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I'm working hard to retire at an early age and I would like your comments or suggestions regarding my situation in order to accelerate the process.
I'm 32 and my wife is 34. No kids
Current annual joint income: $135k (income should increase tremendously in 2007)
Assets:
401k- $50k (company match up to 3%)
ROTH IRA- $8k (we will apply max contribution every year)
Emigrant Direct- $15k @ 5.05%
USAA MM- $5k @ 4.95%
Mutual Funds- $4k
UFB MM- $4k @ 5.36%
Properties:
Primary Residence
Mortgage Balance: $317k @ 5.75 30 yr fixed Market value: $370k
Rental Property
Mortgage Balance: $137k @5.75 30 yr fixed Market value: $155k
2 Cars paid for (don't plan to purchase new cars for the next 10 yrs)
Debt:
1 Credit Card Balance:$5k @ 3.99 until 03/2008
NO STUDENT LOANS, NO PERSONAL LOANS, NO HELOC, NO SECOND MORTGAGE
I decided to pay off my CC debt by the end of 2006. Once I'm done with that, I will max out both ROTH IRA's before April 15th 2007.
I'm also looking at continue buying real estate property. Right now it seems that most of the deals I could find I would only be able to obtain enough money from rent to cover P&I, insurance, and taxes. No positive cashflow for at least a year, but the properties would continue going up in value in that area.
I really enjoy RE and my plan is to buy as many properties, pay off the mortgages in 20 yrs or less, and once there are no mortgages I would be able to get positive cashflow for at least 8 properties.
Basically, when I turn 52 I would be getting at least $1000 on each property and that would be $96,000 a year not including taxable and non taxable retirement accounts.
I would greatly appreciate your inputs!
Thanks!
Xavier
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