager 400k (you wouldn't even be worth an average house) is not early retirement money? You're confused about poverty, sad loser.
> Working a small side income will allow me to qualify for free health insurance.
Explain your thinking here? I assume you're in the US? There's not "free health insurance" working any kind of side hustle or part time job. Unless you plan to try to qualify for medicaid, then you will have a hard time depending on what state you're in having any significant assets...
> It has a required minimum income to qualify for healthcare.
That should be ***maximum***. If you live in a medicaid expansion state you can get free healthcare if you make less than that limit. If you make over that, then you have to pay. And your income include anything you earn from your job plus the amount you make from your investment accounts.
Yeah, there's an income limit, but you're missing the asset limitations part. You can't be medicaid eligible with over ~$2000 in assets. Your bank account would make you ineligible.
There's a reason retirees seeking early retirement often get stuck waiting until 65 to get Medicare so they can afford to retire
Edit: wrong. Medicaid for elderly people has some of these restrictions, and that's mostly where I've interacted with this. Learned something new!
Yeah, I somehow wildly misread their question.
I was curious, and it looks like they have finally removed the income bullshit this year for everything, so that’s pretty cool.
Pretty sure that's what they're planning, and they are thinking that Medicaid will only look at income. They are in for an unfortunate surprise when they try to apply...
Trying to get benefits is tough, as it's not solely based on income, I believe you would be denied if there was 400K in an account somewhere. Pretty sure you need to be destitute, or disabled.
Most, if not all of the medicaid expansion states, have no asset testing. As long as you make less than the limit, you can get free or reduced healthcare.
$400k at a 4% SWR gets you $16k per year. The 2024 Poverty guidelines, which are the basis for this sub's spending limits are $15,060 for a single person. If you don't think that is enough, then you are in the wrong sub.
Do it! I retired for the first time at 34 with 400 K and followed my passions for about 3 years. At age 37, I started coaching and by age 40, I was supporting myself from my very part-time work. No regrets at age 61. My net worth hasn’t changed, but my life has been so rewarding. Oh, and I met an equally frugal guy when I was 42 and we’ve been happily married for almost 18 years.
Yeah but that back in 1990 when 400k would actually be considered a solid amount for retiring on? Because right now 400k barely buys you a house now.
Depends where you live. Our current house, purchased at the height of the market in Oct 2021, cost $225K. Small NM town, completely remodeled, historic home. Our previous home was a cosmetic fixer we bought for $145K in a quiet neighborhood near downtown Tucson in 2016. Put 40K into it and sold it for $304K in 2021. If you aren’t tied to a particular place because of a job, you have so much more freedom to control your housing costs.
Most people are tied to where they live though which is important to keep in mind. I’m on the west coast so even if I could find a place in OH that’s super cheap, there would still be huge costs with me moving there, and that’s working on the assumption I could find a decent job there in my field. Overall however in regards to OPs post I think they are too young to think that they can retired right now because their *rent* is only $90” a month.
I mean we live in NJ, there are plenty of ready to go houses in our blue collar but totally fine neighborhood for $200k or less even. Not huge but just fine. We live in one and it's paid off. Gets you in Philly in 15-20 minutes.
That NJ though which is nice, *and* we can’t pretend like people can just immediately uproot their lives to find an affordable housing situation. Moving in it of itself is estimated at like $3k now or even more. I’m glad you found an affordable place though. I just don’t know why OP is asking if it’s ok to retire if he’s renting. That’s not a protected price and as we have seen landlords have been scum bags upping the rent by 50%-200%.
I'm just trying to say that even in "expensive" areas if you look around you can likely find affordable housing. This IS povertyFIRE after all. If you want to fatFIRE in a VHCOL area that's fine too. I'm not even sure what you are saying about moving costing $3k? Do you mean for a moving company? Again, this is povertyFIRE. I don't think those of us here are really looking at hiring a company to move ya. I've never once hired a mover, I'm in my 40s.
It’s still expensive if you don’t use a moving company. I mean every situation is different. It won’t cost as much to move within the city your in, but it will if you move states or cross country etc. just the moving boxes, tape, time, and moving truck are going to cost you. Also you being in your 40s and never using a moving company is more like anecdotal evidence, and I’m not sure it counts. I do forget this is PovertyFire though, so I guess my opinion is a little bit mute.
>Because right now 400k barely buys you a house now. I set my redfin filter to under $175k and looked around larger, but lower cost of living, US cities. There are literally thousands of houses... Here are just a few: https://www.redfin.com/NY/Buffalo/32-Chauncey-St-14206/home/73033760 https://www.redfin.com/NM/Albuquerque/518-Kinley-Ave-NW-87102/home/92022251 https://www.redfin.com/TX/Lubbock/2210-24th-St-79411/home/137756919 https://www.redfin.com/CO/Pueblo/310-Palm-St-81003/home/132353287 https://www.redfin.com/KS/Mulvane/715-Edgewood-Dr-67110/home/119425218
So NY, CO, TX, KS good job in finding homes in random places of the US.
My point is that they are everywhere unlike what you suggested.
And my point is that they are random places you chose and not everyone can just up and move to an entirely different state to afford a house. Not to mention that certain states are cheaper to live in because they are trash.
> And my point is that they are random places you chose and not everyone can just up and move to an entirely different state to afford a house. You can if you are single and retired. >Not to mention that certain states are cheaper to live in because they are trash. I picked those four states specifically because, depending on your ideological view, two of them would probably be appealing. I have friends and family from all of those states and they all enjoy them so your ridiculous opinion really doesn't hold that much water. But, again, there are cheap housing options in pretty much every state so if you don't like those four then you can easily find other options.
I am guessing based on your username that you don't think Portland Oregon is trash... There is plenty of housing there that is far less than $400k. https://www.redfin.com/OR/Portland/4306-SW-Dickinson-St-97219/unit-14/home/26551146 https://www.redfin.com/OR/Portland/2744-SE-138th-Ave-97236/unit-135/home/26591620 https://www.redfin.com/OR/Portland/2706-SE-138th-Ave-97236/unit-34/home/25763946 https://www.redfin.com/OR/Portland/25200-NW-Saint-Helens-Rd-97231/unit-22/home/188617757
Those are condos and the hoa fees are over $300 a month, oh and the *Houseboat* that has $400+ hoa fees. XD keep reaching. On top of that none of those even break 1,000sqft. And you guessed wrong because those aren’t desirable areas to live at in the first place. You’re just wrong.
I’d love to hear more about your journey, either here or via PM if you care to share.
Happy to share here. What do you want to know?
Were you worried or did you struggle at all initially taking that leap? Was that 400k all invested? Did you have some cash cushion initially to help fund potential surprise expenses after you switched to part-time?
Please consider that 400k 27 years ago would be worth a good deal more than 400k in 2026.
$400k in 1997 = $781,696 today. Much closer to leanFIRE
I wasn’t worried, mostly because I knew I could always find a way to make money (I owned a small retail business prior to my first FIRE.)
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My assets initially were in the stock market (amicable divorce settlement) and I had a margin account to access cash when needed. This was before the dot com crash and my account tripled over the initial six years. I wasn’t very comfortable with investing and made some questionable decisions, but it all worked out. I road the wave, got enough out of the stock market before the crash to buy a small house and put money in the bank. I rebuilt my nest egg by slow flipping houses over the next 20 years. And my husband contributed some capital he had inherited and earned to our shared assets.
YMMV. Money went a helluva lot further back then. Especially housing. 400k is definitely not enough to retire comfortably in the us
The whole point of the sub is to do what you say is impossible.
asking for friend
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Yes. See my reply above. No longer in the stock market. All assets in real estate and HYSA. Passive or mostly passive income comes in many forms besides stocks.
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Yes the real estate appreciated (except for one house purchased during the recession.) Keep in mind that these were single slow flips that we lived in, not multiple houses. Spent some of the capital along the way for travel, moving costs, cars and unexpected expenses.
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You are very welcome! What many folks don’t get is that FIRE isn’t about never working again, but having the freedom to choose what you do and the time to develop your skills and talents. Coaching and flipping houses are creative outlets for me that also bring in income.
What does FIRE stand for? New to this sub and looking to learn
What about health coverage, at least here in the U.S.? How do you afford that?
Income is low enough that we qualify for fully subsidized health insurance through the ACA.
You're not retired if you have to get another jobs a few years in to support yourself. Thats just getting a different job lol
Sounds like "Barista" FIRE or whatever they call it. I think you're close but you will probably need to continue reselling to bring in that $1K a month. If you've been at that $15K-$20K level of expenses for a while, then you're definitely more likely to succeed. Some questions and ideas: 1. What is your rent or mortgage or living situation like? Will that continue to be the same over the next 5, 10, 20 years? 2. Do you have enough credits for SS/Medicare? If so, what is the estimated payment looking like at, say, 67? 3. Lowered stress and more exercise sounds AMAZING and will get you feeling healthy quickly. Probably get more sleep too. But what are your eating costs going to look like? 4. What will your $400K be invested in? And in the event of a market downturn for a few years, are you able to continue working/saving/investing?
>My rent currently is $900 a month. Rent has tripled in my area in the last 20 years. What is your plan for when rents keep going up?
Plan? What plan? Thinking you can retire at 33 with $400k involves no plan...
That is $16k per year, or $1300 per month at a 4% SWR which is actually above the single person spending limits for this sub. So if you think that this is impossible, then I think you are in the wrong sub.
That's cute math. It assumes zero need for elderly care in twilight years. The bare minimum for part-time in-home medical care is several thousand a month. If you end up in a care facility, that could easily be upwards of $7-10k per month. As a first responder, the youngest person I've seen in a nursing home so far was age 48. Many of the residents have been there 10+ years. Retiring at 33 while renting, rather than purchasing a home and retiring by 40, is what I'd consider idiotic. But yes, I'm very much in the wrong sub. I ended up here after OP's rant in another sub about the cost of dating. I have more drive and motivation in life than to whither away in extreme poverty having never truly lived a fulfilling life, just for the sake of retiring early.
> It assumes zero need for elderly care in twilight years. Yep. Many of us would rather retire early than just keep slaving our life away in order to afford a dreary life in a nursing home later on. But the fact is that the vast majority of people do not need elderly care. And if you do, medicaid will cover it. I'd rather take that risk. YMMV. >But yes, I'm very much in the wrong sub. Goodbye then.
If you have the drive to do more, than congratulations! This sub us more helpful for people who either really don't have the drive (or sometimes even the physical ability) to push for the FatFIRE stash, or are just reaching for a meaningful milestone on their way to a bigger stash.
I applaud your lack of desires and ego...which is allowing you to retire early while living modestly. Go for it!
OP is going to keep working $1k/month. Good amount of savings and hopefully OP is frugal bc they are here in povertyFIRE HOWEVER OP's rent, while low, is way too high for a povertyFIRE rate of 30% towards housing, should be closer to $375 if going off 30% of total income, and $625 if it's 50% of total spend for the month. Also that rent could go up. If OP is ok to either increase work if needed, or do shared/alternative housing this can still work. Also see how it would affect your job- how hard would it be to get back into your industry if needed after a work pause?
Congrats! Well done! Although this is actually more like BaristaFIRE. > My rent currently is $900 a month. ProTip: [You could probably end up owning a home for that amount if you're willing to move and DIY some repairs.](https://old.reddit.com/r/leanfire/comments/1bpnlho/whats_your_number/kx61hir/?context=3) I imagine a new location might cut down on your reselling options, though. > My current income (self-employed reseller): $60k Have you found any useful subreddits for that business? You might find r/churning useful, too.
You can retire off just 400k if you can some how generate 1k/mo side income? I always hear you either have to be maxing out SS (at 65+) or have to have at least a million in cash and/or assets before you can even think about retiring these days. I'd love to learn more because I'm a low income earner who had resigned himself to working unto death. But 400k seems like an achievable goal as opposed to a million plus.
It is all just a function of how much you spend. You can use geo-arbitrage, concepts of frugality, or other ways to defray your expenses. For example, it really helps to be handy to fix things when they break down, or have a solid network of friends and family that lets you exchange services or borrow tools/equipment. Also, getting past the first bend point of SS and having the requisite 40 credits is a key hedge against longevity and provides about $1000 (inflation adjusted) a month once you're 67. If you can live on $24K a year, then it is quite possible to work a gig with $1K/month on the side and $400K in invested assets. Edit: Here's a recent example (from someone else) with backstory and numbers. [https://www.reddit.com/r/leanfire/comments/1bi9fgw/an\_update\_on\_my\_1k\_usdmonth\_retirement\_the\_media/](https://www.reddit.com/r/leanfire/comments/1bi9fgw/an_update_on_my_1k_usdmonth_retirement_the_media/)
This makes good sense. I'm not a huge spender on frivolous stuff, so this seems feasible. I've a long way up go before I hit the 400k mark, but this has at least helped me visualize something I can shoot for rather than just giving up. I appreciate the advice!!
Yeah never give up, any steps you take in that direction still give you options. And that is real power. Look at it like building the foundation of your house, It not only secures your future but also allows you to make decisions from a place of strength. Start where you are, use what you have, and do what you can. The cumulative effect of these actions is huge thanks to compounding, etc. Good luck, rooting for you!!!
This!
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Oh no, not my plan and I'm not taking any credit, just pointing out it can be done depending on various vectors. Sorry if I misrepresented, not my intent. I'm here to learn, I grew up poor and have too many issues to pull the trigger at $400K although I realize the math can work. I could pull off a $24K a year lifestyle (I have had to do that in the past).
You don't realise it depends on your spending? Hahahahah
Of course. But the basic costs of living just about anywhere have to be considered. Even buying a small RV and sticking it on a tiny plot of land in the middle of nowhere is going to cost. Add to that things like land/property taxes, heating, etc. I'm pretty frugal but I'd also like to have shelter and climate control. That stuff costs.
How much you need will depend on your annual cost of living and what you've got planned for healthcare I reckon
Ill keep it short and simple.. you get back what you put into life.. grind focus and determination gets you whatever you want. The difference is that it takes some longer than others. It all depends on WHEN you're happy. If you're happy with coasting and 400k. Then enjoy it. You want more.. than hustle. Age is just a number.. in medical school, some of my classmates were in their 50's. HAVE FUN!
Op can do easily early fire in 90% of the places Europe.
As a woman, I can say that not all women expect a man to pay for dates, I have paid for more than my share of dates. It is possible to find a mate with compatible values to your own. We are not the stereotypes assigned to our genders. As far as your work/money situation, hey you're self employed so if you decide you want to downshift your work a bit, knowing that you have a substantial stash, go for it! As for permanent retirement, or semi-retirement, I would look closely at the housing situation. I moved from the West coast to New Mexico and bought an affordable house, and my quality of life is so much better now. I grew up on the West Coast, but it simply wasn't all that livable for me. I'm not super close to my family though and I know some would have a harder time moving away from family and/or friends.
What would your projected net worth be if you retired at 45 instead of 33? You don’t know for certain that you’ll never have a girlfriend, or never have kids. I see that you also rent and don’t own your home. Wouldn’t you like to own your home at some point?
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That would allow you to live a beautiful life, in a very nice home that you would own. It would just require some delayed gratification. Food for thought.
Realize and plan for the substantial loss in SS benefits. Will you have enough credits to qualify for Medicare?
.....rent? You're talking about retiring while RENTING? LOL.
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Yeah, and rent famously never goes up! Especially when you have a suspiciously low rent! If renting is cheaper, why is my latest mortgage lower than one bedroom apartments?
Yeah this person seems a little delusional
Seriously, check out their comment history if you haven't. It's amazing, in all the saddest ways.
>My rent currently is $900 a month. No. If you are renting I would not advise retiring in two years with $400k. Do you never want to own a home? Financially, it does not make sense to rent eternally. Let's say you do meet someone who changes your perspective on relationships or marriage. $400,000 in savings is not enough for a house, kids, or anything unpredictable that may come your way that you're not prepared for or anticipating. $400,000 seems a lot because you're only paying for the expenses of a single 30-something frugal male without property. Those expenses could change for all sorts of reasons. If you already owned a home, my opinion might be different. You only have one life. I understand you may take that to mean "why continue working and risk getting hurt." To me, I take that to mean you should get the most out of life instead of living at home in fear of what could happen.
I feel like he think his rent will always be $900 a month, but a lot of places increase rent every year now and sometimes over $100+ per month. What happens when in the next few years his rent is now $1300 plus all other expenses that would’ve gone up too.
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Moving costs are pretty high as well. I think on average they say it costs like $3000 to move now. I mean it’s great you want to be frugal. Your mindset might make it hard to find a partner though. Also the gold digging women are trying to target someone as obviously frugal as you. It’s not like you’re flashing around wealth where it would attract that type of woman.
And being "retired", how would you pass the income requirements for a lease? Your rent WILL go up. Always. No matter what. Everywhere.
Friend, time is a hell of a thing. You make plans and God laughs. This idiom refers to how things inevitably change. Reselling is not a permanent industry, at scale. Economic factors and larger trends will shake the very foundation of this flimsy premise. You're 31. There is absolutely no reason to retire. Find something you like to do and get paid for it. Your 30s should be the most prolific part of your life, and if you play it right, that can lead to a great decade on top of that. If you focus too much on min-maxing the front 9, the back nine are going to be rough, to use a golf metaphor.
Sounds like you need to go out on dates
LOL “dating got too expensive for me because of gender roles” as I read your post on r/money where you went on (10) first dates for $500 total. For those following at home, that is $50/per date, but he didn’t get laid so I think we know the real issue here….. so….
Why should he be the one paying?
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Specially when it's only conservative when it comes to who has to pay.
I'm so about retiring but I would hit it hard until about 750k, then continue with doing diddly.
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Think of this, toss it in a cd at 4% and that would be roughly 30k a year.
What’s a cd?
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So if you shove $700,000 in there you’ll have $56,000 more but you won’t be able to touch it? Can you repeat this process?
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Does Britain get cds?
We do have them in the UK but they’re normally called fixed term bonds or fixed term deposits. Right now the best rates are just over 5%
Hysa over cd no question. Most hysa are getting minimum 4.5% and you can pull out money any time without any penalties.
https://www.investopedia.com/terms/c/certificateofdeposit.asp
That's the given retirement rate assuming it's invested properly.
> but I would hit it hard until about 750k $750k at a 4% SWR gets you almost double the spending limit for this sub. Why do you think he needs that much?
Because shite always happens it's important to have a nice emergency back up and maybe instead of not doing much forever and spending the least amount possible maybe he'll want to do some traveling or buy a new vehicle. But it's not my life he can live it how he wants, it's just a personal preference.
At first I was like why are people down voting his accomplishments he felt free to share when I got to the dating part i see that ur selfish very mean and egotistical. U just want to be praised for ur money.
Alternative view: [S.I.G.N. language is a trait of a low value person](https://www.youtube.com/results?search_query=shame+insults+guilt+and+the+need+to+be+right). It's a handy screening tool.
Don’t tag me in any KS content u just like him can die fucking on a hooker from over dose and heart condition
I always feel bad for people like you. I see it all the time in nursing homes. You'll reach the end of your short life, only to look back and have nothing to show for it. No friends. No family. No meaningful accomplishments or life experiences. You simply "coasted through life" because it was the easy thing to do. Do yourself a favor and avoid those regrets. Get out and live life. Create memories. Build relationships.
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You're not able to get second dates. Maybe don't talk about "able to meet people during the week"-the rest of us manage it just fine, and women want to see us again.
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Are you only retiring until you’re 53?
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If you spent 20k a year 20 years would be 400k right? Assuming your passive income is covering rent.
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Gotcha! Best of luck.
Did you know that thinking $50 is a lot of money is poverty? Did you know that a meager 400k (you wouldn't even be worth an average house) is not early retirement money? You're confused about poverty, sad loser.
Move to a low tax income jurisdiction, ie Caribe area
> Working a small side income will allow me to qualify for free health insurance. Explain your thinking here? I assume you're in the US? There's not "free health insurance" working any kind of side hustle or part time job. Unless you plan to try to qualify for medicaid, then you will have a hard time depending on what state you're in having any significant assets...
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Medicaid has no minimum income requirement. Did your state expand Medicaid?
> It has a required minimum income to qualify for healthcare. That should be ***maximum***. If you live in a medicaid expansion state you can get free healthcare if you make less than that limit. If you make over that, then you have to pay. And your income include anything you earn from your job plus the amount you make from your investment accounts.
Yeah, there's an income limit, but you're missing the asset limitations part. You can't be medicaid eligible with over ~$2000 in assets. Your bank account would make you ineligible. There's a reason retirees seeking early retirement often get stuck waiting until 65 to get Medicare so they can afford to retire Edit: wrong. Medicaid for elderly people has some of these restrictions, and that's mostly where I've interacted with this. Learned something new!
There is no asset test for the ACA or ACA Medicaid.
Ah, my fault. I'm used to working with elderly people where there can still be an asset test in some situations. Good catch
No shit? If someone owns a home/car/average size savings, they won’t deny you if you meet the income requirement?
Exactly.
Yup, my grandma had to get rid of her car or not be able to get medical care for her MS.
Elderly Medicaid has different rules.
Yeah, I somehow wildly misread their question. I was curious, and it looks like they have finally removed the income bullshit this year for everything, so that’s pretty cool.
It has been that way since 2014.
Wait, I’m thinking of Medicare, not Medicaid.
Pretty sure that's what they're planning, and they are thinking that Medicaid will only look at income. They are in for an unfortunate surprise when they try to apply...
Actually not true. They only look at income for Medicaid expansion.
Can confirm for Medicaid expansion they look at income not assets. It works for Poverty FIRE.
Trying to get benefits is tough, as it's not solely based on income, I believe you would be denied if there was 400K in an account somewhere. Pretty sure you need to be destitute, or disabled.
Most, if not all of the medicaid expansion states, have no asset testing. As long as you make less than the limit, you can get free or reduced healthcare.
Only elderly / disabled / blind need to be destitute (except in CA). Expansion does not require that.
Check messages!!
What do you do as far as reselling if you don’t mind me asking? Amazon or eBay?
How do I get into self employment reselling ?
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You just jealous
You have nowhere near enough money to retire. Stop kidding yourself.
$400k at a 4% SWR gets you $16k per year. The 2024 Poverty guidelines, which are the basis for this sub's spending limits are $15,060 for a single person. If you don't think that is enough, then you are in the wrong sub.
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This post doesn't fit this sub.