FIRE Crossroads 015: 2 Dentists with 2 Different Goals

[{"selector":"#anim-bb53f831-3852-4b21-959a-07bdb10ad2c2","keyframes":{"opacity":[0,1]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-64ec7991-5a3a-4d73-bffe-efc496d37ea3","keyframes":{"transform":["translate3d(-114.28572%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-53be64df-0d60-4c0f-a029-1a9e98e175df","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3489a39f-8945-4517-ac7a-4b2b44c30991","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read More

They are two hard-working dentists who have done very well for themselves. In their mid-30s, they have a net worth approaching $2 Million, and they could easily coast to a shared FIRE goal, if they had one. That doesn’t appear to be the case, though, as he reports. While they’ll be in great shape financially, and he sees the benefit of working less or not at all in the next decade or so, she feels differently.

[{"selector":"#anim-2224a64b-345b-4705-858e-7d3f7257139d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-741e576a-7c30-4e0d-9a0e-df306a3abdc9","keyframes":{"transform":["translate3d(-116.8254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Read More

He realizes that full FIRE looks quite a bit different if his life partner is tied down to a job, even if it is one that she thoroughly enjoys. How will they reconcile? He asks for your thoughts on their first-world conundrum.

[{"selector":"#anim-25456b21-7043-432d-b9be-8f89402d1894","keyframes":{"opacity":[0,1]},"delay":0,"duration":2400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c3174cfa-1af1-4cac-b79d-580edee052da","keyframes":{"transform":["translate3d(0px, -98.35032%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Read More

Getting to Know You

Where are you on your financial independence journey? Have you crossed the halfway point in terms of net worth and/or passive income?

We are moving along quite well on our FI journey and I’d say we are right around the halfway point. Our household has an annual spend of around $120,000. Plug and chug this into the 4% Rule (25 x $120,000) and we get an F.I. number of $3 million. If I aim for a more conservative 3.33% withdrawal rate, 30 x $120,000 would equal $3.6 million.

Our nest egg is currently about $1.9 million. Applying the Rule of 72, if we just sit back and do absolutely nothing, $1.9 million would double to $3.8 million in 10 years if we project 7.2% growth. We can be considered “Coast FI” by our mid 40s. Our plan right now is to keep feeding the nest egg, so we will most likely hit our FI number earlier, perhaps early 40s.

Tell us about your household. How many people and at what ages? Are you supporting anyone outside of your home? Where do you live?

My wife and I are in our mid-30s and recently welcomed a baby into this world. We live about an hour outside of a city, so taking advantage of some geographic arbitrage (thank you PoF for writing about that!).

SWIPE UP NOW TO READ MORE

[{"selector":"#anim-c6774fb2-477f-4641-9809-af5c3e6b7b07","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-96529bc8-7911-4464-b27f-1afed6607687","keyframes":{"transform":["translate3d(-115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Read More