• The Sprint to FI

    Risk Tolerance

    I was considering the difference between Flex FI and FI. The difference of course is two fold:   the amount saved the withdrawal rate (SWR) Flex FI vs FI With Flex Fi you are only saving 20x your annual spend and for FI it is 25x your annual spend.  In order to have a decent income from your FlexFi number you need a 5% withdrawal rate vs the 4% rate for FI. (For those approaching FIRE in their 30s and 40s a more appropriate SWR may be as low as 3.5%). total yearly spend: $50k Flex FI number = $1M      @ 5% = $50K FI number     …

  • The Sprint to FI

    Savings and Where to Put What

    When I first started on my path to FIRE, I had lots and lots of questions. One of them was where to put my money and in what order? I am not a teacher or government employee so what I have available to me are my 401k, IRAs, savings and brokerage accounts. So how much money and into what bucket ? Lets take a look at the features of each type of account. The order in which you fill these buckets is dependent on your own circumstances, but general wisdom is the following: 401k match Debt elimination HSA 401k Maximum IRA Savings and brokerage Accounts The 401k Common wisdom dictates…

  • The Sprint to FI

    Roth Conversions

    One of the good things that has happened to Cat and I over the years is we have almost always had good income; with the exception of the disaster. The downside, if you can call it a downside is that we do not qualify for certain financial tools because of our higher income. The Roth IRA is one of those things. However, we can still use the Roth IRA as an investment tool, even though we don’t qualify for pre-tax Roth contributions. This is achieved by performing a Roth IRA rollover from a traditional IRA. Why do I want a Roth IRA? Because the growth and withdrawal of money from…