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FIRE'd small business owner
10-02-2017, 06:42 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Posts: 1,157
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FIRE'd small business owner
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.
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10-02-2017, 06:54 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Apr 2013
Location: Gosport, IN
Posts: 1,218
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Congrats Stormy Kromer - you look to be in great shape financially and wish you a long and happy journey!
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10-02-2017, 09:30 AM
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#3
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Moderator
Join Date: Jul 2010
Posts: 7,941
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Welcome, Stormy! Hope you and your DW are enjoying your retired lives together. We look forward to your perspectives!
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
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ER'd Oct. 2010 at 53. Life is good.
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10-02-2017, 09:35 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: ATL --> Flyover Country
Posts: 6,649
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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!
__________________
FIRE'd in 2014 @ 40 Years Old
Professional Retiree
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10-02-2017, 08:50 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,521
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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.
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10-03-2017, 06:55 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Posts: 1,157
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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.
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10-03-2017, 07:33 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2008
Location: Atlanta Suburb
Posts: 1,499
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Welcome to the forum. Congratulations.Well done.
FN
__________________
"Oh, twice as much ain't twice as good
And can't sustain like one half could
It's wanting more that's gonna send me to my knees" - John Mayer
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10-03-2017, 11:39 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Aug 2017
Location: Champaign
Posts: 4,726
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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.
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10-04-2017, 01:25 PM
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#9
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Full time employment: Posting here.
Join Date: Jul 2014
Posts: 930
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Welcme and congratulations!
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10-04-2017, 07:03 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jan 2010
Location: 5-sided building
Posts: 1,184
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Stupendous!
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10-04-2017, 07:25 PM
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#11
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Thinks s/he gets paid by the post
Join Date: May 2005
Location: Portland
Posts: 1,713
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Quote:
Originally Posted by 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.
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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?
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10-04-2017, 10:16 PM
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#12
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Recycles dryer sheets
Join Date: Jan 2012
Posts: 442
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Congratulations Stormy Kromer.
You have done well.
Best Wishes to you and your wife as you enjoy the retirement.
Rick
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10-05-2017, 02:14 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: Midwest
Posts: 1,795
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Welcome aboard.
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10-05-2017, 07:00 AM
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#14
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Full time employment: Posting here.
Join Date: May 2014
Location: Lakewood
Posts: 920
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Well done, sir. And you still have potentially decades of good years left. You should be proud of yourself.
__________________
Why be normal when you can be yourself?
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10-05-2017, 07:44 AM
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#15
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Recycles dryer sheets
Join Date: May 2016
Location: Orange County Ca
Posts: 162
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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!
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10-09-2017, 07:50 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Posts: 1,157
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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.
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10-09-2017, 08:10 AM
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#17
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Recycles dryer sheets
Join Date: Oct 2017
Location: Waterloo
Posts: 68
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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.
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