Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Intro
Old 01-03-2018, 06:25 PM   #1
Dryer sheet aficionado
 
Join Date: Dec 2017
Posts: 35
Intro

Hi all.

I wanted to into myself. I've been lurking for about a year now and joined last month or so. Two years ago, I was tired of being sick and tired and decided to do something about my Personal Finance. My DW and I, 36 and 35 respectively, needed help we were in heavy debt after having Premature twins. They are healthy now and giving me premature gray hairs, they are soon to be 6 years-old.

We were $82k in debt and in just at two years in Feb we well be debt free besides our mortgage. No car payments, credit cards, student loans etc.

We did the debt Snowball, Dave Ramsey plan... Modified. During this time we invested in our 401k, I could not pass up that match. DW has a 457 plan.

I moved our investments around and stoppled playing with Scott trade for my Roth and got a Pro doing that for me.

We went from about 30k in retirement at the beginning of this and now we are about 106k in tax preferred accounts. Not as large as some others on this forum but I plan on retiring at 55 or sooner. The plan is to have about 2.5 mil at that time. This does not include my DWs pension.
ab620 is offline   Reply With Quote
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!

Old 01-03-2018, 06:30 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Oct 2014
Posts: 1,537
ab620. Congrats on the great progress. Identifying the issue is half the battle. Good luck on the rest of your journey.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie

" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
Bigdawg is offline   Reply With Quote
Old 01-03-2018, 07:34 PM   #3
Recycles dryer sheets
Backpacker's Avatar
 
Join Date: Feb 2011
Location: On a dirt road
Posts: 332
Twins! How fun. Congratulations on the debt pay down, sounds like you hit it pretty hard. I too couldn't pass up the employer match, at the time it was if I did 3%, employer did 6%.
__________________
"Up sluggard and waste not the day, in the grave will be sleeping enough." Benjamin Franklin
Backpacker is offline   Reply With Quote
Old 01-03-2018, 07:34 PM   #4
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,607
Congrats, sounds like you are on the right track now. Just keep plugging away and your time will come.
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 01-05-2018, 09:50 AM   #5
Recycles dryer sheets
 
Join Date: Oct 2006
Posts: 134
Way to rally!! I love reading stories like yours. It would be very easy with sick premies at home to rationalize and delay getting out of debt and start that long road of saving. Now that your debt is out of the way you get watch ur egg grow. Have fun!
__________________
I'm sorry if I ask questions that are too nosy/personal.
Scout is offline   Reply With Quote
Old 01-05-2018, 10:50 AM   #6
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 7,925
Congratulations ab620 and welcome to the forum! You've made tremendous progress and depending on your childcare expenses over the past few years, you may have some additional flexibility to fund both retirement and college savings!

We hope you'll pass along some of your tips to our younger members, who do a great job of encouraging everyone to stay the course. Happy 2018!
__________________
"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
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is online now   Reply With Quote
Old 01-05-2018, 10:20 PM   #7
Dryer sheet aficionado
 
Join Date: Dec 2017
Posts: 35
Thanks for the nice words all!
ab620 is offline   Reply With Quote
Old 01-06-2018, 06:34 AM   #8
Full time employment: Posting here.
 
Join Date: Jun 2014
Posts: 518
Welcome! I was in a similar situation when I was younger when I made the pivot with similar debt and situation, and I'm so glad that I did. Keep track of your progress. You'll be amazed at how quickly the bar steadily rises and how time flies by.
Toocold is offline   Reply With Quote
Old 01-06-2018, 10:25 AM   #9
Thinks s/he gets paid by the post
HawkeyeNFO's Avatar
 
Join Date: Jan 2010
Location: 5-sided building
Posts: 1,183
Congrats on twins being healthy and getting outta debt! The money starts piling up...slowly at first. But after a few years, it truly becomes astonishing how quickly it builds. Stick around, and don't be afraid to ask questions.
HawkeyeNFO is offline   Reply With Quote
Old 01-06-2018, 11:21 AM   #10
Thinks s/he gets paid by the post
Red Badger's Avatar
 
Join Date: Jan 2017
Location: Hog Mountian
Posts: 2,077
Congrats on the healthy kids and slaying the debt monster.

Do consider DIY index investing. The fees going to your "pro" are eventually going to cost you tens (or even hundreds) of thousands of your dollars. And his (or her) odds of consistently beating the market? Slim to none (and slim just left town).

We have a 4 fund portfolio (all index funds at Fidelity) all with super low fees.
1. Total US market
2. Total international Market
3. Total Govie bond fund
4. Total TIPs bond fund

AA is about 60/40 excluding cash. We have a military pension and a modest corp pension. Without those, we'd likely be 40/60.
We also built a two year CD ladder (in quarterly intervals) to carry us to when we'll both draw SS. Plus a year of SHTF cash.

In either case (pro or DIY), LBYM and investing will get you there, so enjoy the ride!
__________________
Never let yesterday use up too much of today.
W. Rogers
Red Badger is offline   Reply With Quote
Old 01-06-2018, 02:02 PM   #11
Recycles dryer sheets
 
Join Date: Dec 2013
Location: Kansas
Posts: 107
Looks like you are heading the right direction. Good job!
Sasset is offline   Reply With Quote
Old 01-06-2018, 04:31 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Jul 2015
Location: Beaverton
Posts: 1,382
I gave both of my sons Dave's book early on. You can agree or disagree but at least the first part of his plan has merit. After that it's up to them to figure it out. So pleased you are having success.
__________________
Jump in, the water's warm.
Bir48die is offline   Reply With Quote
Old 01-07-2018, 07:32 PM   #13
Dryer sheet aficionado
 
Join Date: Dec 2017
Posts: 35
Thank you all for the replies. I agree Dave Ramsey with mutual funds...single stocks scare me.

I do not agree with his withdraw rate when retired. I wish I could get 12% forever!

With that being said he does encourage people to get educated when investing.
ab620 is offline   Reply With Quote
Update!
Old 04-21-2018, 12:29 PM   #14
Dryer sheet aficionado
 
Join Date: Dec 2017
Posts: 35
Update!

Quote:
Originally Posted by ab620 View Post
Hi all.

I wanted to into myself. I've been lurking for about a year now and joined last month or so. Two years ago, I was tired of being sick and tired and decided to do something about my Personal Finance. My DW and I, 36 and 35 respectively, needed help we were in heavy debt after having Premature twins. They are healthy now and giving me premature gray hairs, they are soon to be 6 years-old.

We were $82k in debt and in just at two years in Feb we well be debt free besides our mortgage. No car payments, credit cards, student loans etc.

We did the debt Snowball, Dave Ramsey plan... Modified. During this time we invested in our 401k, I could not pass up that match. DW has a 457 plan.

I moved our investments around and stoppled playing with Scott trade for my Roth and got a Pro doing that for me.

We went from about 30k in retirement at the beginning of this and now we are about 106k in tax preferred accounts. Not as large as some others on this forum but I plan on retiring at 55 or sooner. The plan is to have about 2.5 mil at that time. This does not include my DWs pension.

Time for an update: We are completely debt free as of February of this year...besides our Mortgage.

Were up to $120k in retirement accounts! We have about two month of expenses saved up and climbing.

Now were are saving for a trip to SE Asia next year and Washington DC this summer. I feel like a weight has been lifted off my shoulders.
ab620 is offline   Reply With Quote
Old 04-21-2018, 12:41 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 11,227
Way to go. Keep it up.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 04-21-2018, 01:23 PM   #16
Full time employment: Posting here.
 
Join Date: May 2011
Posts: 873
Excellent. You are doing all the right things. Job well done. Now go enjoy those trips you have planned with your family. They will be grown before you know it.
kimcdougc is offline   Reply With Quote
Old 04-22-2018, 05:52 AM   #17
Recycles dryer sheets
 
Join Date: Sep 2017
Posts: 95
Congrats! We are also Ramsey graduates! It has changed our lives! Stay the course!
hilltide is offline   Reply With Quote
Old 04-22-2018, 07:29 AM   #18
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 4,689
IMHO, budgeting is a fun challenge. I used to listen to him on car radio all the time and he made common sense. I do think credit cards are an asset if you can control the spending. They give you a detailed pie chart of your spending every month and are safe if stolen since you're only liable for $50 of false charges. Whenever I feel cheated by a purchase, I dispute it and they always stand behind my dispute and work with the company to correct that charge. Of course, pay them off every month and get reward points or cash back.

Dave is right about debt. It's liberating to budget with no debt. It feels like you're in control and not the interest on debt going out the window. I'm always amazed at how compound interest piles up. Same way compound interest works in your favor when saving. Simple interest is nice too, when CD's are paying more. Congratulations and keep at it. The rewards are tenfold!
__________________
"Do not go where the path may lead, go instead where there is no path and leave a trail."

Ralph Waldo Emerson
Rianne is offline   Reply With Quote
Old 04-25-2018, 11:22 AM   #19
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Elyria, OH
Posts: 1,937
Quote:
Originally Posted by Rianne View Post
...credit cards are an asset if you can control the spending. They give you a detailed pie chart of your spending every month and are safe if stolen since you're only liable for $50 of false charges.
Bolding mine.

You're not liable for any false charges, as long as you report the false charges in a timely manner.

I had unauthorized charges in the hundreds to thousands of dollars on 2 different credit cards. (Others with the same cards reported also being hit with these same charges.) The credit cards never left my possession.

The charges that made it through were reversed when I called to report them. A couple of charges were blocked automatically as suspected fraud.

I wasn't held responsible for any of the charges in either case.
gwraigty is offline   Reply With Quote
Old 04-26-2018, 07:56 PM   #20
gone traveling
 
Join Date: Feb 2008
Posts: 510
Quote:
Originally Posted by ab620 View Post
My DW and I, 36 and 35 respectively, needed help we were in heavy debt after having Premature twins. They are healthy now and giving me premature gray hairs, they are soon to be 6 years-old.

We were $82k in debt
It sounds that you have your heads straight. Good luck on your journey to your ER!

I have a question though.
Was your $82k debt caused by the premature twins only or was it a combination of some medical expense (like deductibles and/or max OOP medical expenses) and unnecessary spending?
If it's the former, did you have any health insurance?
I'm curious because if your family had healthcare insurance but the $82k debt is all medical related, then it's really a sobering picture of healthcare (insurance) in this country.
aida2003 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
gh Intro and our situation gh Hi, I am... 14 07-03-2006 04:30 PM
Intro... AFloat Hi, I am... 4 02-27-2006 05:19 AM
INtro and a Question! trixs Hi, I am... 6 11-09-2005 07:21 AM
Using 0% Intro. CC's for income? Berkshire_Bull FIRE and Money 0 09-16-2004 11:06 AM
FI3 Intro. FI3 Hi, I am... 0 09-18-2003 09:04 AM

» Quick Links

 
All times are GMT -6. The time now is 08:07 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.