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Want to be financially independent - how?
Old 09-22-2010, 10:55 PM   #1
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Want to be financially independent - how?

Goal: Want to be financially independent in 5 yrs.
Background: 45 yrs old and wife is 43 (wife doesnít work).
Two kids: 9 and 8 yrs old (No educational fund at this point).
House: Principal residence is paid off, also one rental property already paid off (current value is about $300K).
Investment: $200K in 401K and $800K in cash savings.
Work: I can save $100K per yr at my current job, but donít like work environment, kind of burning out.
I like to get some suggestions on how to achieving my goal. My ears are wide OPEN and ready to listen.
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Old 09-22-2010, 11:21 PM   #2
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Welcome Flash,

1) how much do you spend each year? We can't figure out how close you are to financial independence if we don't know how much you spend.

2) Is the "cash savings" truly in cash? If it is, I think you are going to have to put some of it to work in order to meet your goals.
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Old 09-23-2010, 06:36 AM   #3
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Have your wife get a good job. You have been working hard all these years, so now it is her turn to bring home the bacon. You can hang around the house and take care of the kids which is really easy since they are in school most of the time.

Other than that, you have to cut expenses. I guess since your house is paid off, your expenses are something like $8,000 a year now, right?
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Old 09-23-2010, 08:46 AM   #4
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Quote:
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Other than that, you have to cut expenses. I guess since your house is paid off, your expenses are something like $8,000 a year now, right?
LOL,

You must have dropped a zero there, right? You meant $80,000 didn't you? Or did you meant $8,000 a month?
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Old 09-23-2010, 09:41 AM   #5
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If both of you work will be easier for your family to be financially independent.
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Old 09-23-2010, 10:13 AM   #6
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$800K in cash is a LOT.........
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Old 09-23-2010, 11:05 AM   #7
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Moving to a low cost area in the country might help you.

Cheapest places to live in America – Topeka, KS for under $840 a <b style="color:black;background-color:#99ff99">month</b>
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Old 09-23-2010, 06:40 PM   #8
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Hello Flash88 - Can you live on $32,000 ($800,000 x 0.04) until SS and 401k plan kick in ? If yes, you have answered your own question...

Quote:
Originally Posted by flash88 View Post
Goal: Want to be financially independent in 5 yrs.
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