Recent content by InsertCleverHandle

Your age is a major factor here. If you are in your 30s having a larger mortgage or % of net worth in your home is more reasonable. In your 60s or 70s I would want to have a lower percentage or at least the flexibility to downsize and use that capital if needed. As I've aged my homes percentage...

I've been in a similar situation. We moved from the location of the rental properties and handed them to a property manager. That effectively ate up most of the cash flow and didn't reduce the hassle of management nearly as much as I wanted or expected. We looked into DSTs but the mere fact that...

This is a good tool for reading about different strategies. Although, most of the analysis I've read is that the actual impact of different strategies is minimal. https://guide.ficalc.app/withdrawal-strategies/

Not related to your post (with the information you provided you should be good to go) but if you have not already done so I would consult an estate attorney on how to manage Washington's relatively low estate tax. I live very close to you...

I commend your daughter for the interest and hustle. This can be a great way to manage your living costs and build a long term investment. I would consider a few things: Can you cashflow the property after the investments to fix it up. Do you really need to fix it up? What may not be livable...

I think what you are feeling is very normal. I left work at 45 after hitting FI a couple years earlier. I’ve always been motivated by accomplishment, but as I hit my 40s, I realized the bar just kept moving and getting a raise/promotion/bigger house didn’t make any real difference in my life. I...

Has anyone used a dynamic spending model in retirement? For example setting a base spending and then adjusting discretionary spending each year depending on market returns of the previous year? Conceptually I like this model because it allows to adjust up or down depending on the market, which...

Putting the financial calculations aside, how much time have you spent in Mexico? A week vacation is very different that living there full time. My suggestion is try it out a bit more before you commit fully. Spend a month there and see if you want to stay longer. Maybe also try some other...

Have any of you considered a DST (Delaware Statutory Trust) in these situations instead of carrying the note? I'm in a similar situation myself.

We are selling an out of state rental property that has a good amount of appreciation. Managing the property manager has become an annoyance. We are considering a DST or just paying the capital gains now. I'd prefer delaying the gains to a future date when we have less income. But, the fees and...

@Sand101. That's all true. We've been fortunate that the price appreciation has been 3x to 4x in the last ~8 years, but the rents are up ~60%. I've never liked that about cap rate metric, price appreciation reduces cap rate... We've also had to hand off the management to a third party...

Not sure what's up with all the *s. Not intentional!

Thanks for all the feedback, I appreciate it.* To answer some of your questions: My wife is supportive of me stopping working or cutting back.* Part of our challenge has been both working challenging jobs with kids (and through Covid).* We split home chores 50/50, but if a child is sick or...

I’m 44 and my DW is 42. We have two young children. Financial details: My income ~270K DW ~160K. She still wants to keep working at least for a few more years. Assets: Roth/401Ks-$2.7M Non-retirement investments-$1.1M Real Estate rentals-$1.42M, produce a net of ~5K a month not included in...