Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Is 35 considered "young?" Looking for new career advice!
Old 11-17-2016, 09:45 PM   #1
Confused about dryer sheets
 
Join Date: Nov 2016
Posts: 6
Is 35 considered "young?" Looking for new career advice!

I'm not sure I qualify as young, but I am a dreamer so I thought it best to post in this category. I am looking for a new career or business opportunity. I'd welcome any advice or opinions on the matter.

A little background: I am 35 years old and living in the rust belt (Cleveland). I bought a crappy little house at age 26 for $15,000 in a transitional neighborhood and have managed to parlay that initial investment into a real estate portfolio worth approximately $1 million with a gross annual rental revenue of approximately $109k. My total outstanding debt on this portfolio is approximately $105K, currently being paid back at an interest rate of 6% (it's a private loan, which is why the rate is a bit high). I'm interested in finding a new job or business opportunity to fill my time, as I only have to spend 10-15 hours per week managing my real estate. Most of my net worth is tied up in the portfolio, but I do have approximately $90k in cash that I could spend on anything I want be it stocks, bonds, real estate, franchise, etc. I'd thought about using my cash reserves to simply wipe out the rest of my debt, but I'm also considering starting a new job/career/business instead if it will result in a decent addition to my annual earnings.

Any thoughts or suggestions? I'm happy to provide more info as needed.
__________________

captain picard is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-18-2016, 04:01 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,284
Congrats. You have done well, and yes, 35 is considered young to many of us.
1. 90k is a nice cushion, but not a tremendous amount of free money. It is nice to have when the next real estate, or other, opportunity comes around. Hold on to it, if possible.
2. What would you love to do for a "job"? Consider making that your job/business, even if you don't make big money doing it.
3. Do you have a hobby that could be turned into a small money maker? For example, I know of people who love to golf, but hate to pay big money doing it. By taking a part time job at a golf course, they get a "fringe benefit" of playing for next to nothing.
4. Personally, if I could go back in time for a second "job", I would seriously look into government work, or something else with a defined benefit pension after 10 years or so. If you enjoyed the work, the 10 years would pass quickly, and the pension would be a huge bonus when you are older.

Good luck!
__________________

brucethebroker is offline   Reply With Quote
Old 11-18-2016, 11:38 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Aug 2013
Location: North
Posts: 1,233
Quote:
Originally Posted by brucethebroker View Post
1. 90k is a nice cushion, but not a tremendous amount of free money. It is nice to have when the next real estate, or other, opportunity comes around. Hold on to it, if possible.


lmao. Man I must be doing it wrong, I'm 35 and we have about 10grand of cushion. I suppose I don't illicit cash deals on property either.

Different strokes for different folks. Got about 120k in the market though. No where near 1million in property, maybe half that. Your doing well, what do you like to do for fun, showing up to work and doing things you like makes a difference.
__________________
AA (Stock/Bond/Cash ): 99/0/1% MIX (Small/Mid/Large): 50/25/25% BLEND(US/Foreign): 100/0%, REIT (Real Estate Equity): 50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
kgtest is offline   Reply With Quote
Old 11-18-2016, 11:40 AM   #4
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,387
Pay off the private loan at 6%.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 11-18-2016, 03:13 PM   #5
Confused about dryer sheets
 
Join Date: Nov 2016
Posts: 6
Thanks for the replies!

I LOVE the idea of a government job (and its attendant pension benefits), but at 35 with no government experience I imagine I'd be under qualified for all but the most menial of occupations. IN addition, I'm not really looking for a 40-hour 9-5 type situation, although I wouldn't be opposed to it if it were the right fit. I'd also likely refuse any offers that carried a salary of less than $50k, which in my region is probably higher than they'd want to start me. I am willing to investigate this more though if anybody has suggestions.

I may simply pay off the remaining loan and enjoy a truly debt-free existence, or I could use the $90k to purchase a few more rental units. This would eventually mean more income with only a modest increase in responsibility. I don't wish to appear lazy, but one of the perks of my life I'd like to keep is my flexibility. My wife is angling for a baby sometime really soon though, so I suppose I can kiss that idea goodbye haha. Thanks again!
captain picard is offline   Reply With Quote
Old 11-18-2016, 06:58 PM   #6
Full time employment: Posting here.
 
Join Date: May 2008
Posts: 590
Yea, I have that kind of flexible work from home government job, and almost all of them would require you to move at the start, would require 9-5 for at the very least a few years, and take awhile to apply for even if you do meet the background requirements, though they aren't unusually picky usually beyond the requirements.

Just pay off the last of the debt, and look into developing you interests that may be a little lucrative. Maybe do a blog about real estate and RE if you don't mind writing on a regular basis for a few years at least, and managing advertisers.
plex is offline   Reply With Quote
Old 11-19-2016, 05:57 AM   #7
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,387
Quote:
Originally Posted by captain picard View Post
I may simply pay off the remaining loan and enjoy a truly debt-free existence, or I could use the $90k to purchase a few more rental units. This would eventually mean more income with only a modest increase in responsibility. I don't wish to appear lazy, but one of the perks of my life I'd like to keep is my flexibility. My wife is angling for a baby sometime really soon though, so I suppose I can kiss that idea goodbye haha. Thanks again!
Paying off the loan would give you another increase in cash flow. Maybe more than another rental property. Do not use all your cash reserves, just a portion. Get a HELOC on your own home and use the HELOC to pay the loan off. The HELOC should be a lower interest rate.

Once your wife has a baby, plan on her not working for a while, if she is working now. Plan on at least three months of living without her income, and then plan on either being a full time baby-sitter, or paying large sums of child care. That will also take care of your time dilemma.

At 35, your financial life is just starting. If you have $109K in gross rents, you should be keeping at least 60% of that, or 65K+, assuming all debt is paid off. Be sure that is enough, as in future years it may not be. You likely do not have much SS to count on as you have not paid into it for too many years. Probably no pension either.

At least half of that $65K should be tax free, with depreciation deductions. I gross ~3x that, and that is a pretty standard number.

Convert any IRA money to a Roth, if you have any. Buy property in a Roth, if you can. It will be tax free forever. A great deal on a property could translate to doubling your money in a few months.
__________________

__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll:Did you hold "jobs" or have a "career"? jjquantz Other topics 46 02-15-2016 01:36 PM
Career advice for young dreamers Jay_Gatsby Young Dreamers 9 10-21-2015 09:16 AM
Career advice to a young worker Frugalityisthenewblack Other topics 30 02-19-2012 09:55 AM
New "payroll tax"on investment income being considered--attack on the ants. samclem FIRE Related Public Policy 32 01-23-2010 05:11 PM

» Quick Links

 
All times are GMT -6. The time now is 07:14 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.