hi! this is my first post but i've been a lbym kind of person all my life. its great to see so many people who are able to achieve FIRE at such a young age! wish i found this community earlier but better now than never.
Case Study - 47 hoping to fire by 55
Life Situation: 24% federal, 47, single, no children, southern california, take care of elderly parent.
Gross Salary/Wages: 132K
Individual amounts of each Pre-tax deductions: 18K 401k
Rental Income: 36K gross
Adjusted Gross Income: 150K
Taxes: 24% Federal, 11% (?) state/local
Current monthly expenses:
mortgage- 1995 P&I plus 500 extra P= 2495
home insurance- 110
property tax- 500
auto insurance- 60
utilities- 100
cell- 230 ( for 5)
internet- 50
gas-10?
food-350 ( for 2)
personal/shopping/household/misc- 250 (budget but don't always use)
Assets: 425K in 401, 30K ibonds, 10K e bonds(just started- not sure if needed), 60K rothIRA, 230K taxable. 130K savings/emergency fund.
max fund 401, rothIRA, ibonds each year, plus challenging myself to put more into taxable. total goal will be about 97K this year, 70/30 total index/total bonds.
car is paid for. keep for possible emergency and to transport elderly parent. otherwise it sits parked and i bike or walk. live in a HCOL city, amenities and work is close by. cell plan pays for parent and siblings. no cc debt.
Liabilities: 4 plex, refi'd several times, 3% interest rate, 15 years, 11 remaining, 180K balance, paying additional principal 1995 + 500= 2495. current value- 900K-1 mil.
i live in one unit, elderly parent lives in other, rent other 2 units. no changes planned until parent passes.
Specific Question(s): looking to FIRE by 55. if i continue to pay additional principle- will be paid off in 8 years which is when i turn 55. at that point, i hope to be able to FIRE or choose to work part time to pay for health care insurance- biggest unknown cost.
rental income will cover property tax, insurance, maintenance and most of my personal monthly budget. but i'll be older and not sure how i'll be able to maintain property when i'm much older.
kicking around idea to hire a live in caregiver/property manager to live in one unit when i'm too old- there will be a lot of details to be worked out...
the building owner next door was recently widowed ( her spouse was 94!), no kids. i'd love to ask her her plans but not sure how to even approach this subject...
or just sell and buy a small home in a 55 or older community and invest sale of property into index funds, bonds and c/d ladder.