retirementguy1
Recycles dryer sheets
- Joined
- Apr 21, 2014
- Messages
- 233
Hi all, I found this forum after reading Bob Clyatt's Work less, live more. The past few years I have been putting extra money down on the house. After my first year of homeownership I decided I didn't want to give the banks any more money. My mortgage will be paid off by the end of the year. After that I will be investing $4k a month in vanguard index funds.
Assets: 20k liquid
Investments 12k Roth IRA
Home Value $215k with $28k left on the mortgage (my only debt). I bought the home 4 1/2 years ago for $160k.
My income is around $6k per month. I rent out one room for $450 per month (included in the $6k). I have the option to rent out another room and still have a guest bedroom.
My expenses range between $700 per month to $1700 on the high side excluding the mortgage. Right now I'm paying an extra $4k per month on the mortgage. Once I pay off the mortgage I will be living on 16-20% of my income.
I'm not married and I don't have any kids. I don't want any kids.
The disadvantage of my career is that I have already peaked in earnings. It is also very stressful to be a career waiter in Las Vegas. Since there is a lot of age discrimination here so I would like to work three days a week (18 hrs) by the time I'm 37 and fully retire by the time I'm 40.
Based on a modest 8% return (5% real return) I should have around $300k in mostly taxable investment accounts by the time I'm 37. My company 401k has mostly high fee funds and the company match is very low so I'm staying away for now.
Also due to a tip compliance agreement with IRS I only make $22k on paper. Most of my income is tax free and it is completely legit.
Once I hit 40 I will sell the house, $250k should be tax free. I will put everything into my vanguard accounts. I would like to live in a low cost developing nation for most of the year and spend my summers in Utah where my family is from.
I plan on living on less than $20k a year which is more than what I live on now. Insurance costs are the biggest unknown.
Anything I'm missing? Any feedback is welcome.
Thanks,
Dave
Assets: 20k liquid
Investments 12k Roth IRA
Home Value $215k with $28k left on the mortgage (my only debt). I bought the home 4 1/2 years ago for $160k.
My income is around $6k per month. I rent out one room for $450 per month (included in the $6k). I have the option to rent out another room and still have a guest bedroom.
My expenses range between $700 per month to $1700 on the high side excluding the mortgage. Right now I'm paying an extra $4k per month on the mortgage. Once I pay off the mortgage I will be living on 16-20% of my income.
I'm not married and I don't have any kids. I don't want any kids.
The disadvantage of my career is that I have already peaked in earnings. It is also very stressful to be a career waiter in Las Vegas. Since there is a lot of age discrimination here so I would like to work three days a week (18 hrs) by the time I'm 37 and fully retire by the time I'm 40.
Based on a modest 8% return (5% real return) I should have around $300k in mostly taxable investment accounts by the time I'm 37. My company 401k has mostly high fee funds and the company match is very low so I'm staying away for now.
Also due to a tip compliance agreement with IRS I only make $22k on paper. Most of my income is tax free and it is completely legit.
Once I hit 40 I will sell the house, $250k should be tax free. I will put everything into my vanguard accounts. I would like to live in a low cost developing nation for most of the year and spend my summers in Utah where my family is from.
I plan on living on less than $20k a year which is more than what I live on now. Insurance costs are the biggest unknown.
Anything I'm missing? Any feedback is welcome.
Thanks,
Dave
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