cardude
Full time employment: Posting here.
- Joined
- Feb 21, 2006
- Messages
- 599
I've posted on the board some over the past year or so trying to get my head wrapped around the "early retirement" idea, but now it looks like I am going to be forced to do it.
What always held me back whas the small business that I own and had tried to sell over the past two years with no success. I had some low-ball offers that in hindsight I should have taken but did not because we were still very profitable. Now we are down to 5 employees plus me, and I'm getting ready to just pull the plug to stop the bleeding here in a month or two (it will take me that long to wrap things up).
Anyway, I have a decent size nest egg saved up, but my expenses are still scary high to me. I was planning on paying off our recently purchased house over the next few years out of profits from the business, but that's not gonna happen so I'm stuck with a $2700 house payment until we can sell.
Also, I had planned on diversifying our concentrated nest egg over the next couple of years, but when everything went to hell I decided to leave it alone.
Here are my numbers:
Total portfolio-- $3,500,000
Total base annual expenses (no vacations) $112,800
Here is the monthlyt expense break down:
$4500-- what I used give to DW to run the house to pay for everything. There is some fat in here that I think I can trim when I start to pay for everything, but I have to be careful not to be too freaky or DW may revolt. I'm kind of joking, but not totally.
$500-- kid's private school. May sound like an extravagence, but the middle schools in our town are crappy.
$2700-- house payment
$1000 taxes and property insurance. Stupid large house.
$100 car insurance.
$600--- health insurance. I have looked around online and have found some policies in this range with large deductables for a family of four. I'm 43, wife 42, kids 9 and 11. All healthy.
The portfolio is 25% cash, 23% small caps that have gotten crushed, 3% in a foreign mutual fund (llinx), and the rest is in one stock-- Berkshire Hathaway. Like I said, not diversifed. Lost about 1.5M from the peak in 2008, and most of that was from the small caps.
I have 50K saved up for kids college plus their tuition is already paid for, but that's not going to be enough for 4 years of living expenses and books I'm afraid.
My goal is to slim down the monthly living expenses as much as I can (save10K per year is my goal), sell the big house as soon as housing recovers and get a regular house I can pay cash for (about 200K range).
Wife is a teacher, and she may go back to work for heath insurance and for some vacation play money.
What am I missing. Will we make it??
What always held me back whas the small business that I own and had tried to sell over the past two years with no success. I had some low-ball offers that in hindsight I should have taken but did not because we were still very profitable. Now we are down to 5 employees plus me, and I'm getting ready to just pull the plug to stop the bleeding here in a month or two (it will take me that long to wrap things up).
Anyway, I have a decent size nest egg saved up, but my expenses are still scary high to me. I was planning on paying off our recently purchased house over the next few years out of profits from the business, but that's not gonna happen so I'm stuck with a $2700 house payment until we can sell.
Also, I had planned on diversifying our concentrated nest egg over the next couple of years, but when everything went to hell I decided to leave it alone.
Here are my numbers:
Total portfolio-- $3,500,000
Total base annual expenses (no vacations) $112,800
Here is the monthlyt expense break down:
$4500-- what I used give to DW to run the house to pay for everything. There is some fat in here that I think I can trim when I start to pay for everything, but I have to be careful not to be too freaky or DW may revolt. I'm kind of joking, but not totally.
$500-- kid's private school. May sound like an extravagence, but the middle schools in our town are crappy.
$2700-- house payment
$1000 taxes and property insurance. Stupid large house.
$100 car insurance.
$600--- health insurance. I have looked around online and have found some policies in this range with large deductables for a family of four. I'm 43, wife 42, kids 9 and 11. All healthy.
The portfolio is 25% cash, 23% small caps that have gotten crushed, 3% in a foreign mutual fund (llinx), and the rest is in one stock-- Berkshire Hathaway. Like I said, not diversifed. Lost about 1.5M from the peak in 2008, and most of that was from the small caps.
I have 50K saved up for kids college plus their tuition is already paid for, but that's not going to be enough for 4 years of living expenses and books I'm afraid.
My goal is to slim down the monthly living expenses as much as I can (save10K per year is my goal), sell the big house as soon as housing recovers and get a regular house I can pay cash for (about 200K range).
Wife is a teacher, and she may go back to work for heath insurance and for some vacation play money.
What am I missing. Will we make it??