truenorth418
Full time employment: Posting here.
Since this is my first post, I want to say a big “THANK YOU” to everyone on this site for sharing their perspectives and knowledge. I have been visiting for over a year and I have learned a ton!
Due to some re-structuring at mega-corp, my position is being eliminated and I only have two weeks left in the office. My employer does not know they are actually doing me a big favor since I have been preparing for early retirement for 10 years and was planning to leave on my own early next year.
I am 47, single, no kids, and I have worked in various marketing related jobs for about 20 years. About 10 years ago I realized I could take control of my life via financial independence by dramatically increasing my savings rate and learning all I could about personal finance. My initial inspirations back then were “Millionaire Next Door” and the “Rich Dad” books, but my primary motivation was the lack of control I felt while working for various big companies. No matter how strong my performance, I couldn’t get ahead fast enough. The harder I w*rked, the more my employers took me for granted.
About a year ago I decided I’d had enough and began preparing a specific escape plan with the assets I had accumulated. I have about $1.8MM in investable assets. Over the last few months, I have shifted my asset allocation to roughly 40% dividend growth stocks, 10% small/mid cap stock funds, 5% Vanguard REIT index fund, 15% Vanguard high yield corp bond fund, 20% I-Bonds, and 10% cash. Based on my assumptions, I should earn about $50k/yr with this approach, which should more than cover my expenses of $40k/yr. The stock market swoon in August provided a chance to scoop up some higher yielding stocks for less money and increase my cash cushion. The I-Bonds and stocks should help me keep up with inflation. I have run my numbers through FIRECalc and the results have been favorable.
It is worth pointing out that I currently live in New York City. It is not easy for most people to live on $40k/yr in Manhattan, but I am living proof that it is possible. I live in a 275 sq ft studio apartment. This is small even by NYC standards. But I own the place with no mortgage, and I pay less than $600/month in maintenance fees which includes property taxes. The most significant lesson I learned from “Millionaire Next Door” was to minimize housing expenses. Still, NYC is pretty expensive, and I am prepared to move to another city if necessary, but for now I will see how it goes.
Due to some re-structuring at mega-corp, my position is being eliminated and I only have two weeks left in the office. My employer does not know they are actually doing me a big favor since I have been preparing for early retirement for 10 years and was planning to leave on my own early next year.
I am 47, single, no kids, and I have worked in various marketing related jobs for about 20 years. About 10 years ago I realized I could take control of my life via financial independence by dramatically increasing my savings rate and learning all I could about personal finance. My initial inspirations back then were “Millionaire Next Door” and the “Rich Dad” books, but my primary motivation was the lack of control I felt while working for various big companies. No matter how strong my performance, I couldn’t get ahead fast enough. The harder I w*rked, the more my employers took me for granted.
About a year ago I decided I’d had enough and began preparing a specific escape plan with the assets I had accumulated. I have about $1.8MM in investable assets. Over the last few months, I have shifted my asset allocation to roughly 40% dividend growth stocks, 10% small/mid cap stock funds, 5% Vanguard REIT index fund, 15% Vanguard high yield corp bond fund, 20% I-Bonds, and 10% cash. Based on my assumptions, I should earn about $50k/yr with this approach, which should more than cover my expenses of $40k/yr. The stock market swoon in August provided a chance to scoop up some higher yielding stocks for less money and increase my cash cushion. The I-Bonds and stocks should help me keep up with inflation. I have run my numbers through FIRECalc and the results have been favorable.
It is worth pointing out that I currently live in New York City. It is not easy for most people to live on $40k/yr in Manhattan, but I am living proof that it is possible. I live in a 275 sq ft studio apartment. This is small even by NYC standards. But I own the place with no mortgage, and I pay less than $600/month in maintenance fees which includes property taxes. The most significant lesson I learned from “Millionaire Next Door” was to minimize housing expenses. Still, NYC is pretty expensive, and I am prepared to move to another city if necessary, but for now I will see how it goes.
