Poll

Which scenario should momo pursue?

Continue to rent.
6 (20%)
Move to family rental and pay no rent.
17 (56.7%)
Purchase a single family home residence or investment property.
4 (13.3%)
Something else? Please explain your ideas, analysis after reading the first post. Thanks!
3 (10%)

Total Members Voted: 29

Author Topic: CASE STUDY: Can momo retire? Too optimistic or naive? Share ideas. Thank you!  (Read 12532 times)

momo

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Hi there! Momo here and this is my first time sharing my own case study. I am nervous asking for help but I am at a crossroad in my life and I really need help. I want to hear other Mustachians thoughts. MMM really inspires me to seriously reconsider my wasteful spending habits. I admit I use to be a heavy spender years before discovering MMM, I've done my best to stop spending on depreciating crap.

Short-term Goal: Semi-retirement I want to FIRE asap. I am healthy, single and debt free. I want to achieve semi-early retirement where I do not have to work but can, if I choose. Is this too optimistic? I understand I need to be flexible with this age if I want to marry and raise a family. Please let me know what I can do better and if you think I'm overlooking alternative possibilities and pitfalls too!  Thanks.

Mid-term Goal: Finding the right Mustachian woman? Another consideration that applies to all three scenarios, I am single but hope to meet the right woman. My biggest concern involves my personal life where most single women I meet are very career focused (no time for serious relationship), hedonists focusing excessively on foodie, travel or inebriating fun. After reading 600+ online dating profiles I've learned most women present themselves in the same light (love traveling, eating out, shopping, happy hour) and not met many women appear to possess Mustachian values. I admit at times, this can be very discouraging. So, if you have ideas how to meet more Mustachian type women I'd like to hear your thoughts.  Thank you. :)

Long-term Goal: When can I retire? Even using conservative estimates I do not think I can retire in a year. I've run numerous estimates using MadFIentist and FIRECalc and neither provide comfort because I get conflicting results. MadFI lab calc says I can FIRE in one year and six months. While FIRECalc estimates for 40 years a success rate of 84.6% with 16 cycles failed. When I estimate 50 years to the age of 89 then 16 cycles failed, for a success rate of 83.0%. :( I think I need to save even more. What do you think?

Mustachians, I look forward to your ideas and comments. Thanks everyone! :)
« Last Edit: January 04, 2015, 01:21:48 PM by StashtasticMomo »

highcountry

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Re: Case Study: momo's mustache
« Reply #1 on: September 22, 2014, 11:48:59 AM »
Dude, you're interested in tiny houses and you're not sure how to get your housing costs down? There's one for sale in my town ( sebastopol, in the north bay) for 28000, still needs a kitchen. My partner and I live in one. We built it for $20000 (15000 of it  a loan) in materials and rent a place to park it for $300 a month. Even if you bought one from tumbleweed new it would dramatically decrease your housing costs,. Living in one someone else built would also give you the chance to test out what works and doesn't before you designed and built your own. Your housing costs are 1950 a month. Mine are $700 a month (300 to rent the rest to pay off the loan. I'm currently unemployed. This will go up when I get a job, but even if it didn't the loan will be paid off in 4 years and my housing cost is half of the going rate in my area.

You couldn't move to the city with it though.

highcountry

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Re: Case Study: momo's mustache
« Reply #2 on: September 22, 2014, 01:01:09 PM »
We designed it, based on the Weller from four lights tiny home.  We did this primarily because we didn't want to shell out for the plans, which was a newby mistake (there were a lot of those :))

Although we are both fairly handy and have some woodworking experience, and I had been dreaming in tiny houses for years, neither of us had construction or design experience going in.  We built it with student loan money (3%, subsidized), and I am very glad we did, but it has been a tremendous drain of energy and time.  There are some things I would definitely do differently, were I to do it again: 

I would build it as a load on a trailer, rather than mounted directly.  This would mean I could insure it when I needed to move it.  We had a very close call towing it to it's current home, and the piece of mind would be nice. 
I would buy plans. There are many designs out there, and I am sure I could find one that I liked well enough.  The appeal of complete control of the design wears thin when you are feeling it all out as a pair of newbies, and the savings of not buying them probably vanishes by the end of the first trip to the lumber yard.
I would make sure I had access to a barn when I built.  We actually had this, but we almost chose to build in a different spot, which would have been a disaster.  Everything takes longer than you think, and a place to store your supplies is essential.  A barn that you can park the whole thing in would have been even better
I would buy almost nothing on craigslist.  As an inexperienced beginner, salvage was almost always a loss, as things would change and we wouldn't be able to use the stuff we bought.  If we were more experienced, I'm sure we could have saved a lot of money, but with the exception of flooring and light fixtures, everything we salvaged turned out to be more hassle than it was worth, or didn't get used at all.  On the same note, unless you have phenomenal storage space, I would not buy stuff you are not using for the current stage of the project.  For half of this process we have been building out of a storage locker, and it can be very hard to find stuff when we need it, which leads to buying it twice.
I would get my windows first and design to them.  We had intended to make our own windows, and we do have the skill to do it, but ended up not having time or good shop access.  We have Plexiglas in place for now, and are trying to figure out a more long term solution that won't be too expensive or time consuming.  I knew better, but I still fell into this trap.
I would look hard at this possibility: http://www.bodegaportablebuildings.com/, and other options that don't involve stick framing.  I've come to the conclusion that stick framing is a silly, expensive, overly complicated way to build a house, at least in this climate.  My partner has been designing another tiny house (he calls it his "therapy house", as it is NOT the one we are currently still finishing) that consists mostly of removable shoji type panels and timber framing, and has an engawa that contains the bathroom, clothes storage, and a twin bed along two sides of the bulding that folds up and down for transport sort of like the porch on the tall man's tiny house, making it possible to get to about 12' wide while still not needing a permit to tow. 

I have also thought about buying a house someday and living in the backyard.  For now though, the tiny house is saving us a tremendous amount, and is really lovely, though still unfinished. 
*end of thread hijack.. :)
« Last Edit: September 22, 2014, 01:05:01 PM by learning »

highcountry

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Re: Case Study: momo's mustache
« Reply #3 on: September 22, 2014, 01:29:48 PM »
For anonymity's sake, I'd rather not post a photo, but thank you for the interest!

mozar

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Re: Case Study: momo's mustache
« Reply #4 on: September 22, 2014, 06:42:11 PM »
No savings suggestions. You are living pretty cheaply in an expensive area and you are already rich. Maybe move to SF to make it easier to meet more people? Can you take the train to work?
I hear there are more men then women in your area. Do you do online dating? You could put on your profile that you are looking for someone who lives near you or is willing to relocate to SF.
I put that on my profile (OKCupid), and put my search parameters to "everywhere." I also have far less to offer someone :-) But I know lots of people are open to relocating. I've had people ask me if I'm willing to relocate, even though it clearly says on my profile that I am looking for someone to move to my area.

firewalker

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Re: Case Study: momo's mustache
« Reply #5 on: September 22, 2014, 08:37:54 PM »
You indicate that you're focus is on cutting back and early retirement, but you have interest in buying a home at ... how much?!? Your post lists what appears to be a very healthy stash right now. Am I correct? If so, by investing with just moderate risk, moving to a less expensive area, living more mustachian and shooting for a less expensive house purchase, it appears you could retire, like, last year! Am I missing something?

Spudd

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You have quite a large stash, and low expenses. If you moved to the family rental you should be able to semi-retire immediately since your budget would drop from 3000/mo to 1000/mo. I would not move to the family rental if you plan to keep the job, a 2-hour commute will suck your soul right out of your body. If you keep working, then I would go with the "keep renting" option, and then plan to move to a lower COL area upon semi-retirement.

NumberCruncher

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You have quite a large stash, and low expenses. If you moved to the family rental you should be able to semi-retire immediately since your budget would drop from 3000/mo to 1000/mo. I would not move to the family rental if you plan to keep the job, a 2-hour commute will suck your soul right out of your body. If you keep working, then I would go with the "keep renting" option, and then plan to move to a lower COL area upon semi-retirement.

+1

Would your expenses really be $1,000/mo if you moved to the family rental? Are there any conditions on living there rent free?

If you take a 4% withdrawal rate, you would need $300k to sustain that...which you have...more than double...why are you still working? ;)   

expatartist

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I selected Option 3

If you're looking for a partner, you'll want to:
* live somewhere you can meet people
* be attractive to the opposite sex - living in a family-owned rental/not paying any rent isn't attractive to most women as a potential future living option

With your stache, you could move to a lower COL area (maybe the Pacific NW?) where there are more women in your age range, buy a duplex/SFH and have renters cover your mortgage.

Edit: The appeal of living in a family-owned rental depends on the individual. For some, it could be appealing! It depends on the rental's location, your family relations, and the potential partner's ideas on independence etc.
« Last Edit: September 25, 2014, 07:11:36 PM by expatartist »

Hotstreak

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Few things:

If you move in to the family rental, you don't have to work any more, effective immediately.  Your assets are sufficient to generate about $30k/yr (based on the 4% rule), so your expenses are covered.

You are asking how to further reduce your expenses, and after people have pointed out your housing expense is the highest, you came back and asked again where you can trim costs.  You can trim costs, by reducing housing.  Move to another city, or another part of the country.  With the extra savings you will have, you can fly out to visit regularly.

SondraRose

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Re: CASE STUDY: Can momo retire? Too optimistic or naive? Share ideas. Thank you!
« Reply #10 on: September 25, 2014, 07:54:55 PM »
Sounds like a good time to semi-retire.

Move to the family rental, get a new job (you would be able to go part-time, if you wish), spend your extra time cultivating hobbies/interests where you will meet a like-minded partner.

Win.  Win.  Win.

mozar

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Re: CASE STUDY: Can momo retire? Too optimistic or naive? Share ideas. Thank you!
« Reply #11 on: September 25, 2014, 08:30:04 PM »
Well the OP says he doesn't want to leave SF. That's why I didn't suggest it. I've also heard about women in SF complaining that the single men are too career focused, hedonists, etc. So that's just the culture. You should be very upfront about what you are looking for. I don't think the right woman would be turned off by the you living in a family rental. I have also heard about straight men in SF lacking social skills. So you can differentiate yourself by being polite, asking questions, and showing interest. None of that pick up artist b.s. The way to find a mustachian woman is to keep looking. I read somewhere that people who actively look for a partner are 7 times more likely to find someone.

angelagrace

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Re: CASE STUDY: Can momo retire? Too optimistic or naive? Share ideas. Thank you!
« Reply #12 on: September 26, 2014, 05:49:39 PM »
A few things.

1) Am I the only one that thinks that we need to start a mustachian online dating section in this forum? I am happily married, but I think a lot of you would enjoy it. You could post your information, interests, location, and your email address for further communication.

2) I know you said you didn't want to leave SF, but you could move to Raleigh, NC, Spokane, WA, or a ton of other cities and retire right now! :) They are lovely places. Just sayin.

sobezen

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Re: CASE STUDY: Can momo retire? Too optimistic or naive? Share ideas. Thank you!
« Reply #13 on: September 29, 2014, 10:27:39 AM »
A few things.

1) Am I the only one that thinks that we need to start a mustachian online dating section in this forum? I am happily married, but I think a lot of you would enjoy it. You could post your information, interests, location, and your email address for further communication.

Good idea angelagrace. We already have a Mustachian dating section here http://forum.mrmoneymustache.com/personals/ but it is not easy for people to meet others. We have 100,000+ Mustachians but many do not even read the forums let alone read the dating section. Also this is mainly a forum format and not as interactive or say OKCupid or other dating sites.  YMMV.

NumberCruncher

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Few things:

If you move in to the family rental, you don't have to work any more, effective immediately.  Your assets are sufficient to generate about $30k/yr (based on the 4% rule), so your expenses are covered.

You are asking how to further reduce your expenses, and after people have pointed out your housing expense is the highest, you came back and asked again where you can trim costs.  You can trim costs, by reducing housing.  Move to another city, or another part of the country.  With the extra savings you will have, you can fly out to visit regularly.


@ RobbyJ: It is possible if I move now I can quit working, but the thing like most people much of my net worth is tied to the market. Also I haven't set up my accounts so there is enough dividends generated to cover my annual expenses! I'm actually concerned about this area and learning more too. For example a Roth Conversion ladder is something to consider but what else can be done? So despite having 25 times my income wouldn't it be prudent to have more to cover other expenses such as insurance and future medical costs? I feel those costs typically are not considered when using the 25 annual expenses practice. Does anyone else have similar concerns or different ideas? Thank you for sharing.

Sure, there's some amount of risk with 25x annual expenses...but you have far more than that - nearly 63x your annual expenses if you moved. You have twelve years of expenses in cash alone. If you provided more specifics on what kind of accounts you have, we can give more detailed advice.

Have you used firesim? http://www.cfiresim.com/input.php

Edit: As a woman, I wanted to comment on the dating front too. I think the location of the family rental would have the most impact on dating prospects. Is it located in a "young" neighborhood with lots of single people and nightlife? Is it in the middle of nowhere? Other than that, if you do go that route, I wouldn't phrase it as "living rent free in family apartment" because that sounds like being a lazy freeloader. :)  But if you were a "property manager" as a side business, that's a relatively neutral statement.
« Last Edit: October 02, 2014, 09:46:25 AM by NumberCruncher »

rmendpara

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Looks like you're doing just fine. $750k invested assets vs ~$36k annual spending. So long as you don't inflate spending much and continue investing for a few more years, you should be fine.

In most cases, owning your own home will help you manage expenses for the foreseeable 20-30 years (mortgage will stay the same, taxes/maintenance/utilities will increase slightly). Overall monthly costs will likely increase slower than inflation, while your assets/income hopefully grows. Of course, this assumes you plan to stay there and don't need the flexibility of moving that you get with renting.

A big help to retirement plans would be if you continued working at least part time. Is there a way you could earn at least $10k per year doing something that you don't hate and that allows you the flexibility you want out of early retirement? A little bit of earned income goes a long way toward accelerating retirement. If you could find a job that lets you earn even $40k/yr, then you could probably semi-retire today. Something to think about, anyway...

former player

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On the dating front, you need skills in reading personal profiles.  You need to know that women are writing profiles so that they seem like a good person to take on a date, hence all the stuff about restaurants, happy hour, etc. - basically they are saying "I'm a fun person to take on a date and here's some ideas for you about where to take me."

When you actually get on the date, you can start talking about other things you and they like to do and try to find things in common.

momo

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Well the OP says he doesn't want to leave SF. That's why I didn't suggest it. I've also heard about women in SF complaining that the single men are too career focused, hedonists, etc. So that's just the culture. You should be very upfront about what you are looking for. I don't think the right woman would be turned off by the you living in a family rental. I have also heard about straight men in SF lacking social skills. So you can differentiate yourself by being polite, asking questions, and showing interest. None of that pick up artist b.s. The way to find a mustachian woman is to keep looking. I read somewhere that people who actively look for a partner are 7 times more likely to find someone.

@ mozar: Thanks for the ideas. I agree it is a numbers game and the only way to meet a Mustachian woman is to screen/meet a lot more women. 

On the dating front, you need skills in reading personal profiles.  You need to know that women are writing profiles so that they seem like a good person to take on a date, hence all the stuff about restaurants, happy hour, etc. - basically they are saying "I'm a fun person to take on a date and here's some ideas for you about where to take me."

When you actually get on the date, you can start talking about other things you and they like to do and try to find things in common.

@ former player: Agreed. Women craft their profiles to indicate how they spend their time and that they are interesting and fun to be around. I just do not share the foodie craze. Eating out constantly isn't that fun or healthy. I don't take first dates to lunch or dinner anymore, it's simply cost prohibitive. I no longer find going to happy hour and becoming inebriated remotely fun or entertaining. Been there, done that, met plenty of people who still do it, no longer my scene. The best women I met had dating profiles indicating they are creative, flexible and open to new experiences that are not conventional. For example, a walk in the park, urban hiking, or bike riding are great date ideas and each has built in conversation topics too. I find my best dates are done outside first, also tests how healthy she really is and if she is uncomfortable, how she copes or communicates.
« Last Edit: October 03, 2014, 12:17:10 PM by StashtasticMomo »

arebelspy

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I only read the first post and skimmed the followups rather quickly, so my apologies if stuff I mentioned has already been answered.

The family rental sounds like the quickest path to FIRE.  The commute is long, but will only be necessary for a year or two, I'd think.

Here's my biggest question: Your expenses post-FIRE, especially as related to your housing situation.

Where do you want to live when ER'd?  You're not going to stay in the family rental, right?

What will your budget post-FIRE look like?  Let's set aside the potential partner issues for now.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

marty998

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Hey Stashtastic,

I'm on the side of buying vs renting. Especially when young because a mortgage can be paid off, rent is...well it will never disappear from your budget.

Not familiar with how early you can draw down your retirement accounts mentioned (401k, IRA, HSA, SPP), however your $585k will likely grow towards a million in 8-9 years time, all of it's own accord without further contributions. So you will have enough of a stash to pay your current $24k rent and plenty left over if you choose to keep renting.

In your shoes, I would take your deposit, buy a home you plan to live in forever. I like the 'granny flat' idea (we call them that down here). Smash the mortgage down in 6-7 years and then figure out how you are going to get an extra $2-300 odd thousand to tide you over till you can access your $1m retirement account nest egg (assuming you have to wait till 55-60 for that).

In all honesty though you'll be in a fantastic position regardless of which path you choose.

Doubly so if you shack up with a like minded person.

electriceagle

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Momo,

It sounds like you are in a great position. You have significant amounts of investable assets and are well on the way to early retirement. That said, the I in FIRE stands for "independent". If you live in a home owned by your family, and you contribute considerably less than market rate rent by providing property management services, you aren't really independent.

My recommendation is that you take advantage of the disconnect between SF purchase prices and rents (nothing hits the 1%% rule here) and buy a home in a less highbrow area where you can rent either rooms or a second unit. In the long run, you may reduce your housing expense to zero while living up to the "I" in FIRE.

The idea of living in your family's building is kickass in one way though: if you were to drive your car into the bay (put a brick on the accelerator, its safer than trying to jump out at the last minute) and bike everywhere, you could reduce your annual expenses to ~$7200/yr. Pretty kickass for SF.

totoro

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Are your parents willing to sell you the family rental and, if so, is it a good investment ie. cash flow positive after down payment?  Will it set you up for the rest of your retirement?  Your biggest barrier to FI is your rent or long-term housing costs.  Finding a solution to this would be my top priority if you do not wish to move to a less expensive COL area.

As for online dating, my advice is be both honest and diplomatic.  Post what you are truly interested in.  There is someone out there for you who wants the same things.  Search profiles by the keywords that appeal to you.  Be persistent.  It is a numbers game until you find a match.

Cheddar Stacker

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Move to the family rental, quit your job, you only need 12k/year and on average your stache should earn $50k. In a couple more years you will have enough extra saved to buy whatever house you want.

Don't design your life around trying to pick up women. Live your life. Get out more. You will tend to meet more good people when you aren't trying so hard.

Nords

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Few things:

If you move in to the family rental, you don't have to work any more, effective immediately.  Your assets are sufficient to generate about $30k/yr (based on the 4% rule), so your expenses are covered.

You are asking how to further reduce your expenses, and after people have pointed out your housing expense is the highest, you came back and asked again where you can trim costs.  You can trim costs, by reducing housing.  Move to another city, or another part of the country.  With the extra savings you will have, you can fly out to visit regularly.


@ RobbyJ: It is possible if I move now I can quit working, but the thing like most people much of my net worth is tied to the market. Also I haven't set up my accounts so there is enough dividends generated to cover my annual expenses! I'm actually concerned about this area and learning more too. For example a Roth Conversion ladder is something to consider but what else can be done? So despite having 25 times my income wouldn't it be prudent to have more to cover other expenses such as insurance and future medical costs? I feel those costs typically are not considered when using the 25 annual expenses practice. Does anyone else have similar concerns or different ideas? Thank you for sharing.
The good news is that it looks like you're going to win the game, and the debate is just about the point spread.

It seems that your job is anchoring you to a neighborhood you hate, and if you move to a neighborhood you love (in your family rental) then you still appear compelled to keep the job.  Just how good is this job, and why do you need it?  Could you telecommute or go part time, or find a replacement job?

After reading 600+ dating profiles I think you can conclude that you're wasting your time reading dating profiles.  Maybe the best approach is to keep building your casual-friends network and mention that you're still looking for "the one", but that you're not in a hurry.  Don't show desperation-- the hot chicks dig happy, independent, confident guys.  Your women friends (especially the ones who know you're not their type) would probably be glad to fix you up, or at least to make fun of you with their other women friends... either way the word gets out and reaches the ears of a MsMM candidate.

Everybody fixates on the 4% SWR.  Too many people want:
a 100% success ratio with a money-back guarantee, or
a 3.786538% SWR, or
a 91.43245% success ratio plus an annuity for the 8.6% "failure rate", or
to uncover all the "hidden" expenses, or
to agonize about their lifespan. 

That's all a waste of time.  Even William Bernstein says that a 4% SWR with an 80% success ratio is "good enough", and anything over that is statistically meaningless.
http://www.efficientfrontier.com/ef/901/hell3.htm

The 4% SWR computer modeling never covered all of those variables.  I don't think any current modeling can accurately cover it.  However you have a huge quiver of tools that you can use for situations that the 4% SWR can't even predict, let alone overcome.  You're going to start at a 4% SWR and stay flexible.  You're going to:
cover your bare-bones survival budget with dividend income or a SPIA, and
tweak your spending on your own instead of blindly raising it for inflation, and
spend less when the market sucks, and
score an occasional side-hustle hobby or consulting gig, and
optimize your rental properties, and
enjoy a Social Security payout, and
stay healthy enough to avoid most of the rising healthcare expenses.

Speaking as a Hawaii resident, I don't see the ROI of converting your valuable investments into "dead equity" that grows at roughly the rate of inflation-- especially the part about spending a lot of money to get a tax deduction.  How about if you invest the money in rental property (with the appropriate valuations and thumbrules) or in REITs or in equities?  True, real estate investments keep you from doing other dumb stuff with your money help you diversify your portfolio, but don't over-concentrate your net worth in something that you don't really need in the first place.  Besides, hot chicks dig finding their own place with their new significant other-- or you could move in with her and sublet your place.

It's worth it to keep renting until the market crashes, and then consider scooping up undervalued real estate.  Otherwise you won't lose anything by renting... except for the dubious "privilege" of paying lots of mortgage interest for little tax deductions.

Dr. Doom

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I have also heard about straight men in SF lacking social skills.

As a straight man lacking social skills, I lived in SF for 5 years, so I can confirm this is true. 

Reading through this thread, first I'll repeat a few points I agree with:
- Your spending, outside of rent, is not bad.  I think 1K/mo is acceptably frugal for a single person in a city, and it's likely that cutting further into that is actually going to impact your QOL.
- 580 in retirement accounts at 39 is pretty good.  Nice work!  And you have 150 cash on top of that?  Lots of options for you here.  You can set up a Roth IRA pipeline and be done, if you want -- your cash will carry you through the 5 years you need in order to start accessing principal in your Roth.
- There are too many variables in the air with regard to your post work expenses.  You're trying to predict how much you'll need in retirement without knowing how much you'll need in retirement. 

Warning:  Repetition alert.

This post therefore isn't a numbers question as much as a life question.  What do you see yourself doing?  What happens if you meet that girl and you both decide you want 3 kids and a decent house?  What happens if you need that house in the Bay area for whatever reason? Is this a possibility?   If you think this is the most likely outcome, and the one you want to most ardently pursue, consider taking action to continue building up your stash.

You also haven't mentioned what your relationship with work is like.  Yeah, you want to retire, I get that, but that being said -- is your work tolerable or do you despise it?  Do you like your core function?  Could you hang with it for a few more years while you continue to work on and address the life questions?

I'm not suggesting that you continue to work if you're miserable -- but I am stating that it's impossible to construct an accurate FIRE number without having a better sense of what your expenses are going to be over the long-haul.  That's the problem with FIRE numbers -- they change with your desires.

On the same point, I also didn't see any mention of travel in your estimated RE expenses -- this is unusual and underscores the main point I'm trying to make, which is that I think you don't have a good handle on your post-RE needs -- and this is a direct result of being very unsure about what you want your life to look like after leaving your job.

Look, the bottom line is that you've done very well so far and have a lot of options available to you.  I was about to type them out when I realized they're all listed in your poll already.  If you really wanted to blow up your life you could also move -- anywhere, really -- and rent cheap, explore more of life or the world, etc. 

I didn't vote in your poll, btw, because I don't like telling people what to do.  Maybe listen to Bon Jovi's "It's my life" on loop for a while to help work it out. ;)

Good luck with the search.





« Last Edit: October 04, 2014, 07:40:33 AM by Dr. Doom »

Goldielocks

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You have quite a large stash, and low expenses. If you moved to the family rental you should be able to semi-retire immediately since your budget would drop from 3000/mo to 1000/mo. I would not move to the family rental if you plan to keep the job, a 2-hour commute will suck your soul right out of your body. If you keep working, then I would go with the "keep renting" option, and then plan to move to a lower COL area upon semi-retirement.
+1

If you move, then quit current job,  pick up other clients to manage properties for, and slowly grow your RE business in the new area.

You only need to make enough not to pull from your savings.   With walking distances, no rent, that should be easy.  In 5years you will likely be adding to savings again, while still being self employed part time only.  Sounds like the family rental is in nice livable location, and you may meet more non carreer obsessed hedonistic women at say, the local farmers market or fundraiser.

Fetlock

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I can't speak for you because I don't know your priorities. When I look at your numbers, I know they're at least $250k higher than what I would consider a comfortable retirement. To be honest, your expenses aren't very much different than mine, with one big, glaring exception: your rent is absurd. Personally, if it was me, I would quit that job right away and go live somewhere where the rent is $500 or so for an acceptable place, even if that means leaving the state.

Now, I am exactly the wrong person to ask about attracting a mate, but I'll venture that finding one that's happy living with you on $30k per year is probably a lot easier outside of the Bay Area. That wouldn't even be considered especially Mustachian to a lot of people in a lot of places, so your options broaden considerably.

Considering your goals, I really don't understand what's keeping you in the Bay Area.

But, if you're really, really stuck on living there, then, sure, you're probably a couple years away. Scenario A seems fine for that, and it's worked fine so far. Scenario B sounds like an absolute nightmare as written. I think you are underestimating what a massive drain on happiness a 2 hour commute would be. BUT it becomes a lot more manageable and infinitely less stressful if you consider that having $1,950 less expenses per month means you can fully retire immediately, in which case no commute would be necessary. The main question is the exact nature of these property management responsibilities. If they're a relatively light burden, then it might be more than worth it to you, but if they're going to take a significant amount of time or energy, then you're really just trading one job for another, and that hardly seems worth it.

Anyway, that's my advice: Seriously question why you're living in the Bay Area. Only do the family rental thing if the workload is suitably light.

mozar

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I just want to chime in and say that I think finding a mustachian woman in the Bay area seems entirely possible. MMM, when he traveled to the west coast, hosted a singles meetup in SF because some single women requested it.

Also being happy where you live, you are more likely to find someone rather than moving any where there is more women. There may be more women in Raleigh, but it is a more conservative place. You might be less happy there, it wouldn't matter who you meet.

Check in the singles/ meetup forum here in the MMM forum as SF is one of the most active mustachian locations in the country. Are you a particular religion? Unitarian churches and synagogues are great places to meet singles.

I would move to the family rental and quit the job.

Cheddar Stacker

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You don't need solidification. If you want some, find another job closer to the family rental.

momo

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I finally closed the poll in the thread.  For everyone who kindly shared, my heartfelt thanks!  And special thanks to each of you make extra time to reply by PM with more ideas.  :)  As the end of the year draws closer I finally arranged the logistics and I am moving back to San Francisco.  The change should be exciting and present wonderful opportunities.  I wish everyone a wonderful Holidays and healthy and prosperous New Year.  Cheers!
« Last Edit: December 12, 2014, 05:24:32 PM by StashtasticMomo »