FIRE'd small business owner

[Stormy Kromer]

Hi everyone, I enjoy your forum.

I'm a 52 year old recently FIRE'd in class of 2016. DW is 56 and FIRE'd with me. We owned a small business in a small town for 31 years and knew it was time for someone else to take it to the next level so we sold it and moved 350 miles away for a clean break and new start.

Here are our basics for FIRE:

$125,000 cash & Money Market (emergency fund)
$1,325,000 Equity portfolio (Mutual Funds)
$705,000 Rental Real Estate (farmland)
$465,000 Equity remaining in business
$765,000 SEP IRA
$260,000 Roth IRA's
$ 55,000 DW IRA

House is paid for, 2 adult children paid for & on their own. No personal debt.

We live on about $55,000 a year, including our own health insurance ($11,500 annually). We're frugal but not cheapskates.

The business sale is on a 10 year contract which generates $72,000 income a year, we live on this plus we still sock away 10%, it's a habit I can't break.

Income from the business sale will take us til I'm 61 and DW 65. At that time we'll start drawing from the most efficient sources possible, who knows what income tax laws will be then. We plan on taking SS when DW hits 67, I'll be over 62 and she can draw based on my earnings record, I'll likely apply at the same time. I paid the maximum for 32 years since the business income was in my name. SS and rental income off the farmland should pay our bills from then on.


All income generated by the other investments is automatically reinvested.

Anyway, we're getting settled in. DW adjusted immediately, I'm getting there. Hope to visit with the good folks on this forum.

 

[wmc1000]

Congrats Stormy Kromer - you look to be in great shape financially and wish you a long and happy journey!

 

[MBAustin]

Welcome, Stormy! Hope you and your DW are enjoying your retired lives together. We look forward to your perspectives!

 

[ExFlyBoy5]

Welcome to the forum! Sounds like you have all your ducks in a row. Enjoy your new-found freedom and hope to "see you" around these parts!

 

[street]

So it looks like 3.7M plus the business sale is on a 10 year contract which generates $72,000 income a year.

You have won the game in a blow out! Plus with SS in the future plans I would say you are set. Nice job.

 

[Stormy Kromer]

Thanks all. I'd have to say the most important factor that made ER a reality is having a spouse on board with the same goals. It took a lot of discipline and some sacrifice over 30 plus years, if my spouse wasn't on the same track it would have been much harder.

 

[flintnational]

Welcome to the forum. Congratulations.Well done.

FN

 

[Rianne]

Welcome! Spending is conservative, you've got it under control! HI is a bite, but you guys are efficient! And no debt, you're a great example for us all.

 

[Katiek]

Welcme and congratulations!

 

[HawkeyeNFO]

Stupendous!

 

[Scrapr]

Thanks all. I'd have to say the most important factor that made ER a reality is having a spouse on board with the same goals. It took a lot of discipline and some sacrifice over 30 plus years, if my spouse wasn't on the same track it would have been much harder.

Boy ain't that the truth. As a construction company owner we were tested in 2008-2011. Having a spouse to just listen and vent is very nice.

Congrats on getting out alive. You feel good about the income stream from the business sale?

 

[Rickt]

Congratulations Stormy Kromer.
You have done well.
Best Wishes to you and your wife as you enjoy the retirement.

Rick

 

[brucethebroker]

Welcome aboard.

 

[cooch96]

Well done, sir. And you still have potentially decades of good years left. You should be proud of yourself.

 

[SpinDr]

Congratulations Stormy! You're looking very solid in your planning and you may have some folks tell you to have some more fun with your time, and, what looks to be, plenty of income and assets to do it. It's definitely tough fighting against those LBYM urges!

 

[Stormy Kromer]

Thanks for the warm welcome everyone. One of the challenges of ER is feeling like you're the only one around who has it as a goal. I see plenty of people with the income to do it, but few take it seriously.

Another challenge is that at age 52 I'm the only one my age that is retired, I've met many other young minded retirees in their later 60's who are fit and active to go fishing with. It's nice to have friends who visit about things other than business and work.

 

[thumbs]

Very nicely done Stormy Kromer! How has the adjustment to retirement been for you so far? My worry is that when my time comes, I will have a really tough time walking away from a business that I've poured a good part of myself into for so many years.