Ok, here we go. I will try not to make this too long at risk of losing you, but I would truly value your expertise here.
Short version: My wife and I want to buy a condo outside of the country and are looking for advice where to pull funds from.
Status: I FIRE'ed last Jan, wife will work for 3-4 more years. Wife salary is covering 80% of expenses, a severance I got is/will make up the rest for at least 3 more years. Condo is outside the US, at a place we have been to 6 times in the last 16 years. We have looked at units in this condo in 2014, and last week when we were there. We told the broker that if a ground floor unit came up, to call us.
He just did.
So here is a snapshot of our portfolio, with all in terms of percentages:
Joint WROS (Brokerage) 5.1%
Rollover IRA 0.4%
Roth IRA 1.7%
Fidelity Roth IRA 2.0%
Fidelity Rollover IRA 0.4%
Vanguard 401(K) PLAN (Mine) 43.6%
Vanguard 401(K) PLAN (DWs) 18.3%
DWs Pension plan () 1.6%
DWs "State" Plan (??) 0.4%
Cash in Bank 5.1%
Pension Lump sum going into FIDO IRA 21.6%
Total Portfolio 100.0%
Expected condo purchase price 19.0%
And here is the wildcard. We own a large parcel of undeveloped land that has never been on the portfolio radar. Years ago, it was thought that we might be able to sell it and buy a condo with the proceeds. I listed it last year pretty optimistically at about 13.0% of the portfolio. Now I am more encouraged to get more aggressive to sell it. I *think* it would sell pretty quickly around 8% of portfolio. We owe nothing on it.
Lastly: The condo is currently rented and we expect to keep it in longterm rental for 2 years which will generate around 1% of portfolio annually. After that. we'd expect to rent it weekly to friends and family enough to pay the management fees. There are no RE taxes of any kind in this country.
So, there you go. I think the best solution is probably taking a little from a few different places. I am hesitant to drain all my cash, and I know that I can borrow from tax sheltered accounts to some degree. Brokerage account is healthy and shouldn't be too much tax load to dump it all. If I were to "borrow" from anywhere, I would prefer to pay that back first with proceeds from the land sale.
I'll leave it at that.... Thoughts
Short version: My wife and I want to buy a condo outside of the country and are looking for advice where to pull funds from.
Status: I FIRE'ed last Jan, wife will work for 3-4 more years. Wife salary is covering 80% of expenses, a severance I got is/will make up the rest for at least 3 more years. Condo is outside the US, at a place we have been to 6 times in the last 16 years. We have looked at units in this condo in 2014, and last week when we were there. We told the broker that if a ground floor unit came up, to call us.
He just did.
So here is a snapshot of our portfolio, with all in terms of percentages:
Joint WROS (Brokerage) 5.1%
Rollover IRA 0.4%
Roth IRA 1.7%
Fidelity Roth IRA 2.0%
Fidelity Rollover IRA 0.4%
Vanguard 401(K) PLAN (Mine) 43.6%
Vanguard 401(K) PLAN (DWs) 18.3%
DWs Pension plan () 1.6%
DWs "State" Plan (??) 0.4%
Cash in Bank 5.1%
Pension Lump sum going into FIDO IRA 21.6%
Total Portfolio 100.0%
Expected condo purchase price 19.0%
And here is the wildcard. We own a large parcel of undeveloped land that has never been on the portfolio radar. Years ago, it was thought that we might be able to sell it and buy a condo with the proceeds. I listed it last year pretty optimistically at about 13.0% of the portfolio. Now I am more encouraged to get more aggressive to sell it. I *think* it would sell pretty quickly around 8% of portfolio. We owe nothing on it.
Lastly: The condo is currently rented and we expect to keep it in longterm rental for 2 years which will generate around 1% of portfolio annually. After that. we'd expect to rent it weekly to friends and family enough to pay the management fees. There are no RE taxes of any kind in this country.
So, there you go. I think the best solution is probably taking a little from a few different places. I am hesitant to drain all my cash, and I know that I can borrow from tax sheltered accounts to some degree. Brokerage account is healthy and shouldn't be too much tax load to dump it all. If I were to "borrow" from anywhere, I would prefer to pay that back first with proceeds from the land sale.
I'll leave it at that.... Thoughts