Author Topic: Gauntlet: Long Term Net Worth Goals  (Read 95896 times)

arebelspy

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Gauntlet: Long Term Net Worth Goals
« on: July 12, 2013, 10:06:24 PM »
With all the recent celebrations of hitting net worth milestones (1 2 3), I'm fired up!

Rather than just reflecting on milestones as we happen to pass them, though, let's push ourselves to hit those milestones even faster!

Long term goals is the best way to success, so let's hear your net worth goals.

Here's my Net Worth Stretch Goals:
(Current - June 2013) 400k
1 Year (June 2014) - 525k
2 Years (June 2015) - 660k
3 Years (June 2016) - 800k

That's right, my goal is to double my net worth from 400 to 800 in 3 years.  That means I'll have to increase our net worth by ~133k/year.   Considering the base gross pay for my wife and I is about 44k each (88k combined), we're short 45k a year.

...and that's if we spend $0.  Since we spend about 20-25k, we'll be short about 65k/year.  I plan to make that gap up with extra side gigs, rents, and other income.  It's a stretch, but it wouldn't be a gauntlet otherwise.  (A much more realistic 3-year goal would be 650k instead of 800, and we'll absolutely hit 600k for sure.  But that gap between 800k and 600k in 3 years is that same 65k/year gap.  Why not go for it?)

Post your current NW and goals you're aiming for, realistic or stretch.  Set your own timeframes (6 months, 1 year, 5, 10 years, whatever your goals are).
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Joet

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #1 on: July 12, 2013, 10:52:50 PM »
I just have one $1m/$2m net worth individual/together ignoring primary residence. Need to save approx $100k/yr for 6-7 yrs to get there. Woot. If returns in the market are non-zero, so much the better/sooner

Nords

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #2 on: July 12, 2013, 11:13:13 PM »
Here's my Net Worth Stretch Goals:
I'm sorry, didn't you post a while back that you've achieved FI?

If you're FI, that means you have a choice on whether or not to give a crap about business jargon like "Stretch Goals".  After all, if you come up short on a stretch goal are you going to claw back your bonus?

I'm not so sure that FI should be the basis of striving for even greater wealth.  It might be confused with cranking the hedonic treadmill up to "11".

Our net worth goal:  well, we don't really have one.  We mostly sit there watching the money roll in faster than we care to spend it, and wondering what other stewardship efforts we should be considering.  At this point about the only "goal" we could claim would be to hustle up with the Roth IRA conversions while we're in a lower tax bracket.
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sol

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #3 on: July 12, 2013, 11:32:31 PM »
Having thought about it for the purposes of this thread, my new stretch goal is to be FI by the end of 2015. 

I doubt we'll actually quit at that point, since we like our jobs and have great work/life balance.  Running the numbers, if we work another five or ten years I'm really not sure what we'd do with all of the extra money.  We don't want for anything as it is.


arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #4 on: July 12, 2013, 11:35:48 PM »
Here's my Net Worth Stretch Goals:
I'm sorry, didn't you post a while back that you've achieved FI?

It was FI with a big asterisk/caveat - we're FI basd on our current spending levels, but we're planning on kids and lots of travel in FIRE, so our current budget is only about half of where we want to be for our final income level (thus the net worth being about half of my final goal).  We should easily hit that in four years, but I'm shooting for 3.

So if we both lost our jobs tomorrow, we could keep living comfortably on income from our stache (and even increase our spending by probably 10k annually).. But we couldn't hit all the FIRE goals we want.  So.. Not really fully FI, no, but a semi-FI milestone.

So yes, kids and travel are on our hedonic treadmill path.  :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
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.
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arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #5 on: July 12, 2013, 11:39:16 PM »
I just have one $1m/$2m net worth individual/together ignoring primary residence. Need to save approx $100k/yr for 6-7 yrs to get there. Woot. If returns in the market are non-zero, so much the better/sooner

Cool!  Round numbers are fun.  Is 100k/year a stretch based on your current savings/income levels?

Having thought about it for the purposes of this thread, my new stretch goal is to be FI by the end of 2015. 

I doubt we'll actually quit at that point, since we like our jobs and have great work/life balance.  Running the numbers, if we work another five or ten years I'm really not sure what we'd do with all of the extra money.  We don't want for anything as it is.

Awesome.  FI in two and 1/2 years sounds like a good goal.  When will you hit it without stretching for it (assuming, say, 0% market returns and current savings levels)?

We also will probably work past our final FI number, but maybe not.  Might take a year off to RV around.  Either way the options are nice.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
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.
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Joet

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #6 on: July 13, 2013, 12:42:47 AM »
100k would be saving less than current levels. But I'm a bad panda and like easy to hit goals (packing for fiji as we speak), also ignores annual bonuses which makes it even easier. Plugging some holes in the budget should help too, lol dog walker.

ender

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #7 on: July 13, 2013, 09:52:25 AM »
This encouraged me to put to virtual paper some of my shorter and longer term goals, both financial and personal.

Thanks!

One of these is actually to avoid wasting time on the Internet for the remainder of July, so... won't be here till August :)
« Last Edit: July 13, 2013, 10:02:53 AM by enderland »

arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #8 on: July 13, 2013, 10:12:50 AM »
This encouraged me to put to virtual paper some of my shorter and longer term goals, both financial and personal.

Thanks!

One of these is actually to avoid wasting time on the Internet for the remainder of July, so... won't be here till August :)

I wouldn't necessarily call reading financial stuff on MMM/forum wasting time, but it might be depending on the person.  :)

Congrats on writing down some goals.  Good luck!
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
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.
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Re: Gauntlet: Long Term Net Worth Goals
« Reply #9 on: July 13, 2013, 11:00:30 AM »
We could probably consider ourselves FI now, based on the sale of our apartment at current values -- that would give us enough of a stash that we could do pretty much whatever we wanted.

However, I'm looking at the possibility of a major promotion at work which, if I handle the negotiations successfully, should also result in a major increase in income and benefits.   That would allow us to return to the higher levels of savings we had to cut back on when we switched the kids schools.  I am looking forward to the challenges/opportunities of the new position, and if it happens I will probably stay in it for at least 5 years.  If it doesn't work out or if it turns out to be a real nightmare then we are on a year-by-year plan.  So our targets would look something like this:

1 year out:  Increase net worth by a minimum of 10%, which would put us pretty solidly into FI territory.  Decide whether to keep with current situation (stay in Beijing, working in current positions or make adjustments)

2-5 years out:  If still working, aim to continue to increase net worth by 10%/year.  If not working, change our living situation so that we are living on a 2-3% SWR (would likely require leaving Beijing)
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Herbert Derp

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #10 on: July 13, 2013, 03:21:16 PM »
I want to hit $1MM by the time I'm 30. My current trajectory has me falling short by ~$200K or so, but assumes my income doesn't change. So if I can keep my expenses low and secure some raises I think I can get there.

arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #11 on: July 13, 2013, 03:33:01 PM »
I want to hit $1MM by the time I'm 30. My current trajectory has me falling short by ~$200K or so, but assumes my income doesn't change. So if I can keep my expenses low and secure some raises I think I can get there.

Awesome goal.  How many people say they want to be a millionaire by the time they're 30, but then hit 30 completely broke?

8 years to make up that 200k gap = 25k/year shortfall.  That sounds doable!

Good market returns may help, along with raises and any side income.  Good luck!
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
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.
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Re: Gauntlet: Long Term Net Worth Goals
« Reply #12 on: July 13, 2013, 04:14:45 PM »
Current Net Worth $150k

$200k by beginning of 2015

$300k by mid 2017

$400k by mid 2019

and FI($500k) by early 2021

This is my conservative plan so it may be impacted by some job/life changes I see coming on the horizon.

kkbmustang

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #13 on: July 13, 2013, 04:46:52 PM »
The Hubs doesn't want to play, but I do.

Current: $455k
January 2015: $520k
January 2016: $600k
January 2017: $700k


oldtoyota

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #14 on: July 13, 2013, 09:07:48 PM »
Here's my Net Worth Stretch Goals:
I'm sorry, didn't you post a while back that you've achieved FI?

It was FI with a big asterisk/caveat - we're FI basd on our current spending levels, but we're planning on kids and lots of travel in FIRE, so our current budget is only about half of where we want to be for our final income level (thus the net worth being about half of my final goal).  We should easily hit that in four years, but I'm shooting for 3.

So if we both lost our jobs tomorrow, we could keep living comfortably on income from our stache (and even increase our spending by probably 10k annually).. But we couldn't hit all the FIRE goals we want.  So.. Not really fully FI, no, but a semi-FI milestone.

So yes, kids and travel are on our hedonic treadmill path.  :)

Could you explain a bit more--for a semi-newbie to some of this info--how you would be semi-FI on $400K? How would that money provide the $25-30K you need to live on now?

So you know where I'm coming from...I'm asking because my next task--on a long list of "financial tidying"--is to figure out exactly how much we have coming in from dividends. Right now, they all get reinvested. Although I've reviewed individual dividends, I've never added it all up to see what the income would look like. I have a hole in my knowledge about how exactly I would calculate my income from my current net worth.

oldtoyota

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #15 on: July 13, 2013, 09:15:14 PM »
Now back to the topic at hand.

Based on my calculations, I'm fairly certain I can hit FI in 5 years if we can keep to the 80% savings rate. (We were at 61%, but I think I can increase it to 80%). That doesn't assume pay raises, and SO gets a raise in the fall. Also, we have some more budget optimization we can do.

I don't feel comfortable sharing particular numbers here, but I'll write 'em down on paper.

It'll be nice to know I can quit even if I end up staying for fun. ;-)



« Last Edit: July 13, 2013, 09:18:16 PM by oldtoyota »

kkbmustang

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #16 on: July 13, 2013, 09:33:54 PM »
The Hubs doesn't want to play, but I do.

Current: $455k
January 2015: $520k
January 2016: $600k
January 2017: $700k

I need to revise. These don't take into account mortgage reduction via regular monthly payments. Things will speed up once we sell the current house, downsize and no longer have private school tuition to contend with. At the same time, though, income will decrease for a variety of reasons. So, throwing a dart at the board, here we go (but subject to further revision):

January 2015: $550k
January 2016: $650k
January 2017: $775k

oldtoyota

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #17 on: July 13, 2013, 09:50:28 PM »
The Hubs doesn't want to play, but I do.

Current: $455k
January 2015: $520k
January 2016: $600k
January 2017: $700k

I need to revise. These don't take into account mortgage reduction via regular monthly payments. Things will speed up once we sell the current house, downsize and no longer have private school tuition to contend with. At the same time, though, income will decrease for a variety of reasons. So, throwing a dart at the board, here we go (but subject to further revision):

January 2015: $550k
January 2016: $650k
January 2017: $775k

Oh, wow. I am glad you mentioned private school. I forgot to add that into increased savings in a few years. I have some revision to work on too.

arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #18 on: July 13, 2013, 10:07:24 PM »
Could you explain a bit more--for a semi-newbie to some of this info--how you would be semi-FI on $400K? How would that money provide the $25-30K you need to live on now?

Rental income on properties done right (and at the right time).  That 400k provides us a decent bit more than 30k, even with very conservative estimates for repairs, vacancies, etc. (And it actually provides even more because we manage our own properties, but I don't count that, it'd provide us over that 30k even if we were paying for a manager, and I don't count the principal pay down on mortgages, tax benefits or appreciation, just cash flow, for FIRE purposes.)

I expect to FIRE on a "SWR" of more than double what I'd recommend someone in equities but it won't be a true withdrawal rate, as nothing will be withdrawn (indeed, with principal paydown on low interest loans and appreciation we should have a healthy savings rate and increasing net worth in FIRE).

The next 400k won't provide the same yield as the first, due to the ridiculous opportunity that was US real estate in 2009-2011, but it'll still provide more than a traditional SWR.

I plan on holding six-plus figures in equities, but that'll just sit for a long time growing untouched (30, 40 years?), maybe forever.  (Though ideally I'll eventually exit real estate into full equities and have a more traditional SWR around 3%, I don't know if that will ever actually happen.)  For now I'm using it to rapidly accelerate FI and be able to FIRE with about half the stache I'd need if I were in a more traditional situation.

IIRC my "I hit FI" thread in the journals section provides a little more info.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
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.
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The_Dude

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #19 on: July 13, 2013, 10:59:31 PM »
Currently just over $700k. Goal is $1M in 3 years.

To hit this goal would require the following:
1) Stay in my current position and continue to earn top ratings for the high bonuses
2) Keep my much higher recent savings rate of over 50% of gross pay (avg of past 5 years was 36%)
3) Doesn't depend on additional returns of the stock market but any drop from the current highs that doesn't recover by my 3 year mark would cause me to miss my goal.
4) staying with current employer 3 more years in order to fully vest in my 401k with its uber match

The biggest factors that make this a "stretch" is that I don't seem to enjoy my job anymore and don't think I can sustain a 50%+ gross savings rate over the next 3 years.

gooki

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #20 on: July 14, 2013, 02:36:14 AM »
Target net worth: one million dollars in 4.5 years. This will co-inside with both my children being in school. At which point my wife and I will be free to pursue our own endeavours between the hours of 9am to 3pm. It may well be work, or volunteering or our own business, who knows.

Current net worth: 470k (majority of it in home equity).
Jan 2014: 500k
Jan 2015: 580k
Jan 2016: 690k
Jan 2017: 800k
Jan 2018: $1,000,000.00

If we had two incomes I'd be very confident we could hit that goal. With just mine it's going to be a stretch.

FWIW, we only have one major expense planned during that time. A family trip to Europe so our relatives can meet our children.


« Last Edit: July 14, 2013, 02:40:37 AM by gooki »
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oldtoyota

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #21 on: July 14, 2013, 07:10:38 AM »
Could you explain a bit more--for a semi-newbie to some of this info--how you would be semi-FI on $400K? How would that money provide the $25-30K you need to live on now?

Rental income on properties done right (and at the right time).  That 400k provides us a decent bit more than 30k, even with very conservative estimates for repairs, vacancies, etc. (And it actually provides even more because we manage our own properties, but I don't count that, it'd provide us over that 30k even if we were paying for a manager, and I don't count the principal pay down on mortgages, tax benefits or appreciation, just cash flow, for FIRE purposes.)

I expect to FIRE on a "SWR" of more than double what I'd recommend someone in equities but it won't be a true withdrawal rate, as nothing will be withdrawn (indeed, with principal paydown on low interest loans and appreciation we should have a healthy savings rate and increasing net worth in FIRE).

The next 400k won't provide the same yield as the first, due to the ridiculous opportunity that was US real estate in 2009-2011, but it'll still provide more than a traditional SWR.

I plan on holding six-plus figures in equities, but that'll just sit for a long time growing untouched (30, 40 years?), maybe forever.  (Though ideally I'll eventually exit real estate into full equities and have a more traditional SWR around 3%, I don't know if that will ever actually happen.)  For now I'm using it to rapidly accelerate FI and be able to FIRE with about half the stache I'd need if I were in a more traditional situation.

IIRC my "I hit FI" thread in the journals section provides a little more info.

Thank you. I'll look in the journals section too. I find it interesting how real estate reduces the time to FI. I appreciate the explanation. =-)

icefr

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #22 on: July 14, 2013, 05:45:01 PM »
Current net worth is ~$280,000. I would call myself FI with my current situation at a net worth of around $900,000 to $1 million, including the value of my condo. My stretch goal is to hit that by the end of 2018, 5.5 years from now. I'm forecasting a net worth of $330,000 by the end of this year, so that means I need to accumulate an average of $114,000 to $134,000/year to hit my stretch goal, the lower end of which is completely plausible at my current income.

I had originally planned to pay off the mortgage by the end of 2017 (before the rate resets on my ARM), but I think it can be paid off by the end of 2015, so another 2.5 years from now, or 2 years ahead of the original plan.

I'm also working to cut my expenses down, though I haven't set as concrete of goals there. I've made some progress - it's looking like I should be at/around my 2011 spending versus last year's. My current goal is to get my monthly expenses ignoring the mortgage P&I down to < $2,000/month on average. It's looking unlikely to hit that goal overall for the year, but I may come close and at the very least, I have improved things somewhat.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #23 on: July 14, 2013, 07:57:20 PM »
Current networth: ~$428K, age 29

Goals:
$500K: ~October 2013, age 29
$600K: ~February 2014, age 29
$750K: ~October 2014, age 30
$1M: ~September 2015, age 31
$2M: ~January 2019, age 34
$3M: ~September 2021, age 37

When we hit $1M we're comfortably FI, and $3M is my drop dead day, where I quit no matter what.  Just not sure when I'll actually retire.

arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #24 on: July 14, 2013, 08:06:25 PM »
Just not sure when I'll actually retire.

All you need is enough.

;)
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Re: Gauntlet: Long Term Net Worth Goals
« Reply #25 on: July 14, 2013, 08:17:06 PM »
Current NW ~$90k

End of 2013 ~$115k
End of 2014 ~$175k
End of 2015 ~$200k

We are hoping to have kids and the first would be born in 2015 so moderate savings that year and beyond that who knows, depends on what I do for work.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #26 on: July 14, 2013, 08:41:39 PM »
Current NW: $450k (down around 30k due to the stoooopid PP performance... grrr... ok I'll stop)

I consider this FI as in I could easily live on this indefinitely... just not in my current city (SF).

Adding around 100k/year. 

Target NW: 1m (I refuse to use MM because that makes me think of "mega millions!!!!")

This would nominally take 5 more years.  I chose it just because it's a nice round number that is way above my actual needs, but it's good to buffer against the unknown.  Problem is, there will come a time when I'd probably have to leave within a year.  At the tail end of "within a year," I'd hope to have around 700k at age 35, which was my original goal.  My current living situation requires around 500k in capital, plus I'd need to eat.  I'd have around $666/mo for food and other basic living expenses, and I could take odd jobs or freelance for "fun money".

I could also take another job somewhere else for a few more years and shoot for 1m by age 40.  By that time, I could be married, I could have kids... who knows?  I guess that's why we emphasize flexibility around here... I'm sure it will work out but I really don't know when I'll pull the trigger... I just know it isn't right now.

edit:  OK, so my stretch goal is 1 m at age 35 (very loosely defined as before I turn 36) -- i.e. double my net worth in 3 years.  300k can come from my current savings trajectory, leaving a 200k shortfall, which is $67k/year.  I could attain this level bonus by working 1000 extra hours each year (19 hours per week... or perhaps 10 hours every saturday and sunday).  Possible but not likely.  On the other hand, I could attain an 11% CAGR in my investments.  Also possible, but not likely.  Some combination of the above?  That's why they call it a stretch goal.
« Last Edit: July 15, 2013, 09:37:43 AM by dragoncar »

FiveSigmas

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #27 on: July 14, 2013, 08:44:59 PM »
Just not sure when I'll actually retire.

All you need is enough.

;)

< Image of Fry squinting >

arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #28 on: July 14, 2013, 08:47:53 PM »
< Image of Fry squinting >

I see what you did there.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
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Re: Gauntlet: Long Term Net Worth Goals
« Reply #29 on: July 14, 2013, 09:07:37 PM »
Just not sure when I'll actually retire.

All you need is enough.

;)

Ha! Touche! :)

Cecil

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #30 on: July 14, 2013, 10:35:25 PM »
Net worth goals are hard because I don't want to feel like I've failed if the market tanks one year, and I don't want to feel fantastic about myself if it spikes by 30%. That said, assuming a 7% annual market rise, I project the following

Current: $253k ($177k index funds + $76k equity)
My 30th birthday (late 2014): $350k
5 years from now (mid 2018): $650k
My 35th birthday (late 2019): $800k, and in theory enough to partially FIRE, depending on the kid situation.

smalllife

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #31 on: July 15, 2013, 05:50:12 AM »
My long term goal is to have enough F-U leverage to work 20-30 hrs/week as soon as possible.  I'd then continue to save until I was completely FI in order to be more selective, take a sabbatical, volunteer for causes instead of part time work, etc.  I like the social aspects of work but not the 9-5 and limited vacation part.

That said (and a lot of this depends on whether I keep my current house as a rental, and what healthcare looks like), my long term goals

1.  Pay off family loan by 30, take that money and build taxable accounts.  At this point the house can become a profitable rental.
2.  Fully FI by 45, shooting for selective employment by 40. 

FU = 80k in taxable investments, enough for 3-5 years of expenses. 
FI w/ paid off mortgage = 325k
FI w/o paid off mortgage = 600k

The first goal is attainable, the second may happen sooner or later than current projections because 15 years is a lot to speculate from the beginning of a career.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #32 on: July 15, 2013, 07:16:50 AM »
I expect to FIRE on a "SWR" of more than double what I'd recommend someone in equities but it won't be a true withdrawal rate, as nothing will be withdrawn (indeed, with principal paydown on low interest loans and appreciation we should have a healthy savings rate and increasing net worth in FIRE).

- Arebelspy

Works for me.  Why would you SELL assets that are providing you a high SWR with no decumulation and growth of principal?

arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #33 on: July 15, 2013, 09:35:40 AM »
Why would you SELL assets that are providing you a high SWR with no decumulation and growth of principal?

Simplification.  An index fund is less passive than a portfolio of properties.  I'm willing to put up with the small hassle to add years of freedom.  I'm not willing to wait until I get my SWR low enough for traditional means.  But if and when I have so much more than enough that I can switch to a low SWR via index funds, I may take advantage of that.
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Re: Gauntlet: Long Term Net Worth Goals
« Reply #34 on: July 15, 2013, 10:33:32 AM »
We just hit 6 figures in investible assets last week (retirement account minus debts).  My general net worth goal from here on out is to increase our net worth more each year than the year before.  Obviously the way the stock market goes will have a large impact on the possiblilty of that happening, so my more specific goals are reducing debt by more than $1K a month and investing at least 15% of gross income in tax advantaged accounts, between those two things we had a savings rate in 2012 of 44% of net and this year should be even higher.

Ultimately we want a passive income of $40K, which is plenty for us to live very comfortably in our paid for house.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #35 on: July 15, 2013, 01:42:48 PM »
Net worth = $0 by January 2014. And its going to be amazing!
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Re: Gauntlet: Long Term Net Worth Goals
« Reply #36 on: July 15, 2013, 03:05:45 PM »
Current NW: $122,000 (more than half of this is in home equity)

Goal NW (for financial independence): $750,000 + paid off house

I hope to get there in 15 years, by the time I'm 45.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #37 on: July 15, 2013, 08:22:21 PM »
I usually avoid stuff like this since I can get caught up daydreaming.

July 2013:  Currently at $420,000 ($115k home equity, $260k retirement accounts, $45k cash/brokerage)
July 2014:  Goal $600,000
July 2015:  Goal $800,000 

Net worth increase since 6/2012 has been $165K  so this should be reasonable unless the market takes a dive (which would be okay to load up)








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Re: Gauntlet: Long Term Net Worth Goals
« Reply #38 on: July 15, 2013, 10:17:05 PM »
NW: $433,000
Goal: $1.1 million by August of 2020.

Stretch is to do it in 6 years, or 5. Mint keeps telling me I'm about a year ahead so we will see!

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #39 on: July 16, 2013, 08:32:56 AM »
Net worth = 175k (not including home equity)
Current trajectory = 1mil by 7/2018 (increase NW roughly 150k/yr)
Stretch = 1mil by 7/2016

My stretch goal would require an additional 100k/yr, which is a big stretch, especially with the 3 kids in daycare starting next month, but I guess it's not stretching without a little pain and difficulty.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #40 on: July 16, 2013, 10:19:37 AM »
Goal: Quit my 9-5 day job when (or before) kids finish high school (2028).

In reality, this mostly depends on income, but equates to a NW of ~1M by 2025.

Further broken down goal (all End-of-year):
2013: $78k
2014: $105k
2018: $300k
2021: $550k
2025: $1m

The above goal was conceived early or mid 2012 @ ~$50k. Currently we are at ~$84k. It hinges almost exclusively on if my [amazing] wife can go from $0 income -> $50k/yr working from home in the next few years, so I already feel it's a bit of a stretch, but we are ahead of the curve so far, so that's a good sign.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #41 on: July 16, 2013, 03:05:43 PM »

Goal: Increase NW by ~ 120k/yr for next 5 years. 

This is a bit of a stretch and I know there are things in the 2-4 year range that will negatively impact my accumulation.  But its good to put this goal out there!  If I just keep focused, keep reducing expenses and investing the surplus I can do it.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #42 on: July 16, 2013, 08:08:44 PM »
My stretch goal is 5 years. That is really a stretch. Whether I can make it that soon depends upon raises and deciding if I want to give up certain experiences to reduce expenses even more.

My non-stretch goal is 6-7 years to FI. Not sure if I'll retire FT at that point or not.

SO wants to keep working. If that holds true, that makes my ER all the more possible.


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Re: Gauntlet: Long Term Net Worth Goals
« Reply #43 on: July 16, 2013, 11:02:03 PM »
My goal is to retire by 50.

I am currently 24.

I should have plenty of years to reach that goal, but I don't plan on being as mustachian as some. I probably will never ditch cable or my smartphone. I plan to have a big house that will likely cost 500-800k. I plan on having a few kids, and a few pets. I plan on traveling, golfing frequently, and attending 49ers and giants games regularly. I plan to have a relatively expensive wedding (under 20k). I don't plan on getting rid of my car any time soon, and probably ever. I have one hot rod that I enjoy working on, and dream on blowing a bunch of money on another car that will be built for the drag strip.

These are several things I value in my life, and as great as it would be to retire before 50, I think a more realistic goal would be to work until 50 because at that point in my career I will be a CFO or controller of a company and be making a significant salary. The financial flexibility could allow me to take a position I really enjoy earlier and work longer as a result.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #44 on: July 20, 2013, 11:14:30 PM »
Here's my Net Worth Stretch Goals:
I'm sorry, didn't you post a while back that you've achieved FI?
It was FI with a big asterisk/caveat - we're FI basd on our current spending levels, but we're planning on kids and lots of travel in FIRE, so our current budget is only about half of where we want to be for our final income level (thus the net worth being about half of my final goal).  We should easily hit that in four years, but I'm shooting for 3.
So if we both lost our jobs tomorrow, we could keep living comfortably on income from our stache (and even increase our spending by probably 10k annually).. But we couldn't hit all the FIRE goals we want.  So.. Not really fully FI, no, but a semi-FI milestone.
So yes, kids and travel are on our hedonic treadmill path.  :)
Ah, thanks.  Although I think you might have a reality check coming on that kids-hedonic treadmill correlation!

Reading your subsequent posts about the long-term plan for your rental properties, I have to admit that I'm increasingly skeptical/cynical about "landlord exit plans".  I think the term is oxymoronic unless landlords set hard & fast deadlines on valuation or a calendar.  Otherwise it turns into a terminal case of "just one more year" syndrome.
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Re: Gauntlet: Long Term Net Worth Goals
« Reply #45 on: July 21, 2013, 02:03:02 AM »
Current net worth of $725k
50k superannuation ( managed fund)
$675k equity over 3 investment properties valued at 1845000
At 5.43% and interest only mortgages we earn 25k per year over and above all bills.

Trying to decide if we should continue buying further properties or to diversify into index funds.

My goal is 2.0m

With 5% growth on the properties over 10 years that should do it I think we will also invest half our wages (50k) into index funds over the next 10 years.



As soon as we hit 2.0m after repaying debt we are out and will figure out how to structure it to get SWR of 4%. (80k)

We will be 48 and 46.
« Last Edit: July 21, 2013, 02:05:14 AM by orpheus »

arebelspy

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #46 on: July 21, 2013, 09:24:24 AM »
Although I think you might have a reality check coming on that kids-hedonic treadmill correlation!

Reading your subsequent posts about the long-term plan for your rental properties, I have to admit that I'm increasingly skeptical/cynical about "landlord exit plans".  I think the term is oxymoronic unless landlords set hard & fast deadlines on valuation or a calendar.  Otherwise it turns into a terminal case of "just one more year" syndrome.

No doubt that may happen.  OMY is a vicious beast.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
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 (occasionally) blog at AdventuringAlong.com.
You can also read my forum "Journal."

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #47 on: July 21, 2013, 09:38:39 AM »
I want to dispose of a couple of poorly performing, poorly financed mistakes, but because I have owned them for so long the capital gain and depreciation recapture are not trivial.   A 1031 exchange is difficult to execute, because I'm over the conventional loan limit, and of course I can't refinance.  I would likely have to make up the difference in cash if I did an exchange.  I have a feeling I will fall prey to OMY, or worse, OM Decade.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #48 on: July 21, 2013, 09:56:19 AM »
This encouraged me to put to virtual paper some of my shorter and longer term goals, both financial and personal.

Thanks!

One of these is actually to avoid wasting time on the Internet for the remainder of July, so... won't be here till August :)

I wouldn't necessarily call reading financial stuff on MMM/forum wasting time, but it might be depending on the person.  :)


This is definitely true ;)

Hah.

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Re: Gauntlet: Long Term Net Worth Goals
« Reply #49 on: July 28, 2013, 09:58:55 AM »
My goal is to increase my net worth by 100K in 2013. I'm on track so far.  That would put me at $620K by January 1, 2014. 
Not counting my hard assets (furniture, cash value of a life insurance policy).  As of end of Q2 I was at about $550 net worth.