Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-11-2013, 10:37 AM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
Quote:
Originally Posted by 5971 View Post
Sorry. The way I listed the numbers is confusing. The first number I listed for our real estate is the approximate amount of equity in our homes based upon zillow (total property value of 1.2M and 375k in mortgages)
Oh, I see. Thank you for clarifying. As my days, Zillow is not very accurate. If the numbers matter (e.g you plan to sell in the near future) consider getting an appraisal.
__________________

__________________
Meadbh 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 12-15-2013, 12:04 PM   #42
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
Quick update. We did finally obtain a PenFed 5 yr HEL for one of our rentals. There was some snag for our primary home and I have decided just to pay that mortgage down over the next few years (we owe less than 150k at this point).

RA - 425k
Non RA and cash 575k

Tallying up our expenses for the year and they were pretty much in line with 2012.

Happy holidays to all.
__________________

__________________
5971 is offline   Reply With Quote
Hoping to retire by 45
Old 12-20-2013, 07:55 PM   #43
Thinks s/he gets paid by the post
seraphim's Avatar
 
Join Date: Mar 2012
Posts: 1,492
Hoping to retire by 45

I'd assume college expenses are going to double, at the very least, in fifteen years. Our sons college bill was $36k a year, and more kids are going for five years rather than four. After his scholarships, we were pretty much spending $2k a month, 12 months out of the year. There are MUCH more expensive colleges.

I think your plan is doable, but you're going to need enough capital for at least a 40 year retirement horizon - maybe more. I wouldn't plan on more than a 2.5% withdrawal rate or your funds may not outlast you. We use a 2%.


Make sure you have enough money to ENJOY your retirement - not just survive. I think you might have to be a bit more flexible time wise, and don't forget the possibility of emergency or long term medical expenses eating up a portion of your assets.

Good luck.
__________________
"Growing old is no excuse for growing up."
seraphim is offline   Reply With Quote
Old 12-23-2013, 01:08 AM   #44
Recycles dryer sheets
 
Join Date: Jun 2011
Posts: 81
Quote:
Originally Posted by 5971 View Post
Been following this forum for a while. This is my first post. I just turned 37 and the wife and I are planning on retiring in 7 years on a budget of about $80-90k/yr.

We are currently debt free except two 10 year mortgages (one rental) which we will have paid off by our 7 year deadline.

One of the things that may throw a wrench in our plan is saving for college. We have a 2 yr old currently and I have already started putting some money in a 529 plan, but I have no idea how much college is going to set us back in 15 years.

We have about $700k in non-retirement funds currently and about $300k in a mix of IRAs and 401(k). We will also be relying on some income from our rental property.

Hope we can make it!
Being of relatively modestly means we didn't save separately for our daughter's college. Our college savings plan was that she would either get a scholarship - or work & we would help fund the rest from proceeds of downsizing our larger pre-retirement house.

She ended up getting two academic scholarships - the expenses one doesn't pay the other one does & the leftover gets deposited in her bank account. Being Early Retired, we were able to actually move to an area within commuting distance of her public State university and she lives at home (which suits her fine) - so she actually makes money going to school. (& we, her parents, get to belong to the university fitness center for $70 per semester )

Of course, we only have one kid, who has always been an academically hard worker & self motivated, a homebody, & we conveniently retired just prior to her finishing high school .... otherwise could have been a different
story.

In any case, I'm not so sure paying 100% for a child's college is always a good plan. I do know that ours takes great personal pride in the fact she earned her tuition/books/fees through a lot of very hard academic work in high school - and it's a good thing for her that she has that to be proud of.
__________________
retiredatfifty is offline   Reply With Quote
Old 12-25-2013, 09:14 PM   #45
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
Thanks for the replies.

After thinking about this for some time, I've decided that if we get to around $125k in the 529 plan then that will be sufficient to keep our son out of substantial debt and I will likely stop contributions. If his schooling costs significantly more than that, then the plan will be work during school, work summers, scholarships, $ leftover from UTMA, $ from parents cash flow at the time, loans, parents re-entering workforce...in that order.

There is also the small possibility that he turns out to be a superstar (like Retiredatfifty's daughter) and gets substantial scholarships to college, making the 529 unnecessary. So, the $125k goal sort of hedges against that scenario.

I also agree that there is probably some danger in our kid "knowing" that college will be fully taken care of. My wife and I both had varying degrees of financial help, but still had substantial loans to pay off. Learning to budget while taking out loans and while re-paying loans was a sometimes painful, but very educational process.

The plan is to retire at 45 (class of 2020) with a <100K/year budget. We are shooting for a SWR of 3.5%. This will not take into account social security and the possibility of some part time work or possible ancillary income from hobbies. We will also likely downsize when the nest is empty and take some equity out of our primary home if needed.
__________________
5971 is offline   Reply With Quote
Old 12-26-2013, 08:21 AM   #46
Recycles dryer sheets
 
Join Date: Dec 2011
Location: Chicago area
Posts: 427
Quote:
Originally Posted by 5971 View Post

The plan is to retire at 45 (class of 2020) with a <100K/year budget. We are shooting for a SWR of 3.5%.
Good luck and nicely done so far! We retired in 2012 at 43 and 42 yo and have two tween aged kids. It has been wonderful and I feel very fortunate to be in this situation.
__________________
AnIntentionalRoad is offline   Reply With Quote
Old 03-19-2014, 08:06 PM   #47
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
Quarterly update.

According to MINT we are teetering at $2M net worth depending on where the market is at.

Retirement accounts - 475k
Cash and non RA - 600k
Rental properties - 450k

I missed out on the PenFed 3% cd offer unfortunately, but I was able to purchase extra shares of VTI when it was down below 92 recently.

It's nice to hit $2M at 40 and I think we are right on track to get to at least $3M by 45.
__________________
5971 is offline   Reply With Quote
Old 07-05-2014, 09:22 AM   #48
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
Quick quarterly update.

We had some unexpected medical expenses and a big expensive vacation this quarter so we saved less than usual. The markets, however, have been very kind to the retirement accounts (now >$520k). Our mortgages are down to under $250k. We are moving along as expected with about 5 more years to go.


Sent from my iPad using Early Retirement Forum
__________________
5971 is offline   Reply With Quote
Old 07-07-2014, 08:48 PM   #49
Dryer sheet wannabe
 
Join Date: Jan 2013
Posts: 14
Congrats on almost reaching $2M! We are a couple years younger than you are and hoping to RE about the same time. We have close to what you have saved in investable assets (about $100k less). Not really counting our home since we are not planning to sell it and no rental property here. Similar income and hoping to put $200-250k yearly into our accounts in the next few years. Hoping to have $3M, paid off home, and college costs set aside by 2020 and have DH work a few (3-5) extra years for health insurance and to bring assets closer to $4M. It will be great to compare our net worths every quarter and maybe keep each other accountable. Here's to the possibility of RE in 2020!
__________________
darly2004 is offline   Reply With Quote
Old 07-13-2014, 10:26 PM   #50
Dryer sheet wannabe
 
Join Date: May 2011
Location: San Francisco
Posts: 17
Congratulations on the impressive NW increase in the past few years!

We are pretty much where you were when you first started this thread, in terms of liquid assets, income, and non-mortgage expenses, except that we don't have investment property.

We are also hopefully on a 7-10 year timeline, so I am especially interested in your quarterly updates, since I think we will need roughly the same amount of money to FIRE. Hope you continue with this excellent progress!
__________________
norcaldreamer is offline   Reply With Quote
Old 09-17-2014, 08:56 PM   #51
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
Thanks for the responses Darly and NorCal.

This last quarter was somewhat blah. We had filed a tax extension in April for various reasons and I was expecting a return, but we actually ending up owing some instead. In addition, we lost a renter for a few months and spent that time and some money updating our rental property. Also, the market was relatively flat from July to September.

Net worth according to mint is hovering just above 2.1 million so we remain on track.
__________________
5971 is offline   Reply With Quote
Old 09-17-2014, 09:24 PM   #52
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 1,578
So far so good, keep it up and having that end goal in mind. I think you will make it, and you can celebrate the result once you get there!

I assume you are confident in your total income staying at current levels and that you will maintain the savings rate you have been doing? That seems the biggest variable to me, your high income is what has enabled to have the savings you do, of course notwithstanding the LBYM lifestyle choices.
__________________
After Monday & Tuesday even the calendar says, W-T-F...

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/16 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Old 12-13-2014, 09:56 AM   #53
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
Nothing too interesting this last quarter, which i guess is good. Mint has us with a net worth around 2.2 million.

I'm hoping to hit our next milestone, 2.5 million, by mid 2016. The 2.5 mil number has always been the FI number I've traditionally kept in my head (4% WR = 100k). Now I know we probably need more than that, but it's a good short term goal to shoot for.

Our income has stayed relatively steady over the last few years and will probably be close to $600k this year with rental and dividend income added in. I am moderately optimistic that our salaries will stay steady over the next 5 years.

We now have two relatively new cars which should last 5+ years each, I don't foresee any new home reno projects or additions, we only have 2 years left on one mortgage, and we have a large chunk of our one child's 529/UTMA funded already. So I think we will be able to save an unprecedented amount over the next 4+ years.




Sent from my iPad using Early Retirement Forum
__________________
5971 is offline   Reply With Quote
Old 12-14-2014, 10:45 AM   #54
Full time employment: Posting here.
 
Join Date: Jul 2014
Posts: 616
Thanks for checking in, I love seeing these updates from posters. Nice progress on your goals and continued good health and good luck!
__________________
Katiek is offline   Reply With Quote
Congrats & Shortcut
Old 12-23-2014, 09:54 AM   #55
Confused about dryer sheets
 
Join Date: Dec 2014
Posts: 3
Congrats & Shortcut

Nice job on your progress toward early retirement! You show a commitment and self discipline that is rare and clearly fuels your success.

Ultimately, we all decide how we will spend our time. If you enjoy your work, carry on. If you'd prefer an immediate early retirement, keep reading.

You're already a landlord so understand that business. But with just a few units, vacancies and managing can become a hassle. 30 units seems to be the magic number to be able to afford a manager to handle the day to day duties and still generate enough income to pay all operational expenses, a mortgage, a manager and all your personal bills too.

Houses cost too much per unit as compared to the rent stream. Plus it takes forever to buy 30 of them. So apartment complexes or mobile home parks are an "instant" way to early retire with 95% passive income. I prefer mobile home parks with lot rentals only as that gets you out of dwelling repairs and tenant turnover. Apts and mobile home parks sell for 10 X net operating income so are great capital gain investments. They also earn huge monthly income so are great cash flow investments too.

As for saving for college, I'd recommend against. Statistics are clear that for most kids it's just a waste of 4 years and $100k +. Targeted training classes are cheaper and much more focused. Make the kid get out into the world and produce something or create value as soon as possible. You'll be doing them a favor. In 15 years, everything a kid can get from college will be online or in some training software they can master in 3 months or less.

Congrats on creating your own good luck.
__________________
Moneytree52 is offline   Reply With Quote
Old 12-23-2014, 08:00 PM   #56
Recycles dryer sheets
swakyaby's Avatar
 
Join Date: Feb 2011
Location: Northern Cal
Posts: 229
I was wondering what your plans are for paying for health care prior to Medicare. Is the 80-90K budget including this cost?
__________________
swakyaby is offline   Reply With Quote
Quarterly update
Old 06-12-2015, 05:34 PM   #57
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
Quarterly update

I just realized that I missed last quarters update

Anyways, we continue to truck along without any major hiccups.

MINT.com has us rapidly approaching a net worth of 2.5 M (2.0 M without the equity in our primary home). We should be on pace to surpass 3.0 M by our FIRE date of January 2020. With a little luck we could potentially hit 3.5 M or even more.

Some interesting numbers from 2014

Expenses $81K
Mortgages $140K
Taxes/insurance $205K
Invested RA/nonRA $150K

Numbers are a little open to interpretation because some of the invested money went into our son's 529/UTMA, which is not counted in our net worth. Also, we had some one time purchases last year which were purchased with money earmarked from years prior; so our expenses are actually higher than 81K.

Someone asked about our allotment for healthcare. We will be able to keep our current plan thru 2020 if I leave work the beginning of the calendar year, which I may do for tax purposes. I have actually looked a little bit at the health care exchanges for high deductible health care plans for our family and the premiums arent much different from what we are paying now.
__________________
5971 is offline   Reply With Quote
Old 12-27-2015, 12:08 AM   #58
Recycles dryer sheets
 
Join Date: Aug 2012
Location: Murfreesboro
Posts: 57
End of year update.

The market has been down slightly over the last 6 months since I last posted.

Our net worth is just over 2.5 Mil at this point. 529/UTMAs are about 75% funded at this point.

Nothing really groundbreaking over the last 6 months. In the spring we will need to find a new tenant for one of our rentals. We will also be down to just one mortgage at that point.

We should be still be on pace for ER by 2020.

Happy Holidays to all.
__________________
5971 is offline   Reply With Quote
Old 12-27-2015, 12:25 PM   #59
Full time employment: Posting here.
 
Join Date: Jul 2014
Posts: 616
Thanks for the update. I always enjoy seeing the progress people make. Happy holidays to you!
__________________

__________________
Katiek 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


 

 
All times are GMT -6. The time now is 02:51 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.