First post here, came over from the MMM forum where I've been lurking. While I like being frugal I do feel a focus on high income & living well might fit us a little better. Anyway here goes:
Demographics:
-Live in NC
-35 year old wife, married 13 years, easily my most valuable asset
-She will continue to work until retirement (wife likes what she does)
-Moderate cost area but live in a nice house (no need to upgrade or move)
-One kid on the way in September
Debt: None
Expenses:
This is where we have really done well - we currently spend $30,000 per year including taxes (not income but all else) and that is being way generous. With the addition to our family for calculations sake let's say $75,000.
Assets:
-Home $475k
Investment:
This is where I differ from many posts here. I'm a long time real estate investor and in recent years have increasingly moved away from wall street assets. I don't like to invest in things i don't understand and I know enough about HFTs and the market to know I don't understand it.
Totals are as follows:
Qualified funds: $600k, Non-Qualified funds: $1.5M
Breakdown & asset types:
$350k - trust deeds fully performing at 11% in self directed IRA
$100k - Life Settlements through a diversified fund. New investment but looks reasonable. Fund has exposure across a few hundred policies of individuals with compromised health - but not pending death. Self directed IRA
$150k - 401k Market assets (crappy 401k options like target date funds, managed funds, etc). For that reason we no longer contribute to the wife's 401k.
$400k - Trust deeds secured by real estate (generates approx 5% return - a few loans are non currently performing - hangovers from 2008, eventually this will clear up)
$400k - Trusts deed fully performing at 10%
$700k - Commercial Multifamily (fully performing - IRR of 15%+)
Income:
Wife earns $40,000 per year and has decent health benefits for us all
I'm walking away from a $300,000/yr high stress job that is compromising my health - even with rigorous daily workouts and mediation, etc.
Passive income streams:
Actual cashflow is approx $90k/year as some assets have deferred returns and I'm not counting the 401k earnings at all.
So - am I crazy for worrying at all about leaving this income stream and pursuing my passions? I hate my current job, the only reason I ended up in this career 15 years ago was for the money and that it could be done on less than 40 hrs/week but with very high stress.
I'll also say I will be "working" part time as a consultant and active manager in some real estate deals, so in reality in a few years I could have more income than I do today with part-time efforts in a field I am passionate about.
I'm also aware we are heavily exposed to real estate but we have moved much of our exposure away from residential and shifted towards notes, commercial for more stability.
Demographics:
-Live in NC
-35 year old wife, married 13 years, easily my most valuable asset
-She will continue to work until retirement (wife likes what she does)
-Moderate cost area but live in a nice house (no need to upgrade or move)
-One kid on the way in September
Debt: None
Expenses:
This is where we have really done well - we currently spend $30,000 per year including taxes (not income but all else) and that is being way generous. With the addition to our family for calculations sake let's say $75,000.
Assets:
-Home $475k
Investment:
This is where I differ from many posts here. I'm a long time real estate investor and in recent years have increasingly moved away from wall street assets. I don't like to invest in things i don't understand and I know enough about HFTs and the market to know I don't understand it.
Totals are as follows:
Qualified funds: $600k, Non-Qualified funds: $1.5M
Breakdown & asset types:
$350k - trust deeds fully performing at 11% in self directed IRA
$100k - Life Settlements through a diversified fund. New investment but looks reasonable. Fund has exposure across a few hundred policies of individuals with compromised health - but not pending death. Self directed IRA
$150k - 401k Market assets (crappy 401k options like target date funds, managed funds, etc). For that reason we no longer contribute to the wife's 401k.
$400k - Trust deeds secured by real estate (generates approx 5% return - a few loans are non currently performing - hangovers from 2008, eventually this will clear up)
$400k - Trusts deed fully performing at 10%
$700k - Commercial Multifamily (fully performing - IRR of 15%+)
Income:
Wife earns $40,000 per year and has decent health benefits for us all
I'm walking away from a $300,000/yr high stress job that is compromising my health - even with rigorous daily workouts and mediation, etc.
Passive income streams:
Actual cashflow is approx $90k/year as some assets have deferred returns and I'm not counting the 401k earnings at all.
So - am I crazy for worrying at all about leaving this income stream and pursuing my passions? I hate my current job, the only reason I ended up in this career 15 years ago was for the money and that it could be done on less than 40 hrs/week but with very high stress.
I'll also say I will be "working" part time as a consultant and active manager in some real estate deals, so in reality in a few years I could have more income than I do today with part-time efforts in a field I am passionate about.
I'm also aware we are heavily exposed to real estate but we have moved much of our exposure away from residential and shifted towards notes, commercial for more stability.