To achieve financial independence, and possibly retire early, the goal is to have a stash that allows us to withdraw an inflation adjusted $100,000 ($ = USD) a year. The stash will reside in a mix of tax advantaged retirement accounts and a taxable brokerage account. Our asset allocation includes domestic and international stocks, bonds, REITs and cash.
Here is how we plan to fill our coffers.
2016: Add another $20,000 to the stash before the end of this year. Status: Done
2017 – 2020: Save at least
$120,000 $160,000 a year.
2021: I am financially independent at the grand old age of 42. Celebrations ensue. Mad rejoicing in the streets as I sail away into the sunset.
2022: We sell our house, add a nice chunk of change to the stash and move to some yet to be determined place in the world that has the following properties:
- The cost of living is lower than where we currently reside. This one is easy. Almost anywhere else in the world qualifies.
- Our new location must have an excellent walk score.
- Mr. BITA can continue to work there and make enough money to keep us from withdrawing from our stash. We don’t need to save any more, but we aren’t allowed to touch the stash just yet.
- Our daughter needs access to good public schooling
- Our family must have access to healthcare that does not require us to hand over a kidney and our first born child in order to have a wisdom tooth removed.
2026: Mr. BITA is 42 years old and our Stash has come of age. Jubilation in the streets. We start living off our Stash.
We will also both qualify for social security eventually but our calculations don’t rely on this. It will be a nice bonus if and when it materializes.
Our Stash does not include Toddler BITA’s 529 plan.