|
05-04-2014, 03:52 AM
|
#1
|
Dryer sheet aficionado
Join Date: Oct 2012
Posts: 25
|
just QUIT at 44.
I FINALLY CALLED IT QUIT and offered to sell my biz to a friend. He has until next weekend to think about it and I have until next weekend to reverse course. I'm a little scared cause my days of making mucho dinero will come to a complete stop. But I'm also satisfied that maybe I already have enough money for a very comfortable lifestyle to no longer need any more money. Did I make the right choice to quit now? Here's my current situation if I quit now:
Age: 44, married w/ 10yo
Cash saving: $1.5M ($1.2M + $300k from biz sale)
SEP-IRA: $525k (all in Vanguard ETF)
RE invest worth: $1.7M (20+ new homes paid in full $1.2M)
RE monthly income: $14k net
mortgage: zero
debt: zero
$170K annual rental income + $65k annual cash withdraw ($1.5M saving at 1% interest over 25 years) = $235K annual living money for the next 25 years. I take social security at 62 if allowed...don't care to wait until 70 for increased benefit. I also withdraw from my IRA at 60 if allowed. Rental properties could be sold off if money is tight or kid need money for college. Is my calculation and expectation correct? Am I missing anything?
|
|
|
|
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!
|
05-04-2014, 04:36 AM
|
#2
|
Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,302
|
Looks like you're good to go. Congratulations!
__________________
When I was a kid I wanted to be older. This is not what I expected.
|
|
|
05-04-2014, 04:52 AM
|
#3
|
Full time employment: Posting here.
Join Date: Mar 2011
Posts: 534
|
You don't say what your expenses are but most people could make your numbers work, that's for sure.
Congrats, from another who retired at 44 with a youngster at home.
|
|
|
05-04-2014, 06:44 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
|
Quote:
Originally Posted by jon-nyc
You don't say what your expenses are but most people could make your numbers work, that's for sure...
|
+1 Most people would consider $235k a year income to still be mucho dinero.
If your $1.5m is all cash, I don't think a 4.3% WR is sustainable but you probably have a lot of wiggle room.
Congratulations. Financially you are all set.
But..... are you ready emotionally? What are you going to do all day?
__________________
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
|
|
|
05-04-2014, 07:52 AM
|
#5
|
Full time employment: Posting here.
Join Date: Jul 2011
Posts: 723
|
Very nice- Congrats!
|
|
|
05-04-2014, 08:02 AM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
|
Learn to fly and buy a plane.
__________________
_______________________________________________
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
|
|
|
05-04-2014, 08:07 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 2,360
|
Quote:
Originally Posted by pb4uski
But..... are you ready emotionally? What are you going to do all day?
|
Seriously?
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
|
|
|
05-04-2014, 08:23 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
|
Believe it or not, that is a significant issue for some people.
__________________
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
|
|
|
05-05-2014, 01:07 PM
|
#9
|
Recycles dryer sheets
Join Date: Apr 2006
Posts: 150
|
Congrats - on all aspects of your portfolio. The RE income will sontinue as long as you hold it, which will likely be until you determine that it's more of a PITA than you are willing to deal with. At age 44, that could be a long time, and if you actively manage or maintain your income RE, that might be something to keep you engaged just enough. Or, if you decide to hire out the management, you seem to have plenty of cash flow for that also. Enjoy!
__________________
Best!
-AJ
|
|
|
05-05-2014, 01:11 PM
|
#10
|
Recycles dryer sheets
Join Date: Apr 2006
Posts: 150
|
Quote:
Originally Posted by pb4uski
Believe it or not, that is a significant issue for some people.
|
So true... always better to be running toward something rather than away from something. At age 44, you have a lot of time to fill, be aware and plan accordingly. Oh... and enjoy!
__________________
Best!
-AJ
|
|
|
05-05-2014, 03:08 PM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Location: Seattle
Posts: 6,008
|
Quote:
Originally Posted by pb4uski
But..... are you ready emotionally? What are you going to do all day?
|
With 20+ rental houses I think there would be plenty to do while retired? That is an average of one new roof a year and a leaky toilet every two weeks.
|
|
|
05-05-2014, 03:39 PM
|
#12
|
Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,302
|
Quote:
Originally Posted by Fermion
With 20+ rental houses I think there would be plenty to do while retired? That is an average of one new roof a year and a leaky toilet every two weeks.
|
Yuck! Sounds like w*rk to me.
__________________
When I was a kid I wanted to be older. This is not what I expected.
|
|
|
05-05-2014, 04:27 PM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
|
Quote:
Originally Posted by Fermion
With 20+ rental houses I think there would be plenty to do while retired? That is an average of one new roof a year and a leaky toilet every two weeks.
|
Quote:
Originally Posted by Walt34
Yuck! Sounds like w*rk to me.
|
Good points and that had crossed my mind as well, but it sounds like the OP is pulling off managing the properties and working now so is seems he'll have some free time on his hands.
__________________
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
|
|
|
05-05-2014, 05:03 PM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
|
Quote:
Originally Posted by Fermion
With 20+ rental houses I think there would be plenty to do while retired? That is an average of one new roof a year and a leaky toilet every two weeks.
|
The OP may have farmed out all property management tasks to a firm.
__________________
May we live in peace and harmony and be free from all human sufferings.
|
|
|
05-05-2014, 05:07 PM
|
#15
|
Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
|
__________________
May we live in peace and harmony and be free from all human sufferings.
|
|
|
05-05-2014, 05:27 PM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Location: Seattle
Posts: 6,008
|
Quote:
Originally Posted by Spanky
The OP may have farmed out all property management tasks to a firm.
|
Does make you wonder if we are in a rental bubble when you can get a 10% net return after farming out all of the work (if the OP has indeed done that).
|
|
|
05-05-2014, 05:43 PM
|
#17
|
Dryer sheet aficionado
Join Date: Oct 2012
Posts: 25
|
Quote:
Originally Posted by Fermion
With 20+ rental houses I think there would be plenty to do while retired? That is an average of one new roof a year and a leaky toilet every two weeks.
|
These were all built within last 7 years so major problem coming. Only one oven needed to be replaced. A few properties needed laminate floor and fresh paint. Handyman or mgmt companies do everything.
These 3BR/2.5BA townhouses were purchased for $25k-$45k in 2011-2013, and renting out for $750-$850 monthly. The cap rate looked great and the foreclosed properties were new so I bought them unseen, based on real estate agent description. I stopped buying cause prices now $55k-$85k; not great deals anymore.
|
|
|
05-05-2014, 05:51 PM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Location: Seattle
Posts: 6,008
|
Quote:
Originally Posted by joebloe
These were all built within last 7 years so major problem coming. Only one oven needed to be replaced. A few properties needed laminate floor and fresh paint. Handyman or mgmt companies do everything.
These 3BR/2.5BA townhouses were purchased for $25k-$45k in 2011-2013, and renting out for $750-$850 monthly. The cap rate looked great and the foreclosed properties were new so I bought them unseen, based on real estate agent description. I stopped buying cause prices now $55k-$85k; not great deals anymore.
|
$850 a month for a $45k property is very good. That type of deal can't be found around here. Even a property soaked in pee from 29 cats and used as a meth lab would be way more than $45k around here.
|
|
|
05-05-2014, 06:10 PM
|
#19
|
Dryer sheet wannabe
Join Date: Jan 2014
Posts: 21
|
Quote:
Originally Posted by joebloe
I FINALLY CALLED IT QUIT and offered to sell my biz to a friend. He has until next weekend to think about it and I have until next weekend to reverse course. I'm a little scared cause my days of making mucho dinero will come to a complete stop. But I'm also satisfied that maybe I already have enough money for a very comfortable lifestyle to no longer need any more money. Did I make the right choice to quit now? Here's my current situation if I quit now:
Age: 44, married w/ 10yo
Cash saving: $1.5M ($1.2M + $300k from biz sale)
SEP-IRA: $525k (all in Vanguard ETF)
RE invest worth: $1.7M (20+ new homes paid in full $1.2M)
RE monthly income: $14k net
mortgage: zero
debt: zero
$170K annual rental income + $65k annual cash withdraw ($1.5M saving at 1% interest over 25 years) = $235K annual living money for the next 25 years. I take social security at 62 if allowed...don't care to wait until 70 for increased benefit. I also withdraw from my IRA at 60 if allowed. Rental properties could be sold off if money is tight or kid need money for college. Is my calculation and expectation correct? Am I missing anything?
|
Have you take tax into account? Also which state you get such high rental return?
I have a few properties in different state. None of them returns as high as yours.
good job!
|
|
|
05-05-2014, 10:23 PM
|
#20
|
Confused about dryer sheets
Join Date: Apr 2014
Posts: 5
|
Quote:
Originally Posted by Fermion
$850 a month for a $45k property is very good. That type of deal can't be found around here. Even a property soaked in pee from 29 cats and used as a meth lab would be way more than $45k around here.
|
Where does JoeBlow live?
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
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
|
|
|