class of 2020?

[Backpacker]

I found these forums via the Dave Ramsey forums. Not a super active poster over there, I like to think I focus on quality rather than quantity. I am 46 and DW is 43. My wife and I have been debt free (except for the house) since Christmas of 2006. She is a teacher for blind and visually impaired kids and I am a credit union VP of lending. We were married in 2005; we each were previously married to ummm shall we say free spirits? It’s been great to be on the same page financially. She has about 6 more years until full pension from the state for teaching, and unless they make major changes retirement package also will include health care for both of us. We have 5 kids between us (I am the over achiever with 4). Somewhere on these forums I read to be able to retire early it’s easier if you are not divorced, don’t have kids, and have good health – well we got 1 out of 3 I guess.

We’ve got 2 kids in college, one married and out (2 grand kids) and 2 still 50/50 with us and my ex-wife, so between college expenses, child support (yeah I still have to pay even with 50/50 custody), and feeding the 2 teenage boys still at home we often feel like we are swimming faster to drown slower. We are not really “drowning”, I just like that expression. It seems like we should be able to save more but we are cash flowing college; about $1000 a month; so fell really blessed to be able to do that.

In the last couple years we have purchased 2 rental houses with cash and are dabbling in being a landlord. So far I have seen enough to know that this is not a long term plan for us. With my lending background I am fairly good at detecting BS and also do ok at collecting, but it is too much time commitment to be dealing with post retirement. Our rough plan is to sell the current 5 bed 3 bath house in 2-3 years and move into one of the rentals; live there 2 – 3 years sell it with no capital gains and be FIRE. It’s becoming an obsession with us talking and dreaming about retirement. Not sure if we’ll both retire at her 30 year mark but it sure will be nice to have the option.

It seems like these forums are a better fit for me as we are striving for FIRE, so hope to hang out here more than on the DR forum.

I only post on weekdays roughly 8am – 6pm. I am too cheap to pay for internet at home, so if it takes me days to respond that is why.

For fun we like to hike, camp and travel. I hiked (in sections) almost all the way across the upper peninsula of Michigan.

[HawkeyeNFO]

Welcome aboard. You happen to live in one of my favorite areas of the country. When I was younger, my parents would bring the whole family up there for at least a week every summer. Great memories of Walloon Lake, White Birch Lodge, and all the ski hills in the winter. Unfortunately I haven't been back in nearly 20 years.

[Backpacker]

Skiing - sounds like we are going to get dumped on this afternoon and evenign. if the weather guessers can be believed we are supposed to get 8 inches with this storm.

[Backpacker]

Update- since 2011 original post, we've sold the big house, downsized to a 2 bedroom 1 bath. Still 2 in college, just a different 2! No kids at home except when they return for summer or breaks. Swapping houses got us totally debt free. Have also bought 2 more rentals, all are free and clear. After all expenses and depreciation we net about 12 k year from the rentals. My wife is picking up extra hours which will boost her highest 3 years compensation - that is the formula that the state uses to calculate her pension. Should make about 9000 a year higher pension for life. Health insurance is currently 300 a Month for retiree's (family plan as we still need to cover the kids). About 600 k in various retirement accounts. Her pension will be about 42k a year before taxes. Planning on keeping rentals until I am 59&1/2 to avoid taking any out of my Roth too early. We are very much LBYM's people. I track our expenses pretty carefully and estimate we need about 50 k per year. And that allows for some us travel and maybe 1 trip every other year abroad. I am confident that 2020 is doable, maybe sooner if my BS cup overfloweth.

Sent from my XT1254 using Early Retirement Forum mobile app