movingrightalong
Dryer sheet aficionado
- Joined
- Oct 29, 2014
- Messages
- 33
Wanted to provide an update to my post from last year at http://www.early-retirement.org/forums/f28/another-can-i-retire-yet-post-80774.html. Tried to reply to the original thread, but it was too old :^).
I ended up sticking around at megacorp, and intend to stick around for another year through '17. We paid off the house, taking our annual expense down by around $25K and slightly reduced debt load in our rentals. New balances:
Net worth $4.4M - Assets: $5.3M Liabilities: $870K (all in 30-year fixed mortgages on rentals)
"Not in the portfolio": ~$815K
$180K in kids 529s
$635K in first home
"In the Portfolio"~$3.6M
$620k in ready cash
$250K in deferred comp account (gets paid out 1/10th every year for 10 years after leaving the company. Heavy cash allocation of around 30%)
$990K in tax-advantaged accounts, equities + small cash exposure
$975K in cash equities, virtually zero cash exposure
$180K in private investments. This has returned a few thousand per year, and most of it will return to cash in the next couple of years
$610K in real estate equity on the rentals, cash flowing about $45K after tax.
Allocation to cash is too high, but we'll plan to either draw it down in lieu of the equities when we leave the workforce, invest in bonds or equities if valuations become more attractive, or pay off mortgages on real estate portfolio (last resort.) We wouldn't let it sit in cash for very long.
We should put another $400K-$500K into the portfolio this year, and will re-evaluate goals at the end of the year.
On the downside, we're concerned that we're letting a pretty unique time in our kids' childhoods pass by; we struggle with the decision, but outsized comp is adding to our financial security in meaningful ways, and should provide options we wouldn't have had otherwise.
Offsetting that concern to some extent, I've been successful in taking more time for family, and we have plans for a couple of *great* trips with the kiddos this year.
I ended up sticking around at megacorp, and intend to stick around for another year through '17. We paid off the house, taking our annual expense down by around $25K and slightly reduced debt load in our rentals. New balances:
Net worth $4.4M - Assets: $5.3M Liabilities: $870K (all in 30-year fixed mortgages on rentals)
"Not in the portfolio": ~$815K
$180K in kids 529s
$635K in first home
"In the Portfolio"~$3.6M
$620k in ready cash
$250K in deferred comp account (gets paid out 1/10th every year for 10 years after leaving the company. Heavy cash allocation of around 30%)
$990K in tax-advantaged accounts, equities + small cash exposure
$975K in cash equities, virtually zero cash exposure
$180K in private investments. This has returned a few thousand per year, and most of it will return to cash in the next couple of years
$610K in real estate equity on the rentals, cash flowing about $45K after tax.
Allocation to cash is too high, but we'll plan to either draw it down in lieu of the equities when we leave the workforce, invest in bonds or equities if valuations become more attractive, or pay off mortgages on real estate portfolio (last resort.) We wouldn't let it sit in cash for very long.
We should put another $400K-$500K into the portfolio this year, and will re-evaluate goals at the end of the year.
On the downside, we're concerned that we're letting a pretty unique time in our kids' childhoods pass by; we struggle with the decision, but outsized comp is adding to our financial security in meaningful ways, and should provide options we wouldn't have had otherwise.
Offsetting that concern to some extent, I've been successful in taking more time for family, and we have plans for a couple of *great* trips with the kiddos this year.
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