I am new to the forum. Personal finance is one of my favorite subjects. I have a good feeling about early retirement but I'm not sure about one thing. I have searched the forums history but can't find an answer.
Our financial status.
$120k-150k- gross annual income. Depends upon year end distributions. $120k at min. I have some ownership in my company. Stock valued between $70k to $90k. So when i retire ill have to cash out. Also, income will go up over time.
$55k mortgage payoff on a $315 k house. We have a $289 monthly payment-30 yr mortgage. We are going to knock this mortgage out ASAP. Tired of it hanging over my head.
No debt other than $55k mortgage. We pay cash for everything.
We have one rental property $85,000 invested, 100% paid for. House valued at $105k or so. We plan to keep it. Net return is about 10% on average. 16% gross return.
We have $45-50k operating cash on hand. Emergency fund mainly.
We just started investing in our personal IRA's (no 401k's available at wrk). but aren't sure if this is somewhere we should dump our money if we plan to retire early? We have $12 k in one acct and $9k in another. So not a lot invested here as of now....
I plan to retire somewhere in the next 7-12 yrs. And when I say retire I do mean part time, part time contract work, do whatever I want to do, or possibly do nothing but hobbies etc.
I love real estate. I can see it. It brings an excellent ROI. I would love to retire early with more paid for rental properties. Im handy so that would give me something to do with ER. So my question is: Should I continue dumping $11k every year into our IRAS at the same time save up for more rentals to purchase? Should we drop the IRAS altogether and concentrate on other mutual funds + rental properties? Just rental properties alone? I know they say not to have all eggs in one basket. But with rental properties even if the market crashed over and over again wouldn't rental properties bring higher consistent returns? They will be paid for, buying with cash only so not much risk in my opinion?
Or am I over thinking this whole thing? Is kissing 11k goodbye every year not that big of a deal in the big picture? I feel it's slowing me down for something a lot closer than 59 1/2!!
Our inheritances will most likely be very substantial (upwards of 2-3mill is my best guess) but we are planning for ourselves early and not going to be dependent on the inheritances and hope for ER with our own personal finances. Everything else will be icing on the cake.
BTW I have a wife and 2 kids. I am 32 and my DW is 34. She does not work but will when the kids are a bit older. She will have the ability to make an excellent income.
Thanks!
Our financial status.
$120k-150k- gross annual income. Depends upon year end distributions. $120k at min. I have some ownership in my company. Stock valued between $70k to $90k. So when i retire ill have to cash out. Also, income will go up over time.
$55k mortgage payoff on a $315 k house. We have a $289 monthly payment-30 yr mortgage. We are going to knock this mortgage out ASAP. Tired of it hanging over my head.
No debt other than $55k mortgage. We pay cash for everything.
We have one rental property $85,000 invested, 100% paid for. House valued at $105k or so. We plan to keep it. Net return is about 10% on average. 16% gross return.
We have $45-50k operating cash on hand. Emergency fund mainly.
We just started investing in our personal IRA's (no 401k's available at wrk). but aren't sure if this is somewhere we should dump our money if we plan to retire early? We have $12 k in one acct and $9k in another. So not a lot invested here as of now....
I plan to retire somewhere in the next 7-12 yrs. And when I say retire I do mean part time, part time contract work, do whatever I want to do, or possibly do nothing but hobbies etc.
I love real estate. I can see it. It brings an excellent ROI. I would love to retire early with more paid for rental properties. Im handy so that would give me something to do with ER. So my question is: Should I continue dumping $11k every year into our IRAS at the same time save up for more rentals to purchase? Should we drop the IRAS altogether and concentrate on other mutual funds + rental properties? Just rental properties alone? I know they say not to have all eggs in one basket. But with rental properties even if the market crashed over and over again wouldn't rental properties bring higher consistent returns? They will be paid for, buying with cash only so not much risk in my opinion?
Or am I over thinking this whole thing? Is kissing 11k goodbye every year not that big of a deal in the big picture? I feel it's slowing me down for something a lot closer than 59 1/2!!
Our inheritances will most likely be very substantial (upwards of 2-3mill is my best guess) but we are planning for ourselves early and not going to be dependent on the inheritances and hope for ER with our own personal finances. Everything else will be icing on the cake.
BTW I have a wife and 2 kids. I am 32 and my DW is 34. She does not work but will when the kids are a bit older. She will have the ability to make an excellent income.
Thanks!