Also hit my significant milestone today!
- Thread starter er33
- Start date
Awesome work! Great diligence to reach your financial goals. For some high income earners, savings is not on their radar. You have outlined how its not only possible, but necessary. No job is guaranteed. Keep moving forward. Blessings to you and family for your new job and future savings. We are gunning for a savings rate of 100k/yr.
tamalchanda
Confused about dryer sheets
- Joined
- Apr 12, 2019
- Messages
- 2
Awesome [emoji4]. It's really nice to find such astonishing feats achieved.
Best of luck and many many good wishes for your future
tamalchanda, how about introducing yourself over here:
Hi, I am... - Early Retirement & Financial Independence Community
Hi, I am... - Early Retirement & Financial Independence Community
er33
Recycles dryer sheets
Net worth at 1.91 M at the moment. About 2 months in to the new job. Thank you to everyone who wished me good luck. I regret to say that I crumbled like a shattered mirror at my first adverse event in 11 years. I am feeling more resilient now, so if and when the next job related blow comes, hopefully I will be stronger. I did not enjoy a single day between losing my job and starting my new one when I could have done so much.
Awesome. Good to hear things are back on track! Keep us posted on your progress.
I also hit a significant milestone today (happened at Home Depot): I used the self-checkout for very first time. Bought an Extendable Scrub Brush. Uh, if I return the Extendable Scrub Brush would that negate my significant milestone? I wonder if this is worthy of a poll.
er33
Recycles dryer sheets
Update for Oct 2019:
Hit 2M today. A lot of ups and down due to Mr. Market but chugging along.
Hit 2M today. A lot of ups and down due to Mr. Market but chugging along.
Dtail
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Congrats.
Your original post stated you wish to ER in less than 10 years, which would now be within 4 years.
Are you still of this mindset?
ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I think if one wants to retire early nowadays, $3m NW with home paid for is the Magic number, add SS and whatever to that and most of us would be very comfortable. Assuming not a super high COL area. MCOL and HCOL are affordable with that NW once home is paid for.
Dtail
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I would think less than that depending at what age the ER is. The average age is this forum is probably in the 55-57 range.
At 3m at even a 3.5%WR, that is 105k spending plus SS of let's say 40k at 62 y.o. bringing it to 145k.
Most folks on this site are spending less than that number, although the NW average could be around the 3m range.
Now for a 40 y.o., absolutely agree.
ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I was including home price in that $3m.(After all it is Net Worth), an average retirement age of say 55-60. Again my assumptions were that home was worth between $500 and $800k.
er33
Recycles dryer sheets
Yes, ideally, very much so. I think I was a bit naive initially but i think the job loss this year brought some much needed perspective as well on the amount of cushion I need to feel comfortable. So the definition of done is evolving a bit.
So, yes I do want to retire in 4 more years but while initially I did not have the house paid off and was going to pay that with money in retirement, now I might pay off the house first as well. We are too young to get social security and are reliant on my wife's healthcare plan (no premiums) so that is something to consider as well.
In 6 years, I'll be 48 and DW 53 (although she is testing ER now) and what you mention here is precisely our plan.
We will take the equity in our Chicago home, which will be $400-$500k depending on the market at the time, pay cash for a place farther south in MCOL area and have a $3M portfolio. Our biggest hurdle will be bridging the 6 years to when DW turns 59.5 and we can tap the IRA money.
er33
Recycles dryer sheets
Where are you thinking of moving ? We are in Chicago as well and wile we wont move while kids are still in school, I am always on the lookout for a good place to retire with warm(er) weather and good walkability score.
DW and I are both from the south and while we both grew up on beaches, love the mountains more and I love to hike. So, we are thinking western NC, Eastern TN or somewhere like that. However, we also don't want to be completely in the middle of nowhere. So, Asheville and Knoxville are two potential targets. Like you, we also are waiting until DD is out of school. That's the 6 years I refer to.
exnavynuke
Thinks s/he gets paid by the post
I would think that it all depends on the person's spending.... my home is valued a bit over $200k, right about the median home price in the US, and I certainly don't need $90k+ to live off of. My COL is right about the median in the US as well, so I'd say that's MCOL area.
The point - there is no magic number. What works for one person is going to be nowhere near adequate for the next person, and way more than is needed for the person after that.
ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
It makes one wonder what MCOL REALLY means? I think it is different for different folk. In our immediate area, homes are in the $450k - $825k range some even higher but only about 15% are over that. Yes one can get a $250 - $300 home but those areas are a lot less desirable. And our area I considered MCOL. So I would probably speculate that the cost of housing is the main identifier, followed by RE Taxes, which is still the cost of housing.
Our home is ~$750k costs about $17k a year in Mandatory Expenses. We spend on average of ~$50k a year for the 2 of us for everything except discretionary spending. We budget $100k a year, some years we spend it some we do not. But our goal is to spend it all one way or another. Other than the dogs for the Blind and St. Jude's children's hospital there is no one else in our wills to leave it to.
exnavynuke
Thinks s/he gets paid by the post
To me, "MCOL" is "about average" for the country, so a COL index around 100 plus or minus 15%. It's not the "cheap areas" (with COL index scores below 85) or "expensive areas" (with COL index scores over 115), but is just a medium/average cost of living area. A "medium" cost of living area should be perfectly affordable for a "median income household" I would say.
For reference, in most of the US, $750k will buy you an enormous house (bordering on mansion level).
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ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Not Here, at least not is really desirable areas.
https://www.zillow.com/saint-augustine-beach-fl/sea-colony_att/
exnavynuke
Thinks s/he gets paid by the post
I never said you were in a MCOL area either
It's not exactly shocking that the most expensive areas of a higher than average (bordering on HCOL) cost of living area has houses that cost a lot relative to what they are.
ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I never said you were in a MCOL area either
It's not exactly shocking that the most expensive areas of a higher than average (bordering on HCOL) cost of living area has houses that cost a lot relative to what they are.
We consider our area MCOL by FLA Standards. Hawaii is HCOL, Palm Beach is HCOL, Parts of Miami are HCOL. Most of Florida is LCOL (Inland). Beaches are typically MCOL with HCOL pockets. But again, only from a property perspective. Most other stuff one needs in Florida is very affordable.
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Dtail
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Agree in the general sense.
However, we are inland 50 minutes from the Gulf and in our gated HOA complex, the houses are 275k-500k averaging in the 130 sq ft range.
ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I certainly agree. As mentioned, there are pockets all over the country, especially the newer developments. I am sure in 10 to 20 years all Florida will be more like MCOL and up at the rate we are going.
