powerplay
Thinks s/he gets paid by the post
- Joined
- Oct 22, 2008
- Messages
- 1,608
Congratulations on your $3M!
You are doing great!
You are doing great!
Congrats... my wife and I just retired in March and moved to North Carolina. I was 50 and she was 48. Where in NC is vacation home? We are living near Lake Norman.
Well done. One note on calculating net wealth, I would include any equity (including real estate). Ultimately, whether you live in the property (or rent it) there is both a benefit and an opportunity costs of other income you could be getting from that equity. A good way of looking at it is that you are essentially "renting" with you being your own tenant.
Out of interest, what is the net yield you are earning on your 3m?
Ronbus, It is on Sugar Mountain, but we are thinking we'll ultimately settle in Asheville.
Small world--we have a home at Sugar Mountain that we use in the summer. Welcome to the area, I am sure you will enjoy it. There is a nice small golf course at Sugar. We also enjoy the summer music. On Wednesdays in the summer there is Grillin and Chillin-- a cookout and a band at the Sugar Mountain golf course. Banner Elk also has summer music on Thursdays at the downtown park (very nice park in Banner Elk). We also enjoy all the wineries--especially Grandfather Winery and Linville Falls Winery , they have music on the weekends in the summer. Maybe we can arrange to meet next summer.
On 9/02/20 I posted a thread titled "Small Milestone - $2M" and here we are less than 15 months later and I've hit the $3M mark (not including real estate equity). I am both humbled and amazed at this performance. When I started this FIRE journey 11/12 years ago my goal was to hit $3M and retire at 55. I'm 44 now and the plan now is to still work until our daughter graduates high school in 3.5 years. We are under contract on a vacation home in North Carolina that we'll use to get acquainted with the area between now and then. So, actually this $3M will come down in a few weeks when some of that gets transfered to real estate equity.
As I said in the previous post, a lot of credit has to go to you all for the wise words and encouragement. That's much appreciated and keep 'em coming!
Congrats! For those of us still learning, can you tell us how you went from $2mil to $3mil so quickly? Was it a large income? Certain stocks? Heavy equity allocation? Combo?
Yeah, $2350 on a 600 grand property -
Yeah, $2350 on a 600 grand property -
On 9/02/20 I posted a thread titled "Small Milestone - $2M" and here we are less than 15 months later and I've hit the $3M mark (not including real estate equity). I am both humbled and amazed at this performance. When I started this FIRE journey 11/12 years ago my goal was to hit $3M and retire at 55. I'm 44 now and the plan now is to still work until our daughter graduates high school in 3.5 years.
Congrats! For those of us still learning, can you tell us how you went from $2mil to $3mil so quickly? Was it a large income? Certain stocks? Heavy equity allocation? Combo?
I know that RobbieB is trying to hijack the thread and I am adding to it. We have you beaten on the home that we just sold in Jan 2021. Acquired in 2014, sold for $700K, property tax of $2,400 and the best part is property tax is not reassessed on sale. The new owners are paying the same amount, plus a maximum of 3% increase per year. Our current home which was bought in Jan 2021 is about $1M, property tax of $4,100 and we are not complaining.
Amazing job! 1.5M is my next target. At 3M you have enough to do just about everything and never have to worry (small asterisk on this of course). Now you can focus pretty much entirely on every other aspect of life. Big congrats.
I know that RobbieB is trying to hijack the thread and I am adding to it. We have you beaten on the home that we just sold in Jan 2021. Acquired in 2014, sold for $700K, property tax of $2,400 and the best part is property tax is not reassessed on sale. The new owners are paying the same amount, plus a maximum of 3% increase per year. Our current home which was bought in Jan 2021 is about $1M, property tax of $4,100 and we are not complaining.
The rub in all of this is that of the $3M, $2.45 is qualified money. So, that only leaves $550k in taxable accounts for me to bridge to 59.5. Two things will help. 1. I have nearly 4 years left to beef up the taxable portion and have a some significant stock vestingin that time period. 2. DW is 5 years older than I, so in 4 years she'll only be 6 years from 59.5.
We can do 72t if absolutely needed, but hopefully won't have to.
My situation wasn't quite this problematic. I was over 50% qualified. But after 16 years of FIRE, I'm STILL working my self out of the "qualified money" issue. I did lots of Roth conversions and always take more than my RMD. But, darn it, the qualified money just keeps growing!
First world problems are the best problems. Still, ours are cautionary tales to the young 'uns. Fund those taxable accounts too! Roth as much as you can without maxing your tax. The gummint giveth and the gummint taketh away. YMMV
If you are over 70.5, give some of that IRA money to your favorite charities, that is what I am doing.