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Engaged in Ohio
Old 02-06-2013, 05:55 PM   #1
Recycles dryer sheets
 
Join Date: Feb 2013
Posts: 63
Engaged in Ohio

Good evening,

I've been reading here a lot lately and it's been reiterating what I've been practicing for years. I'm a 29 year old male, engaged, and been planning to ER since I started working.

I grew up with my dad as a SAHD, as he was FI and ESR with rental properties for my entire life. Mom was in education and worked and now has a great pension.

Anyway, current stash:

Mint net worth - 200k made of:
30k cash
30k traditional 401k
20k Roth IRA
120k equity in rental properties (conservative zillow estimate)

2 rentals, one cash flow at net 22k annual, the other is cash flow neutral (putting 100% back to pay off mortgage, will be paid off in 3 more years, post mortgage will cash flow net 14k annual)

Current salary fluctuates due to commissions - 80k annual gross (approx)

I put about 13k into 401k, 5k into Roth IRA a year. Save about 30k in cash a year to purchase another rental or start a taxable investment account.

I'm getting married soon and future DW is 27 and practices LBYM and approximate:
50k cash
50k tax deferred retirement
50k equity investments
0 debt
50k gross income, decent savings rate.

One question that I have right now: how did anyone here convince their significant other that RE is possible? I am lucky that she is LBYM, but she is very conservative and hesitant that we could RE with all the variables in the future. We're also looking for a house, but I could have another post on that one!

I'm all for getting out of Megacorp as quickly as possible and ESR with rentals.

I look forward to joining other posts in the future.
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Old 02-06-2013, 06:00 PM   #2
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Join Date: Oct 2012
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Quote:
Originally Posted by Papa bear View Post
Good evening,
I'm a 29 year old male, ...

Mint net worth - 200k made of:

2 rentals, one cash flow at net 22k annual, the other is cash flow neutral (putting 100% back to pay off mortgage, will be paid off in 3 more years, post mortgage will cash flow net 14k annual)

.
Gee you're off to a perfect start at age just 29. Wish I had had your common sense at that age.. would have RE's a long time ago.
Well done and good luck
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Old 02-06-2013, 06:16 PM   #3
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Quote:
Originally Posted by Papa bear View Post
One question that I have right now: how did anyone here convince their significant other that RE is possible? I am lucky that she is LBYM, but she is very conservative and hesitant that we could RE with all the variables in the future. We're also looking for a house, but I could have another post on that one!
Welcome Papa bear.

You're off to a great start. And it sounds like your future bride is of like mind - with solid savings under belt for her age.

As far as convincing her... Since you're both savers... it sounds like just showing her the numbers (via firecalc, etc.) to show you have a viable plan - would convince her. Numbers are pretty hard to argue with. If your plan is viable, it will convince her.
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Old 02-06-2013, 06:48 PM   #4
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Thanks the for support.

I am behind where my "grand plan" was (a crazy high goal that was damn near unattainable).

I've run firecalc and its tough to get a good read, based on a lot of my net worth in real estate. My DW looks at it and it seems very abstract, looking so far out in the future.

Basically, it's very psychological and I'm guessing it will take time to get her fully on board. That or convince her to let me ESR and play with houses while she works!
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Old 02-06-2013, 06:57 PM   #5
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Invite her to the forum too.

You guys ARE young. Your future @ 29 is ... well... 30 years longer then mine @ 59. And that translates into risk. RE is absolutely a leap of faith - you have planned well, got the ducks ALL lined up in a neat row.... but the leap of faith is the unknown. What if your RE date was summer 1929. Oops. Or you were in Poland and looking forward to retirement in the summer of 1939. Oops.

Point being, the longer your horizon the greater chance of an outlier on the bell curve.

Just keep the lines of communication open, and develope the plan and the timing together. Your buy-in to the future as well as hers.

Happy nuptuals, and many, many happy years together. Clink!
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Old 02-06-2013, 07:36 PM   #6
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I'll see what I can do to get her reading up on here. Worth a shot.

Great points on risk. Got a laugh out of me.
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Old 02-06-2013, 08:32 PM   #7
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Sounds like Papa Bear is on the right road. Plenty of time to convince her. Enjoy the journey
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Old 02-07-2013, 07:32 AM   #8
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Congrats on your progress!!

My guess is that while DW might be interested enough in future FI to save at a decent rate and LBYM, she is probably more interested in the next ten years being filled with wonderful adventures together living in the moment and making the most of the day given together now. Always seeing ones partner focused far down the road can be annoying at best.
My advice at your young age is to set a plan that is reasonable and stick to it but don't obsess about it day in and day out as real life slips away.
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