Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Intro, and almost ready to retire
Old 11-03-2020, 02:39 PM   #1
Dryer sheet aficionado
TB1960's Avatar
 
Join Date: Feb 2020
Location: Apex
Posts: 39
Intro, and almost ready to retire

Hi my name is TB and my wifeís name is CB. And we live in North Carolina.

Here are some details...

TB-Age 60 Salary $95k/year, at a mega-corp with health insurance, 401k, stock purchase plan, yada, yadaÖ

CB-Age 55 Salary $20K/year, part time teacher no benefits

We have no debt other than a $25K Mortgage with 2.75 interest.

Expenses are currently about $6,000.00 a month. That will drop to $4,300 once the mortgage is paid off in 15 months.

$ status:
$100K cash checking account, please donít ask why so much at this time, lol.
$200K in IRA account
$120K in an Ameriprise account
$15k in Ebay account
$800k in cash, waiting to transition to retirement asset allocation
Home value about $430,000.00 after mortgage is paid off.

In addition, we are 1/3 owner in a real estate LLC that includes about 10 properties and 10 promissory notes. All properties are paid for so no mortgages.

Our 1/3 total income from the LLC, (Rental and promissory note payments), is about $6,000.00 monthly for at least the next 10 years and beyond. However, we do have to deduct property taxes and other expenses from the monthly total. I estimate the monthly expenses to be about $800.00.

1/3 cash value of the real estate is about $800k

1/3 cash value of the promissory notes is about $700k; amortized to about $1,500K.

TB-I hope to retire once our mortgage is paid for and maybe CB will have a full time job by then that will help pay for medical benefits.

In full disclosure I stole the format for this email from jdunc31.
__________________
Canít I just skip to the part in my life where Iím living in Monaco driving a red Ferrari?
TB1960 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 11-03-2020, 02:54 PM   #2
Thinks s/he gets paid by the post
HI Bill's Avatar
 
Join Date: Dec 2017
Posts: 2,428
Welcome! Sounds like you're golden, assuming that you have factored in health care and intermittent expenses into your budget! Have you run your numbers through FIRECALC? Whether to pay off the mortgage is always a contentious subject on this board, but I'd just pay it off (especially considering your large amount of assets earning presumably less than 2.75%) and RE! Then, I'd just invest your $800K in diversified ETFs. Best wishes!
__________________
Balance in everything.
HI Bill is offline   Reply With Quote
Old 11-03-2020, 02:59 PM   #3
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 7,775
Welcome TB! If you haven't found them already, we have a helpful list of things to think about before you make the leap:

Some Important Questions to Answer

You will find quite a few folks here who would question why you are paying the high fees that are common with Ameriprise, and a lot of advice on managing the money yourself at Vanguard or Fidelity. Hopefully you'll find some helpful guidance in that regard.
__________________
"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 offline   Reply With Quote
Old 11-03-2020, 03:29 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 34,810
Quote:
Originally Posted by TB1960 View Post
...In addition, we are 1/3 owner in a real estate LLC that includes about 10 properties and 10 promissory notes. All properties are paid for so no mortgages.

Our 1/3 total income from the LLC, (Rental and promissory note payments), is about $6,000.00 monthly for at least the next 10 years and beyond. However, we do have to deduct property taxes and other expenses from the monthly total. I estimate the monthly expenses to be about $800.00.

1/3 cash value of the real estate is about $800k

1/3 cash value of the promissory notes is about $700k; amortized to about $1,500K. ...
So is my understanding correct that you're thinking that the value of 1/3 of the LLC is ~$1.5m ($800k + $700k) and 1/3 of the LLC generates ~$64k a year of cash net income ($6k/month of income less $800/mo of expenses)?
__________________
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
pb4uski is offline   Reply With Quote
Old 11-03-2020, 03:40 PM   #5
Recycles dryer sheets
 
Join Date: Sep 2016
Location: Rain City
Posts: 86
So here is my TB1960 to do list:

1) Close Ameriprise account
2) Take $25k and pay off the mortgage
3) Now that mortgage is paid off, immediately start retirement process
4) Rebalance your assets to your desired allocation

Even if DW doesn't find/seek FT employment, it looks like your assets support paying for medical insurance on top of your projected expenses (~$2.7m investable net worth including the LLC)
obsessed is online now   Reply With Quote
Old 11-03-2020, 05:29 PM   #6
Dryer sheet aficionado
 
Join Date: Oct 2020
Location: Midwest
Posts: 29
Quote:
Originally Posted by TB1960 View Post
Hi my name is TB and my wifeís name is CB. And we live in North Carolina.

Here are some details...

TB-Age 60 Salary $95k/year, at a mega-corp with health insurance, 401k, stock purchase plan, yada, yadaÖ

CB-Age 55 Salary $20K/year, part time teacher no benefits

We have no debt other than a $25K Mortgage with 2.75 interest.

Expenses are currently about $6,000.00 a month. That will drop to $4,300 once the mortgage is paid off in 15 months.

$ status:
$100K cash checking account, please donít ask why so much at this time, lol.
$200K in IRA account
$120K in an Ameriprise account
$15k in Ebay account
$800k in cash, waiting to transition to retirement asset allocation
Home value about $430,000.00 after mortgage is paid off.

In addition, we are 1/3 owner in a real estate LLC that includes about 10 properties and 10 promissory notes. All properties are paid for so no mortgages.

Our 1/3 total income from the LLC, (Rental and promissory note payments), is about $6,000.00 monthly for at least the next 10 years and beyond. However, we do have to deduct property taxes and other expenses from the monthly total. I estimate the monthly expenses to be about $800.00.

1/3 cash value of the real estate is about $800k

1/3 cash value of the promissory notes is about $700k; amortized to about $1,500K.

TB-I hope to retire once our mortgage is paid for and maybe CB will have a full time job by then that will help pay for medical benefits.

In full disclosure I stole the format for this email from jdunc31.
No disclosure needed! I am sure I stole most things from other posts I read as well

I am brand new here and still soaking up the advice, congrats so far to you though--looks to be in a good spot!
jdunc31 is offline   Reply With Quote
Old 11-03-2020, 05:33 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 10,730
Is that a Ferrari 348 in your avatar?
__________________
TGIM
Dtail is online now   Reply With Quote
Old 11-04-2020, 09:21 AM   #8
Dryer sheet aficionado
TB1960's Avatar
 
Join Date: Feb 2020
Location: Apex
Posts: 39
Quote:
Originally Posted by HI Bill View Post
Welcome! Sounds like you're golden, assuming that you have factored in health care and intermittent expenses into your budget! Have you run your numbers through FIRECALC? Whether to pay off the mortgage is always a contentious subject on this board, but I'd just pay it off (especially considering your large amount of assets earning presumably less than 2.75%) and RE! Then, I'd just invest your $800K in diversified ETFs. Best wishes!
Hi Bill, I have not run FIRECALC as of yet. The motgage is on its last leg, so, the monthly payments are mostly principal. I like your idea about investing in ETF's!
__________________
Canít I just skip to the part in my life where Iím living in Monaco driving a red Ferrari?
TB1960 is offline   Reply With Quote
Old 11-04-2020, 09:25 AM   #9
Dryer sheet aficionado
TB1960's Avatar
 
Join Date: Feb 2020
Location: Apex
Posts: 39
Dtail, you are correct! Ferrari 348
__________________
Canít I just skip to the part in my life where Iím living in Monaco driving a red Ferrari?
TB1960 is offline   Reply With Quote
Old 11-04-2020, 09:29 AM   #10
Dryer sheet aficionado
TB1960's Avatar
 
Join Date: Feb 2020
Location: Apex
Posts: 39
Quote:
Originally Posted by jdunc31 View Post
No disclosure needed! I am sure I stole most things from other posts I read as well

I am brand new here and still soaking up the advice, congrats so far to you though--looks to be in a good spot!
I joined back in Feb and have been gaining knowledge with each visit to this site. Not sure what i would do without this forum!
__________________
Canít I just skip to the part in my life where Iím living in Monaco driving a red Ferrari?
TB1960 is offline   Reply With Quote
Old 11-04-2020, 09:49 AM   #11
Dryer sheet aficionado
TB1960's Avatar
 
Join Date: Feb 2020
Location: Apex
Posts: 39
Quote:
Originally Posted by pb4uski View Post
So is my understanding correct that you're thinking that the value of 1/3 of the LLC is ~$1.5m ($800k + $700k) and 1/3 of the LLC generates ~$64k a year of cash net income ($6k/month of income less $800/mo of expenses)?
pb4uski, I might be off on the $800/mo of expenses. It might be closer to $1000/mo. The other numbers are close although they do fluctuate.
__________________
Canít I just skip to the part in my life where Iím living in Monaco driving a red Ferrari?
TB1960 is offline   Reply With Quote
Old 11-04-2020, 10:01 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 34,810
Quote:
Originally Posted by TB1960 View Post
Hi Bill, I have not run FIRECALC as of yet. The motgage is on its last leg, so, the monthly payments are mostly principal. I like your idea about investing in ETF's!
One ETF that I find interesting is SWAN. It is a bit unusual in that it invests 90% of the fund in a variety of U.S. Treasuries and 10% in 70 delta SPY call options. The history of the ETF is short (Nov 2018 IIRC) but the index was backtested to the 2005. It appears to give SPY returns over roling 3-5 year periods of time with less volatility.

I own some but given it's short history it is currently in the category that I don't necessarily recommend it but I do mention it for people to consider. Obviously YMMV.

https://snetworkglobalindexes.com/pr...esentation.pdf
__________________
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
pb4uski is offline   Reply With Quote
Old 11-04-2020, 11:08 AM   #13
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,180
Welcome former lurker TB1960. Rough calculation, you currently have about $1M in cash or available cash right now ($800K, $120K, $100K, $15K). Just pay off the small mortgage amount, get rid of Ameriprise, invest all remaining cash that into an AA that meets your risk tolerance. Maybe put approx 1/4 into more conservative near term stable investment, but the rest into equities for 5 year and longer time horizon. Use some low fee wide diversified type holdings. You get $5000/mo towards your $4300/mo budget once mortgage is paid off, so you only need a small extra if you need to cover medical ins and taxes. I think you and your wife can retire now if you want; or should retire now if you ask for my opinion. That's my recommendation for your situation. Enjoy retirement, you are in good shape.
__________________
I used to have a handle on life, but it broke.
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
38Chevy454 is online now   Reply With Quote
Old 11-05-2020, 01:12 PM   #14
Thinks s/he gets paid by the post
HI Bill's Avatar
 
Join Date: Dec 2017
Posts: 2,428
Quote:
Originally Posted by 38Chevy454 View Post
Welcome former lurker TB1960. Rough calculation, you currently have about $1M in cash or available cash right now ($800K, $120K, $100K, $15K). Just pay off the small mortgage amount, get rid of Ameriprise, invest all remaining cash that into an AA that meets your risk tolerance. Maybe put approx 1/4 into more conservative near term stable investment, but the rest into equities for 5 year and longer time horizon. Use some low fee wide diversified type holdings. You get $5000/mo towards your $4300/mo budget once mortgage is paid off, so you only need a small extra if you need to cover medical ins and taxes. I think you and your wife can retire now if you want; or should retire now if you ask for my opinion. That's my recommendation for your situation. Enjoy retirement, you are in good shape.
+1. I'd just add that you should choose a low-cost provider such as Vanguard for your new investments!
__________________
Balance in everything.
HI Bill is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
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
Tim in Santa Cruz, Ca Almost ready to retire. tfloto Hi, I am... 13 01-28-2016 08:07 AM
Almost famous for almost a day Marquette Other topics 1 06-17-2008 09:08 PM
51 and (almost)ready to go to New Mexico! Mango1956 Hi, I am... 8 12-28-2007 12:14 PM
Ready, Willing and Almost Able Los_lobo Hi, I am... 8 12-06-2007 09:32 AM
I am new here... and almost ready for FIRE neihn Hi, I am... 15 09-09-2007 10:08 PM

» Quick Links

 
All times are GMT -6. The time now is 04:23 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.