Thanks. We don't have 529s... I look into it and the investment options are terrible. When the time come we will just get the money out from one of our accounts.
28 looking for advice... late start
- Thread starter kikechico
- Start date
Thanks. We don't have 529s... I look into it and the investment options are terrible. When the time come we will just get the money out from one of our accounts.
Update time. We kit 600K in investments already; actually 618K to be precise
.It has been a crazy year with the Corona virus and the stock marked tanking earlier in the year. Quarantine has been a good experience for me even though my salary got cut by 20% and my wife is working only 30 hours a week and her 401k employer contribution just got cut. Quarantine has been a glance at early retirement and I am loving it. Even though a love cars I don't miss driving, we have not eat out in two months and we are working and exercising 5-6 days a week. It gets rough with the kids some days while trying to work but seeing my kids everyday is awesome. I imagine that it would be even better when we can go places and do other things.
Investments
Total Investments: $618,000. This includes 401K's and IRA's and now after tax accounts
Debt
Total Debt $24,900
Total Net Worth: $1,071,289 not including cash
Cash around $9,000
Our debt increased because I decided to use a HELOC that we have open to buy stock when we had the correction. I only used $20,000 but I wish I had used more because so far it work out well. I bought VTI at $110 and is up 20% and I bought Tesla stock and is up almost 90%.
We are getting really close to getting to our goal of $40,000 a year to retire for our family of 4 with the house paid off. According to some calculators we should be able to hit that amount in 1-1.5 years with a 7% return from our current investment value and our contributions. Our goal is around $800,000-$750,000 because our rental produces between $10,000-8,000 a year after the expenses.
I am not sure how we are going to pull the trigger because we only have about $42,000 in after tax accounts and we don't have an IRA rollover latter going. I was thinking that I could use my HELOC to keep us a float for 4 years before we can tap into the IRA rollover latter. Does anyone have any other ideas? I don't want to start the rollover right now because of our current income.
Another thing that I am wondering is what to do about our investments right now we are about 95% in stocks. My highest holding right now is Tesla stock which is why our investments have grown so fast. The volatility of the Tesla stock is crazy but I believe in the company and I think that my stock holdings will become millions in 10-15 years and I don't want to sell it.
I can't believe we are so close to our retirement income goals
Thanks
Update 01/01/2021 goodbye 2020
2020 what a crazy year with Covid and financially. We have been working from home since March with the kids and it has been really challenging. I actually love working from home more than going to the office. We have more time with the kids and more time to do thing that we like instead of spending a bunch of time on the car. We have more time to exercise and cook and to go on walks.
Financially it is been insane I never thought we could make money so fast. I venture into trading options and it was very profitable for us. We achieve all our financial goals and more. Looking back at our financial goals on this thread back in 2013 we were shooting for 30K a year and looking to retire at 45... I am 35. I have no idea where to go from now; I think I will work this year and if they ask me to go to the office I might quit. I think we could easily pull 5% a year a never runout of money because I am actively trading options.
Investments
Total Investments: $2,166,000. This includes 401K's and IRA's and now after tax accounts and rental house. (1.4M in Tesla stock)
Debt
Total Debt $42,000
Total Net Worth: $2,403,000
Cash around $193,000
We tracked all our expenses through Personal Capital and they came at $43,000 after removing some non recurring expenses $9000 for a roof and non recurring expenses. We spend a lot of money on unnecessary things but I see us spending between $60,000-50,000 a year with health insurance.
I am considering not maxing out our 401k anymore. I don't know if is a bad idea or not but I think I can make better use of the money and get better returns the few fund available in our 401K and will also be able access the money more easily. Any thoughts?
2020 what a crazy year with Covid and financially. We have been working from home since March with the kids and it has been really challenging. I actually love working from home more than going to the office. We have more time with the kids and more time to do thing that we like instead of spending a bunch of time on the car. We have more time to exercise and cook and to go on walks.
Financially it is been insane I never thought we could make money so fast. I venture into trading options and it was very profitable for us. We achieve all our financial goals and more. Looking back at our financial goals on this thread back in 2013
we were shooting for 30K a year and looking to retire at 45... I am 35. I have no idea where to go from now; I think I will work this year and if they ask me to go to the office I might quit. I think we could easily pull 5% a year a never runout of money because I am actively trading options. Investments
Total Investments: $2,166,000. This includes 401K's and IRA's and now after tax accounts and rental house. (1.4M in Tesla stock)
Debt
Total Debt $42,000
Total Net Worth: $2,403,000
Cash around $193,000
We tracked all our expenses through Personal Capital and they came at $43,000 after removing some non recurring expenses $9000 for a roof and non recurring expenses. We spend a lot of money on unnecessary things but I see us spending between $60,000-50,000 a year with health insurance.
I am considering not maxing out our 401k anymore. I don't know if is a bad idea or not but I think I can make better use of the money and get better returns the few fund available in our 401K and will also be able access the money more easily. Any thoughts?
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JustCurious
Thinks s/he gets paid by the post
- Joined
- Sep 20, 2006
- Messages
- 1,396
Trading options is very risky, my advice is to stop doing that.
Montecfo
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Kikechico,
You have done it right. At first, I did not realize this was an old thread. I crafted a long post to late twenties you, same age as my son currently, and then deleted it after realizing it was an old post. And looking back now you have done just about everything I was suggesting to you in that post, including not waiting too long to start a family!
As far as where to go from here, in my opinion the#1 issue is Tesla. I limit any single position to 5% of total. I could go 10%, but your stake in Tesla, while it has been key to your growth and net worth , now has become an unacceptable risk that could sink your plans. I would loke look to diversify rapidly.
The great news is you have created what you wanted: financial flexibility. Having said that, if you retire now you have a very very long retirement runway. You want a portfolio that is growth oriented, but also safe. You need a continued high allocation to equities but can ease back to 70-80 percent in my view if you are within 5 years of pulling the trigger With markets at historic highs, timing to do so is good in my view. Also you need a funding/drawdown strategy. Get to work on those In the meantime boost your adter tax or Roth funds as appropriate.
Also give some thought to how you want to spend your time when you do decide to pull the trigger. Very important. No one can tell you what timing is appropriate, only you can determine this.
Best of luck to you and I look forward to the next update.
You have done it right. At first, I did not realize this was an old thread. I crafted a long post to late twenties you, same age as my son currently, and then deleted it after realizing it was an old post. And looking back now you have done just about everything I was suggesting to you in that post, including not waiting too long to start a family!
As far as where to go from here, in my opinion the#1 issue is Tesla. I limit any single position to 5% of total. I could go 10%, but your stake in Tesla, while it has been key to your growth and net worth , now has become an unacceptable risk that could sink your plans. I would loke look to diversify rapidly.
The great news is you have created what you wanted: financial flexibility. Having said that, if you retire now you have a very very long retirement runway. You want a portfolio that is growth oriented, but also safe. You need a continued high allocation to equities but can ease back to 70-80 percent in my view if you are within 5 years of pulling the trigger With markets at historic highs, timing to do so is good in my view. Also you need a funding/drawdown strategy. Get to work on those In the meantime boost your adter tax or Roth funds as appropriate.
Also give some thought to how you want to spend your time when you do decide to pull the trigger. Very important. No one can tell you what timing is appropriate, only you can determine this.
Best of luck to you and I look forward to the next update.
Ian S
Thinks s/he gets paid by the post
I think I'd be inclined to lighten up on Tesla!
idledancer
Dryer sheet aficionado
- Joined
- Jun 22, 2019
- Messages
- 28
...
Financially it is been insane I never thought we could make money so fast. I venture into trading options and it was very profitable for us. We achieve all our financial goals and more. Looking back at our financial goals on this thread back in 2013
...
Total Investments: $2,166,000. This includes 401K's and IRA's and now after tax accounts and rental house. (1.4M in Tesla stock)
...
We spend a lot of money on unnecessary things but I see us spending between $60,000-50,000 a year with health insurance.
I am considering not maxing out our 401k anymore. I don't know if is a bad idea or not but I think I can make better use of the money and get better returns the few fund available in our 401K and will also be able access the money more easily. Any thoughts?
Congratulations on your good fortune! That said, there’s some real red flags in your last update. You’ve had a good streak, it might be time to make a plan to ensure the stability of your newfound wealth. Everyone is a genius in a bull market.
this is a blanket statement.
Thank a lot. Right now we have 445k in after tax accounts and I have my rental that generates 10k a year after all expenses. With our after tax Tesla holding I think we can generate about 70k year selling options with no much effort. Yeah I want to boost our after tax saving by using the money that we used to put on our 401Ks but I am still not sure if is a good idea.
I been hearing advice like this one since the stock was $500 pre-split the stock is now $3500 split adjusted. I know the media and most people don't understand Tesla but I work for the EV industry and I feel I have a good understanding of the company and all their underlying products and industries that they disrupting. I really think Tesla can 5-4x within 10 years so I am really hesitant about selling it. I might move some of my money to Ark Invest funds. Congratulation to everyone that own S&P 500 funds you now own a little of Tesla.
For sure this year it has been amazing for everyone. I have no idea what will happen this year but we will see. I am still working a getting paid a decent income and I have my rental to supplement it so I am not worry about short term stock prices. During retirement I don't see us speeding more than 70-60K so I feel like we already have a decent buffer.
My wife read my original post and she said that I should remind people that this year wasn't easy. Trading options is incredibly stressful at times and we are in a bull market.
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teetee
Full time employment: Posting here.
- Joined
- Jul 11, 2019
- Messages
- 679
My opinion for Tesla stock is the half of them are day traders and half of them are buy-and-hold investors.
For long term investment it is difficult to change your mind when the stock is going up. It is just that you have over half of the net worth for your family bet on a single company and that alone is enough to scare lots of people to the point of causing insomnia.
I have significant portion of my assets in buy-nd-hold cloud computing and AI ETFs because I believe those are and will continue to be trendy for the next 20 years. But I can't convince myself to put all that mo ey into a single company. People in Elon's position can change dramatically in short amount of time and his popularity can cause investors to earn big or lose their pants. At some point his popularism is going to affect the company. It is simply too risky. But hey the bigger the risk the bigger potential for reward.
I kind of envy that you have such strong belief for Tesla. What do you think about all other new competitors ? If the solid state batteries no longer have their dendrite developing issues, then the super charger network can lose their appeal quickly when VW and potentially toyota EVs can charge their batteries from 0 to 80% in 15 minutes.
For long term investment it is difficult to change your mind when the stock is going up. It is just that you have over half of the net worth for your family bet on a single company and that alone is enough to scare lots of people to the point of causing insomnia.
I have significant portion of my assets in buy-nd-hold cloud computing and AI ETFs because I believe those are and will continue to be trendy for the next 20 years. But I can't convince myself to put all that mo ey into a single company. People in Elon's position can change dramatically in short amount of time and his popularity can cause investors to earn big or lose their pants. At some point his popularism is going to affect the company. It is simply too risky. But hey the bigger the risk the bigger potential for reward.
I kind of envy that you have such strong belief for Tesla. What do you think about all other new competitors ? If the solid state batteries no longer have their dendrite developing issues, then the super charger network can lose their appeal quickly when VW and potentially toyota EVs can charge their batteries from 0 to 80% in 15 minutes.
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Thanks for the reply. Yeah I used get stressed about the stock going up and down. I actually got more stress when the stock go up a lot
. Now days I am used to it and large swings do not really bother because I am long term stock holder and will hold the stock for a decade or more. I think my investments got as high as 2.6M a few weeks ago and then we dropped to 1.9M because of the 10 year and this week the stock when up 20% and I we made 250k in a single day. To some people that would give them a heart attack . Maybe I don't worry anymore is because even after that huge drop of 35% I still have more money than I need. Even at 1.2M in investments we would be fine. I believe that Tesla is the front runner and it will be continue to be ahead through many years. The current financial state of the company is fantastic and the their potential is huge. Tesla is disrupting so many industries at the same time that their future will be very bright. I work an EV manufacturer so understand the technology. This week was a good change to load up on some Tesla... I know I did and trade some shares to long term options.
I own other EV companies. I have 2000 warrants of CCIV, I was impress by Lucid presentation of the Lucid Air and the showcase of their technology. I also own a little bit of QS and ACTC. I don't know if you saw Tesla's presentation at battery day were they show their new upcoming battery cell 4680's and their charging time will improve drastically. These new cells will go in a production car this year. Currently you can add 180 miles of range to a Model 3 in 15 minutes using a V3 supercharge. The ID3 and ID4 are not great cars and they are significantly inferior compare to the Tesla cars as far as range, software and performance. Toyota believe in a hydrogen future and they are not really heavily investing in EV's they like the complex and expensive hybrid approach.
Update 01/01/2022 goodbye 2021
Oh what a year it has been. I am still working from home and the kids are still at home because of Covid. My wife quit her job in July and she has been home schooling my oldest daughter. I still like working from home but it has been challenging staying committed to my work with the way our investment keep increasing. I keep doing option trading and my return for the year on are multiple times my highest salary which is my current salary. For example my wife quit her job and we rolled over her 401k on July 21st and I have been trading options and stocks with that money and I am up 57%.
Financially this year was insane again and I have no idea what to do with my life now . I am not sure where to go from here. One move that I made is that I decided to sell our rental and use that money to trade options. The rental income was nice about $8k per year after all expenses but is pennies compare to what I can make trading options.
Investments:
Total Investments: $3,379,000. This includes 401K's and IRA's and now after tax accounts and rental house. (2.5M in Tesla stock) and it now includes the rental we sold.
Total Debt: $126,900
Total Net Worth: $3,550,000
Cash around: $363,000
For this year we have no plan but in the back of mind I would like to get to $5M and quit my job but realistically I might quit if we hit $4M. Also, my wife has been talking about getting a new house but this crazy house prices seem unwise; if housing market starts dropping we might get something.
This year we have been renovating our house significantly and for the year our expense are high at $105,000 which I think I can cut about $40-30k for renovations but let say we spent $75,000 for the year. We are about to start another round of renovations but it should not be more than $20k and I hope we get our expenses down because this year we have been a little careless.
I have been thinking about asking my boss if they need to laid off someone to meet quota or because of a downsizing or something.... that I would volunteer. Has anyone done something like that? The only reason I am considering this option is because my severance package should be at least a 1 year pay, which would be nice.
2020 what a crazy year with Covid and financially. We have been working from home since March with the kids and it has been really challenging. I actually love working from home more than going to the office. We have more time with the kids and more time to do thing that we like instead of spending a bunch of time on the car. We have more time to exercise and cook and to go on walks.
Financially it is been insane I never thought we could make money so fast. I venture into trading options and it was very profitable for us. We achieve all our financial goals and more. Looking back at our financial goals on this thread back in 2013
Investments
Total Investments: $2,166,000. This includes 401K's and IRA's and now after tax accounts and rental house. (1.4M in Tesla stock)
Debt
Total Debt $42,000
Total Net Worth: $2,403,000
Cash around $193,000
We tracked all our expenses through Personal Capital and they came at $43,000 after removing some non recurring expenses $9000 for a roof and non recurring expenses. We spend a lot of money on unnecessary things but I see us spending between $60,000-50,000 a year with health insurance.
I am considering not maxing out our 401k anymore. I don't know if is a bad idea or not but I think I can make better use of the money and get better returns the few fund available in our 401K and will also be able access the money more easily. Any thoughts?
Oh what a year it has been. I am still working from home and the kids are still at home because of Covid. My wife quit her job in July and she has been home schooling my oldest daughter. I still like working from home but it has been challenging staying committed to my work with the way our investment keep increasing. I keep doing option trading and my return for the year on are multiple times my highest salary which is my current salary. For example my wife quit her job and we rolled over her 401k on July 21st and I have been trading options and stocks with that money and I am up 57%.
Financially this year was insane again and I have no idea what to do with my life now
. I am not sure where to go from here. One move that I made is that I decided to sell our rental and use that money to trade options. The rental income was nice about $8k per year after all expenses but is pennies compare to what I can make trading options.Investments:
Total Investments: $3,379,000. This includes 401K's and IRA's and now after tax accounts and rental house. (2.5M in Tesla stock) and it now includes the rental we sold.
Total Debt: $126,900
Total Net Worth: $3,550,000
Cash around: $363,000
For this year we have no plan but in the back of mind I would like to get to $5M and quit my job but realistically I might quit if we hit $4M. Also, my wife has been talking about getting a new house but this crazy house prices seem unwise; if housing market starts dropping we might get something.
This year we have been renovating our house significantly and for the year our expense are high at $105,000 which I think I can cut about $40-30k for renovations but let say we spent $75,000 for the year. We are about to start another round of renovations but it should not be more than $20k and I hope we get our expenses down because this year we have been a little careless.
I have been thinking about asking my boss if they need to laid off someone to meet quota or because of a downsizing or something.... that I would volunteer. Has anyone done something like that? The only reason I am considering this option is because my severance package should be at least a 1 year pay, which would be nice.
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I love your goal and the transparency from 2014 to 2022.
Just bear in mind. Stocks and Options can go up and down.
My first warrant was a put.
Some people would consider your Tesla as Cluster Risk.
How does it feel to drive the car?
Just bear in mind. Stocks and Options can go up and down.
My first warrant was a put.
Some people would consider your Tesla as Cluster Risk.
How does it feel to drive the car?
I love the car I would never own a ICE car ever again. Yeah the stock goes up and down a lot.. I actually hit 3.75M in investments on Tuesday when the stock was up a lot but I am not back 3.4M lol.
fsfregalado
Confused about dryer sheets
Oh what a year it has been. I am still working from home and the kids are still at home because of Covid. My wife quit her job in July and she has been home schooling my oldest daughter. I still like working from home but it has been challenging staying committed to my work with the way our investment keep increasing. I keep doing option trading and my return for the year on are multiple times my highest salary which is my current salary. For example my wife quit her job and we rolled over her 401k on July 21st and I have been trading options and stocks with that money and I am up 57%.
Financially this year was insane again and I have no idea what to do with my life now
Investments:
Total Investments: $3,379,000. This includes 401K's and IRA's and now after tax accounts and rental house. (2.5M in Tesla stock) and it now includes the rental we sold.
Total Debt: $126,900
Total Net Worth: $3,550,000
Cash around: $363,000
For this year we have no plan but in the back of mind I would like to get to $5M and quit my job but realistically I might quit if we hit $4M. Also, my wife has been talking about getting a new house but this crazy house prices seem unwise; if housing market starts dropping we might get something.
This year we have been renovating our house significantly and for the year our expense are high at $105,000 which I think I can cut about $40-30k for renovations but let say we spent $75,000 for the year. We are about to start another round of renovations but it should not be more than $20k and I hope we get our expenses down because this year we have been a little careless.
I have been thinking about asking my boss if they need to laid off someone to meet quota or because of a downsizing or something.... that I would volunteer. Has anyone done something like that? The only reason I am considering this option is because my severance package should be at least a 1 year pay, which would be nice.
I truly admire what you have been able to achieve. However, you have well more than 50% of your investments in a single stock. Tesla is working out for now. But you are just one bad day away from being ruined. Eventually you are going to get a bad roll of the dice… I hope you pull out by then..
