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Old 03-13-2015, 10:12 AM   #21
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Join Date: Mar 2012
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Quote:
Originally Posted by YoungSaver View Post
Hi everyone. I've browsed this forum for several months and decided to join after hitting a personal milestone. I finally made it to $100k in my 401(k).

Total savings minus mortgage is about $110k. I have about $150k in retirement accounts and have decided that's enough. I'm now trying to accumulate funds in my non-qualified account.
3 years later...34 years old now.
$183k in 401(k)
$66k in Roth IRA
$65k in non-qualified
$(70k) mortgage

Total savings minus mortgage is about $244k.

Been doing the minimum to get company match in the 401(k). Have not contributed to Roth or non-qualified lately. Stock market has gone way up in the past few years (Thanks Obama /sarcasm). I still travel often.

Everything seems to be on track. Trying to build up my emergency fund currently since I had some pretty major unexpected automotive expenses last year.

Still hoping to be FI by 40. I know I will need to start saving more, but the wild fluctuations (gains) in the market lately make it seem like I'm progressing faster than I thought I would be.
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3/5/2012 - Total savings minus mortgage is about $110k.
3/19/2013 - $250k in my investment accounts and mortgage at $79.5k. Total : $170,500
7/2/2014 - $300k in my investment accounts and mortgage at $73k. Total : $227,000
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Old 03-13-2015, 10:15 AM   #22
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New guy, 30 years old
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Originally Posted by YoungSaver View Post
3 years later...34 years old now.
Maybe you need to adopt my sig line...
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Old 03-13-2015, 10:19 AM   #23
Recycles dryer sheets
 
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New guy, 30 years old

Maybe you need to adopt my sig line...
Naw, I posted the original post about a week before my birthday. I guess I should have called the thread "New guy, nearly 31 years old." Sorry for the confusion.
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3/5/2012 - Total savings minus mortgage is about $110k.
3/19/2013 - $250k in my investment accounts and mortgage at $79.5k. Total : $170,500
7/2/2014 - $300k in my investment accounts and mortgage at $73k. Total : $227,000
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Old 03-13-2015, 05:26 PM   #24
Recycles dryer sheets
 
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Originally Posted by YoungSaver View Post

$400k is my current magic number, however $500k is probably more realistic. $500k * 4% = $20k annual. 40 years old is the "I'm dreaming" age, however retirement at 50 is very realistic. I eventually see myself living overseas 4-5 months out of the year and coming back to the US to work part time for 7-8 months. So ideally I need to accumulate $400k in 20 years. That's possible, but I enjoy my freedom and am not motivated to work extra hard to make it happen by age 40. The extra hard route involves a night job and a roommate.

That's me. I look forward to being a member of this website.
I wish I found this forum YEARS ago. I'm turning 40 this year and between 30 and 40 a lot changed... mostly married, family... and that changes EVERYTHING. However LBYM will pretty much always work so keep that up and you can achieve your goal.

Luckiest thing I ever did was marry an SO that has the same goals I do. We NEVER fight about money and I've seen friends and family ripped apart by this. We just live a good life, value experience over stuff, drive older cars, take cheap vacations and avoid environments where there is a lot of conspicuous consumption.

When I was 24 I had an internet company that was doing pretty well, I bought a new BMW and thought I was the SH*T. Then the market crashed and it all went bye bye. That BMW was like a noose around my neck for 2 years. After that I became a dedicated LBYMer and started making much better financial and career choices.

But I'm amazed at how much the right counterpart (or if you can't/don't want one) no counterpart matters in the equation.
Maybe there should be a FIRE dating site :P
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Old 03-17-2016, 02:41 PM   #25
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Posts: 89
1 year later check-in. Girlfriend moved in with me. Pays some rent. Otherwise, nothing has really changed except for some more automobile expenses (engine replacement) and I took out a second mortgage to invest in a business opportunity. Net worth has been all over the place.

$179k in 401(k)
$64k in Roth IRA
$64k in non-qualified
$(65k) mortgage
$(17k) in second mortgage

Total savings minus mortgage is about $226k.

Quote:
Originally Posted by YoungSaver View Post
$183k in 401(k)
$66k in Roth IRA
$65k in non-qualified
$(70k) mortgage

Total savings minus mortgage is about $244k.
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3/5/2012 - Total savings minus mortgage is about $110k.
3/19/2013 - $250k in my investment accounts and mortgage at $79.5k. Total : $170,500
7/2/2014 - $300k in my investment accounts and mortgage at $73k. Total : $227,000
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Old 03-17-2016, 05:56 PM   #26
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You're doing quite well!
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Old 03-17-2016, 06:59 PM   #27
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Nice progress overall- congrats on sticking to your FI goals. Which state are you in, that makes a difference. I'm about where you want to be in age and approx your target number. However, I don't feel I'm FI - I need at least twice the amount if not more for a long retirement. So my goal is to be FI by 50 with at least 1.2MM for approx $42k per year expenses.
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Old 03-20-2017, 01:57 PM   #28
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Join Date: Mar 2012
Posts: 89
1 year later check-in. 36 years old a couple days ago. Girlfriend is going good. Had non-emergency surgery last year. Cheap insurance = high deductible. Maxed out 401(k) to lower my AGI and can deduct some medical expenses. Business I invested in should open in a couple months. Net worth has been going up quickly. Thanks Obama/Trump.

$235k in 401(k)
$77k in Roth IRA
$73k in non-qualified
$(60k) mortgage
$(13k) in second mortgage

Total savings minus mortgage is about $312k.

Quote:
Originally Posted by YoungSaver View Post
$179k in 401(k)
$64k in Roth IRA
$64k in non-qualified
$(65k) mortgage
$(17k) in second mortgage

Total savings minus mortgage is about $226k.
__________________
3/5/2012 - Total savings minus mortgage is about $110k.
3/19/2013 - $250k in my investment accounts and mortgage at $79.5k. Total : $170,500
7/2/2014 - $300k in my investment accounts and mortgage at $73k. Total : $227,000
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Old 03-20-2017, 02:02 PM   #29
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 89
Summary:
March 2012, Total savings minus mortgage is about $110k
2013
2014
March 2015, Total savings minus mortgage is about $244k
March 2016, Total savings minus mortgage is about $226k
March 2017, Total savings minus mortgage is about $312k
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3/5/2012 - Total savings minus mortgage is about $110k.
3/19/2013 - $250k in my investment accounts and mortgage at $79.5k. Total : $170,500
7/2/2014 - $300k in my investment accounts and mortgage at $73k. Total : $227,000
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Old 03-20-2017, 03:38 PM   #30
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Location: Whitinsville, Mass
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"1 year later check-in. Girlfriend moved in with me."
I kinda giggled alittle here ! I'm picturing your 2018 check-in post to begin something like this.........
Wedding went great , wife is talking about having a bunch of babies !!!


Good job having a plan in place !
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Old 03-21-2017, 09:52 AM   #31
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Why do you subtract your mortgage from your savings? That makes little sense, unless the home the mortgages are on is worthless. Your net worth conservatively, would be your total savings without accounting for any equity in your home.
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Old 03-21-2017, 11:35 AM   #32
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Agree... if he is going to include mortgages then he should include value of collateral as well... or better yet, just exclude mortgages.
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Old 03-21-2017, 11:41 AM   #33
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Originally Posted by Golden sunsets View Post
Why do you subtract your mortgage from your savings? That makes little sense, unless the home the mortgages are on is worthless. Your net worth conservatively, would be your total savings without accounting for any equity in your home.
If he doesn't want to sell the house, then counting the mortgage as a negative balance but not counting the value as a positive balance reflects the "liquid" worth of his money minus debt. I.e. he could use his monetary assets to pay off the mortgage and have the house paid for and the amount of his calculation remaining in his portfolio.

I wouldn't include my home equity (for a house I plan to live in and keep) as part of my investment balance for determining withdrawal rates. I would, however, include any payments required for owning the home in my calculations for expenses. This just seems to be a different way to do that imo.
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Old 03-21-2017, 12:17 PM   #34
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Originally Posted by exnavynuke View Post
If he doesn't want to sell the house, then counting the mortgage as a negative balance but not counting the value as a positive balance reflects the "liquid" worth of his money minus debt. ...

I wouldn't include my home equity (for a house I plan to live in and keep) as part of my investment balance for determining withdrawal rates. I would, however, include any payments required for owning the home in my calculations for expenses. This just seems to be a different way to do that imo.
We've discussed plenty of times how NW including home equity is a somewhat erroneous number if you're looking to calculate how much you can spend off of it. That said, I think in your mid-30s, or 40s, or really any time before you're definitely settled in your "forever" home, neglecting the value of that asset is a mistake that could lead you to work too long.

In our case, DW and I are late 30s. We have roughly 60% of the value of our home in equity, and owe ~40% on the mortgage. Relative to our investable assets, that equity which we could realize on the sale of our home would increase our available assets by another 40%.

That's not insignificant, especially if we were to move from our high COL area to a lower COL area.

So I agree with others that subtracting the mortgage from your savings is conservative to a fault, and more conservative than anyone in their 30s probably needs to be.
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Old 03-21-2017, 12:31 PM   #35
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Thanks for the updates - love hearing how things are going. Glad you're on track, and whether or not you eventually RE, FI gives you a lot of options.
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Old 03-21-2017, 12:33 PM   #36
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I guess I would frame what nash031 said differently... home equity is always part of net worth... by definition since net worth is total assets less total liabilities and the house is part of total assets and the mortgage is part of total liabilities.

However, you can only live off a subset of your net worth... so your house would be excluded from the assets you can live off of unless selling and renting or selling and downsizing is part of your plan. Even if you exclude the house it is included in a backwards way in that your expenses don't include the cost of rent but do include taxes, maintenance, etc.

But nonetheless, I think it is inappropriate to include debt in measuring what you have to live off... a better approach is to exclude debt but include debt service in your expenses. That is what we would do in Firecalc... exclude the debt in calculating our portfolio number but include the debt service in cash outflows.. preferably as off-chart spending with an offset when the debt service ends.
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