|
12-20-2020, 09:56 PM
|
#1
|
Dryer sheet wannabe
Join Date: Dec 2020
Posts: 16
|
Hi from dukebound85
Been following this forum for a few months after being shown the firecalc and got inspired. Got the FIRE bug from watching youtube channels (ie OurRich Journey) and following websites like MMM.
Like many others here, I am wanting to not live my life working for a living and hope to retire early and have work be "optional".
Some background, I am 35, recently married with my wife (36) and a little one on the way!
I keep a spreadsheet of my amounts and projections. As of this month, we have:
Combined Income:
~160k/year (110k for me; 50k for wife)
Retirement accounts:
Tax Advantaged Accounts (401k/Roth/HSA):
Me: 112k; Wife: 55k
Taxable and Savings Accounts:
Me: 106k; Wife: 16k
Of the above 122k, We have ~30k in liquid bank accounts as our EF
Pension Accounts:
Me: 31k in my contributions (not including state contributions)
Properties
Primary:
~100k in equity (350k left on mortgage)
Rental 1:
~150k in equity (250k left on mortgage)
Rental 2:
~50k in equity (170k left on mortgage)
Net Worth
Net Worth Without Real Estate Equity:
~320k
Net Worth With Real Estate Equity:
~620k
We do not have any debts aside from mortgages. I wish I was aware of FIRE before the last few years and am hoping to reach a 1 million net worth (without houses factored) by 2025 (we would be 40) and 2.5 million by 2034 (would be 49) and have work optional. Our current savings rate is ~55-60% combined
I hope we are on the right track!
Anyways, that is me and I welcome any and all advice. Very much looking forward to this community and following along.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
12-21-2020, 04:45 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,298
|
Welcome to our wonderful forum.
It sounds like you are off to a good start in your pursuit of ER.
__________________
TGIM
|
|
|
12-21-2020, 06:11 AM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,829
|
Welcome aboard and congratulations on such a great savings rate at your ages.
That was a similar rate that the DW and I maintained although we had no kids and it worked out well.
I use to look at it in real simple terms that if we saved half(or more) of our income then we would only have to work half as long
Of course it's not that simple with inflation, taxes.recessions, bad returns etc. etc. but the very discipline of saving that much and trying to control lifestyle creep made all the difference for us.
You are so far ahead of so many 30 somethings I know that I think you will do well.
Most people are not wired to be such great savers.
Having a household income comfortably more than 2x the median but only living a little above the median will bode well for the future.
Good luck
|
|
|
12-21-2020, 09:15 AM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Jan 2020
Location: Milwaukee
Posts: 4,047
|
Welcome aboard!
|
|
|
12-21-2020, 10:25 AM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,373
|
Welcome to the forum. Doing good on where you are at currently. Your high savings rate is great. I assume the rentals are basically self-supporting so you don't have much out of pocket for them.
You didn't mention much about investments, but at your age and timeframe the general recommendation is to be nearly all in equities. Beware of fees, try to limit those as they negatively affect your accumulation due to compounding. Keep up the good work you have started.
I never focused on net worth, just concentrate on the savings and the net worth will follow. NW is a nice comparison tool for some, but what really matters is your savings and the income producing part of NW. Rentals can be a nice source of income, and tax advantages in your accumulating phase.
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
|
|
|
12-21-2020, 11:02 AM
|
#6
|
Recycles dryer sheets
Join Date: Mar 2018
Location: CONUS
Posts: 187
|
Welcome!
And congrats on the recent marriage/baby on the way! There's nothing better. And what a gift it will be to retire early and spend lots of time together.
Keep up the great work.
__________________
W*rking hard, enjoying life.
Target: RE at 42 in '28 but subject to change because life be like that sometimes
|
|
|
12-23-2020, 04:19 PM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,555
|
Quote:
Originally Posted by dukebound85
We do not have any debts aside from mortgages. I wish I was aware of FIRE before the last few years and am hoping to reach a 1 million net worth (without houses factored) by 2025 (we would be 40) and 2.5 million by 2034 (would be 49) and have work optional. Our current savings rate is ~55-60% combined
|
Welcome! A 55-60% savings rate puts you at the head of the class! To do that at your ages is awesome! I wasn't able to hit 50% saving rate until I turned 47, had a salary bump, sold my condo, and moved into my wife's condo. Does your savings rate include the income from the rentals, less expenses?
Equities and real estate earnings are, unfortunately, subject to ups and downs. If we continue to see returns similar as 2008-present, you may well make your goal! Have you tried inputting your info into FIRECALC? I did a quick run with a starting spending rate of $80K annually, a starting portfolio value of $490K (included rental equity, since I'm assuming it generates a rate of return similar to equities, after costs), a 41-year retirement period, and a retirement year of 2034, and did not include SS. I got a 100% success rate!
__________________
Balance in everything.
|
|
|
12-23-2020, 05:01 PM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
|
Welcome!
I suggest that you consider getting Quicken Deluxe and using their Lifetime Planner to develop your plan. You can also use it to track your finances, cash management, your progress towards your goals and the info that you need at tax time for those rentals.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
06-07-2021, 08:18 PM
|
#9
|
Dryer sheet wannabe
Join Date: Dec 2020
Posts: 16
|
Update!
DD finally welcomed us 5 weeks early and it has been an adjustment. However, I am excited at our net worth update!!
We recently reached:
- investable assets of 410K
- property equity of ~380k (two rentals and primary)
- total NW is almost 795k (or ~650k not including primary home)
Our net worth has JUMPED 170k in 5 months ?? This is fun to watch and is even more motivating
|
|
|
06-07-2021, 08:47 PM
|
#10
|
Full time employment: Posting here.
Join Date: Feb 2017
Posts: 807
|
Congratulations on the addition to the family - how sweet to have a DD in the house!
|
|
|
06-07-2021, 09:06 PM
|
#11
|
Dryer sheet wannabe
Join Date: Dec 2020
Posts: 16
|
Quote:
Originally Posted by CindyBlue
Congratulations on the addition to the family - how sweet to have a DD in the house!
|
It is!
Definitely makes us view life in a different perspective
|
|
|
06-08-2021, 05:45 AM
|
#12
|
Dryer sheet aficionado
Join Date: Jul 2018
Posts: 45
|
Congrats on DD. I don’t usually post but your post resonated with me as my DD was born last month also 5 weeks early. As other folks have mentioned in this forum, you may want to forecast your your expenses to increase going forward. I’ve already seen this starting with the hospital bill which includes an almost 2 week stay in the NICU. Yikes. Luckily insurance kicked in after I met my out of pocket max.
|
|
|
01-01-2022, 01:27 AM
|
#13
|
Dryer sheet wannabe
Join Date: Dec 2020
Posts: 16
|
Quote:
Originally Posted by dukebound85
Been following this forum for a few months after being shown the firecalc and got inspired. Got the FIRE bug from watching youtube channels (ie OurRich Journey) and following websites like MMM.
Like many others here, I am wanting to not live my life working for a living and hope to retire early and have work be "optional".
Some background, I am 35, recently married with my wife (36) and a little one on the way!
I keep a spreadsheet of my amounts and projections. As of this month, we have:
Combined Income:
~160k/year (110k for me; 50k for wife)
Retirement accounts:
Tax Advantaged Accounts (401k/Roth/HSA):
Me: 112k; Wife: 55k
Taxable and Savings Accounts:
Me: 106k; Wife: 16k
Of the above 122k, We have ~30k in liquid bank accounts as our EF
Pension Accounts:
Me: 31k in my contributions (not including state contributions)
Properties
Primary:
~100k in equity (350k left on mortgage)
Rental 1:
~150k in equity (250k left on mortgage)
Rental 2:
~50k in equity (170k left on mortgage)
Net Worth
Net Worth Without Real Estate Equity:
~320k
Net Worth With Real Estate Equity:
~620k
We do not have any debts aside from mortgages. I wish I was aware of FIRE before the last few years and am hoping to reach a 1 million net worth (without houses factored) by 2025 (we would be 40) and 2.5 million by 2034 (would be 49) and have work optional. Our current savings rate is ~55-60% combined
I hope we are on the right track!
Anyways, that is me and I welcome any and all advice. Very much looking forward to this community and following along.
|
What a year 2021 has been!
I wanted to give an update:
Net Worth Without Real Estate Equity:
December 2020: ~320k
June 2021: ~410k
December 2021: ~495k
Net Worth With Real Estate Equity:
December 2020: ~620k
June 2021: ~795k
December 2021: ~1,030,000
|
|
|
01-02-2023, 04:10 PM
|
#14
|
Dryer sheet wannabe
Join Date: Dec 2020
Posts: 16
|
2022 was largely disappointing as many of you can relate to from a stock market perspective
2022 EOY update
Net Worth Without Real Estate Equity:
December 2020: ~320k
June 2021: ~410k
December 2021: ~495k
December 2022: ~483k (despite a savings rate of 60+ %)
Net Worth With Real Estate Equity:
December 2020: ~620k
June 2021: ~795k
December 2021: ~1,030,000
December 2022: ~1,076,000
|
|
|
09-10-2023, 09:26 PM
|
#15
|
Dryer sheet wannabe
Join Date: Dec 2020
Posts: 16
|
Update Sept 2023
Net Worth Without Real Estate Equity:
December 2020: ~320k
June 2021: ~410k
December 2021: ~495k
December 2022: ~483k (despite a savings rate of 60+ %)
September 2023: ~605k
Net Worth With Real Estate Equity:
December 2020: ~620k
June 2021: ~795k
December 2021: ~1,030,000
December 2022: ~1,076,000
September 2023: ~1,250,000
So far so good this year. Would like to consider a career change sometime in the future as work is demanding in my field. We have a household income of ~180k. DD is now 2.5 and would love to be able to spend more time with her
|
|
|
03-01-2024, 07:28 PM
|
#16
|
Dryer sheet wannabe
Join Date: Dec 2020
Posts: 16
|
March 2024 Update
Net Worth Without Real Estate Equity:
December 2020: ~320k
June 2021: ~410k
December 2021: ~495k
December 2022: ~483k (despite a savings rate of 60+ %)
September 2023: ~605k
March 2024: ~710k
Net Worth With Real Estate Equity:
December 2020: ~620k
June 2021: ~795k
December 2021: ~1,030,000
December 2022: ~1,076,000
September 2023: ~1,250,000
March 2024: ~1,350,000
Steady gains with aggressive savings rate (~50%+). Working to make the dream happen!
|
|
|
03-01-2024, 09:14 PM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Nov 2013
Posts: 1,049
|
Congratulations! You are making great progress. Keep it up.
|
|
|
03-03-2024, 12:36 AM
|
#18
|
Recycles dryer sheets
Join Date: Jun 2019
Posts: 145
|
Quote:
Originally Posted by dukebound85
I hope we are on the right track!
|
Sounds like you're doing great!!
Don't forget that a large part of the beauty n the rentals in the passive income, meaning you need for less of the big number sitting somewhere.
We weren't far from where you were in 2020 (in fact behind you) when we decided to ramp things up, move out of the house.
That was a complete game changer for us in terms of seeing what was possible and just how early we could leave the jobs and just how far we could get living affordably and working for fun rather than because we needed the money.
I recommend trying it, just like I recommend taking a year off to go travel with DD before school requirements set in. Hit the road or sail around the world...
You might be amazed that you actually spend less/save more when traveling full time then when you lived in the house and worked!
Keep it up!!
__________________
RE at 35 (mostly accidentally and without a plan) and still figuring it all out after 12years of full time travel/adventure!
Enjoy the Journey!!
|
|
|
03-03-2024, 10:12 AM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2015
Posts: 5,862
|
Looks like you are progressing well.
__________________
Give a Man a fish, he will eat for a day.
Teach a Man to fish, he will eat for a lifetime.
|
|
|
03-03-2024, 10:28 AM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,521
|
Outstanding and the power of compounding is the trick.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|