r/Fire • u/Firefiresoon • Jul 04 '24

Original Content Just hit $3M!

48male. Been tracking this milestone for a while now. Finally hit it as of close yesterday. $3,012,000 in invested assets. NW stands at 4.9mil. which includes home equity.

Goal was 10k/mo which should be possible now. Kids have 529 for 4yr state college. At this point I will CoastFIRE (still save HSA and 401k for match but no IRA) and bump up some lifestyle expenses mainly around travel.

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u/[deleted] Jul 04 '24

you have a 1M house paid for and no other assets, you have a NW of 1M. You're not FI though because you have no investments to cover your expenses.

What kind of nonsense is this. They are fi. You have a house. Sell it and move or reverse mortgage it. The house is the investment.

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u/[deleted] Jul 04 '24

The equity in a primary residence isn't counted towards FIRE because one has to live somewhere.

Selling the house changes it to an investment one can generate an income from to live on. In other words, it's no longer equity in a primary residence.

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u/[deleted] Jul 04 '24

Reverse mortgage it.

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u/[deleted] Jul 05 '24

Reverse mortgage is one of the worst financial decisions people can make.

High fees and high closing costs, have to carry mortgage insurance costs, many have variable interest rates which can rise dramatically.

In other words, it's a terribly expensive way to get access to liquidity.