Hey folks,
Wondering if folks can chime in on an FIRE question I have.
According to ProjectionLab, we have hit FIRE savings (25x expenses) at about 50 years of age. At 57, we will have pension income that will cover 90% of living expenses we have today, but at 57 our kiddo will be out of the house (we hope!!!)
We max out our 401k contribution, already funded our 1 kid's college tuition through a prepaid 529 plus a market 529 for living expenses (about 200 a month goes into it).
We are both high earners, and while we live in a HCOL, our net housing payment is small (we own, have 2 long term rentals on our property, interest is sub 3%). While we have a brokerage account, we buy and hold stocks (like costco).
I really cant figure out what to do with our remaining savings other than park it in HYSAs. We have aims to fix up a vacation house into our retirement home in a few years, so part of our savings is for that, but otherwise im searching for options. Crypto is not an option while I am employed (my employer does not allow someone in my position to own it) and I view it risky given where we are in age and life financially). I'm expecting some inheritance, but I prefer to plan as if we get nothing.
I am also looking into Roth conversions to balance taxes to avoid a large RMD bomb in our 70s, and honestly have more cash available during early retirement.
Retirement Savings
3 Million in 401k
500k in taxable investments (cost, apple, brkb, etc)
900k in HYSA
Homes/Rentals
1.5 Million in Home/Rentals
500k in mortgages (sub 3% rates)
Annual stuff
~400k in salary (Marginal Tax Rate 32%, effective Tax Rate 22%)
~50k in net rental income.
~80k in living expenses
~70k mortgages (payoff in 7 years)
~90k a year in pension income post retirement (immediate upon retirement)