Can I FIRE with a total net worth of $1.25M (including house and CPF)?

“ No plans for kids “ is a dangerous phase.

But if that is true i guess u have enough to retire if you can generate a 4-5% return on ur 750 K and spend within the limit.

What is FIRE?

Your achievement is quite impressive. Different from other comments, I will prompt you thinking from another perspective.

What is the common goals for you and your wife? Is she also planning to FIRE soon?

Are you happy with your current house and not planning to move at all?

How about car and other major purchase?

You are young and I am not sure if you will start thinking of these major items 5-10years down the road. Also, I personally think that your expenses is really on the low side for someone at our age (parents' allowance, insurance, tax, F&B, shopping, personal care, etc).

So before you decide to FIRE, do make sure your expenses are going to be staying stagnant.

Here's my take on this.

I'd take away the home equity from this consideration, assuming it'd be a home you intend to stay in for the long term and it will not yield any returns (e.g. rental income).

CPF of 250k in SA and MA, assuming you have the full BHS amount of 63k in MA means you're nicely in the FRS amount for 2021. Letting it compound as it is should allow you to get around 18k (1.5k x 12) from CPF Life payout at 65.

Liquid assets of 150k as a safety cushion is good because it's 5 years of your annual expenses so you can choose to tap on this for unforeseen situations, and also choose to use cash instead of drawing down from your investments in a bear market.

Given that CPF Life only kicks in at 65 and you are looking at FIRE today, we can only look at the 600k investment to tap on for annual expenses.

I did a monte carlo simulation on portfolio visualizer to see how a diversified portfolio of 50% global bonds, 40% US stocks and 10% international stocks (this is just an assumption and you'll get a better sensing if you input your actual investment portfolio). I then put in a forward looking 60 years because I like to assume everyone lives till 100 years old and simulated what it would look like if you withdraw 30k annually from this portfolio.

What I can see is you have a fairly high chance of failure rate 24 years post-fire (age 56) where the success rate is less than 95% (I'm a scaredy cat so anything lower than 95% is not good in my view).

But you have a few things to play with here:

1) Increase your investment portfolio within the same asset allocation

2) Tweak your asset allocation to take a higher risk for higher returns (or find a higher yielding fixed income/bond)

3) Reduce your annual expenses (could be hard)

4) Create more streams of income (or what Kyith calls Wealth Machines) so that you're not limited to drawing down from your investments and CPF Life.

That said, you have a 5-year annual expense cushion and CPF Life at 65 that will make this work so you do need to think holistically how things could pan out. You could drawdown more from investment today and lesser at 65 when CPF Life kicks in.

Hope this was helpful.

Here's the link:

https://www.portfoliovisualizer.com/monte-carlo...¤tAge=70&timeSeries=1&bootstrapMaxYears=20&asset1=GlobalBond&asset2=TotalStockMarket&asset3=IntlStockMarket&historicalCorrelations=true&returnList=0%2C+2.5%2C+5%2C+7.5%2C+10%2C+12.5&lifeExpectancyModel=0&bootstrapMinYears=1&meanReturn=7.0&percentileList=10%2C+25%2C+50%2C+75%2C+90&rollingAveragePeriods=3&initialAmount=600000