Hi everybody

[Rainbowdash]

Hospitalist checking in.

Thank you everybody for all the knowledge provided, i have been a lurker for long time.
I came to US in 1999 with nothing but debt and a medical school diploma. Did the necessary tests that year and started my residency in 2000, finished in 2003 and started my real job then. I have been working very hard and started my own small group of hospitalists. My family consists of me, my wife and my 6 years old daughter. We are debating the idea to retire early but feels like we are still young and may keep working for a few years. I am 39, wife 38, who works as an assistant of a small company's COO

We have about 5 million in retirement account (4 M in after tax and 1 M in tax deferred, tIRA, rIRA, SEP, 401K, HSA) all invested in low cost index funds at vanguard and fidelity.
House worth around 600 K mortgage free and daughter's 529 plan around 250 K, which are not part of the retirement account.
Our expenses are around 120 K per year including taxes and healthcare.

Thank you for reading my post


Sent from my iPad using Early Retirement Forum

 

[FireBug]

Welcome! Well yours is certainly a unique backstory. Impressive. I'll offer a welcome to the forum and let others who have a more entrepreneurial history chime in. Suffice to say, you are well positioned.

Some questions you might hear may surround the details of your work. Most folks here tend to be employees rather than owners. Will there not be a sale of assets in your retirement?

 

[rodi]

Welcome!

That's a 2.4% withdrawal rate. (Not counting real estate or 529). There are some who'd say you're cutting it to close given your relatively young ages. Others would disagree.

I assume you've got enough SS & Medicare quarters to qualify for SS, since you've been here more than 10 years.

I think you'd be fine to pull the plug if you're willing to pull in the spending if there were an extended downturn.

Again, Welcome to the forum.

 

[NanoSour]

Congrats on your success and welcome to the active forum.

Based on your assets and how you have them invested, I'd say you are good to go. There are not too many sure bets in life, but you are very well positioned to have a successful ER from a financial standpoint. I do agree with Rodi in that if you only have a short stay left to qualify for SS, you should wait till that ticket is punched.

Again, welcome.

 

[Rainbowdash]

Thank you for your responses

We do qualify for social security and medicare as we both have accumulated more than 40 working credits already, however i have not had the chance to calculate how much my benefits will be once we reach retirement age, i am not even sure if social security will still be there at that time. I hope at least medicare will be there...

My small hospitalist company may have some value to be sold once we decide to retire, but not counting on that as minor healthcare changes by the goverment can wipe us out easily.

Our investment is around 70% stocks and 30% bonds. Recently met a financial planner for the first time in my life, he wanted me to move my assets to his investment company for a "low fee" of 1% of my assets annually, and emphasized how well they do. I told him that I am getting charged around 0.1%. I went to a financial planner because i wanted reality check by a professional, and to see what else can I do to legally minimize my tax burden, but instead i sat there for 2 hours listening to them trying to convince me move my assets, anyways not a good experience...



Sent from my iPad using Early Retirement Forum

 

[pb4uski]

Welcome!

......I think you'd be fine to pull the plug if you're willing to pull in the spending if there were an extended downturn.

Again, Welcome to the forum.

+1 You're good to retire anytime you want to as long as you stay away from those leech FAs.

Since you are Vanguarding, you could have them do a retirement plan for you.

 

[Rainbowdash]

Update on our situation
I am 41 now, wife 40, daughter 7
Bought a new house, sold previous one, equity new house around $400K (worth 1.6M), daughters 529 $260k, retirement account $6.1M, most of this in after tax money.
Just setup our will with our lawyer, trust setup in case one of us die first to avoid estate tax.

Sent from my SM-T530NU using Early Retirement Forum mobile app

 

[Katiek]

Thanks for the update and great progress!

 

[Rainbowdash]

Hi, new update
I am 42, wife 41, daughter 8
Hospital that I worked at has implemented new policies to kick out all the private physicians like me, they are moving towards a model where all hospital physicians should be employed, which means 2 things, first my practice is no longer a sellable asset, second, my income will likely drop because I am going to see fewer patients
House equity $400K, 529 $300k, retirement accounts including 401k, SEP IRA, rIRA, tIRA, HSA, taxable account all adds up around $7.85M
Target retirement set at may 2019, or total NW of $10M whichever comes first

 

[Golden sunsets]

Would the hospital purchase your practice now for some $$$ to bring your group under their roof sooner rather than later? That is what we see in our area. Large practices gobbled up by the hospital.


Sent from my iPad using Early Retirement Forum

 

[Rainbowdash]

Hi, last update
I am 43, wife 42, daughter 10
With the help of the huge market run, our assets just crossed the $10M mark, giving notice tomorrow, both my wife and I are quitting the same time, we look forward to this new stage of our life, will do more traveling and spending more time together as family.
Again, thank you all for the information that has been provided in this forum. There has been so many things that I have learnt from very knowledgeable people here throughout the years. Thank you

 

[ugeauxgirl]

Interesting post- thanks for the update! I showed it to my 15 y o who is considering the medical field as a career.

 

[Golden sunsets]

Congrats. It's interesting that you hit your target 1 month before your "target $ or target date" whichever comes first. Good planning.

 

[Carol1862]

Best of luck to you and your family!

 

[HI Bill]

Wow! Debt in 1999 to $10M today! Congrats! Proves it can be done! Enjoy your well-earned retirement!

 

[Montecfo]

that is a great story, well done!

 

[TDub]

Impressive! Congrats to you!

 

[kimcdougc]

Congratulations to you and your whole family! Go enjoy your life!

 

[DogGone]

Hi, last update
I am 43, wife 42, daughter 10
With the help of the huge market run, our assets just crossed the $10M mark, giving notice tomorrow, both my wife and I are quitting the same time, we look forward to this new stage of our life, will do more traveling and spending more time together as family.
Again, thank you all for the information that has been provided in this forum. There has been so many things that I have learnt from very knowledgeable people here throughout the years. Thank you

Congrats on a multi year thread ending with an April Fools Day announcement

 

[Rainbowdash]

Congrats on a multi year thread ending with an April Fools Day announcement

We both presented our resignation until April second just in case people at work thought it may just be a April fools day joke, got different reactions from different people, some can't believe it, some wished us the best, some were just jealous, but almost all asked how we did it, simple answer was just work hard and invest, nobody knows our numbers except this forum.
Both me and my wife are savers as we both grew up poor, in struggling families, not having everything we wanted was the norm, it will be a challenge to turn the switch from saving and investing mode to drawing down mode. Will see how things go, we have solid numbers, I have already done many different calculators and all of them gave us green light to go. Our spending is around 200k per year, as we are going out with a mortgage and housing expenses including mortgage, insurance, taxes is half of our budget.

 

[EastWest Gal]

Congratulations! Another hospitalist here, but I did not own my own business. You two have done very well for yourselves.