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40yo toying with the idea of ER in 10-15 years
12-04-2012, 04:49 PM
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#1
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Recycles dryer sheets
Join Date: Dec 2012
Posts: 113
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40yo toying with the idea of ER in 10-15 years
Hi all. I've been toying with the idea of semi-retiring in the next 5-10 years, and fully retiring in 10-15 years, depending on how my investments perform. I figured I'd finally join this forum rather than continue to be a lurker. I've played with FIRECalc a few times and liked it. My stats are as follows.
Age: 40 (unmarried)
Income: 125k (gross)
Annual expenses: 55k
Children: none
Health: excellent
Assets:
Retirement (401k & ROTH IRA, 95% stocks): 490k
Real estate: ~500k
Personal property (vehicles): 120k
Liabilities:
Mortgage: 216k @ 3.5% 30 year fixed
Auto loans: 60k @ 1.99% 5 year fixed
I've been maxing out my 401k & ROTH IRA contributions since I've been eligible, and will continue to do so until I semi-retire. I plan to downsize for retirement (with respect to the home and cars) if needed to achieve ER by my desired time frame. Looking forward to input and feedback.
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12-04-2012, 06:28 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 5,596
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I think you're well on your way! Only question I have is that auto loan. $60K? Really? You must have a very fine set of wheels. If it's not necessary for your work, I'd consider getting rid of that and going for a nice but more affordable car.
Oh, welcome!
__________________
I purr therefore I am.
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12-04-2012, 06:57 PM
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#3
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Recycles dryer sheets
Join Date: Dec 2012
Posts: 113
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Thank you, Purron.
I know my auto loan balance seems excessive. However, cars are my biggest hobby. I own several collector vehicles, and can easily sell them to recoup my cost if needed. I just don't deem it necessary at this point, given that I'm meeting my savings goals.
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12-04-2012, 07:14 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 5,596
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Quote:
Originally Posted by azphx1972
Thank you, Purron.
I know my auto loan balance seems excessive. However, cars are my biggest hobby. I own several collector vehicles, and can easily sell them to recoup my cost if needed. I just don't deem it necessary at this point, given that I'm meeting my savings goals.
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Understood. My late father in law was a car hobbyist and it brought him much enjoyment so I totally get it. My hobby is helping shelter animals. Like your car hobby, it makes me happy and is not at all a good investment.
Well, on second thought, collector vehicles are probably a better investment than homeless animals. In any case, there is more to life than money after all!
Again, I think you're doing very well. Much better than my husband and I were doing at your age. Well done and I hope to hear more from you.
__________________
I purr therefore I am.
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12-05-2012, 02:14 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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Welcome to the board, azphx1972.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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12-05-2012, 08:37 AM
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#6
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Recycles dryer sheets
Join Date: Dec 2012
Posts: 113
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Quote:
Originally Posted by Purron
My hobby is helping shelter animals. Like your car hobby, it makes me happy
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That is a very noble hobby and I applaud you for it.
Quote:
Originally Posted by obgyn65
Welcome to the board, azphx1972.
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Thank you obgyn65!
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12-05-2012, 09:42 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,300
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Welcome aboard. As others have already mentioned, you're in very good shape, well ahead of your peers by all indications. You only need time and (continued) discipline. Well done...
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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12-05-2012, 09:53 AM
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#8
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Recycles dryer sheets
Join Date: Jun 2002
Posts: 381
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Welcome azphx1972!
Looks pretty good to me, and we are of similar age and assets. My only comment would be you need lots more $$ in non-retirement accounts to fund the years before easy access to the retirement accounts. Looks like lots of that could come form downsizing and selling some toys.
As for the car hobby, yeah, I got that too, plus motorcycles. I currently have 4 collectible vehicles in various stages of reconditioning. In retirement, I plan on cutting this down to just one (yeah, right, lol). I won't even mention boats, RVs, motorcycles, etc!
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When you walk in the shadow of insanity, the presence of another mind that thinks and acts as yours does is something close to a blessed event. -Robert Pirsig, Zen and the Art of Motorcycle Maintenance
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12-05-2012, 11:03 AM
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#9
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Recycles dryer sheets
Join Date: Jan 2012
Location: Colorado
Posts: 254
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Quote:
Originally Posted by Midpack
Welcome aboard. As others have already mentioned, you're in very good shape, well ahead of your peers by all indications. You only need time and (continued) discipline. Well done...
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I agree, at your age I only had a small positive net worth (<100K), but I got serious about retirement and was able to retire in 16 years (5 years ago). Keep up the good work !!
__________________
Don't you know that dynamite always blows down ? --- Moe to Curly
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12-05-2012, 11:47 AM
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#10
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Recycles dryer sheets
Join Date: Dec 2012
Posts: 113
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Quote:
Originally Posted by Midpack
Welcome aboard. As others have already mentioned, you're in very good shape, well ahead of your peers by all indications. You only need time and (continued) discipline. Well done...
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Thanks Midpack!
Quote:
Originally Posted by panhead
My only comment would be you need lots more $$ in non-retirement accounts to fund the years before easy access to the retirement accounts. Looks like lots of that could come form downsizing and selling some toys.
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Thanks panhead. I concur with your assessment. I had, at age 27, a paid off house, no debt, but insufficient savings to retire. So I dabbled a bit in stocks, and got burned (I stick to low cost mutual/index funds now). Then I made the decision to increase my invest exposure to real estate (hence my current mortgage), but got bit by the fallout from the housing bubble. Oh well. The silver lining is that my mortgage rate is incredibly low, and my payment is quite manageable at under $1k. Meanwhile, I'm waiting for the market to recover some before I sell and downsize.
Quote:
Originally Posted by arky
I agree, at your age I only had a small positive net worth (<100K), but I got serious about retirement and was able to retire in 16 years (5 years ago). Keep up the good work !!
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Sounds awesome arky, that is my plan as well.
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12-06-2012, 05:04 AM
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#11
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Recycles dryer sheets
Join Date: Jun 2011
Posts: 239
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It has also only taken me about 15 years to become FI. I bought smaller rental properties in an up-and-coming neighborhood on short 5 and 7 year notes and maxed out 401K and Roths, going heavy on stocks after the downturn.
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12-18-2012, 09:21 AM
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#12
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Recycles dryer sheets
Join Date: Dec 2012
Posts: 113
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My retirement savings (401k & ROTH IRA) balance hit 500k for the first time as of EOB yesterday! It's probably short lived as the stock market fluctuates, but I'm just so excited! I probably won't share this news with anyone outside of this forum, since no one else cares lol.
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