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11-14-2019, 04:12 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
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No more mortgage!
This was an unusual year for us for income due to a merger and change in control clauses (RSU's vesting, bonuses early). We managed to save enough to pay off our mortgage, but let it sit in a MM for a couple of months while we examined our options. After much analysis and then a bit of emotion, we wired $572,838.49 to our mortgage bank today and I just verified with them that it hit the account and our mortgage balance is zero. The PI payment will go into our taxable account and our 60/40 AA.
This is very surreal for us as 6 years ago we we had a net worth of zero and were spending way more than we made. Then we read The Millionaire Next Door and fixed our spending. Now we have $1M in retirement savings and a paid off house. And a good shot at retiring in 2 years @ 56.
Life is good!
Tom
__________________
Consistently sets low goals and fails to achieve them.
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11-14-2019, 04:14 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,130
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I am speechless that you have been able to save that amount in such a short time. You must have a very large income. Congratulations!
__________________
And whatever your labors and aspirations in the noisy confusion of life, keep peace in your soul. With all its sham, drudgery, and broken dreams, it is still a beautiful world. Be cheerful. Strive to be happy.- Desiderata by Max Ehrmann
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11-14-2019, 04:19 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
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Quote:
Originally Posted by MissMolly
I am speechless that you have been able to save that amount in such a short time. You must have a very large income. Congratulations!
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We do have a very large income. But somehow we managed to accumulate $160k of consumer debt, a $500k mortgage and we were spending $3k more a month than we made. That was on $350k of income.
Now we make twice that (this year we made 4x that) and our expenses are $120k / year plus whatever we decide to blow that dough on (which was quite large this year).
__________________
Consistently sets low goals and fails to achieve them.
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11-14-2019, 04:21 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: ATL --> Flyover Country
Posts: 6,649
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Congrats!!! Many people here will disagree, but I think being mortgage free is one of the tenants of being financially independent! And it sure feels good, too...eh?
__________________
FIRE'd in 2014 @ 40 Years Old
Professional Retiree
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11-14-2019, 04:28 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
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Congratulations on your change of priorities. And a paid for home is often important in order to ER.
We bought a 3900 square foot house a month ago and paid cash. Unfortunately, it's going to take me 2-3 months to get the old 5200 square foot house ready to sell because of the luxury of having 4 car garages--and too much good stuff to wade through.
ER comes down to living on far less and saving far more than normal people on a percentage basis. Living below one's means.
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11-14-2019, 05:29 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jan 2017
Location: Hog Mountian
Posts: 2,077
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Congrats on sobering up (financially)! And paying off the mortgage monster.
We are actually going to incur a modest mortgage in retirement. But for specific reasons. We are moving from the frying pan into the fire (that's for another post). Anyhoo, we know we are buying our last home and want to upgrade accordingly. One of our pensions is small, non-cola (uncola? ) and 100% joint survivable. Ergo, our plan is to obtain a loan that this pension will cover. The loan, and the proceeds from selling our current digs will be our means to an end. In all likely hood, we'll both assume room temps while that mortgage is still in amortization. Our equity should more that settle that "affair." If not, tuff sh!t, we're busy being dead.
__________________
Never let yesterday use up too much of today.
W. Rogers
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11-14-2019, 06:47 PM
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#7
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Full time employment: Posting here.
Join Date: Oct 2018
Posts: 530
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Congratulations! That’s really impressive!
My mortgage (a measly 29k) will be paid off in 10 months then we retire in 12 months.
You have really turned your financial life around I bet it feels awesome!
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11-14-2019, 06:52 PM
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#8
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Administrator
Join Date: Apr 2006
Posts: 22,923
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Well done, Tom. It is a great feeling to be mortgage free, isn't it?
__________________
Living an analog life in the Digital Age.
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11-14-2019, 07:00 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Location: St. Charles
Posts: 3,891
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Quote:
Originally Posted by corn18
This is very surreal for us as 6 years ago we we had a net worth of zero and were spending way more than we made. Then we read The Millionaire Next Door and fixed our spending. Now we have $1M in retirement savings and a paid off house. And a good shot at retiring in 2 years @ 56.
Life is good!
Tom
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Quote:
Originally Posted by corn18
We do have a very large income. But somehow we managed to accumulate $160k of consumer debt, a $500k mortgage and we were spending $3k more a month than we made. That was on $350k of income.
Now we make twice that (this year we made 4x that) and our expenses are $120k / year plus whatever we decide to blow that dough on (which was quite large this year).
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Congrats on paying off the house.
Now, retiring in 2 years may be more of a challenge. To support your now reduced spending of $120k, most here would say you need $3million. Can you save that in 2 years? Sounds like your income is very high, so maybe you can. But then, the $120k needs to be real, including all taxes and "blow that dough" expenses.
Not trying to be a Debbie Downer, but just a realist.
__________________
If your not living on the edge, you're taking up too much space.
Never slow down, never grow old!
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11-14-2019, 07:08 PM
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#10
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Moderator
Join Date: Jul 2017
Posts: 5,598
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Congrats Tom! (I really felt a sense of accomplishment when those mortgage payments were gone.)
__________________
Use it up, wear it out, make it do or do without.
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11-14-2019, 07:27 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
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Quote:
Originally Posted by CardsFan
Congrats on paying off the house.
Now, retiring in 2 years may be more of a challenge. To support your now reduced spending of $120k, most here would say you need $3million. Can you save that in 2 years? Sounds like your income is very high, so maybe you can. But then, the $120k needs to be real, including all taxes and "blow that dough" expenses.
Not trying to be a Debbie Downer, but just a realist.
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I have a $48k/year COLA military pension, $60k SS @ 70, free retiree medical until 65 and that turns into a Medicare supplement. So I really just need to survive until 70 and then most of our expenses are covered.
Firecalc 99% says I need $1.8M to retire at 56 with a $25k travel budget. We're on track for that.
Best laid plans...
__________________
Consistently sets low goals and fails to achieve them.
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11-14-2019, 07:35 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Location: St. Charles
Posts: 3,891
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Quote:
Originally Posted by corn18
I have a $48k/year COLA military pension, $60k SS @ 70, free retiree medical until 65 and that turns into a Medicare supplement. So I really just need to survive until 70 and then most of our expenses are covered.
Firecalc 99% says I need $1.8M to retire at 56 with a $25k travel budget. We're on track for that.
Best laid plans...
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Then, it sounds like you have a plan. Not many could/would change the lifestyle that much from such a high income. Good luck in getting there in a few years (if it takes 3-4 instead of 2 you are still way ahead)
__________________
If your not living on the edge, you're taking up too much space.
Never slow down, never grow old!
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11-14-2019, 07:43 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
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This is the chart that guides us. Would be nice to get laid off in 2021 with a package.
__________________
Consistently sets low goals and fails to achieve them.
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11-14-2019, 10:57 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Dec 2018
Location: DuPage County IL
Posts: 2,697
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__________________
Rich
Ham Radio, Sport Pilot, RVer
FIRE: 8/11/2005, age 55y,1d
Dispatcher, then shift supv, then administrator for a regional 9-1-1 call center
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11-14-2019, 11:50 PM
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#15
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,468
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CONGRATULATIONS!!! What a happy day.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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11-15-2019, 12:08 AM
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#16
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 82
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Congratulations!
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11-15-2019, 02:45 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,197
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Congrats. Very impressive.
We reduced our expenses 60% over 4 years before retiring, but it wasn't specifically to retire.
Also had a high income, but was saving since 21 y.o., but not to the level % wise of most folks here.
Nevertheless, we all get there in the end somehow.
__________________
TGIM
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11-15-2019, 06:11 AM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,654
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Quote:
Originally Posted by ExFlyBoy5
Congrats!!! Many people here will disagree, but I think being mortgage free is one of the tenants of being financially independent! And it sure feels good, too...eh?
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+1 We have been Mortgage Free since 1995, a major contributor to our ER life.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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11-15-2019, 06:32 AM
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#19
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Full time employment: Posting here.
Join Date: Jun 2014
Posts: 518
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Congratulations on your amazing progress. I felt such relief when we paid off our mortgage and our family did a happy dance.
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11-15-2019, 06:45 AM
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#20
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gone traveling
Join Date: Jan 2019
Location: NW Ohio
Posts: 1,156
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Quote:
Originally Posted by ExFlyBoy5
Congrats!!! Many people here will disagree, but I think being mortgage free is one of the tenants of being financially independent! And it sure feels good, too...eh?
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I don't care how it penned out financially (made more sense to pay a low % mortgage), My soul was settled when my mortgage was finally paid off 5 years ago...never going back !
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