londonbanker
Confused about dryer sheets
Hello,
I have been reading this forum's wealth of knowledge for about 6months now, and I thought I'd sign-up and introduce myself.
I am fairly new to the concerpt of LBYM and early retirement. The birth of my first child 2 years ago was an epiphany.I realized that savings & retirement weren't going to take care of themselves.
My partner and I were in our early 30s, we suddenly got shocked that despite having earned high income for years (both work for S&P500 companies), we never really saved up much. Up until 3 years ago, I owned a Porsche, a mahogany speedboat, harley etc... It horrifies me now, thinking about it - but hey, it was part of the process to realize we'd gone too far (mainly me with the toys). When we found out we were pregnant, it was a wake-up call and something clicked in our heads.
I started to do a lot of research and stumbled upon MMM and then this website, which was (still is) a true source of inspiration. I put up the toys for sales, scraped all our meager savings/investment and bought a house in central London (where we both live currently).
We now have a second kid on the way and are determined to FIRE within the next 10years - with a stretch plan for 2022.
Our situation:
I am 35 and DW 33, we have a 2y/o and another one due this august.
We went from a $280k networth early 2012 to $1.8m as of today. This dramatic increase was driven by a combination of significant increase of income, paying down debt, appreciation of our real estate investment and strong appreciation of our employers' stock grants.
NW broken down as follow:
- 70% real estate ($2.5m house - with a $1.3m equity)
- 10% pension account (tax deferred)
- 15% taxable investments
- 5% cash & equivalent
Our goal is to FIRE and move out of London, probably out of the UK altogether by 2025 - when our NW hits $5m or $4m of invested assets (we'd sell our London house and downsize to a max $1m house)
If our networth continues to increase by $300-$350k a year, we should be there by then.
At that stage the kids will be 12 and 10 respectively, and we should be able to live on $90-100k a year.
I realise the ratio of real estate as a % of our NW doesn't feel very prudent, but housing in central london is extravagantly expensive. The cost of owning the house is still much lower than renting, given that we locked in a mortgage rate of 1.8%, and local tax are very cheap. So all in all, I believe we are better off owning. Especially since we're planning to sell the house upon retirement.
I have been reading this forum's wealth of knowledge for about 6months now, and I thought I'd sign-up and introduce myself.
I am fairly new to the concerpt of LBYM and early retirement. The birth of my first child 2 years ago was an epiphany.I realized that savings & retirement weren't going to take care of themselves.
My partner and I were in our early 30s, we suddenly got shocked that despite having earned high income for years (both work for S&P500 companies), we never really saved up much. Up until 3 years ago, I owned a Porsche, a mahogany speedboat, harley etc... It horrifies me now, thinking about it - but hey, it was part of the process to realize we'd gone too far (mainly me with the toys). When we found out we were pregnant, it was a wake-up call and something clicked in our heads.
I started to do a lot of research and stumbled upon MMM and then this website, which was (still is) a true source of inspiration. I put up the toys for sales, scraped all our meager savings/investment and bought a house in central London (where we both live currently).
We now have a second kid on the way and are determined to FIRE within the next 10years - with a stretch plan for 2022.
Our situation:
I am 35 and DW 33, we have a 2y/o and another one due this august.
We went from a $280k networth early 2012 to $1.8m as of today. This dramatic increase was driven by a combination of significant increase of income, paying down debt, appreciation of our real estate investment and strong appreciation of our employers' stock grants.
NW broken down as follow:
- 70% real estate ($2.5m house - with a $1.3m equity)
- 10% pension account (tax deferred)
- 15% taxable investments
- 5% cash & equivalent
Our goal is to FIRE and move out of London, probably out of the UK altogether by 2025 - when our NW hits $5m or $4m of invested assets (we'd sell our London house and downsize to a max $1m house)
If our networth continues to increase by $300-$350k a year, we should be there by then.
At that stage the kids will be 12 and 10 respectively, and we should be able to live on $90-100k a year.
I realise the ratio of real estate as a % of our NW doesn't feel very prudent, but housing in central london is extravagantly expensive. The cost of owning the house is still much lower than renting, given that we locked in a mortgage rate of 1.8%, and local tax are very cheap. So all in all, I believe we are better off owning. Especially since we're planning to sell the house upon retirement.