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

[Katiek]

Congratulations! I love to see the progress over the years. Who knows what the future holds, but you're positioning yourself well to deal with whatever you decide in the future.

[dvalley]

@KatieK thank you!

[dvalley]

I'm plugging away. My savings and investments reached $770k -actually peaked at $780k but then slid back down.

Using the bankrate.com calculator at 6% yoy return I'm looking at about 8.5 more yrs before reaching my target of $1.5M. Looks like it'll be a couple of years later than I was targeting but who knows things could go better or worse.

[Exit 2024]

Great progress, dvalley
About timeline to reach target - there are too many unknowns, and you may went too conservative with 6%, or may be too aggressive, only time will tell.

Our original plan had curves for 5%-6%-7%-8%-9% yoy returns, then we started to plug actuals and saw that our real curve fits almost perfectly 9% one. And no - portfolio does not return 9% but we earn more and add to portfolio more then originally assumed we will be able to.
So you never know how it all will play out at the end, you are just plugging away and prepared to be flexible if something will not go as planned So far so good for us though

[dvalley]

@Exit2024, I agree with you 100%. All we can do is keep saving+investing and hope it pans out.Thanks for stopping by.

[dvalley]

What an amazing year!

In 2019, started off at $620k NW with a stretch goal for the year being $750k. Not only did I reach that I actually hit $800k and then $850k thanks to the almost 30% market increase. I wish I had even more of my AA in the stock market but that's ok, I sleep better knowing that if the market crashes or we go into a recession I have enough in CDs, savings etc for more than a year's worth of expenses.

[Exit 2024]

dvalley, congratulations on killing your targets !!! Can not agree more on "sleeping better" part, at the end of the day it is all about balance and risk tolerance

[dvalley]

Wow, what a crazy start to this year.
- Hit my highest NW of $890k mid feb
- Then hit the lowest in over a yr, 618k in March
- As of Mar 31st it was hovering around $720k

My AA of around 90/0/10 is great for growth but when we experience a wild downturn it's not good. Another drawback is that you can't really rebalance and move into stocks so when there's a recovery you don't benefit from the lower purchase prices. The 10% cash is a good safety net and I'm really glad I have that. However, if things really go south as in losing my job, it won't be enough to survive past one year.

Thankfully I still have my job so far and I have my 401k/HSA contributions etc still going into the stock market. Hope we pull out of this without too much long term impact.

[Exit 2024]

We sure will pull out of it, just need to stay focused and use lemons to make lemonade I bet this week makes you feel much better, although I do believe we may re-test lows before moving forward...

[dvalley]

I too think we'll see a couple of bluff charges upward and then re-test lows. The uptick in the market today was surprising so I took advantage and actually sold a little equity to boost cash. I didn't buy high sell low, just the gains were less than had I sold them at the peak of the market; but that also means less LTCG tax. I could've sold my stragglers for tax loss harvesting too but decided to keep it simple.

[dvalley]

I think an update is in order here. Big news is that I hit my target numbers last year YAY! Although with inflation running what? 5-6% already and my kid starting college I'm thinking I need to move the goal posts further. Plus I'm reevaluating my future goals/purpose etc.

However, I think it's safe to say I'm FI at this point. If I were to lose my job I think I'll be alright.

[Franklin]

Quote:

Originally Posted by LitGal I didn't weather a divorce, but from ages 18-43 faced the myriad challenges of fulfilling middle-class dreams in the California economy. I had chosen a less-than-lucrative major (English), and entered teaching with eyes wide open. Plus, I knew I'd probably fall for a spouse who had as little interest in getting rich as I did. Well, I married a theology major (at least his undergrad degree was in biology/chemistry/math). We were far more interested in "helping the world" than in building a bank acct. While we're still idealistic-- and continue to volunteer in altruistic settings---- back in our thirties we had to face hard facts: the quality of our son's education would depend on which school district we lived in (ie. the cost of our house would determine the quality of his school); high school teachers earn far more than college adjunct faculty (so I returned to teaching h.s., to help pay a whopping mortgage payment in a highly rated Bay Area school district); that mortgage payment + daycare took my whole teacher's salary each month (so we lived on what my husband made----- he eventually worked for a pharmaceutical co.) We could save little for retirement or DS's college. Our big idea (when he was in preschool) was to refinance to a 15-yr. mortgage, so the house would be paid off when he entered college. Then we would use the former mortgage $ to pay for college expenses each month. However, with growing drug and gang-activity on campus, I became disillusioned with the wonderful high school from which I thought I would retire. Plus, we needed a bigger yard for our son to play in as he grew. We learned he had special needs, and would probably need private schooling. But we could not afford private schools for 13 years, or a larger mortgage payment for a bigger house or lot. So, we took 3-5 years to research possible transfers within my husband's co. In 1996, we sold our house (had doubled our $), moved to Ohio (where he kept the same job at the same salary, with a 50% cut in the cost of living). We bought a 3,000 sq. ft. house for less than the sale price of our 1300 sq. ft. California home. I took time off work, then went back part-time, our son attended private school (to get the needed help), and we were able to save aggressively for retirement. DH ER'd at 61, and I at 59. With the $ saved by moving to Ohio, we can easily afford to visit the CA friends and family, at least every two years. Plus, they like to come here on vacation, relaxing on our porch overlooking a 400 acre forest (which is city park, never to razed by developers). We still get to enjoy the delights of sunny Cal, visiting friends up and down the coast. But it's much easier to do as a tourist, than as middle-class wage earners. Plus, rush hour here lasts for about 20 min., and we can still drive at 55-65 MPH (no gridlock). I know that moving is drastic.......but our quality of life improved 100%, and we retired about 3-5 years earlier than expected.

Loved reading this story!!

[Morgan22]

Quote:

Originally Posted by dvalley I think an update is in order here. Big news is that I hit my target numbers last year YAY! Although with inflation running what? 5-6% already and my kid starting college I'm thinking I need to move the goal posts further. Plus I'm reevaluating my future goals/purpose etc. However, I think it's safe to say I'm FI at this point. If I were to lose my job I think I'll be alright.

Congrats on hitting your target! Looks like you'll be able to retire at 50 like you mentioned in your original post.

[Exit 2024]

Quote:

Originally Posted by dvalley I think an update is in order here. Big news is that I hit my target numbers last year YAY! Although with inflation running what? 5-6% already and my kid starting college I'm thinking I need to move the goal posts further. Plus I'm reevaluating my future goals/purpose etc. However, I think it's safe to say I'm FI at this point. If I were to lose my job I think I'll be alright.

WOW! Congratulations!!!
How does that feel - any different from chasing that target?
And did you celebrate that huge achievement at all?
Looking for ideas actually, want it to be memorable for us but sadly cannot share happiness with friends and family

[dvalley]

Quote:

Originally Posted by Morgan22 Congrats on hitting your target! Looks like you'll be able to retire at 50 like you mentioned in your original post.

Quote:

Originally Posted by Exit 2024 WOW! Congratulations!!! How does that feel - any different from chasing that target? And did you celebrate that huge achievement at all? Looking for ideas actually, want it to be memorable for us but sadly cannot share happiness with friends and family

Thank you! yes, unless something drastic happens I should be able to retire at 50 that's about 3 yrs away (or should I try to make that age 49.999 ).

At first I felt immensely lucky/grateful to be here after a long journey rebuilding my life. After a few weeks of letting it sink in honestly I don't feel much different. On the flip side, and not to be a debbie downer I'm finding it hard to stay motivated at work, I mean I don't not take care of the things that I have to but I'm not eager to volunteer and make recommendations as they'll just end up falling on may lap as always. I'm also somewhat doubting how fulfilling my retirement life will be. I used to daydream about retiring on a property of 2-5 acres, reconnect with the nature (learn to grow a garden for example), do more hands on stuff (tractors, machines etc). But now that it all seems within my reach I dunno if after the first 6 mos to a year I'll be bored with that life. A big part of the reason I feel this way is because my gf is not eager to leave the city life (somehow none of my gfs ever were, must be a guy thing to go live off in the woods away from noise and other people ). So I'm in a tough spot there as to what to do. As I said, now that the financials are in order the rest of the stuff is becoming a big consideration and weighing heavily on me. Like I have the ability to pursue those dreams but is that even the right decision or my purpose. So lately, I've been glum.

Also, didn't tell anyone, not even the gf because I don't want her to feel pressured (in other words you guys are the first and only ones to know lol).

[Exit 2024]

We promise to keep it a secret

On serious note - I can totally relate, we are not even there yet but I am already starting to think that doing nothing all day long will be boring. Dreamed about travelling a lot but current travel related restrictions kind of made my dream not that rosy anymore. Started to look into hobby monetization, not for income but to keep me occupied for 10-15 hrs per week and that it can pay for itself, will see if I can come up with something easy doable.

[Born2BRetd]

My husband and I used to talk about maybe someday moving somewhere more rural. Then you get older and the idea of taking care of that much property doesn't seem so attractive anymore. Maybe you don't need to live somewhere rural but can travel/spend time in nature. That might be a better compromise for your girlfriend.

Towards the end of my working career, I was exhausted so the idea of hobbies didn't appeal to me. I know some people need something to retire to. On the other hand, some people like me just need to retire so we can get our energy back to actually enjoy hobbies again.

[kgtest]

Quote:

Originally Posted by Born2BRetd My husband and I used to talk about maybe someday moving somewhere more rural. Then you get older and the idea of taking care of that much property doesn't seem so attractive anymore. Maybe you don't need to live somewhere rural but can travel/spend time in nature. That might be a better compromise for your girlfriend. Towards the end of my working career, I was exhausted so the idea of hobbies didn't appeal to me. I know some people need something to retire to. On the other hand, some people like me just need to retire so we can get our energy back to actually enjoy hobbies again.

Not to mention further away from quality health care facilities. Also, nice to have family to cart you to those dr apts.

I will try and stay near our immediate family and travel to near where extended resides. I make new friends easily so I'm not too worried about what to do in ER. I have a hard time being stuck to a job that I am honestly getting burned out in and I have under 9 yrs before I can FIRE..maybe a little less to get to FI...but I want to have enough in HSA to cover private healthcare, enough in taxable and cash to get me from the finish line, to the Roth Withdrawal line. I will probably lean FIRE for the first 5 or so years, ramping up spending as Roth, IRA Access, small pension, and finally SSI comes online. Hard to predict that far into the future but it sure is fun to try.

I plan to ski a lot, maybe spend time near the coastal cities, and support my family. I will keep my property up, might find a flipper property right before I retire and work on that a little while we live there, and honestly from 60 to expiration just go where the wind blows me. Today we enjoy travel to new destinations that also are near old friends. That seems to be the sweet spot in what we enjoy. I will still spend a lot of time on this forum, and updating investment spreadsheets, turning over rentals and all the stuff to KTLO (Keep the Lights On).

[dvalley]

Quote:

Originally Posted by Exit 2024 We promise to keep it a secret On serious note - I can totally relate, we are not even there yet but I am already starting to think that doing nothing all day long will be boring. Dreamed about travelling a lot but current travel related restrictions kind of made my dream not that rosy anymore. Started to look into hobby monetization, not for income but to keep me occupied for 10-15 hrs per week and that it can pay for itself, will see if I can come up with something easy doable.

I think to an extent most people go through this. Initially we're so focused on the financial goal but once that is attained you start to visualize what the life 2.0 will look like. For some it's easier than others for various reasons.

Having said that I think traveling etc will all come back in a couple of years if not sooner. Even with all the restrictions a lot of people are/have been traveling. I think the timing may even be perfect for your RE date

Quote:

Originally Posted by Born2BRetd My husband and I used to talk about maybe someday moving somewhere more rural. Then you get older and the idea of taking care of that much property doesn't seem so attractive anymore. Maybe you don't need to live somewhere rural but can travel/spend time in nature. That might be a better compromise for your girlfriend. Towards the end of my working career, I was exhausted so the idea of hobbies didn't appeal to me. I know some people need something to retire to. On the other hand, some people like me just need to retire so we can get our energy back to actually enjoy hobbies again.

Good point! But I'm not necessarily thinking rural like really out in the boonies, most places that are spread out with 2-5 acres are still fairly common suburbs in many states. Think Fallbrook/Julian perhaps and may be just for the first 5-8 yrs to get it out of my system. After that as we age we'll come back and live in some senior community

Are you guys finding your retirement fulfilling even if the rural aspect of it didn't happen? Do you feel bored? I'm an engineer and so I need to feel challenged with fixing/building stuff. There's only so much I can do with a 2 car garage as a multifaceted 'shop' and everything's a compromise. Not to mention the noisy neighbors and dealing with traffic even if I just want to go out for a nice relaxing drive lol

Quote:

Originally Posted by kgtest Not to mention further away from quality health care facilities. Also, nice to have family to cart you to those dr apts. I will try and stay near our immediate family and travel to near where extended resides. I make new friends easily so I'm not too worried about what to do in ER. I have a hard time being stuck to a job that I am honestly getting burned out in and I have under 9 yrs before I can FIRE..maybe a little less to get to FI...but I want to have enough in HSA to cover private healthcare, enough in taxable and cash to get me from the finish line, to the Roth Withdrawal line. I will probably lean FIRE for the first 5 or so years, ramping up spending as Roth, IRA Access, small pension, and finally SSI comes online. Hard to predict that far into the future but it sure is fun to try. I plan to ski a lot, maybe spend time near the coastal cities, and support my family. I will keep my property up, might find a flipper property right before I retire and work on that a little while we live there, and honestly from 60 to expiration just go where the wind blows me. Today we enjoy travel to new destinations that also are near old friends. That seems to be the sweet spot in what we enjoy. I will still spend a lot of time on this forum, and updating investment spreadsheets, turning over rentals and all the stuff to KTLO (Keep the Lights On).

My gf and I don't have family roots anywhere, we're basically the first generation of our family in the US. Kiddos are too young for us to follow them wherever they may go to college/first few jobs etc. But I hear you on staying close to family whenever possible!

Lean fire is a good idea for me too depending on if I get booted out before my kid's done with college just to avoid any risk of sequence.

I was getting burned out big time at my last job, it was very stressful. I was seriously about to quit but I ended finding my current job and it's a night and day difference so if you think it's the environment that's cause the burn out definitely look around. The job market's hot right now