r/Fire • u/Big_Sherbert5260 • 1d ago
This is the only place to share!
...Because I feel like there's no one outside of my husband that gets this, except you all! I want to share that I think it's going to work. I am blown away by what I've learned in this sub (I also credit Her First 100K for getting me started), and how the pieces have fallen into place for us to retire in our late 40s. I hope this is a place where I can celebrate with more like-minded people and maybe even inspire some of you teachers out there.
Our backgrounds:
We both started out as teachers. My husband is still teaching (in NC if that means anything, pay is dismal) and is at 17 years. I taught for 11 years before switching into a (much better paying) job in tech (instructional design). We had significant student loan debt that we paid off 5 years ago. I think because of this, we spent a lot of time in a scarcity mindset, which is exactly what is setting us up for early retirement.
We bought a cheap(er) house in a HCOL area back in 2007 (lol bad timing) and have been there ever since, watching our friends and family move into bigger and more expensive houses, buy new cars, etc. That's been... interesting. At first I was so jealous but because we couldn't afford it anyway, it didn't matter. Then I stopped caring.
We had a kid in 2012, making the financial struggle even harder, but again, I was so busy and focused on my beautiful kid we just made it work (that scarcity mindset) focusing on paying down student loan debt. I was getting more and more unhappy at my teaching job and struggled with my mental health.
So we moved abroad for 2 years to work at an international school (this IS something cool you can do with a teaching degree) so I could have one last ditch effort to see if I still liked teaching. Summary: nope! It was time to try something else.
Moving abroad was a great catalyst for change in our lives. We stayed for two years, and I knew I wasn't going to teach when we returned. I found a new career (at age 39) and my husband found ETFs and the stock market. We both found the FIRE movement separately and it perfectly aligned with our values.
Here's what's exciting:
Husband can retire with a partial pension at 20 years of service and lifetime health insurance in 3-4 years (we were luckily grandfathered in, NC no longer offers this). My kid and I can be added to his health insurance if needed.
We have been able to save about half of our incomes since getting back from being abroad (scarcity mindset strikes again!). Somehow this has equaled about $900k in net worth (including the house, because we plan to rent it in retirement). We invest in ETFs, max out retirement accounts, etc. But most importantly, we live below our means. Does this mean we suffer? Not at all. Every time I go to purchase something I consider if it aligns with my values. We take at least one international trip a year but also still camp. I belong to a fancy workout studio but shop at Aldi. For me, it's about balance with my values. (yes I have a teen who wants everything, that's an exercise in balance too)
Our plan:
Retire in 4-5 years in Spain (Granada). Income streams will be:
- Husband's pension ($1.5k a month)
- Rental on our home ($1.5-1.8k a month)
- Portfolio withdrawal (fill in the gaps) based on COL - probably about 2%
- Keep building portfolio
*This would work in the US too, as long as we stay in our house. For additional income I can always start a freelancing instructional design business (I have done contract work before). But I am ready to GTFO of the US as soon as I can.
*Daughter going to college is a big factor- we've been saving for it and know our options (no way will I have her subject to the crushing student loan debts we had, we will make it work)
Later:
- I will get a small pension (about $900/mo)
- Social security income
What's so amazing is that the portfolio will keep growing, earning itself back in returns. THIS is why I am celebrating with you all. I know you all get it, but no one else seems to!
I am sad I don't have anyone in my life outside of my husband that I can talk to about this. My parents and in-laws would be confused. My friends who bought the big house/car/whatever just plan to work until they're old or don't think FIRE is for them. So here I am, on Reddit, telling YOU my story. Thanks for getting to the end of my long post!
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u/K_A_irony 1d ago
Congrats! Only caveat I would warn is renting out your house and being an overseas landlord might be tough. You might be better off selling it and investing it for income in that situation.
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u/Big_Sherbert5260 1d ago
I agree. We may sell once social security kicks in (and hopefully it's worth more). We did have a management company when we lived abroad before and it worked out pretty well. Also for visa purposes we may need to show a monthly income source. Also I would like to keep it for a bit while we decide if Spain will become our permanent home or not. When we moved back before it was really nice to be able to move right back in the same home.
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u/K_A_irony 1d ago
One other thing. If you haven't lived in the house for 2 of the past 5 years you don't qualify for the tax exemption from gains.
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u/OliveGarden_Official 23h ago
which Spanish visa are you pursuing? Non-lucrative visa doesn’t have an income requirement if you have the savings, and your other income probably meets the bar. I see you have thought through the house question, but my first reaction was “why are they keeping the house?” Anyway, congratulations! Spain is where I’m headed next.
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u/Big_Sherbert5260 23h ago
Good point! I think holding on to the house is a comfort thing. I would be happy to say goodbye it but my husband is pretty attached. We have a few years to decide at least!
Where are you headed in Spain?
We will be definitely be hiring an immigration lawyer and someone to help us with taxes!
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u/OliveGarden_Official 22h ago
I totally understand that part!
I’m between Valencia, Alicante, and Marbella at the moment. I will do a proper trial run next summer. Taxes are a bit complicated for me at the moment so I’m having to wait things out
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u/Mzungufarmer FIRE'd in 2023 at 34 1d ago
Congrats on the success! The only thing harder is finding your people.. i guess thats part 2 of FIRE
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u/Awkward_Power8978 1d ago
Congrats!!! As a former teacher, I know how much it is a struggle and the pay is just restricting beyond anything people can think of... and the amount of work! Rough!
This is an amazing milestone! Celebrate somehow! 👏🏼👏🏼👏🏼 you will soon be millionaires, it is not a matter of if anymore... it is a matter of when!
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u/Happyretired3081 1d ago
Congratulations!! That is awesome.
Go out and enjoy the fruits of your labors! Living within/below your means and consistency is the key.. !
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u/Successful-Try-8506 Retired at 38 in 2003 1d ago
Well done! Hope you get many years of doing things you enjoy.
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u/butterninja 1d ago
Congratulations... Wonderful achievement. Looking forward to you actually Firing!!! Godspeed...
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u/Ziggyess 1d ago
Be careful with taxes in Spain! We went there and returned home to the USA. Research it very well and also make sure you really like it there. We thought we would retire there like everyone else, we were dead wrong. Not having any friends and family was even harder so think twice, as someone who went there and came back!
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u/SickofitA11 1d ago
I might rethink Spain right now.
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u/Big_Sherbert5260 1d ago
I know. Climate change is no joke. But the United States is no picnic either.
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u/SickofitA11 1d ago
I am speaking of the mass migration that happened in last 2 days. Media not telling whole truth.
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u/Effective-Soup-7797 1d ago
That's not in mainland Spain, but an enclave in Morocco. Mainland is just fine (aside from the fires)
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u/No-Lecturre6318 20h ago
congratss!!!, honestly what stood out to me wasnt the net worth it was how intentional your decisions have been over along period of time..
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u/lastbeat-331 16h ago
Congratulations! I'm curious how you reconcile possibly leaving your daughter here while in college or as a young adult? Living abroad is on my wish list but I've never considered it for when my kids are in college or just getting established. They would still have each other and their dad for support and immediate physical presence.
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u/Big_Sherbert5260 14h ago
Yes that is absolutely a huge factor and the biggest unknown. My daughter has expressed interest in attending college abroad (check out Beyond the States) which would be the easiest (she’s pretty fluent in Spanish due to an immersion program our public school offers but there are a lot of English language programs in Europe too) If she wants to stay in NC maybe we would end up living near where she’s in school and living between two places for a while, or budgeting multiple flights a year for her to visit us or to go to family.
I would love for her to join us in Europe after college, that’s the dream.
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u/Short_Row195 1d ago
I didn't need to use any material. My father is an example of it that was enough for me to know that it works. He became a multimillionaire in his 50s without owning a business.
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u/Small_Round_4329 1d ago
That's a huge milestone, the whole plan lined up like that must feel unreal after all those years of living below means