Been thinking - am I FI now?

[Alan]

Quote:

Originally Posted by MichaelB I think you're doing fine. You have clear objectives, your assumptions are reasonable and your progress is excellent. Unexpected expenses may fall your way but you seem like you can handle them. Inflation for health care and university will probably be different but the numbers you use are as good as any. Execution is the key now, while staying healthy and enjoying life and family.

What he said

Sit back and enjoy your new status, you've earned it.

[LOL!]

When you don't have to work as a landlord anymore, then you will be FI. So when will you be able to pay someone to do the maintenance and mow the lawns? Suppose you die, will your survivors sell the real estate? Will they maintain it and work at it? Or is that really your responsibility?

[Aiming_4_55]

LOL - good comments especially for new/future landlords. As for paying someone for prop mgmt, maintenance, and repairs, I can do that now, factored in the numbers I posted. I play a game with myself to save, forecasted budget vs actual expense. Any savings go to family vacations (7 weeks last year and 4 this year - all away) or 529 plan.

If I passed, a plan is in place, most would continue with prop mgmt (family, not DW as back-up), only one would be sold to current tenant with seller financing.

If one manages his own wealth and investment income meets expenses/liabilities, is that not FI, or is it FI only if it's hands free with a hired advisor? I'm probably wrong, but FI means more freedom/choice to me where living expenses are covered.

Quote:

Originally Posted by LOL! When you don't have to work as a landlord anymore, then you will be FI. So when will you be able to pay someone to do the maintenance and mow the lawns? Suppose you die, will your survivors sell the real estate? Will they maintain it and work at it? Or is that really your responsibility?

[Beryl]

Congrats! You appear pretty FI to me with your 55K expenses, no mortgage, 1M in investments and 30K rental income.

I agree with waiting a while before retiring given you are a family of 4 and there are so many unknowns with children, rentals, and investments. Still, you should feel good about your financial situation, IMO.

[Aiming_4_55]

Thanks Beryl for your comments.

I agree on the unknowns and plan to w*rk awhile, it's just a warm and fuzzy feeling for now, especially with the recent job elimination experience.

As long as everyone stays healthy, I'll easily w*rk until 50 or later as I enjoy my career focus, then consider part time options. By 50, I should be able to add a conservative 500 - 600k to my savings without market appreciation.

Quote:

Originally Posted by Beryl Congrats! You appear pretty FI to me with your 55K expenses, no mortgage, 1M in investments and 30K rental income. I agree with waiting a while before retiring given you are a family of 4 and there are so many unknowns with children, rentals, and investments. Still, you should feel good about your financial situation, IMO.

[Enuff2Eat]

Quote:

Originally Posted by Aiming_4_55 40 years is difficult to comprehend as I'm 42. I used FireCALC and it provide positive results. I have not looked at it year by year, but have tested it for key milestones. Looks good, but I'm not ready and want more cushion.

Aiming 4 55, I think you did it!! $1mil in asset, $30k in rental income. You're at least financial secure. That's is quite an impressive portfolio. I got a couple question for you 1) how many property do u own in order to net $30k? 2)how old are your kids 3)how much do u still own the bank? 4)How do calculate the value of your properties..zillow, tax assement...? and Last, may i ask what region in the country are you at?. thanks

congrats. I m really impress. :-)

[Aiming_4_55]

Thanks Enuff.

Quote:

Originally Posted by Enuff2Eat Aiming 4 55, I think you did it!! $1mil in asset, $30k in rental income. You're at least financial secure. That's is quite an impressive portfolio. I got a couple question for you 1) how many property do u own in order to net $30k? I project 2011 to be in low 40's but used 30k as a conservative number for the future.... 4 properties, 6 rental units. Chicago, IL - 2 condos, purchased foreclosured in early 1990's and paid off within 8 years. St Paul area, MN - one SFH and one Triplex. The SFH has a mortgage, but cashflows and on target to pay off within 8 years. Triplex was acquired last year with cash and most profitable (short sale), so I provide most of the prop mgmt and maint. I hired a neighbor with a plow for snow removal already this coming winter, next year instead of an increase in rent, one tenant will be mowing the lawn. I find tenants like this better, pride in his residence. I'll cover if he's on vacation. Not counted - Chicago 4 plex - purchased in 1991 for my mom, rent paid off mortgage in 10 years. My mom lives in one unit, the other 3 cover expenses/reserves and pocket $$ for mom. She is retired and lives off her SS and can get by without the extra $$. Mom serves as the prop mgmt but I coordinate any major repairs, gives me reason to call her weekly, visit almost monthly to see how she is doing . I feel this is a cushion for the future, I do not account for any of the monthly rent or asset in my numbers. If my mom passed, I am comfortable taking over the building as needed. 2)how old are your kids? DD 5 and DS 4 in a few months, an out of pocket cost/investment of 100k that will cost me dearly, but worth every penny IMHO. 3)how much do u still own the bank? About 175k on one property, but have reserves to payoff now, but considering another purchase in cash. I'm really at a crossroad, is the extra cashflow needed or do I want the extra project. I will decide within the next 6 months as I don't like paying interest, even tho it's a pretty low rate. A good thing, but asking myself "why"? It will depend on the new job that I start next week. 4)How do calculate the value of your properties..zillow, tax assement...? Value for my properties to me, if I was going to sell or re-fi, I would look at public records (MLS, County records, Zillow) for "like" properties that sold within the last 3 - 6 months and substract 10%, then subtract potential capital gains/depreciation. I'm conservative. Now if I was trying to sell, I would tell you it's worth alot more and Last, may i ask what region in the country are you at? I reside in the Midwest - St Paul burb, MN. thanks congrats. I m really impress. :-)

Thanks, I had a 30 minute heart to heart chat (also documented) with my brother last year ... if something happened to me, how I would like him to deal with my estate. He was blown away as he's a few years older than me and everyone considered him the smart one. He is doing fine himself.

Sorry for the novel. I guess I'm more open in a forum than in real life. It's a way to share without friends really knowing.

[Enuff2Eat]

Aiming, it's quite amazing story. I also found it's easier to tell, ask, learn and most important share your life with people on this forum then my family and friends that I hang out with everyday.

4-7 weeks vacation/year?? I said YOU MADE IT!!! Just stay on course, pay off some debts and get in more good debts and I say you can really get OUT in 5 years.

My brother a college dropped out is retired in the mid 40ies. Today he is in Africa chasing zebra and lions for fun. He also vacation over 65 countries, almost at any time he pleases. Yeah, all in the name of real estate. As for me, I still holding on my job with by the string of my shoes and yet everyone in the family called "successful" one. :-)

enuff

[obgyn65]

Hello Aiming - It looks like you are set. Have you run your numbers in this free online tool :
Merrill Edge| See Where You Stand

Quote:

Originally Posted by Aiming_4_55 am I FI at age 42? or did I miss something major ?

[Aiming_4_55]

I've used a few tools. I just tried this calculator with conservative investment style. I'm on the border on a poor market and a slight cushion in an average market assuming not change in current spending.

With all things considered, working just a year can add a good cushion, but I'll probably go until I no longer enjoy what I do. Plus I want my kids to have what I never had or I personally struggled to have.

Funny thing, while in high school/ college working & school full time for most part, I didn't view it as struggling. I still had time for ROTC, dorm parties, light dating, just hanging out, but I was only getting about 4 hours of sleep a night.

Thanks for the calculator.

Quote:

Originally Posted by obgyn65 Hello Aiming - It looks like you are set. Have you run your numbers in this free online tool : Merrill Edge| See Where You Stand

[Finance Dave]

Congrats, you have obviously thought this out and been saving. I agree with others that health care and your kids are the wildcards, but you have many contingency plans. Great job!