Can't Wait for FI!

[lust4adventure]

hopefully you're at least keeping that in high yield savings or VMMXX (2.07% yield currently). However, the vanguard funds are liquid enough, and there's always dogging that I one I could sell in a pinch.

Most of my emergency money is in a regular checking account. I'm trying to decide whether to put the bulk of it in Vanguard's prime money market fund (VMMXX) or the New Jersey municipal money market fund (VNJXX). I'm also considering mixing one of those with CDs for slightly higher returns.

Anyway, I'm like you. Single no kids. Was a software developer in NYC area. Though, I made less than 1/2 what you did. Got out by 33 though. Turned to my own online app development projects at just the right time.

That's awesome! Congratulations! Which apps did you write?

 

[lust4adventure]

If you’re saving that much a year you could retire on stocks with your desired income.

You have a rental returning 15k (pretax?) on 420k (3.5%) so in one year this equates to 2-3 weeks at your job? You have a really real estate heavy plan; I strongly encourage you to spend 2 hours reading about stock investments over at boglehead. You don’t seem to have a complete understanding of what stock is (ownership of a company with real assets including land, buildings, and IP)

If you read enough about people’s strategies you find (for the most part) people who retire on stocks check them once a year to rebalance. People who retire with real estate spend significant time every month dealing with issues or fixing things. Generally hiring a property manager cuts out all the profit unless you have numerous properties to split the balance between.

Yes, I could definitely retire on stocks and bonds. No matter what I do regarding rental real estate, my portfolio's core will always be stocks and bonds. Passive investing through index funds and ETFs suits me. The time/sweat equity required in real estate is something I constantly think about.
I'm familiar with strategies like 4% withdrawals (or lower), but I'd prefer to preserve my equity as long as possible; hence my plan to mostly (if not completely) live off of dividends, interest, and rent.

Some people make it big on real estate and tell everyone how great it is. You have no experience but seem confident in the ability to generate greater than market returns?

Indeed. And after reading everyone's responses here and reflecting on my personal preferences, I'm beginning to question the real estate portion of my plan. I feel like I'm rushing into it and that rarely bodes well in investing. So I'll probably stay away from real estate for a while, maybe permanently. Fortunately, I have a lot of time to research and think about it.

You are in a great position in terms of income; spend some time studying what each strategy will mean to you before you plow your money into something.

True. Thanks for the advice!

 

[lust4adventure]

Speaking from personal experience, the advantages associated with the unmarried/child-free lifestyle are mostly intellectual and practical (for example, relocating without dependents is orders-of-magnitude simpler than relocating with them), whereas the advantages associated with the married-with-children lifestyle are mostly emotional (so I imagine, having never given this lifestyle a try myself). So, the married-with-children decision resembles the mortgage-payoff decision, with both intellectual and emotional factors to consider.

Whatever you decide - good luck!

I think and feel the same way! And it's not a black-and-white issue, anyway: I have a couple of nephews I can spoil after I retire. All the fun with few headaches

 

[lust4adventure]

I made the choice not to have kids while pursuing FI, but not for the implied reason. As others have said, I considered the impact on world population, and every since high school, believed that we need to diminish, not increase the world population (negative population growth, for both the good of the earth and its inhabitants (human and non-human).

+1. Balance with the rest of the natural world is foremost on my mind.