I found this site after looking through Andrew Tobias’s site. I’m really thankful I did. It’s been extremely informative. Now, for my story.
I was financially ignorant for the first 31 years of my life. Never thought about retirement or saving really until about a year ago. Then I had to figure out what this investing world was all about. I grew up in a relatively poor, blue-collar family so I was never really taught “the system” growing up. As with most things, it took me a while for the financial light to come on and to really pay attention to my own (and now family’s) financial future. Maybe it was the birth of my daughter. I don’t know. Anyway, as result of this revelation, I’ve done the following over the last eight months or so:
Location: North Florida
Ages: I’m 32 and DW is 29.
Home: Own a house with $143,000 on mortgage but with about $160,000 in equity.
Household Income: about $100k-105k combined (wife works part time, so that child doesn’t have to go to daycare)
Monthly Expenses: Roughly $3300
Children: 1 daughter, 11 months old, will probably have two more over the next six or seven years.
Expected FIRE date: Not sure. I’ve been playing around with the FIREcalc, but I’m just not sure. I’d like to see where I am in a year of saving/investing and they maybe calculate. I’m really new to this, so I don’t want to make assumptions out of ignorance.
Lastly, we are in the process of remodeling our house to sell in about a year. We bought a fixer-upper, and b/c I grew up in a construction worker’s household am able to do almost all of the work myself. We plan to do this again with another fixer upper and between the two profits (this house and the next one) hope to have a house paid off in four to five years. In case you’re wondering, the huge Florida real estate bubble that burst is not in my neck of the woods up here. That is more in central and south Florida. Housing is still affordable and in relative demand in my area.
My questions: Any of you see any glaring omissions that I should consider? Does everything above seem on the right track? Any suggestions? Any further reading suggestions?
Thanks in advance.
I was financially ignorant for the first 31 years of my life. Never thought about retirement or saving really until about a year ago. Then I had to figure out what this investing world was all about. I grew up in a relatively poor, blue-collar family so I was never really taught “the system” growing up. As with most things, it took me a while for the financial light to come on and to really pay attention to my own (and now family’s) financial future. Maybe it was the birth of my daughter. I don’t know. Anyway, as result of this revelation, I’ve done the following over the last eight months or so:
- Read Tobias’s TOIGYEN.
- Read The Millionaire Next Door
- Read Your Money or Your Life.
- Asked many questions of a good friend who is a financial advisor (taking his official Financial Consultant exam in early June).
- Opened two Roth IRAs, one for my wife and one for me, maxing them both out for the year at 4,000 this year. They are both in Vanguard Target/Retirement Funds.
- Maxed out my 401k to the company’s matching, which is 10% of my salary with a 50% match from the company.
- Put $3,000 in Vanguard’s Total International Index Fund.
- Put $10,000 in a Rainy Day Fund in ING Direct’s Orange Savings at 4.5%.
- Have about $8,000 now in my 401k.
- Began making our will and other legal documents with WillMaker.
- In the process of getting Term Life insurance for wife and I through USAA.
- Paid off all debt, except house and a new car (used late model 4Runner with low miles) we had to buy b/c my old one was totaled. I’m paying the car off fairly quickly and am down to 16k. I’m going to pay $2,000 a month for the next eight months to wipe that out.
Location: North Florida
Ages: I’m 32 and DW is 29.
Home: Own a house with $143,000 on mortgage but with about $160,000 in equity.
Household Income: about $100k-105k combined (wife works part time, so that child doesn’t have to go to daycare)
Monthly Expenses: Roughly $3300
Children: 1 daughter, 11 months old, will probably have two more over the next six or seven years.
Expected FIRE date: Not sure. I’ve been playing around with the FIREcalc, but I’m just not sure. I’d like to see where I am in a year of saving/investing and they maybe calculate. I’m really new to this, so I don’t want to make assumptions out of ignorance.
Lastly, we are in the process of remodeling our house to sell in about a year. We bought a fixer-upper, and b/c I grew up in a construction worker’s household am able to do almost all of the work myself. We plan to do this again with another fixer upper and between the two profits (this house and the next one) hope to have a house paid off in four to five years. In case you’re wondering, the huge Florida real estate bubble that burst is not in my neck of the woods up here. That is more in central and south Florida. Housing is still affordable and in relative demand in my area.
My questions: Any of you see any glaring omissions that I should consider? Does everything above seem on the right track? Any suggestions? Any further reading suggestions?
Thanks in advance.
