FIRE Crossroads 036: FI at 45 With a One-Fund Portfolio

Today’s interviewee is a young 45, has a single fund in his portfolio, and has an extremely low withdrawal rate to cover his even lower expenses. Even in a high-cost-of-living area, this person spends less than the median household income every year and has a couple of million in the bank to live off of.

Even in a high-cost-of-living area, this person spends less than the median household income every year and has a couple of million in the bank to live off of. Read on to find out more.

Getting to Know You

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

I have achieved my FIRE goal.  I am at a point where I could withdraw 3% of my assets every year to cover my expenses.  My personal expenses are currently under $40,000 per year.

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

I live in a 3-bedroom apartment with my girlfriend.  I am 45 years old and my girlfriend is in her late 30s.  We live close to Washington, D.C. I am not supporting anyone outside of my home.

How do I keep expenses so low in a high-cost-of-living area? I only support myself, and many of my costs are split between my girlfriend and me. My half of the rent bill is $1,200 per month, and utilities average $80 per month.

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