Common Cents
Confused about dryer sheets
Hi all,
Little background. My working life didn't start until I was 31 years old. Prior to that I was paying to work then graduated to making minimum wage, then started real work at age 31.
Current income: $550,000 from all sources.
Current Debts:
Primary residence: Value $2,200,000. Mortgage $730,000 remaining @ 3.8%. $4700/month PITI.
Rental property #1: Value $65,0000. Mortgage $41,000 @ 4.875% generating $400/month cash flow.
Rental property #2: Value $70,000. Mortgage $40,000 @ 4.875% generating $400/month cash flow.
Student Loan: $70,000 @ 2.9% over 30 years, 6 years into repayment. $340/month.
Total Roth/i401K: $330,000 (contributed $87,000 in 2015).
Taxable Brokerage: $100,000
No consumer debt. No car payments. Net worth $1.8 million and dropping with the stock market, lol.
I drive a 2006 Honda Civic with 100,000 miles on it that I bought for $8,000 3 years ago. My wife drives a 2012 BMW X5 that I paid 66% of face value for (2011 write off entire value of car on business) and has a current value of $37,000.
In 2015 we saved 60% of my take home income or $229,000. Prior to that as you can see from my unbalanced net work, we had been playing the real estate game for a while. Wife bought her first house in 2003 and sold in 2006 for profit of $200,000. We sat on that until 2011 and bought a $750,000 place. Finished that and sold for $1,200,000. Bought the worst house in the best neighborhood in the best location for $1,300,000. This is where it got a little ugly because this place was a huge dump and cost us ridiculous amounts of money to get sorted. Upside is that we bought under market and our area has appreciated since we bought to $2,200,000.
I have a daughter 2.5 years old and one on the way. I'm torn between how much I want to "give" them for their higher education because my parents saved ZERO for me and gave me ZERO for college/post grad. I was thinking maybe I'll save enough for a public 4 year college and let them handle their own post grad. That would be more than generous of me in my opinion. Currently we save $500/month for my daughter into a Vanguard 529 plan which should be about right for a 4 year public education for college.
If I was single, I'd be retired now.
Such is life.
Anyway, I figure that I could retire comfortably on $5000 of after tax money per month with no debt which means I need about $1,800,0000 to 2,000,000 of investments. If I could convince my wife to move I'd be able to retire probably 7-10 years earlier. I've been working on that for 10 years, and it hasn't happened yet so I'm not holding my breath. I think I've done ok for only having been "working" for 5 years, but it could always be better I know.
Little background. My working life didn't start until I was 31 years old. Prior to that I was paying to work then graduated to making minimum wage, then started real work at age 31.
Current income: $550,000 from all sources.
Current Debts:
Primary residence: Value $2,200,000. Mortgage $730,000 remaining @ 3.8%. $4700/month PITI.
Rental property #1: Value $65,0000. Mortgage $41,000 @ 4.875% generating $400/month cash flow.
Rental property #2: Value $70,000. Mortgage $40,000 @ 4.875% generating $400/month cash flow.
Student Loan: $70,000 @ 2.9% over 30 years, 6 years into repayment. $340/month.
Total Roth/i401K: $330,000 (contributed $87,000 in 2015).
Taxable Brokerage: $100,000
No consumer debt. No car payments. Net worth $1.8 million and dropping with the stock market, lol.
I drive a 2006 Honda Civic with 100,000 miles on it that I bought for $8,000 3 years ago. My wife drives a 2012 BMW X5 that I paid 66% of face value for (2011 write off entire value of car on business) and has a current value of $37,000.
In 2015 we saved 60% of my take home income or $229,000. Prior to that as you can see from my unbalanced net work, we had been playing the real estate game for a while. Wife bought her first house in 2003 and sold in 2006 for profit of $200,000. We sat on that until 2011 and bought a $750,000 place. Finished that and sold for $1,200,000. Bought the worst house in the best neighborhood in the best location for $1,300,000. This is where it got a little ugly because this place was a huge dump and cost us ridiculous amounts of money to get sorted. Upside is that we bought under market and our area has appreciated since we bought to $2,200,000.
I have a daughter 2.5 years old and one on the way. I'm torn between how much I want to "give" them for their higher education because my parents saved ZERO for me and gave me ZERO for college/post grad. I was thinking maybe I'll save enough for a public 4 year college and let them handle their own post grad. That would be more than generous of me in my opinion. Currently we save $500/month for my daughter into a Vanguard 529 plan which should be about right for a 4 year public education for college.
If I was single, I'd be retired now.
Such is life.
Anyway, I figure that I could retire comfortably on $5000 of after tax money per month with no debt which means I need about $1,800,0000 to 2,000,000 of investments. If I could convince my wife to move I'd be able to retire probably 7-10 years earlier. I've been working on that for 10 years, and it hasn't happened yet so I'm not holding my breath. I think I've done ok for only having been "working" for 5 years, but it could always be better I know.