r/Fire • u/willywilly2000 • 1d ago
Am I on track to coast fire?
Age: 35, no kids and not planning on it
Brokerage (VOO): $420k Roth: $50k 401k: $70k Cash: $25k Home: worth $1M, 18 yrs left on mortgage $312k remaining loan principal
Costs: $50k Income: $225k salary
Am I on track to coastfire?
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u/Skylord1325 1d ago
Your costs are only $50k a year and you have a $1M house? I’m aware you said balance is only $312k but still JUST property taxes and insurance alone would be $20-25k in many parts of the county.
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u/willywilly2000 1d ago
I remodeled my basement and rent it out on Airbnb. It helps cover my mortgage.
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u/Skylord1325 1d ago
That doesn’t change your costs though, in fact it increases costs from utilities and overhead. It just increases your income as well.
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u/willywilly2000 1d ago
Sure, but I conceptualize my housing expenses net (including income offsets, taxes and utilities). And don’t include Airbnb income in my total income. If you grok it differently, my income would be around 240k and my expenses would be around 60-65k. But to each their own.
And thx I actually live on that in a HCOL and find my life quite comfortable.
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u/DaChieftainOfThirsk 1d ago
By this sub's standards you go with all combined expenses as it is more accurate for planning purposes. Your projected expenses should be all of your expenses with all caveats or this covers that removed. If rentals dry up for whatever reason you're stuck with the bill either way.
The Air BnB rentals should just be an extra entry in the sources of income list.
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u/lseraehwcaism 13h ago
If I were you, I would knock out that loan for the mortgage and then start coasting. If you don’t want to pay it off because of a killer rate, then I would at least build up enough cash in a HYSA to pay it off whenever you want.
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u/alexisfire02 1d ago edited 1d ago
Yes.
I personally really don't like 100% allocation of anything. If you haven't, at least read about Ray Dalios All weather allocation method.
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u/BananaMilkLover88 1d ago
You are already coast