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|Subject: I'm a FIRE wannabe...||Date: 7/23/2007 4:32 PM|
|Author: VUCommodore||Number: 4280 of 5086|
One year out of college (and one year into marriage), I've made it through a fairly major transition without any major setbacks. I've increased my net worth by $27,700! Wow, that number is bigger than I thought it would be, now that I do the math. Much of that increase comes in the form of paying off a low-interest rate loan that I used to buy my first used car, as well as making payments on my student loans (at about 4% interest), so my retirement account is only at about half that. However, I've crossed into positive net worth territory a couple months short of my 23rd birthday, so I think I've made more than adequate progress towards my goal of FIRE at or before age 50.
My strategy is very basic, and relatively low risk in my mind, even if it may not be optimal:
(1) Save as much as possible as early as possible, paying as little as possible in taxes and fees.
(2) Current asset allocation: 100% equity. This allocation will apply for all money I invest that I know for a fact will be in the markets for over 20 years. I will revisit my asset allocation decision when I turn 30 or if I move up my targetted FIRE date, whichever comes first. For the time being, my 401K plan has a good S&P500 index fund option, but no good option for small or mid cap or foreign equity, so I'm 100% invested in the S&P500.
I look forward to any thoughts or advice this relatively on-topic board might have. For starters, I'm looking at medium-term wants/needs to buy my first house and replace both my car and my wife's car -- all this hopefully within the next 7 or 8 years. We are planning on having 1 or 2 kids, probably during our 30s to the extent that you can plan such things. How will all this effect my ability to stay on track for retirement at 50? I don't know. I will visit this board for advice and support, and to help others out as I am able. I have some expertise in investments, albeit limited by my relative lack of experience. I'll be glad to help when I can, but I'll also do you guys the service of not pretending to know more than I do. Good luck on your efforts to FIRE, and I'd welcome any feedback you have to offer. Thanks!
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