Hoping to retire by 45

[5971]

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.

 

[38Chevy454]

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.

 

[5971]

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

 

[Katiek]

Thanks for checking in, I love seeing these updates from posters. Nice progress on your goals and continued good health and good luck!

 

[Moneytree52]

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.

 

[swakyaby]

I was wondering what your plans are for paying for health care prior to Medicare. Is the 80-90K budget including this cost?

 

[5971]

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]

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.

 

[Katiek]

Thanks for the update. I always enjoy seeing the progress people make. Happy holidays to you!