Hi....one more lurker to new member

[Love This Community]

Hello,

I have been a lurker on this forum and finally joined as a member. I am 35 years old. DW is 33. Have 2 wonderful kids (7 and 5) that keep us on our toes all the time.

We are LBYM family (credit goes to DW) that managed on single income from 2005 - 2011 (DW stayed home to raise our kids) and we haven't had the opportunity to save much during our mid - late twenties.

We never believed in taking loans (except for mortgage currently at < $170K). All our credit cards are paid in full every month and our vehicles (used) are paid for in cash

I Worked with Megacorp for 10 years with pension benefits and recently switched to another Megacorp. DW joined the workforce has been working with Megacorp for the past 3 years. With kids in public schools, our day care expenses reduced and dual income is helping with boosting our 401k's and savings since last year. We are maxing our 401K's starting this year.

Here's our current financial status

Tax deferred accounts: $210K
Taxable accounts: $20K
Property (overseas): $120K
Emergency Fund to cover 1 year of expenses.

I look forward to learning more from this community and experience power of compounding along with other community members.

Best,
VJ

 

[Travelwanted]

Welcome! You found this site at the right age. I only wish I landed here sooner!

You have your eyes on the prize, you LBYM and avoid debt. Great start.

Do you do your own investing? It will really pay off nicely over the years if you do. There are plenty of threads that will point you in the right direction. In addition, check out bogleheads.org.
Great community as well.

 

[Car-Guy]

Welcome. I too lurked for a number of years before joining this forum. Your post was interesting to me since a number of things you mentioned, reminded me of when I was your age. I was in my mid 30's when I switched from one mega corp to another after 10+ years of service. I had no debt at the time except for a home loan and my net worth was probably about the same as yours based on your input and inflation adjusted. The DW had recently stopped working to raise our child. (although she never went back to work for a "$ paying" job.)

I stayed with mega corp #2 for another 25+ years before retiring. I started saving in mega corp's 401k as soon as I could and I always put in enough to get the max company matching. The last 15 years I maxed out the 401k to the legal limits for tax deferrals. That along with IRA's and other savings and investments, WORKED FOR ME. Now the biggest financial problems facing me are RMD's some years in the future when I hit 70.5.

 

[Katiek]

Welcome! You've done a good job saving even when your kids were home and DW not working. You should see a lot of momentum now that you have an extra income (and you're both focused on LBYM).

 

[zerogravity]

Welcome! I am a relatively new member too! My kids are going to college next year and the year after. Those years pass by quickly! My advice is to LBYM, keep family time a priority and enjoy the kiddos while they are home! We did and are now so proud that they have absorbed a strong work ethic, frugality and great self-confidence. No regrets sending them out to face the world!

 

[Love This Community]

Update after 2 years:

Here's our current financial status

April 2015: Tax deferred accounts: $210K
May 2017: Tax deferred accounts: $351K

April 2015: Taxable accounts: $20K
May 2017: Taxable accounts: $28K (ned to do a better job pumping in more into brokerage account)

April 2015: Property (overseas): $120K
May 2017: Property (overseas): $150K (picked up another property)
Note: Above properties do not generate income and I'm counting on land value being appreciated in a developing country. Might be selling one in the coming year or two

April 2015 and May 2017: Emergency Fund to cover 1 year of expenses.

May 2017: Cash - 60K (Planning on purchasing a single family home while keeping our current coach home for renting out)

May 2017:No loans except for mortgage (~130K). Current coach home approx value: ~ 190K

 

[MBAustin]

Thanks for the update - looks like you are doing well.

 

[Love This Community]

Thank you. Folks like you here are real inspiration.

 

[Katiek]

Great progress!

 

[kimcdougc]

Keep up the good work! Great job.

 

[evilanne]

You are doing great! What are your goals for FI/RE?

 

[Exit 2024]

Wanted to ask about goals also, are you planning for ER? Good progress in those 2 years, keep it up and may be give us more often updates?

 

[rodi]

Great progress on growing the nest egg. Keep up the good work.

 

[Love This Community]

You are doing great! What are your goals for FI/RE?

Plan is to RE in 12 years with a 2.0 mil NW, pay for kids education. Haven't really figured out how I'll manage after I turn 50 and before I can withdraw from 401K and SS. Need to explore 72t and other avenues. I think I'll have more clarity in another 2 to 3 years once we move into a single family home and get a handle on future expenses

 

[Love This Community]

Great progress on growing the nest egg. Keep up the good work.

Thank you

 

[Love This Community]

Keep up the good work! Great job.

Thank you

 

[Love This Community]

Wanted to ask about goals also, are you planning for ER? Good progress in those 2 years, keep it up and may be give us more often updates?

Thank you. Replied to another post in the same thread regarding ER plan. Would love to post more often but I guess, I'm more prone to sharing information when there is a significant change in Networth or when I reach a milestone. Anyone in the same boat?

 

[Koolau]

Welcome. I was a long-time lurker and actually retired before joining. I guess we're all different. I hope you remain a strong contributor!

 

[Love This Community]

Update after 2 years:

Here's our current financial status

April 2015: Tax deferred accounts: $210K
May 2017: Tax deferred accounts: $351K
Dec 2017: Tax deferred accounts: $411K

April 2015: Taxable accounts: $20K
May 2017: Taxable accounts: $28K (ned to do a better job pumping in more into brokerage account)
Dec 2017: Taxable accounts: $30K

April 2015: Property (overseas): $120K
May 2017: Property (overseas): $150K (picked up another property)
Dec 2017: Property (overseas): $150K
Note: Above properties do not generate income and I'm counting on land value being appreciated in a developing country. Might be selling one in the coming year or two

April 2015, May 2017, Dec 2017: Emergency Fund to cover 1 year of expenses.

May 2017, Dec 2017: Cash - 60K (Planning on purchasing a single family home while keeping our current coach home for renting out)

May 2017:No loans except for mortgage (~130K).
Dec 2017: No loans except for mortgage (~123K).
Current coach home approx value: ~ 190K

Dec 2017 update edited using phone. Hope it doesn't mess up the format. Happy new year to all fellow ER members!!

 

[Love This Community]

April 2019 update

Here's our current financial status

April 2015: Tax deferred accounts: $210K
May 2017: Tax deferred accounts: $351K
Dec 2017: Tax deferred accounts: $411K
Apr 2019: Tax differed accounts: $490K

April 2015: Taxable accounts: $20K
May 2017: Taxable accounts: $28K (ned to do a better job pumping in more into brokerage account)
Dec 2017: Taxable accounts: $30K
Apr 2019: 55K

April 2015: Property (overseas): $120K
May 2017: Property (overseas): $150K (picked up another property)
Dec 2017: Property (overseas): $150K
Apr 2019: liquidated one property and used money towards partial down payment. Value of remaining properties is still at 150K
Note: Above properties do not generate income and I'm counting on land value being appreciated in a developing country.
Apr 2019: Might be selling one in the coming year or two - DONE!

April 2015, May 2017, Dec 2017, Apr 2019: Emergency Fund to cover 1 year of expenses.

May 2017, Dec 2017: Cash - 60K (Planning on purchasing a single family home while keeping our current coach home for renting out)
Apr 2019: purchased single family home in 2018. $120K down payment.
Rented our coach home as originally planned.

May 2017:No loans except for mortgage (~130K).
Dec 2017: No loans except for mortgage (~123K).
Apr 2019: single family home (bought in 2018) outstanding mortgage $448,000
Rental property (coach home) outstanding mortgage $109,000
Current coach home approx value: ~ 200K.

Other updates:
I was between jobs from Jan - May 2018 ( was unwilling to take a different role at megacorp which would require me to work in an area that I am not passionate about and would have been miserable). Job market was good and I had a couple of offers to chose from. Though There was a 4-month gap, I am glad I waited and accepted the right offer. I am very happy at my current megacorp.
Wife’s career is taking off and we are doing good income wise.
Property Taxes for our new property are super high. $18,500 annually but we knew what are getting into. Hope it doesn’t turn out to be a foolish mistake in the long run.
Current home value : 620K

 

[kimcdougc]

Love hearing your updates! Looks like you are well on your way. Just keep doing what your doing. You are truly an inspiration to those younger members on their way to FIRED.

 

[MichaelOrlowski]

hello!!!!!!!

 

[Vacation4us]

Wow those Property taxes are high. 3% is pretty steep especially since you can't write off he full amount.

What is a coach home? Condo or townhouse? I never heard that term before.

What insight do you have on the land from a developing country will increase? Sounds like a very risky speculation. What motivated you to invest there?

 

[kgtest]

Where do you live lol? I am a block off one of the bigger lakes, with lake access and my taxes are like 1/3 yours. I am envious of your taxable, but not your outstanding (leveraged/unleveraged) debt or your property tax bill.

 

[Love This Community]

Love hearing your updates! Looks like you are well on your way. Just keep doing what your doing. You are truly an inspiration to those younger members on their way to FIRED.

Thank you!