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am i really done???? can i quit today??
Old 02-14-2011, 10:24 AM   #1
Dryer sheet wannabe
Join Date: Feb 2011
Posts: 22
am i really done???? can i quit today??

i posted before, but i messed up and really should have put my figures in US$.

when i decide to leave UK ill be in a US based country anycase so here we go again.

house uk - worth $1,040,000 (mortgage $250,000)

holiday home - worth $2,250,000 no mortgage

cash in bank - $502,000

invested in combo of funds / equities / bonds / gilts - $509,500

shares in previous company i sold which vest in next 2 years - $288,000

total comes to about 4,300,000 usd.

currently we spend my wife and me about - 90,000 - 100,000 usd per year.

she has not been working but will start soon.

the holiday house will give us a NETT income of about 75,000 usd per year.

as i mentioned im now 37 and my wife is 34. we plan to have one or two kids.

firecalc tells me im done but it seems a bit too good to be true.

i also plan to work doing something else and my wife will work so realistically we will have about another 30,000 - 40,000 minimum per annum from work. firecalc also basically leaves me not needing to sell either property.

am i FIRE able
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Old 02-14-2011, 10:43 AM   #2
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Looks like the numbers work but I would be concerned about having so much of your net worth tied up in real estate (77%). Not a real liquid investment.

Also, what's the tax situation that you are looking at on the $75k in rental income?

If you ae going to have a couple of kiddies that $90k in annual expenses might rise so you might run firecalc based on an anticipated higher level of annual expense. Then there is college and all the other unforseens that the little one's bring.
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Old 02-14-2011, 10:46 AM   #3
Dryer sheet wannabe
Join Date: Feb 2011
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thanks for that. the 75k is after taxes. also being 37 im not calling it a day from working life but just giving up the stress heavy job which i dont enjoy and am not interested anymore. i appreciate the cost of kids but also the property in london is selllable very easily and at the price i have on the holiday home think that would shift pretty fast too.
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Old 02-14-2011, 10:46 AM   #4
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Based on TOTAL expenses being say at the $100K level and the net annual income from vacation rental of $75K. Is vacation income stable? If yes you need additional $25k Income from all other assets or work. If you do not work for the income I would estimate you around $650K of assets in a balanced portfolio 3.8% withdrawel rate. Looks doable in my humble opinion.
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Old 02-14-2011, 10:52 AM   #5
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the holiday rental is what others with similar properties are getting in the area. its stable as long as people go on holiday!!! also your calculation Trawler if im not mistaken is on the basis i make zero withdrawals from cash or investments. is that correct?
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Old 02-14-2011, 01:21 PM   #6
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Ratrace out. My calculation Assumes you do net the $75 annually is that with a balanced portfoio $650K you can withdraw $25K annually and historcaly a with draw rate of 3.8% will keep the $650K porfolio intact and allow you to increase withdraws for inflation in the long run. You have much more than the $650K to do this. You may want to Fire Calc your cash in bank - $502,000 and combo of funds / equities / bonds / gilts - $509,500
That is a total of $1,011,000 and input the $75K income from rental as retire ment income adusting for inflation and see what that does for you. I think you will be happy with the result. You cushion would be the stock of $288K and equity in the UK house. Hope that helps
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