Hello ER! Here I am!

F

fletcher

Confused about dryer sheets
Joined
May 7, 2015
Messages
4
Location
San Francisco
Hi all! Great to be here.

I've been lurking for a few months now, and thought I'd jump in and be an active participating member.

I'm 42 years old, not married (girlfriend of 2 years), no kids.

I own a small business and presently make about $350k a year.

No debt, and rent a relatively inexpensive apartment by San Francisco standards (locked into rent control). I live far below my means, and am trying to keep my spend down. My day-to-day expenses are very little... but I do enjoy playing, and tend to buy "toys for boys". Think boat, jetski, UTV, dirtbikes, and everything in-between.

I have approximately 1.1M invested in Vanguard index funds.

I'm a relatively unsavvy investor, but I am disciplined. I've been following the asset allocation recommendations from the No-Load Investor newsletter "wealth builder" program for about 10 years... it's treated me well.

I always max out my SEP IRA... and dump everything I have left over every month into Vanguard.

I don't have a retirement horizon, as I still have a lot more to make before feeling like I have enough for ER. If I had 4M today, I'd strongly consider exiting.

I recognize that it's unlikely I have the time to dedicate to becoming a master investor, so I like the ease of simply following the newsletter's asset allocation. Just recently however, I've been wondering if it's time to get a professional money manager involved... which would cost about 1% annually of my total of my investment with them. Food for thought.

That's who I am... hello to all! Great to be here with such a great group of folks!
 
Welcome to the forum!

You're off to a great start for ER. Others will chime in shortly but instead of a money manager I'd suggest reading Millionaire Teacher by Andrew Hallam and save the manger's fees.
 
If you're disciplined enough to not panic in a down market and to stick to a sensible asset allocation in index mutual funds/ETFs with low expenses, you'll be fine. That 1% expense adds up to big bucks over time.
 
A lot of the people who ER are burned out from job, typically because of bosses and coworkers.

Since you're the boss, maybe you're not feeling the pull to get out?
 
Welcome. Sounds like you're on the right track with LBYM and saving. Most people here recommend a simple allocation of low cost funds, so you're more on track than you realize. I think you can learn all you need to feel comfortable handling your own investments - there are a number of threads here with a recommended reading list or suggestions on books to help,
 
Hey all! Wow - it's like a time capsule! Haven't been around here in a few years, and found my old post from 3 years ago. Now at 2.2M. Still trudging along with the same strategy. Never got that pro money manager... 1%:confused:? What was I thinking! Thanks for the prior encouragement.
 
I'll say, 1M+ in 3 years! Keep dumping that extra cash into those funds. You're ahead $333K per year. Your strategy is worth writing about. My DSI earns approx what you do. Her income has been steady in the 330K area for about 7-8 years. Because of multiple big vacations, new homes, nice cars, no where near retirement. She is married with a daughter, college, wedding, HI because she's an independent contractor doesn't help, but still.
 
Thanks for the update. Really nice interval increase in savings. Sounds like you totally "get it", save early, save often, time is your friend, etc. Definitely no need for someone scooping off 1%.
 
Time capsule re-discovery #2! WOOOOOW! This is amazing. It's like a diary. I'll just keep finding this thread 2-3 years later by chance, and updating my progress here. Obviously never got that advisor... staying on the simple path Vanguard funds. Seems to be working.

1st post (5/2015): 1.1MM
2nd post (8/2018): 2.2MM
3rd post (4/2021): 3.5MM


On 5/2015 I said " If I had 4M today, I'd strongly consider exiting." I'm getting close to that now - but funny how that works... I believe my new number is 6MM.


Hi to future me in 2-3 years. How are we looking?! Can we quit now?
 
fletcher said:
Time capsule re-discovery #2! WOOOOOW! This is amazing. It's like a diary. I'll just keep finding this thread 2-3 years later by chance, and updating my progress here. Obviously never got that advisor... staying on the simple path Vanguard funds. Seems to be working.

1st post (5/2015): 1.1MM
2nd post (8/2018): 2.2MM
3rd post (4/2021): 3.5MM


On 5/2015 I said " If I had 4M today, I'd strongly consider exiting." I'm getting close to that now - but funny how that works... I believe my new number is 6MM.


Hi to future me in 2-3 years. How are we looking?! Can we quit now?
Click to expand...

Nice progress. Slow and steady wins the race. Here's to your continued success/growth and health.
 
Nothing wrong with having a stretch goal; if you feel like work would be optional at $4M, and you decide to keep working to get to $6M, then you're FI, and can retire at any time! That's still a great place to be!
 
Wow quadrupling in 9 years.

Very high equities in the AA?
 
This is very cool. And you're 51 now. You're on your way to FI if not already there (San Francisco cost of living notwithstanding)! Still like running your business?
 
Congrats! Love to see your plan working! Now, you're FI with regards to your original goal. But inflation has eaten into your original $4M goal's value in terms of today's $. You're 51 now. I'd highly encourage you to set an exit point at 55 or before. You now have the ability to buy time. Can you sell your business to hit your $6M goal earlier? You can't get time back once it's gone, and your health isn't guaranteed, but aging is...!
 
Have you determined your spending needs and then run FIRECalc? You might be surprised that you can retire sooner than you think.
 
Enjoying seeing these updated "diary" threads. Really shows the impact of time on compounding and financial savy.
 
Great update, congratulations on your continued savings
 
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