Share Your FIRE Milestones - 2021

[refi]

Just hit $6M net worth on my Mint tracking. $2.9M Real Estate, $2.5M equities, 600k liquid. Probably passed this earlier as i'm conservative on my real estate estimates, but hitting $6M feels awesome as I'm planning my corporate exit.

 

[F.I.R.E User]

I am at $665k. All time high. Age 45.

 

[Jeffman52]

Passed the $2M mark sometime in the last few months.

Celebrated my 60 years of circling the sun as well.

$2.2M net worth
$1.73M of that is investments and cash.

 

[teej1985]

I am at $665k. All time high. Age 45.

I'm super close to that, also an all time high, but 38.

 

[F.I.R.E User]

I'm super close to that, also an all time high, but 38.

Do you have RE?

 

[teej1985]

Do you have RE?

No - it's all equities index funds + money market.

I rent currently, I've owned in the past though and probably would again, but most likely not in the coastal area that I currently live in unless there's a housing crash out here which seems doubtful.

 

[anothercog]

With the recent market run up I have hit my Lean FIRE goal!

Hopefully I’ll hit my Fat FIRE goal in 4-5 more years.

My youngest kid will graduate high school in four more years so that’s my target RE date.

 

[F.I.R.E User]

No - it's all equities index funds + money market.

I rent currently, I've owned in the past though and probably would again, but most likely not in the coastal area that I currently live in unless there's a housing crash out here which seems doubtful.

Same here. Never had RE. Renting all the time.

 

[Markola]

Same here. Never had RE. Renting all the time.

Honestly, looking back, I wonder if renting isn’t better overall over the course of a lifetime vs. being freed from all the costs of owning to able to plow more into stocks? No one tells you that starting out, though, and all your friends are stretching to buy houses, so that’s what you do, too.

 

[Lewis Clark]

Honestly, looking back, I wonder if renting isn’t better overall over the course of a lifetime vs. being freed from all the costs of owning to able to plow more into stocks? No one tells you that starting out, though, and all your friends are stretching to buy houses, so that’s what you do, too.

Renters don't pay for the costs of owning directly, but renters do pay indirectly through the rents. And renters also pay a profit to the property owner.

I suspect (without any data) that people will rent a home that is smaller than one they might buy in many cases. A smaller home will usually have lower maintenance costs all else being equal.

There are a lot of variables depending on what we might buy versus what we might rent. And how much home maintenance we are able to do ourselves versus paying someone else. And how often we expect to move. Owning is probably better in some situations. Renting is probably better in other situations.

 

[Surewhitey]

Returned to the states in 2015 (&w*rk). $1mm

2019 CoastFI by starting small biz & quit desk j*b

2023 more than double 2015 NW

17% house / cars
36% post tax accts
47% tax deferred

Just waiting for DW to have a cr*ppy year @ w*rk & join my goal... 31x spending without the house / cars & enough cash to bridge us to 65. Oh, & debt free.

 

[COcheesehead]

Mortgages are static and a play against inflation. Rents move with inflation.

 

[Surewhitey]

the 2nd 500k comes much quicker than the first, at least it did for me. First 500k took around 9 years, reached 1m by year 13.



all time high 11/2021: $1.5m. currently at $1.4m



1m seemed so far far away and unreachable when I first started in 2007, right before the financial crisis ...

Ditto.

We were @ $0 in 1997, then paid off 1st house in 2005, probably ~$500k around 2007.

2011 we were ~$1mm, took 3 years off, but resuming in 2015 & hit $2mm 6-7 years later. Definitely speeds up as you get more disciplined and determined.

 

[Surewhitey]

Mortgages are static and a play against inflation. Rents move with inflation.

Except for the inflation tax of property & insurance on them. We got hit with an additional $1100 for these, this year...

 

[COcheesehead]

Except for the inflation tax of property & insurance on them. We got hit with an additional $1100 for these, this year...

Property taxes maybe deductible so it’s less of a hit. Renters insurance goes up too.
I would rather pay a static “rent” as a mortgage on an asset that is increasing in value and earning equity than pay possibly ever increasing rent that goes into thin air.

 

[Surewhitey]

Totally agree. I just think about the folks buying $1.4M homes in my neighborhood and get hit with a 2% (after homesteading)... $28k before the PI payment & insurance. This can increase up to 10% annually if homes appreciate that much.

We stay in our tiny cottage across the street and save/invest $22k + PI more than our neighbors...

Living in TX, there's no deduction & with the larger standard deduction federally, just not much to consider there too.

 

[F.I.R.E User]

Honestly, looking back, I wonder if renting isn’t better overall over the course of a lifetime vs. being freed from all the costs of owning to able to plow more into stocks? No one tells you that starting out, though, and all your friends are stretching to buy houses, so that’s what you do, too.

So I will come out ahead in net worth if I rent and invest the cash in index funds over a long period of time say 30-40 years? I also would have more buying power because less cost to rent. Buying a house in USA is so overrated and heavily marketed. Many don’t even consider you financially stable if you rent.

 

[COcheesehead]

So I will come out ahead in net worth if I rent and invest the cash in index funds over a long period of time say 30-40 years? I also would have more buying power because less cost to rent. Buying a house in USA is so overrated and heavily marketed. Many don’t even consider you financially stable if you rent.

I would doubt this assertion. My biggest reason for doubting it is a mortgage is in essence leverage. Your house appreciates on its value. Your return is on your equity. A $100,000 house with $50k in equity that increases to $150,000 in market value is really a 100% return for the owner.

 

[F.I.R.E User]

I would doubt this assertion. My biggest reason for doubting it is a mortgage is in essence leverage. Your house appreciates on its value. Your return is on your equity. A $100,000 house with $50k in equity that increases to $150,000 in market value is really a 100% return for the owner.

Consider the expenses column too in the long run and the labor work involved. I am a minimalist and don’t like doing work in the house.

 

[COcheesehead]

I have owned homes for almost 40 years. I’ve painted a room or two and done some yard work.

 

[tnbison]

Hit a new NW high of $3.75M. Shooting for exit around 2030

 

[EastWest Gal]

So I will come out ahead in net worth if I rent and invest the cash in index funds over a long period of time say 30-40 years? I also would have more buying power because less cost to rent. Buying a house in USA is so overrated and heavily marketed. Many don’t even consider you financially stable if you rent.

No, because you lock in a dollar amount at the beginning of your mortgage, which doesn’t increase over the lifetime of the loan, especially if it is fixed rate. If you rent, you are covering the costs of their taxes, as well as helping them make a profit off of your rent.

Home ownership protects from inflation risk as well. Over the course of 30 years, how much will your rent increase? Inflation doubled the cost of everything in that period of time, or more. Compare that to a flat mortgage payment. You aren’t protected against increased property taxes, but of course being a renter doesn’t protect you from that.

 

[LateToFIRE]

No, because you lock in a dollar amount at the beginning of your mortgage, which doesn’t increase over the lifetime of the loan, especially if it is fixed rate. If you rent, you are covering the costs of their taxes, as well as helping them make a profit off of your rent.

Home ownership protects from inflation risk as well. Over the course of 30 years, how much will your rent increase? Inflation doubled the cost of everything in that period of time, or more. Compare that to a flat mortgage payment. You aren’t protected against increased property taxes, but of course being a renter doesn’t protect you from that.

You guys debating the benefits of home ownership Landlord here. Lemme put it to any doubters this way:

Over 25 years of owning rental property:

Valuation: 4x acquisition cost, including the cost of rehab in the calc

Rental Income: +3x more than the initial rents, and I'm still charging below market

Taxes on Rental Income: Zero due to numerous write-offs

Soooo..... anybody wants to keep on renting, please do keep filling my popcorn bucket.

 

[pjigar]

...pay possibly ever increasing rent that goes into thin air.

not really, in to my pocket as a landlord

 

[LateToFIRE]

not really, in to my pocket as a landlord

+1