It's a sunny 70-degree day and I'm stuck working on a Saturday...well, I'm procrastinating, so I'm posting instead
My husband thinks we're not ready to retire early and part of me agrees, but on the other hand, the other part just wants to quit now, and if we run out of money later, just get a job again...so, I guess some financial feedback would be great!
Current situation: We're DINKs, I'm 38, he's 40. Plan was to RE at the end of 2008, but investments we made in 2006 set us back about a year...he thinks at least 2 We're leaning towards doing what Billy and Akeisha are doing in a few years but our dogs are both 9 so we'll be in the US for the next 5 years or so. Oh, we're both earning a lot now $300 combined salary / yr and we're able to invest at least half of it without any problem (we live cheaply)
Yearly expenses after we stop working is projected to be approx 80k/year (includes a 2k a month for housing; travel; insurance; new car, etc....been on this board awhile); drops to 40k - 50k easily if we move abroad.
So...the question... Most of our assets are in RE now (see below). Fortunately, we have 20% down on all of them and all are either 15 or 30 year mortgages. The problem we have is that it's hard to calculate the 4% rule on RE....thoughts? Oh, of course...do you think we'll be ready in a year or do you think it's really at least 2 years out? Thanks!
Estimated Value Loan Equity
Primary Home (near work) $450,000 $290,000 $160,000
2nd Home (weekend home; 2.5 hrs from work) $700,000 $240,000 $460,000
SFH Rental #1 $400,000 $140,000 $260,000
SFH Rental #2 $275,000 $120,000 $155,000
4 Unit Condo #1 $315,000 $235,000 $80,000
4 Unit Condo #2 $315,000 $235,000 $80,000
4 Unit Condo #3 $315,000 $235,000 $80,000
SFH Rental #6 $150,000 $0 $150,000
1/3 interest in family vacation home $50,000 $0 $50,000
Total Real Estate $2,970,000 $1,495,000 $1,425,000
401ks / IRA $407,000
Other Stock $60,000
International Real Estate Investments $85,000
Net Worth $1,977,000
My husband thinks we're not ready to retire early and part of me agrees, but on the other hand, the other part just wants to quit now, and if we run out of money later, just get a job again...so, I guess some financial feedback would be great!
Current situation: We're DINKs, I'm 38, he's 40. Plan was to RE at the end of 2008, but investments we made in 2006 set us back about a year...he thinks at least 2 We're leaning towards doing what Billy and Akeisha are doing in a few years but our dogs are both 9 so we'll be in the US for the next 5 years or so. Oh, we're both earning a lot now $300 combined salary / yr and we're able to invest at least half of it without any problem (we live cheaply)
Yearly expenses after we stop working is projected to be approx 80k/year (includes a 2k a month for housing; travel; insurance; new car, etc....been on this board awhile); drops to 40k - 50k easily if we move abroad.
So...the question... Most of our assets are in RE now (see below). Fortunately, we have 20% down on all of them and all are either 15 or 30 year mortgages. The problem we have is that it's hard to calculate the 4% rule on RE....thoughts? Oh, of course...do you think we'll be ready in a year or do you think it's really at least 2 years out? Thanks!
Estimated Value Loan Equity
Primary Home (near work) $450,000 $290,000 $160,000
2nd Home (weekend home; 2.5 hrs from work) $700,000 $240,000 $460,000
SFH Rental #1 $400,000 $140,000 $260,000
SFH Rental #2 $275,000 $120,000 $155,000
4 Unit Condo #1 $315,000 $235,000 $80,000
4 Unit Condo #2 $315,000 $235,000 $80,000
4 Unit Condo #3 $315,000 $235,000 $80,000
SFH Rental #6 $150,000 $0 $150,000
1/3 interest in family vacation home $50,000 $0 $50,000
Total Real Estate $2,970,000 $1,495,000 $1,425,000
401ks / IRA $407,000
Other Stock $60,000
International Real Estate Investments $85,000
Net Worth $1,977,000