Author Topic: I am starting FIRE this summer!!  (Read 1273 times)

JonMD

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I am starting FIRE this summer!!
« on: July 01, 2019, 01:33:24 PM »
I am new here and frankly to the "FIRE" world, I have searched all over the internet for people who are as similar to what I am doing and try to learn more about them and their strategies.  I found Sam's blog to be most relative.
After many years of pushing to be "FI" so I could leave my "work" and pursue the "rest of my life", I now have this opportunity.

I would like to share with the community (and Sam!) my plans as I embark on a very exciting journey.
I will say I am retiring as a physician of 20 years..age 47, typical family of 4.
Since I am posting at work right now I will update specifics about my finances, goals, timelines, etc...later  ;)

I would be grateful for this communities' thoughts, ideas, criticisms, or whatever you want to say about my plans..

I look forward to sharing my updated post.
Thanks!

JonMD


Sam

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Re: I am starting FIRE this summer!!
« Reply #1 on: July 01, 2019, 08:13:05 PM »
Welcome! And good luck on the journey!

 What are some of your reasons why you want to retire early as a physician? Is it possible to go part time so you can still make some good money and also have your freedom?

Regards,

Sam

Nosferatu_FL

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Re: I am starting FIRE this summer!!
« Reply #2 on: July 02, 2019, 03:11:08 AM »
I am new here and frankly to the "FIRE" world, I have searched all over the internet for people who are as similar to what I am doing and try to learn more about them and their strategies.  I found Sam's blog to be most relative.
After many years of pushing to be "FI" so I could leave my "work" and pursue the "rest of my life", I now have this opportunity.

I would like to share with the community (and Sam!) my plans as I embark on a very exciting journey.
I will say I am retiring as a physician of 20 years..age 47, typical family of 4.
Since I am posting at work right now I will update specifics about my finances, goals, timelines, etc...later  ;)

I would be grateful for this communities' thoughts, ideas, criticisms, or whatever you want to say about my plans..

I look forward to sharing my updated post.
Thanks!

JonMD

Hi Jon
I'm also a physician at 45 and have been practicing for about 13 years.  I have done well starting a practice then selling it,
and have been thinking of doing something completely outside medicine Next.  I think I would still do medicine in the right environment part time.

My main reason for doing something outside medicine is because I feel healthcare is badly broken and do not feel as passionate about the work i'm doing anymore.  "burned both ends of the candle"

I have been trying to diversify my investment to get some passive income to help support as I slow down or find the next venture.

How are you planning to support your retirement? do you have very high overhead/lifestyle?  Trying to reduce my overhead has been challenging.

JonMD

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Re: I am starting FIRE this summer!!
« Reply #3 on: July 02, 2019, 06:23:45 AM »
Welcome! And good luck on the journey!

 What are some of your reasons why you want to retire early as a physician? Is it possible to go part time so you can still make some good money and also have your freedom?



Hi Sam,
   I had decided many years ago to leave my career in medicine. I became disenchanted by the way our healthcare system had changed especially AFTER I had committed to my education/loans/training. I also began yearning to do other non-medical stuff! Read more, exercise more, and do the hobbies I had always dreamt about. Yes, I know many people in our society believe that this should be done later in life. But I believe that life is too short! I want to do these things while my body is healthy, strong, and mentally fit. Being a doctor has a way of wearing you thin from the inside and the outside. Burnout is a very real thing as many physicians acknowledge but very few admit.

I realize that this can be taken the wrong way by many non-physicians and physicians alike. It comes down to making a personal decision for oneself and family. I do not regret one day of being a physician in the last 20 years. It is an experience and service which I would hold close to my heart the rest of my life. I have school-aged kids and will have the great blessing of spending everyday with them until they leave for their own journeys ahead.

I spent the better part of my career socking away retirement accounts (non-taxable) for just such a journey, but soon realized that I would need liquidity/cash (taxable accounts) to be able to accomplish this before the age of 62-70 or even 59 and 1/2. It was then that I ramped up my earnings (taxable) and began investing heavily in the market. Through years of determination, persistence, investment learning, and a lot of luck, I was able to make enough liquid investments to retire at age 47.

Working part-time as clinical physician is a poor option for me. It is difficulty to balance patient needs on a part-time basis as well as a diminished financial ROI of my time/work. Many hospitals and practice partners do not look favorably upon part-time work in this field. In solo private practice there is no one to argue, but your overhead would swallow you whole!  ;)

Thank you for having me on this forum and I enjoy and learn so much from you and the community here over many years of reading. I have learned more than any book could teach me. The internet (when appropriately verified) can teach you anything!

JonMD

 

JonMD

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Re: I am starting FIRE this summer!!
« Reply #4 on: July 02, 2019, 06:59:46 AM »
I am new here and frankly to the "FIRE" world, I have searched all over the internet for people who are as similar to what I am doing and try to learn more about them and their strategies.  I found Sam's blog to be most relative.
After many years of pushing to be "FI" so I could leave my "work" and pursue the "rest of my life", I now have this opportunity.

I would like to share with the community (and Sam!) my plans as I embark on a very exciting journey.
I will say I am retiring as a physician of 20 years..age 47, typical family of 4.
Since I am posting at work right now I will update specifics about my finances, goals, timelines, etc...later  ;)

I would be grateful for this communities' thoughts, ideas, criticisms, or whatever you want to say about my plans..

I look forward to sharing my updated post.
Thanks!

JonMD

Hi Jon
I'm also a physician at 45 and have been practicing for about 13 years.  I have done well starting a practice then selling it,
and have been thinking of doing something completely outside medicine Next.  I think I would still do medicine in the right environment part time.

My main reason for doing something outside medicine is because I feel healthcare is badly broken and do not feel as passionate about the work i'm doing anymore.  "burned both ends of the candle"

I have been trying to diversify my investment to get some passive income to help support as I slow down or find the next venture.

How are you planning to support your retirement? do you have very high overhead/lifestyle?  Trying to reduce my overhead has been challenging.


Nosferatu,

     I was advised by some friends and colleagues to take 6-12 months before deciding to dive into any new ventures or alternative careers. I am planning to not return to medicine for the reasons I posted above on Sam's reply. I am taking the two-stage retirement plan. I believe this is explained thoroughly at the blog site, ournextlife.com. I already planned on doing this but they had written about it in their site too. I will have the retirement accounts (non-taxable) awaiting me for as early as age 59 or as late as 70 y/o depending how long I can live off my cash (taxable accounts). Meanwhile the retirement accounts will have another 12-20 years to compound before I would need or have to draw from them.

     Our family's lifestyle is comparable to a typical upper-middle class family. I am/was making roughly $200-300k annually but spending only about $120,000 after taxes each year. I figure I will need $145k annually AFTER taxes to continue the exact same lifestyle in early retirement. The difference ($145k-$120k=$25k) is due to the healthcare premiums I will pick up after leaving work (no more work subsidy). I also will not contribute any dollars to retirement accounts.

    So, this is where it starts getting down into the weeds...

  I was playing around with different scenarios to see if I can reduce that $145k annual budget and make my cash last longer in early retirement. I've been researching bonds, stocks, ETFs, funds, REITs, alternative investments, and holding my cash liquid. If I can keep annual MAGI under $86,000-$90,000 ( I have to get the exact value), I can get healthcare subsidies from ACA. So now I have to add in the whole taxable buckets but keep an eye on this MAGI level. Luckily I have a little cushion if I need to liquidate $10-20k annually to make the budget work but I'd rather not spend down principal. Not to say I HAVE to keep annual income under $90,000. I can go for larger investments and higher taxable yields and pay the full healthcare premiums (you can still deduct some of the premiums over 10% of your AGI).

  I am planning to post again with more of my budget ideas to see if anyone has ideas too.
Are you considering going part-time in medicine? If so, is that a better choice than leaving medicine completely? Also, do you have side hustles that can make money? I had some but expect them to become irrelevant once I leave clinical practice.

Thanks,
JonMD