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Finally pulled the trigger
Old 08-20-2012, 12:18 PM   #1
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Finally pulled the trigger

Finally pulled the trigger, part of it thanks to some of the detailed introductions on this forum. Thought I would provide my own to maybe inspire someone else. 42 y/o financial executive/professional/entrepreneur, married with one small child.

$$$:
Approximately $2.5M in a 70/30 portfolio with about .3 of that in retirement accounts. I have about 7 funds/ETF's in the portfolio including S&P (majority of the stock), SmallCap, Europe, Asia, TIPS and ST Bonds. The retirement is all TIPS/Fixed income. I balance every year, usually end of year, and if there are any big swings I might think of myself as a brilliant market timer and move more heavily one way or the other (considering getting a little lighter on equity right now). I have also moved everything into small caps in January a couple of times and won. I know its gut/luck but its historically pretty reliable luck. House is worth $500K and have a $200K 15 year at 3%.

Attribute net worth to: i)Starting/selling own company (I believe in my smarts/hard work, but even I know that this is at least 50% luck with the other 50% REALLY HARD WORK/STRESS; ii)Not freaking out in 2008 (saved me at least $500K, would have been better if I was better balanced at the time - live and learn), iii) My latest corporate job which I have been at for a few years now; and iv) Living well but below means and not investing in (too many) risky things after the first risky thing paid off.

Budget:
-We have typically spent between $80K and $100K/year including mortgage and a couple of home upgrades, we would be comfortable at $80K
-Medical is private, high deductible
-Child is now in good public school system
-Wife has medical condition that can/could spike things, but other than that we are very healthy/fit
-I have a ridiculous amount of air and hotel miles
-We buy reasonable cars for cash and drive them forever
-Parents fine, probably inherit something in 6 figures, but not counting on it.

Why/Retired Work/Life:
-While I have a reasonably high paid dream job (averaged about $250K the last few years), I can't do the travel/hours and corporate bs anymore.
-Want to help support spouse more in her ambitions even though they do not pay much more than $5-$10K/year.
-Want to travel for pleasure more and do more camping/outdoor activities with family. Just focus on living well.
-I will continue to consult on select/interesting opportunities and shoot for $50K/year in cash fees at a high hourly rate. Some of that could be with my old Company, but like to wean myself off of that and diversify if I can. Some years might be nothing, others might be $100K+. I think the challenge will be turning down highly paid work for leisure or more interesting low-paying (but high upside) opportunities. That is how I got into the latest corporate job in the first place!
-Worst case (if noone wants me) I can always teach online at about $30/hour (have done it part-time for a number of years).
-Like to maybe spend a couple of years out of the country, perhaps South America.
That's it. Let me know if you have any questions/comments. I have of course run Firecalc and tried to plot out probabilities etc and wrung my hands about leaving a well paid gig with medical. At some point you just have to take the plunge and see what happens.
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Old 08-20-2012, 12:31 PM   #2
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Welcome aboard, PutAForkInMe. Sounds as though you've done very well.

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Old 08-20-2012, 12:43 PM   #3
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Just checking your state of residence, and seeing where you are, I could not believe that you picked your screen name. Didn't you think of the following logo? You asking to get seriously hurt?



Welcome to the forum anyway, fellow Arizonan.
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Old 08-20-2012, 01:00 PM   #4
Confused about dryer sheets
 
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NW - You read alot into a screen name. No, I don't have a Sun Devil S&M fantasy: PutAForkinMe as in "I'm Done!".
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Old 08-20-2012, 01:03 PM   #5
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I am sorry. I forgot that you have not been here long to know that I like make jokes and to tease people.

Yes, I know that you meant that you are "done".

Welcome aboard again.
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Old 08-21-2012, 10:53 PM   #6
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Welcome. It looks like you are set.
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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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Old 08-22-2012, 07:37 AM   #7
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Welcome PutAForkInMe,

Congrats! Our stories are very similar. I retired last Friday at 43 after selling my business and then spending a year doing the earn out as a corporate drone.

We are moving aboard a 42' sailing yacht this week and will be cruising the islands for a year, homeschooling along the way.

As for work, I'm planning to continue to teach a few classes PT and also continue to work as a startup advisor mostly for equity.

Fortunately beside our portfolio we have made a few small angel investments over the past 6 years which are currently paying about $5k/mo in dividends. I actually prefer to invest in high cash flow service businesses that have a good chance of success and returning my investment with dividends (vs the high growth high failure internet startups that are all the rage).

Keep us updated!

AIR
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Old 08-22-2012, 08:26 AM   #8
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Congrats on your success and best wishes in retirement. It sounds to me like you have your head screwed on the right way and understand your priorities in life
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Old 08-22-2012, 08:28 AM   #9
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Congratulations!! Looks like you are all set financially. I suggest that you consider taking a year to lay low and think about what you want to do with the rest of your life before plunging back into anything.
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Old 08-22-2012, 10:15 AM   #10
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Welcome to the forums and congratulations on pulling the trigger.
This made me curious:
Quote:
Originally Posted by PutAForkInMe View Post
-Worst case (if noone wants me) I can always teach online at about $30/hour (have done it part-time for a number of years).
What kind of online teaching did you do?
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Old 08-22-2012, 03:04 PM   #11
Confused about dryer sheets
 
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An Intentional Road - congrats to you as well! I wish my portfolio was a little more similar...(there I go again, thinking I need more). Sailor, its online facilitation for a professional designation. Its only supposed to be a supplemental thing, but I know a few people that do it full time.
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Old 08-24-2012, 07:22 AM   #12
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Congratulations, Stick a Fork in Me. You sound like a smart, supportive husband with a great set of priorities. Our situations are very similar. I just turned 42, have a $2.2 portfolio, and have been toying with retirement for several years, and I just got let go yesterday so it's official. I'm retiring! Unlike you, I don't have a child though. The thing to remember is that at our age it's impossible to imagine not doing some kind of work to provide a) extra income, b) sense of community, and c) sense of purpose. So, while we hem and haw about having the perfect porfolio base, chances are we'll be taking in another 20k or more every year just by consulting, teaching, part-time work at the bookstore, etc. And with healthcare reform now, we should have better quality health insurance available at lower cost - at least here in New York where the private market pre-reform is/was absolutely horrendous.
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Old 08-24-2012, 10:24 AM   #13
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Congrats. I hope to be exactly where you are at in 5 years!
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Old 08-26-2012, 02:21 AM   #14
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Great screen name! Welcome and best of luck. I hope to read more about your ER adventures...
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Old 08-26-2012, 05:43 AM   #15
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PutAFork: "At some point you just have to take the plunge and see what happens."

Truer words have never been spoken. Congrats on having the guts to take the plunge.
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Old 08-26-2012, 08:29 AM   #16
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I am wondering about your tax situation. With 70% of your assets in a taxable account and apparent short term market timing moves, are you not getting killed on income taxes?
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Old 08-27-2012, 11:10 AM   #17
Confused about dryer sheets
 
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LOL - if I "move more heavily" in one direction or the other, it is generally on securities I have held for over a year and/or where I have offsetting losses or loss carry-forwards. Have to weigh the benefits of having the right portfolio mix with the downside of having to pay a little tax now. The times I have moved more heavily into something for a short term, there will be some tax rationale (either I have some losses somewhere else, or need to sell/move something regardless), but I suppose the more whimsical rationale is that I'd rather capture the higher gain, pay the tax, and then be in a much lower risk portfolio for the rest of the year. Again, I've only done this a couple of times, so all the stars have to align...Don't worry, I'm not going to try convince anyone about market timing or technical analysis. Invest, balance, repeat (and don't read Black Swan if you enjoy sleeping).
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