Howdy I'm......

[Rikkitikkitavi]

Howdy Just call me Rikki.... My goal is to Semi-retire by 50 which gives me 15 years, I'd like to work longer but on my own terms like 20 hours a week or so....

I am married, have 1 child and 1 on the way. Avg income is around 90k per year, I was fully self employed as an IT consultant for 6 years and just went to work for one of my clients full time with a little consulting on the side. We have 60k in land holdings 50k in hme equity, 20k bank savings, and 60k in IRAs and a couple thou in a brokerage account. Total debts are 80k including the mortgage and 1 car (no credit card or other debt).

My goals for the remainder of this year are...

Net worth $125k
Start 529 or coverdell for child 1
Max SEP and IRA
Pay off car

For 06

Net worth $200k
Max IRA and 401k (company matches 7%)
30k in savings
Start 529 or coverdell for Child 2
Buy first investment property

For 07

Pay off home! be debt free

Net worth $325k



I'll be hanging out here, any tips or additions to the above would be greatly appreciated.

Rikki

 

[Sheryl]

Hi Ricki -
Welcome to the forum. Good to see another "young dreamer." Hope you enjoy the good advice and friendly atmosphere here!

 

[justin]

Rikki,

It looks like your net worth is already $160k or so. Not sure how you're doing the math though! 60k+50K+20k+60k=190k assets. Liabilities = car debt of ?? $30k

Net worth = 160k.

Maybe you are richer than you thought...

 

[maddythebeagle]

welcome. You are in the right place.

 

[SteveR]

Justin,

Recheck your math. Rikki has:
60k+50K+20k+60k=190k assets. Liabilities = car debt and mortgage of $80 That gives him $110 in networth. He did mention some cash in brokerage accunts and maybe this is where the $15 is coming from.

Riki, keep up the good work. You will make it.

 

[justin]

Justin,

Recheck your math. Rikki has:
60k+50K+20k+60k=190k assets. Liabilities = car debt and mortgage of $80 That gives him $110 in networth. He did mention some cash in brokerage accunts and maybe this is where the $15 is coming from.

Riki, keep up the good work. You will make it.

The total debt of $80k includes car debt and mortgage debt. I assumed $50k for mortgage debt and $30k in car debt. Rikki stated his home equity is $50k. This means the value of the house less debt secured by the house is $50k. The $50k I've included in assets is the home equity (value minus debt). If you subtract out the $50k mortgage again, you are double counting the mortgage in the net worth calculation. Or Rikki isn't using a standard definition of home equity.