Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Getting Inspired
Old 04-14-2008, 03:17 PM   #1
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 6
Getting Inspired

Hello All,
I finally signed up after lurking here for the last few months. I get a lot of inspiration from reading various postings and I am definitely aspiring to FIRE early, although I am not sure at what point I can do so.

Here are my statistics:
- Age, 41 and wife is 37
- 2 Daughters, ages 11 and 9
- Combined income of around 200K
- 401K - about 400K
- IRAs - 20K
- Savings - 80K
- Mortgage - 400K, Equity - 450K
- No credit card or car payments
- College Tuition fully paid for
- 529's - 10K
- Saving rate about 50K/year

I think I should have not taken out such a big mortgage. There are days where I think we should sell our house and buy a smaller one around 300K for cash then we could live on one income and really boost our savings rate up to perhaps 100K/year.

Once the kids are out of the house and if we have no mortgage (sell the current one), I truly believe we can live on 50K / yr. My goal is around 52 - 55 to FIRE. Perhaps the wife would work a few more years after I FIRE. Do you think this is a reasonable plan?

Thanks.
__________________

__________________
VQTB is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-14-2008, 05:54 PM   #2
Thinks s/he gets paid by the post
Coach's Avatar
 
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
VQTB, at first glance it looks like a reasonable plan to me. Have you plugged your numbers into FIRECalc? There's a link at the bottom of the page.

Welcome aboard!

Coach
__________________

__________________
Coach is offline   Reply With Quote
Old 04-14-2008, 06:33 PM   #3
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 6
Lately I have been almost obsessive about early FIREd. I think part of it is due to the high level of stress at work. Early this year, I got a mild case of shingles which I attribute to the stress level.

Sometimes it seems so far away. I know I need to relax and enjoy the ride.
__________________
VQTB is offline   Reply With Quote
Old 04-14-2008, 09:34 PM   #4
Full time employment: Posting here.
GoodSense's Avatar
 
Join Date: Jul 2007
Posts: 678
Welcome! Without doing much calculation, it looks like a reasonable plan at a glance. The questions are whether your wife is on board about working after you RE, health insurance, and how much you want to put into your daughters' 529 plans.

I think all of us young dreamers are obsessed with FIRE. That's why some of us spend so much time on this board. If work is really stressful to the point of threatening your health, then maybe you should think hard about whether you can/should keep it up for another 12-15 years. Of course that's easier said than done.

In any case, welcome to the board!
__________________
GoodSense is offline   Reply With Quote
Old 04-14-2008, 11:41 PM   #5
Full time employment: Posting here.
 
Join Date: Jan 2007
Location: Thousand Oaks
Posts: 839
since you are asking for opinions :-)
if it was me, i would go with your feeling about downsizing the house
assuming you can sell it at a price you can live with.

increasing your savings rate might make all the difference in meeting your
fire goal.
__________________
mh is offline   Reply With Quote
Old 04-15-2008, 07:54 AM   #6
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 6
I've been trying to convince my wife for the last three years to downsize. I thought back then we were near the top of the housing bubble. However, she is reluctant since the kids are still young and we are in a real good location with good schools. We have probably seen a decrease of 150K in our house since the top - not that others are not in the same situation as well.
__________________
VQTB is offline   Reply With Quote
Old 04-15-2008, 11:00 PM   #7
Thinks s/he gets paid by the post
DblDoc's Avatar
 
Join Date: Aug 2007
Posts: 1,224
Quote:
Originally Posted by VQTB View Post
I've been trying to convince my wife for the last three years to downsize. I thought back then we were near the top of the housing bubble. However, she is reluctant since the kids are still young and we are in a real good location with good schools. We have probably seen a decrease of 150K in our house since the top - not that others are not in the same situation as well.
That makes it tough.

DD
__________________
DblDoc is offline   Reply With Quote
Old 04-16-2008, 05:24 AM   #8
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
Welcome to the board!

Re downsizing, how would you pay cash for a 300k house? Looks like you've got 80k there. Would you raid the 401k?

Just curious, what part of FL are you in?

Regarding inspiration I understand the feeling. I thought I was the only guy in the world with a real FIRE plan until I happened upon this forum.
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 04-16-2008, 08:31 AM   #9
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 6
Maurice,
The house in my area are now probably going for 850K. Therefore, I have roughly 450K in equity minus the 400K mortgage. I'm in the Tampa area.
__________________
VQTB is offline   Reply With Quote
Old 04-16-2008, 08:56 AM   #10
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
Ah - sorry. Missed that equity line.

Looks like a good plan. I'm a few months away from being mortgage free and can't wait.


(i should add a number of people on this board think being w/o a mortgage doesn't make sense)
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 04-16-2008, 04:21 PM   #11
Thinks s/he gets paid by the post
Rambler's Avatar
 
Join Date: Jul 2007
Posts: 2,250
....and there are a few of us on this board that think being without a mortgage makes all the sense in the world. Mortgage free for 13 years...been that way since age 33, and it is one of the most comfortable feelings in the world.

R
__________________
Rambler is offline   Reply With Quote
Reducing the footprint
Old 04-16-2008, 07:19 PM   #12
Recycles dryer sheets
Bryan Barnfellow's Avatar
 
Join Date: Feb 2004
Location: Switzerland
Posts: 338
Reducing the footprint

I would recommend that you consider downsizing when prices recover. Reducing your costs of infrastructure is a great way to build assets for your FIRE'd future!

My wife and I live in a one-bedroom apartment which we own outright. We bought it for a song and spent an equal amount fixing it up -- it's amazing what kind of imported Italian tiles you can afford when you only need seven of them!

We paid off the small mortgage last December and utterly enjoy the feeling of absolutely zero debt. Today I took the day off from work and we walked by the ocean and had a nice lunch nearby. We call it "practicing" for early retirement. A big house with all the attendant infrastructure costs that go with it is anathema to us!

- BB
__________________
Bryan Barnfellow is offline   Reply With Quote
Old 04-16-2008, 08:10 PM   #13
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 6
Bryan,
I agree there are other inherent costs with a big house such as higher utilities, maintenance, insurance and taxes. My insurance is $3500/yr and taxes are $12000/yr. I can't quite downsize to a one bedroom apartment just yet with two girls. I am not sure I would ever downsize to that small. Got to have at least two bathrooms.
__________________
VQTB is offline   Reply With Quote
Living Space
Old 04-17-2008, 07:50 AM   #14
Recycles dryer sheets
Bryan Barnfellow's Avatar
 
Join Date: Feb 2004
Location: Switzerland
Posts: 338
Living Space

VQTB,

I understand. My example works because we have no children and have high personal space thresholds, which is essential.

My sense of your situation is that you are planning well and addressing the right issues. Congrats.

-BB
__________________

__________________
Bryan Barnfellow is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Who Is/Was The Person Who Inspired You the Most?? FinanceDude Other topics 16 01-04-2007 02:17 PM

 

 
All times are GMT -6. The time now is 12:18 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.