Hi All,
I've been contributing to the forum for a while, however, I don't believe I ever formally introduced myself, so here goes:
Divorced, living in Nevada.
Age 44
Paying alimony for another 7 years, and child support for another 12.
Total annual expenses for now ~$180k/year. This does NOT include taxes. I do a lot of investing in highly taxable deals that are sporadic, so estimating taxes is very challenging. However, the higher my taxes, the better for my returns and passive income. For planning purposes, my minimum taxes if I stopped the hard money lending would be ~$15k/year, brining my annual spend to ~$195k. Expenses will dip by around $60k/year when alimony expires.
FI since early 30's, but w*rking since I have two young kids in schools, so I can't really pursue my passion of world-travel while maintaining a stable home environment for the kiddos. So I dink around, do road trips, and when I date I treat them to nice meals, weekends away, etc. I am bored a lot and always seeking to quell that feeling.
I still work, although it's very part time. It's 100% commission, and the average pay is ~$200k/year. It's a flexible job that requires just a laptop and cell phone and maybe 1-2 hours/weekday. If it ever becomes a headache I'll quit, but for now it's great income given the low workload and geographic flexibility.
Total passive income, not including w*rk pay, is ~$225k year mostly from dividends, interest and rent.
Portfolio:
Roth IRA: $410k in Vanguard Total Intl.
SEP IRA: $70k in Vanguard Total Intl.
Taxable Accounts:
Vanguard Total Intl: $860k
Vanguard Total Stock Mkt: $2.2 MM
Vanguard Equity Income: $400k
CDs yielding 2-3%: $670k
Cash and Equivalents: $350k
Hard Money Loans: $1.2 MM (These are loan to strangers, backed by first liens on significant real estate equity. Generally the payments are monthly, and yield 8% - 10%. These deals come and go, and I jump on the good ones whenever they cross my desk. In three years, no borrower has ever missed a single payment.)
Primary Home: $650k, paid off
Vacation Home: $400k, paid off
Rental Home: $300k, paid off, rent $1,500/month
Land Investment: ~$300k, highly illiquid, wish I never did this one
Small company investment: $100k, highly illiquid, wish I never did this one
I've read a few of these Hi I Ams, so anticipating some questions:
1. I made the bulk of the money via entrepreneurship. It was not a smooth path. I started 3 businesses in my 20's that did not succeed. I tucked tail, took a j*b, and did it for six months. Then, I got the inspiration for business #4. I quit the j*b, and the new business made a fortune very quickly. Phew. I was near the end of my entrepreneurial rope at that point.
2. The large amount in Roth IRA is due mostly to rollovers and backdoor contributions in the past few years.
I would like to reduce my equity exposure, however, there are large unrealized cap gains in the taxable portfolio so I'm reluctant to realize those. Of course I could sell stocks from the IRAs, however, I don't have a great alternative investment in those vehicles. So I feel a little bit stuck with my AA.
Anyway, great to "formally" meet my forum mates!
Cheers,
RenoJay
I've been contributing to the forum for a while, however, I don't believe I ever formally introduced myself, so here goes:
Divorced, living in Nevada.
Age 44
Paying alimony for another 7 years, and child support for another 12.
Total annual expenses for now ~$180k/year. This does NOT include taxes. I do a lot of investing in highly taxable deals that are sporadic, so estimating taxes is very challenging. However, the higher my taxes, the better for my returns and passive income. For planning purposes, my minimum taxes if I stopped the hard money lending would be ~$15k/year, brining my annual spend to ~$195k. Expenses will dip by around $60k/year when alimony expires.
FI since early 30's, but w*rking since I have two young kids in schools, so I can't really pursue my passion of world-travel while maintaining a stable home environment for the kiddos. So I dink around, do road trips, and when I date I treat them to nice meals, weekends away, etc. I am bored a lot and always seeking to quell that feeling.
I still work, although it's very part time. It's 100% commission, and the average pay is ~$200k/year. It's a flexible job that requires just a laptop and cell phone and maybe 1-2 hours/weekday. If it ever becomes a headache I'll quit, but for now it's great income given the low workload and geographic flexibility.
Total passive income, not including w*rk pay, is ~$225k year mostly from dividends, interest and rent.
Portfolio:
Roth IRA: $410k in Vanguard Total Intl.
SEP IRA: $70k in Vanguard Total Intl.
Taxable Accounts:
Vanguard Total Intl: $860k
Vanguard Total Stock Mkt: $2.2 MM
Vanguard Equity Income: $400k
CDs yielding 2-3%: $670k
Cash and Equivalents: $350k
Hard Money Loans: $1.2 MM (These are loan to strangers, backed by first liens on significant real estate equity. Generally the payments are monthly, and yield 8% - 10%. These deals come and go, and I jump on the good ones whenever they cross my desk. In three years, no borrower has ever missed a single payment.)
Primary Home: $650k, paid off
Vacation Home: $400k, paid off
Rental Home: $300k, paid off, rent $1,500/month
Land Investment: ~$300k, highly illiquid, wish I never did this one
Small company investment: $100k, highly illiquid, wish I never did this one
I've read a few of these Hi I Ams, so anticipating some questions:
1. I made the bulk of the money via entrepreneurship. It was not a smooth path. I started 3 businesses in my 20's that did not succeed. I tucked tail, took a j*b, and did it for six months. Then, I got the inspiration for business #4. I quit the j*b, and the new business made a fortune very quickly. Phew. I was near the end of my entrepreneurial rope at that point.
2. The large amount in Roth IRA is due mostly to rollovers and backdoor contributions in the past few years.
I would like to reduce my equity exposure, however, there are large unrealized cap gains in the taxable portfolio so I'm reluctant to realize those. Of course I could sell stocks from the IRAs, however, I don't have a great alternative investment in those vehicles. So I feel a little bit stuck with my AA.
Anyway, great to "formally" meet my forum mates!
Cheers,
RenoJay
. Maybe take something/somebody new to support later on or send checks to Bill Gates foundation.
