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Back after a 2 year hiatus and no chance of ER
09-29-2010, 02:15 PM
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#1
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Recycles dryer sheets
Join Date: Jun 2005
Posts: 233
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Back after a 2 year hiatus and no chance of ER
So I haven't posted here in about 2 years. During that time I've gotten married, had a kid, sold a house, bought another house, and in the process completely given up on my ER dream.
The main culprit was the house. Our old house was fun, funky, hip, urban, and generally cool. And very affordable. But it wasn't a satisfactory for our new family for a bunch of reasons (neighborhood, layout, etc.). So we bought a new house with the intention of getting into the best school district, having a big yard for the kid to play in, never having to remodel again, etc. All of that costs a lot of money, so we got the biggest mortgage we possibly could (at least we put down 20%) and bought a ridiculously big, luxurious house on one of the city's most prestigious streets.
So even though I knew better, we are now the classic high-income-yet-cash-strapped young family. Our hope is that our incomes will rise over the years and that we'll "grow into" our new house.
There are lots of stories of young dreamers well on their way to ER success, unfortunately this isn't one of them. But at least we've got an awesome house!!
Just thought I'd share. Good luck to everyone else.
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09-29-2010, 02:22 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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SLC, good luck on your pursuit of the American dream. Don't abandon all hope of ER - some of us managed to achieve eR (not-quite-so-early retirement) and that's not a bad thing.
I sincerely hope everything works out for you.
__________________
Numbers is hard
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09-29-2010, 03:01 PM
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#3
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
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Welcome back. Congratulations on the marriage, baby, house!!! Sounds like you have a very lovely home for your family to enjoy.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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09-29-2010, 03:40 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 2004
Location: SW Ohio
Posts: 14,404
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Welcome back. Well, it sounds like you probably didn't buy the house at the top of the market, and in 15-20 years maybe it will be worth a lot of money and you can downsize your way to ER. Regardless, best of luck, and thanks for checking in.
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09-29-2010, 04:14 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: Nov 2007
Posts: 5,596
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It sounds like you have a wonderful life. People who love you and a lovely home. I'm certain many people would love to trade places with you.
__________________
I purr therefore I am.
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09-29-2010, 04:28 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,330
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I think this scenario fits a lot of the 20 or 30 somethings that dream of ER. A little bit of life comes along and their dreams change. Nothing wrong with that. I suspect for 98% it makes a lot more sense for young folks to focus on finding rewarding work - or at least work that isn't toxic - rather than focus all of their efforts on getting out. But SLC, now is the time to take a deep breath and start evaluating how you can return to a LBYM lifestyle in the new house. Another 10-20 years down the road and your dreams may shift back around and you will value a reasonable exit plan. Don't accept your opening statement: "no chance of ER."
__________________
Idleness is fatal only to the mediocre -- Albert Camus
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09-29-2010, 05:19 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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Ah yes, the old Fork in the road. Everyone needs to make these decisions.
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09-29-2010, 05:39 PM
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#8
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Moderator Emeritus
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
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Don't despair. If inflation soars for a while, you'll be paying back a fixed mortgage with inflated dollars and maybe that will give you some breathing room to save. Also, if housing prices rebound years down the road you can right-size and free up some cash.
So shoot for retirement at a conventional age, stay the course and you might be surprised.
Meantime, count your blessings - worth a lot more than just money.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.
As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
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09-29-2010, 08:18 PM
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#9
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Recycles dryer sheets
Join Date: Mar 2009
Posts: 281
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You were smart to buy into a good school district and buy a new home that doesn't need a lot of remodeling.
Everyone has to make the financial choice best for their own families.
It sounds like you have no regrets on the house so you made the decision that was right for you.
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09-29-2010, 08:40 PM
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#10
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 135
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Quote:
Originally Posted by SLC Tortfeasor
...never having to remodel again...
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Now, that's funny, right there! If you do that, in 30 or 40 years it will look like those old harvest gold / avocado green kitchens and bathrooms look now.
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09-29-2010, 11:02 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,769
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Congrats.
I bet, in the long run, you'll think it was worth working a few extra years in order to have a few things you wanted to enhance the years you did work. Why scrimp, save, do without and then die?
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
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09-30-2010, 07:57 AM
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#12
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Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
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As you can see, it isn't all about not working.
Hope you are enjoying your job and family. I can't believe that it has been two years since you stopped by.
__________________
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No more lawyer stuff, no more political stuff, so no more CYA
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09-30-2010, 08:28 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,566
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Thanks very much for sharing your "road less (or more) traveled" story with us. A good reminder that everything we do is a choice.
Good luck and best wishes with the new family.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way
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09-30-2010, 09:30 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Posts: 12,659
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SLC, some of us are Nesters, and that's just how we are. If you know you can afford your house, that's all that matters.
Congratulations on all the wonderful things you and your spouse have achieved, and certainly don't give up on ER, just keep planning and saving as much as you can and retire as soon as makes sense.
Be sure to put aside lots of emergency $$ for the house as it ages. As you surely are aware, big, expensive houses cost much more to fix when they break. Repair people take one look at expensive neighborhoods, and double their estimates just because they think you have money.
Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
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09-30-2010, 03:54 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Let's see...
Good:
*Wife
*Kid
*Nice Home
*Nice Income
Bad:
*ER not in sight.
So 4 for 5 ain't bad in life, baseball, three point shooting, and many other things.
You are looking good!!
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09-30-2010, 04:41 PM
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#16
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Recycles dryer sheets
Join Date: Jun 2005
Posts: 233
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Hey, thanks for all the nice supportive comments, folks! I had forgotten what a great forum this is. Makes me want to hang around here and start contributing again!
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10-02-2010, 08:23 AM
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#17
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Dryer sheet aficionado
Join Date: Aug 2007
Posts: 44
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The Full Catasrophe
In my own life the words of Zorba the Greek keep intermittently coming to mind.
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10-02-2010, 08:26 AM
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#18
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Dryer sheet aficionado
Join Date: Aug 2007
Posts: 44
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Not that I completely agree with Zorba, but it always gives a chuckle!
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10-02-2010, 06:49 PM
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#19
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Dryer sheet wannabe
Join Date: Sep 2010
Posts: 15
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You will probably do okay. Interest rates are very supportive of trading up right now. Also a lot of the froth has been blown off of prices.
If you don't mind me asking, what multiple of income did you pay? We bought our house at 1.5 times our income. Through the magic of inflation that same price is now 0.75 times our income.
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10-04-2010, 11:16 AM
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#20
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Recycles dryer sheets
Join Date: Jun 2005
Posts: 233
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Quote:
Originally Posted by EO 11110
You will probably do okay. Interest rates are very supportive of trading up right now. Also a lot of the froth has been blown off of prices.
If you don't mind me asking, what multiple of income did you pay? We bought our house at 1.5 times our income. Through the magic of inflation that same price is now 0.75 times our income.
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About 3.2, unfortunately. Believe me, I am praying for rampant inflation. Unfortunately it doesn't look likely to pick up any time soon.
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