LivePassionately
Dryer sheet aficionado
LONG Post so please be patient and really appreciate feedback from those who have blazed a path ahead of me. Reading this forum is like meditation for me because I really want to retire by 50 and here are my main concerns about doing this in 9 years. I am normally the one that’s the voice of reason always but I grew up with no money and even though I’m blessed now, I am scared sh*tless about retiring and not working(excuse my language). Its been ingrained in me that my value comes from working. However, with your help and suggestions, I am only at 80% scared sh*tless now and have 9 more years to get close to zero %. Here is my info below.
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My situation:
I am 41 with 2 kids (9 and 10) and amazing/loving DW
Finances
-------------------------
600K in equity in home (900K worth, 300K in loan)
$800K in stocks
$1 Million in Real Estate (will start earning about 80K/year nxt year)
$1.5 Million in Cash
$700K in combined 401k with DW
$Company I own/run is worth $2MM
$Wife and I earn about 800K/year combined with 450K Net after tax/retirement and spend 210K so save 240K a year.
Concern A. $1.5 Million is too much in cash but I’m afraid to invest in stocks. Last 2 years I haven’t invested as I kept waiting for market to go down. I am thinking of maybe investing several hundred thousand a year. Just worried putting money in and getting a big haircut right at the start. I am great at making money but so risk averse that I haven’t put enough in the market and keep a lot of cash. Any advices/suggestions ?
Concern B. I have ZERO life insurance. Is this dumb ? I had a key person policy that I let lapse but I’m in great health and wife and I both make good incomes so if something happens to one of us, it won’t be a burden and if both of us go, we have plenty in assets. Any thoughts/suggestions.
Concern C. Our spending is about 200-225K/year. We should have $8 Million by the time I retire and feel like we’ll still spend upto $250K a year as we want to vacation a LOT and take kids with us when we can. I have never flown first class even though I can afford it and feel like I will want to do this selectively and want to give gifts to kids,etc. I feel guilty and unsure having a high number such as this. Conservatively, 3% of $8Million will be 240K so I’m cutting it close. The only thing that makes me feel OK is that based on my plans, I am adding more RE and my cash-flow from that will be $150K by then hopefully with RE equity worth at least $2M, maybe 1.5M in house/cash and 4.5 in equities. So equities 4.5M in equities will only need to yield me about 100k. Let me know your thoughts on this.
Again, thank you all sincerely for sharing your experiences and advice.
——————————————————
My situation:
I am 41 with 2 kids (9 and 10) and amazing/loving DW
Finances
-------------------------
600K in equity in home (900K worth, 300K in loan)
$800K in stocks
$1 Million in Real Estate (will start earning about 80K/year nxt year)
$1.5 Million in Cash
$700K in combined 401k with DW
$Company I own/run is worth $2MM
$Wife and I earn about 800K/year combined with 450K Net after tax/retirement and spend 210K so save 240K a year.
Concern A. $1.5 Million is too much in cash but I’m afraid to invest in stocks. Last 2 years I haven’t invested as I kept waiting for market to go down. I am thinking of maybe investing several hundred thousand a year. Just worried putting money in and getting a big haircut right at the start. I am great at making money but so risk averse that I haven’t put enough in the market and keep a lot of cash. Any advices/suggestions ?
Concern B. I have ZERO life insurance. Is this dumb ? I had a key person policy that I let lapse but I’m in great health and wife and I both make good incomes so if something happens to one of us, it won’t be a burden and if both of us go, we have plenty in assets. Any thoughts/suggestions.
Concern C. Our spending is about 200-225K/year. We should have $8 Million by the time I retire and feel like we’ll still spend upto $250K a year as we want to vacation a LOT and take kids with us when we can. I have never flown first class even though I can afford it and feel like I will want to do this selectively and want to give gifts to kids,etc. I feel guilty and unsure having a high number such as this. Conservatively, 3% of $8Million will be 240K so I’m cutting it close. The only thing that makes me feel OK is that based on my plans, I am adding more RE and my cash-flow from that will be $150K by then hopefully with RE equity worth at least $2M, maybe 1.5M in house/cash and 4.5 in equities. So equities 4.5M in equities will only need to yield me about 100k. Let me know your thoughts on this.
Again, thank you all sincerely for sharing your experiences and advice.