38 in SoCal, not sure how to make ER a possibility

[dvalley]

Thanks everyone- nat8199 congrats to you too!

LitGal, you've always been so supportive, thank you!

[dvalley]

Quote:

Originally Posted by dvalley End of Q2 update: Savings+investments are now at: $480k I'm at 33% of my target retirement networth of $1.4M which is on the comfortable side and 48% of my $1M "can't do this crap anymore, I'm outta here" target. However, I'm also targeting college+marriage savings for DD to be $40k+$10k so the percentages drop. Still three years ago (when I was 38 and not 41 ) when I started this thread I was at $240k so my networth doubled in exactly three years, I'll take it! Looking ahead $500k could happen this year provided the market doesn't slip back too much.

Q3 - 2016 update:
Savings+investments are now at: $499k

Looks like my investments+savings slipped a few thousand from the peak of $502k in Jul '16.

Current allocation:
Investments: $420k
Cash: $79k

I also just changed jobs which came with a pay-cut but less stress (so far) and I can contribute to HSA too now. Here's how I'm allocating my pre-tax contributions for the next quarter:

Maxing out HSA for the year $3500 (starting now and doing it in 3 months)
Maxing out 401k for the year $18k (starting now and also doing it in 3 months)

This essentially wipes out my net take-home paycheck but I get a portion of the employer match on the 401k (free money) and I also reduce my taxable income which will help offset a bonus I received from the previous employer earlier this year.

Looking ahead I need to find an opportunity to invest a portion of the cash somewhere, either when the RE market turns or the stock market. I know, market timing.

[dvalley]

Q4 - 2016 update:

Savings+investments: $520k (+$100k since Dec 2015).
The annual goal for 2016 was to cross $500k in savings+investments so I'm happy with it.

My goal for 2017 is to cross $600k - it's funny because now I can't wait for 2017 to be over already because my next big milestone is crossing 700k in 2018 hopefully - but who knows? so many unknowns.

[Potstickers]

Quote:

Originally Posted by dvalley Q4 - 2016 update: Savings+investments: $520k (+$100k since Dec 2015). The annual goal for 2016 was to cross $500k in savings+investments so I'm happy with it. My goal for 2017 is to cross $600k - it's funny because now I can't wait for 2017 to be over already because my next big milestone is crossing 700k in 2018 hopefully - but who knows? so many unknowns.

You are making great progress! I hope the new job is working out well.

[Aiming_4_55]

Quote:

Originally Posted by dvalley Q4 - 2016 update: ... it's funny because now I can't wait for 2017 to be over already because my next big milestone is crossing 700k in 2018 hopefully - but who knows? so many unknowns....

Good job DValley. While I feel the same way with looking forward to the next year end due to projected personal savings, investment increases (hopefully), kids progressing another grade, another year closer to ER, etc., I also understand I'm getting older and older I hope to embrace ER in my 50's so time will be shared differently.

[dvalley]

Thanks for the support! It just feels like a long way to go for me still and I'm becoming more impatient. At the same time so many other unknowns...have been thinking about tying the knot again with the long term gf but keep getting cold feet after the financial beating I took from the previous divorce Financially she's self-sufficient and debt-free but not much in the way of savings or assets etc.

[Bigdawg]

Quote:

Originally Posted by dvalley Thanks for the support! It just feels like a long way to go for me still and I'm becoming more impatient. At the same time so many other unknowns...have been thinking about tying the knot again with the long term gf but keep getting cold feet after the financial beating I took from the previous divorce Financially she's self-sufficient and debt-free but not much in the way of savings or assets etc.

Pre Nup!

[dvalley]

Q1 - 2017 update:

Savings+investments: $535k (+$15k YTD)

Nothing stellar and there were a few contributing factors to it:
1. Bought a nice toy ($6k) - gotta enjoy life too.
2. Paid off the car loan balance ($5k) - no more debt besides the mortgage
3. Sitting mostly in cash. Trying to get back into the market with DCA.

There is some good news though; I got a small raise at work, and don't have the car payment so that improves the cash-flow for the rest of the year by almost $900 per month or by $8k for the rest of the year

[kimcdougc]

Congrats. Sounds like you are following your plan and doing it well. Your FIRED amount will be here before you know it. Keep up the good work.

[dvalley]

Thank you kimcdougc.

Q2 - 2017 update

Savings+investments: $555k (+35k YTD)

[Blue Collar Guy]

Love reading these threads with yearly updates.

[dvalley]

@BCG, as do I when others post them on a periodic basis It keeps me motivated even though it feels like a long slow slog at times lol

[nash031]

It's interesting to read back through this. You were out of the market at Dow 15000, thinking the market was overinflated artificially. You are now mostly in cash DCA back in to the market at Dow 21000. Meanwhile, three years of dividends missed, ignoring the growth and the taxes paid to sell out.

Those last two points are points people often ignore in the market timing game, yet they are two of the most costly reasons to avoid it. Dividends keep rolling and allow you to buy in when the market is depressed. Taxes matter.

You're doing well! Don't mean to discourage, just thought the comparison from 2014 to now was interesting and instructive.

[dvalley]

@nash031 - great observation and yes a big mistake on my part. Although the reasons were slightly different the second time- I had way too many accounts at various brokerages, various expense ratios, funds, stocks etc and I just wanted to simplify them into a couple of index funds. However, I thought the market would take a nose dive after Trump's election as our president and would present a good opportunity for me to do this consolidation. Well I was 100% wrong on that...as a result I missed out on the 5% gains of the S&P (10% ytd) vs. my growth (5% ytd). On a positive note I do have all accounts, stocks, funds consolidated at Vanguard now and I didn't have to pay taxes since this is all pre-tax accounts which I won't need nor will have access to for 15+ yrs so hopefully I'll make up some of the losses.

Thanks for checking back in and glad to see you guys are doing well sticking to your plans.

[nash031]

Thanks for the response! The lesson I see and hope to always remember from the experiences of others (rather than having to learn it myself) is most basically described by, "nobody knows nuthin'".

Or more eloquently (and verbosely), it is incredibly hard to predict the market's near term future once, and nigh impossible to do so repeatedly well enough to make relatively short term timing a profitable enterprise for the broad majority of investors.

[dvalley]

Q3 - 2017 update

Total of Savings+investments: $575k (+55k YTD)
- Cash position (included in the above total): $257k I know, I know

Looks like I'll close out the year with $580k-585k and then cross the $600k milestone in Q1 2018.

[dvalley]

Q4 - 2017 update
Total of savings+investments: $601k

2017 Summary: This was an expensive year in multiple ways. Primarily I had pulled a lot of money out of the market in late 2016, that was a BAD move on my part so my money didn't grow at the rate as others'. I also paid off a $4600 car loan, and spent $9k on expensive clothes, trips and toys etc. Despite all that I managed to (barely) meet my stretch goal of breaking into the $600k in investments and savings! I'm pretty happy about that Even towards the end of Nov I didn't think it was going to happen!

Total 2017 network increase was $601k-$522 = +$79k

Looking ahead in 2018 I should be able to add $60k unless things change drastically one way or the other. I really don't think it's going to happen but it'd be awesome if I could break into the 700k by the end of the year!

[Exit 2024]

dvalley, excellent progress!!!
Looks like you could join “two comma” club for total NW this year
Will be watching your progress going forward as our target ER dates are very close, I assume you are still looking at 2025?

[dvalley]

@Exit2024 - thanks!
Hey you're right about the two comma club! I never really pay much attention to the home equity because my plan is to use that to buy a house out right in a LCOLA but for the sake of NW milestones I think I should celebrate it when I get there! A million dollars is a million dollars! :P

My main target was/is 2025 (age 50) but I may have the OMY syndrome until 2030 (age 55) to get to a more comfortable NW number. My current job is much better than my last one in that my BS bucket isn't filling up quite as quickly, so far. My original target was a paid for house and $1.25MM but now I'm thinking a paid for house and at least $1.5-2MM.

[Exit 2024]

Quote:

Originally Posted by dvalley My main target was/is 2025 (age 50) but I may have the OMY syndrome until 2030 (age 55) to get to a more comfortable NW number.

I also afraid that OMY syndrome may infect our minds, especially if markets will be in some kind of turmoil at that time. Will see what it will be when we get there.