Author Topic: How am I doing?  (Read 995 times)

Crackpot

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How am I doing?
« on: July 22, 2017, 01:10:35 PM »
Greetings,
I've always been fairly frugal but have only recently become focused on the goal of FIRE.  I'd like to post my current information and see if I am on the right track or if there are things I could be doing to speed things up a bit.

I am 32 y/o with four children, current income is around 55k from my regular job and 10-15k from a side hustle/home business. Also $1350/month from a rental home.  Also another $1-4k in misc musician income.

I have around 145k in 401k/ira savings invested in VTSAX.  Another 22k in VTSAX taxable brokerage account. I keep 2-3k in cash for home/car/appliance repairs etc.

Rental home has a mortgage with 25k remaining. 3 years to paid off. Monthly payments are around $680 mortgage/taxes/insurance. Maybe 1k in annual maintenance. Excellent tenants. The Home would sell for 140-150k. I am open to selling this house and reinvesting elsewhere, either stocks or other rentals.

The home I live in is worth maybe 225-250k, we owe around 130k.  House payments are split between myself and my significant other, costing me $750/month.  This home has an attached apartment that has the potential to generate $800/month in income. I'm unsure of whether we are willing to tap this potential income source, unless a relative uses it.  If we do, this income would be split 50/50.

I am maxing out my 403b contributions and traditional IRA as well as adding $1200- 1500/month to taxable brokerage account. I am considering investing in additional rentals over the next few years. A two family home renting for $1200 can be purchased in my area for $25-30k.

Not currently paying much extra on the primary home mortgage.  Planning to spend the proceeds from side hustle on farm and home repairs for the next 2-3 years and then begin using that to pay down the mortgage.

How am I doing so far? I'd like retire from my main job, which is currently part time, in seven years or less. Is this possible in my current position. Where can I improve?  Thank you for taking the time to read this.

Lady SA

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Re: How am I doing?
« Reply #1 on: July 24, 2017, 02:06:08 PM »
How am I doing so far? I'd like retire from my main job, which is currently part time, in seven years or less. Is this possible in my current position. Where can I improve?  Thank you for taking the time to read this.

Your savings sound nice, but in order to answer your main question, that all depends on your spending, which you don't include.

If your family spends $20k per year, that's a whole different ball game than spending $50k per year. The former, you need $500000 invested to FIRE. The latter, you need $1.25 million invested.
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MDM

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Re: How am I doing?
« Reply #2 on: July 24, 2017, 06:44:35 PM »
How am I doing so far? I'd like retire from my main job, which is currently part time, in seven years or less. Is this possible in my current position. Where can I improve?
If you fill out the case study spreadsheet so the AGI matches your 2016 Form 1040, or is appropriate for 2017 and you understand the differences - and you enter "correct enough" expenses - you can do a quick self-evaluation.

What does that tell you?