Now 30 yrs old with 350k income but with a new mindset!

[MDC86]

Hi guys. I just took the time to read through this post I made in my 20's. It's from 2013 so if you would like to quickly read through it, here is the link. ( http://www.early-retirement.org/for...me-and-impulse-spending-needs-help-64634.html ) Now that I'm 30 I'm seeing life much more clear. I'm still buying high end cars but keeping them much much longer and I own them outright. A big mistake I made last year is I acquired a bigger house with a 4 car garage. I had the last house payed off for a measly 7 months before I sold it in the low 300's and purchased a 650k home. I currently owe just shy of 200k and it's on a 10 year mortgage. I have 5 cars right now but I'm engaged and two are sort or hers. She has her daily driver and her weekend/fun car. My hours in an office have gone down where I'm at work 32 hours a week. Her and I are working on getting our realtor licenses and will have them by March 17. She is leaving her pre school teaching job and will be a full time realtor. I will be helping part time with a focus on listing appointments while she will be handling buyer clients, open houses, follow up, and other tasks. I'm forecasting we will be making low 200's off real estate in 2018 plus what I'm currently making (Still 350k). I also want to get into rental property and flipping houses one we get past our learning curve in real estate. I don't see that discussed on here quite often (I lurk a lot). Everyone always loves the stock market. I personally enjoy things I can touch and see.

We also decided we are not going to have children and I want to retire at 40. At that time she will be 37. If we enjoy real estate then we may continue to do that in FIRE but at a less aggressive pace. I'm happy with all the current cars we own and we also decided this is our long term home. With all that said, I plan to spend the next 10 year working very hard at saving and growing a massive amount of money. I estimated we will need about 4 million to retire and after looking at the math my goal seems obtainable. Thanks again to everyone who took the time to give me solid advice years ago!


PS: If anyone needs any visuals feel free to visit my Instagram, the username is ATTITUDEOFAWINNER.

Matthew

 

[Aerides]

Interesting. How much have you saved this past 5 years?

You seem to have found your perfect match though - a 27 yr old woman who has two cars on a pre-school teaching salary must be passionate about cars.

There are a few posters here who include real estate in their portfolios. Not so much flipping, but as landlords of multi-tenant rentals and commercial properties. I don't think everyone here loves the stock market, rather, they love a nicely balanced asset allocation which generally includes diverse stocks (index usually), and bonds, to both provide adequate growth for a long retirement, as well as stability.

I think most anyone with your sort of income who wanted to ER would find a way to save a significant portion of that and figure out how many years it would take, vs. diving into RE and giving that up. But you are only 30 so you can afford more risk if that appeals to you.

 

[exnavynuke]

A $4M portfolio is only going to generate about $140k with a 3.5% SWR, then take taxes out of that before you get your net take home. Is your spending going to be that low in 10 years?

 

[Trueace]

Congrats on your success so far. Are you some kind of motivational speaker then or is that a result of your success?

Also, in case you didn't know owning stock is essentially fractional ownership in a business. Therefore you can go see the company and make sure it actually exists. Think sometimes people don't realize owning stock is actually owning a small interest in a real tangible business although most people own etfs which is a basket of stocks.

 

[ponyboy]

One word...prenup

Also...your instagram reminds me of a wannabe "rich kids of instagram." Nice cars and watches though.

 

[bearkeley]

Congrats on your progress to date and having the sense to get involved with this forum at your age. Having 5 cars isn't in line with what a lot of Folks here do, but if that is what makes you happy and still be on track to make and more importantly, happy to live off of $4M in 10 years then good for you! Life is short, so it's important to also enjoy life when you can.

A few things to consider, however....how stable is your income stream? What are the chances of you making a decision to leave your current situation in search of greener pastures? With your income level at this age, it will be tempting to prioritize making more money over anything else, so keep your priorities front and center at all times.

We were able to retire (49 and 47) early because if our real estate investments. However, we also got cocky and lost a lot of it early on. Consider reading books focused on income / positive cash flows such as The Weekend Millionaires Guide to RE investments versus quick rich clubs.

 

[Sunset]

OP - you need to save faster and harder, as 4MM will be a BIG paycut when you live off it. It will mean no more cars over 50K and just 1 and you have to keep it 5 yrs.

Seriously you will need to save 8MM to have the lifestyle you cannot seem to give up.

 

[Jay_Gatsby]

No offense to the OP, but I would think that if he's been earning $350k for a while, and has made the moves he has over the past few years, he seems to be looking more for reassurance rather than advice.

 

[brucethebroker]

Congrats on your progress to date and having the sense to get involved with this forum at your age. Having 5 cars isn't in line with what a lot of Folks here do, but if that is what makes you happy and still be on track to make and more importantly, happy to live off of $4M in 10 years then good for you! Life is short, so it's important to also enjoy life when you can.

A few things to consider, however....how stable is your income stream? What are the chances of you making a decision to leave your current situation in search of greener pastures? With your income level at this age, it will be tempting to prioritize making more money over anything else, so keep your priorities front and center at all times.

We were able to retire (49 and 47) early because if our real estate investments. However, we also got cocky and lost a lot of it early on. Consider reading books focused on income / positive cash flows such as The Weekend Millionaires Guide to RE investments versus quick rich clubs.

Yes, how stable IS your income stream? Some of us, have had retirement plans re-arranged/delayed due to "reductions in force" (Seems to happen a lot after age 50....), or major changes in the economy (I know Realtors who were wiped out during the housing crash-they borrowed heavily early on thinking it was a short term blip, but it lasted over 5 years). If you lost your job, do you live in an area where unloading a $600+ home or a luxury car is easy, or would it take a major price reduction to move? Forget a 6 month emergency fund-could you handle a couple of years?

You are doing great, and have a very positive outlook on your future. Not to throw on any cold water-just a second opinion.

 

[Bryan Barnfellow]

Congrats on your success so far. Are you some kind of motivational speaker then or is that a result of your success?

Also, in case you didn't know owning stock is essentially fractional ownership in a business. Therefore you can go see the company and make sure it actually exists. Think sometimes people don't realize owning stock is actually owning a small interest in a real tangible business although most people own etfs which is a basket of stocks.

When I was w*rking, I bought some stock in the company of a good friend (large financial) and enjoyed calling him on occasion during work hours to ask what he was doing at that moment to increase the value of my holdings. It never got old (for me)

 

[Trueace]

When I was w*rking, I bought some stock in the company of a good friend (large financial) and enjoyed calling him on occasion during work hours to ask what he was doing at that moment to increase the value of my holdings. It never got old (for me)

Haha super funny.

 

[kgtest]

Matthew

Donate to charity. And not just money, but also your time. It will make you feel great.

As per flipping, its a simple formula, buy low, sell high.

Kids are amazing! With your financial success you should be able to pay for excellent end of life care without worrying about the kids taking care of you. nice work!

 

[Golden sunsets]

To the OP. WADR, Your story is not believable.


Sent from my iPad using Early Retirement Forum

 

[Bryan Barnfellow]

To the OP. WADR, Your story is not believable.


Sent from my iPad using Early Retirement Forum

I think OP has left the building...

 

[Travelwanted]

OP is not affording that lifestyle off 350k...not even close.

 

[Luck_Club]

OP is not affording that lifestyle off 350k...not even close.

+1
I'd also go as far as saying it is a made up persona. Wasted better part of an hour to figure how he made that cool $350K for 4+ years. To see if I could duplicate.

Only to find death notices, drug arrests, and other dead ends to the instagram persona referenced by original poster.

 

[hesperus]

Hi guys. I just took the time to read through this post I made in my 20's. It's from 2013 so if you would like to quickly read through it, here is the link. ( http://www.early-retirement.org/for...me-and-impulse-spending-needs-help-64634.html ) Now that I'm 30 I'm seeing life much more clear. I'm still buying high end cars but keeping them much much longer and I own them outright. A big mistake I made last year is I acquired a bigger house with a 4 car garage. I had the last house payed off for a measly 7 months before I sold it in the low 300's and purchased a 650k home. I currently owe just shy of 200k and it's on a 10 year mortgage. I have 5 cars right now but I'm engaged and two are sort or hers. She has her daily driver and her weekend/fun car. My hours in an office have gone down where I'm at work 32 hours a week. Her and I are working on getting our realtor licenses and will have them by March 17. She is leaving her pre school teaching job and will be a full time realtor. I will be helping part time with a focus on listing appointments while she will be handling buyer clients, open houses, follow up, and other tasks. I'm forecasting we will be making low 200's off real estate in 2018 plus what I'm currently making (Still 350k). I also want to get into rental property and flipping houses one we get past our learning curve in real estate. I don't see that discussed on here quite often (I lurk a lot). Everyone always loves the stock market. I personally enjoy things I can touch and see.

We also decided we are not going to have children and I want to retire at 40. At that time she will be 37. If we enjoy real estate then we may continue to do that in FIRE but at a less aggressive pace. I'm happy with all the current cars we own and we also decided this is our long term home. With all that said, I plan to spend the next 10 year working very hard at saving and growing a massive amount of money. I estimated we will need about 4 million to retire and after looking at the math my goal seems obtainable. Thanks again to everyone who took the time to give me solid advice years ago!


PS: If anyone needs any visuals feel free to visit my Instagram, the username is ATTITUDEOFAWINNER.

Matthew

Hmmm, having read all this, all I can say with certainty is that life is what happens when you've made other plans... Good luck with that spending

 

[RunningBum]

The Instagram persona and FB page claims to be a self-made college dropout motivational speaker. I'm doubting the "26 yr old director of finance at a Fortune 500 company" claim made in his first thread with that background, but I suppose you can make 350K as a motivational speaker. There was the picture of a Ferrari in a garage with an e-r.org screen on a laptop so there's probably something legit here. I don't really have advice for someone who has cut down to just 5 expensive cars, so I'm here for entertainment.

 

[hesperus]

The Instagram persona and FB page claims to be a self-made college dropout motivational speaker. I'm doubting the "26 yr old director of finance at a Fortune 500 company" claim made in his first thread with that background, but I suppose you can make 350K as a motivational speaker. There was the picture of a Ferrari in a garage with an e-r.org screen on a laptop so there's probably something legit here. I don't really have advice for someone who has cut down to just 5 expensive cars, so I'm here for entertainment.

Seems less interested in advice, more interested in a bit of braggadocio. Seems to conflate conspicuous spending with long term ER success.

 

[pb4uski]

The Instagram persona and FB page claims to be a self-made college dropout motivational speaker. I'm doubting the "26 yr old director of finance at a Fortune 500 company" claim made in his first thread with that background, but I suppose you can make 350K as a motivational speaker. There was the picture of a Ferrari in a garage with an e-r.org screen on a laptop so there's probably something legit here. I don't really have advice for someone who has cut down to just 5 expensive cars, so I'm here for entertainment.

Having been in the accounting industry my entire career, I am certain that absent fraud or nepotism that a 26 year old college drop out would be director of finance at a Fortune 500 company. The prerequisites for that position would be a college degree, and likely an MBA or CPA, plus at least 10 years of relevant experience. A 26 year old college dropout wouldn't come close.