Ok.. so this is my plan....first some background.
I have 10 rental properties with varying amounts of equity in each and with minimal cash flow loss each month. I've bought approx 1 property/year for past 10 years. Total equity in all 10 properties is about $600,000 currently. I'm done buying property at this point. My personal home has about $200,000 in equity and no matter where I live, I plan on paying down the mortgage until it is full paid off. I own the business where I work at and it's worth about 1.2 million right now. I have about $560,000 built up between me and my wife's various IRA's and I have about $80,000 in cash. I figure I'll need about $10 000/mo to sustain the kinda life I want (in todays dollars).
Now that you have a picture of my sitaution, this is my plan and let me know if there are any concerns.
I plan on selling my business in 2 years and leaving NY and going back to Canada. I'm still a Canadian citizen. I hope to have about $250,000 in liquid cash saved up by then. I want to try and live off the $1.2 million that I get from the sale of my business (what's left of it after capital gains tax) over the next 7-8 years and hopefully not touch the $250,000 in cash (to be used only for emergencies) or my rental properties or my IRA. Once the money from the sale of my business is depleted then for the following 10-12 years I plan on selling 1 property every 1-2 years and live off the equity I've built up in those which by then should be at least $100,000 each (i hope) and use the $250,000 cash I still should have to supplement any years that I do not get as much as I hoped on the sale of a property. That should take me to approx age 65 where I have my original $560,000 in the IRA's left to grow for those 18-20 years which might be worth
(maybe 2 million+
), plus I should have my home paid off and the free healthcare that the Ontario government provides. that 2 million+ will have to be the source of my income for hopefully the rest of my life (I hope to have enough to sustain me for at least 30 years just in case I live that long).
Not that I want this to be a part of my retirement income but I do plan on doing some side work (teaching, consulting) for the next 10 years but not really for the money but rather because I like it. I'll be very part-time and whatever I make from that will just be bonus and partly given to charity. Plus I didn't even count any SS or pension my wife or I might recieve at age 65. It'll be very minimal anyways. Maybe $2000 tops.
Hopefully this gives a clear enough idea of my current sitation and what I've been trying to build up for the past 8-10 years and what I hope my life will be going forwards. I really, really want to sell my business and get out of that position in 2 years. It has been a great source of money but also a great source of stress. I want to spend more time with my only son who is 10 and spend more time with family.
Does anything sound improbable or unlikely or out of whack with this plan? Am I missing anything that I didn't consider? Can I "retire" in 2 years?
Paul
PS: thanks for the replys so far. I really like the FIRECalc! Much better than one of the online calculators I have been using in the past.