Author Topic: 2030 FIRE Cohort  (Read 17220 times)

aceyou

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Re: 2030 FIRE Cohort
« Reply #100 on: December 26, 2016, 10:35:10 AM »
December NetWorth Update / 2016 Overview

Start of 2016
cash    $72,369
short term investments    $40,087
retirement investments    $34,544
pensions    $72,283
car values    $11,000
life insurance policies    $7,600
home equity    $111,952
Net Worth    $349,835



End of the year:
Retirement Investments    $75,991
Short Term Investments    $41,915
Cash    $46,230
Pensions    $143,669
Home Equity    $121,114
Car Value    $10,600
Life Insurance    $8,500
Net Worth    $448,019



2016 Finances At A Glance               
Our net worth increased by $98,184               
Our net worth not counting pension increased by $54,864               
We added $41,447 to our retirement accounts               
We paid off final $28,000 on your years               
We paid for rest of wife's Ed Specialist degree and 15 credits for my MA+15 out of pocket               
DW got a new job, increasing our salary by about $15,000/year.  Great job babe!!               
               
               
Looking Ahead to 2017               
We will try to fill up both of our 403/457/Roth's for total of $83,000 invested               
We will pay about $10,000 more towards principal on our mortgage               
We will contribute about $10,000 towards our pensions               
In total, about $103,000 of our income will go towards savings next year               
Because we will be putting so much into investments, our bank account will dip               
Saving this aggressively will likely decrease our bank balance by about $23,000               
Subtracting these numbers, our true savings will be ~$80,000 next year               
Assuming normal growth, our current investments should grow ~$10,000 next year               
So, a good year means we increase our net worth by ~$90,000 in 2017               
I believe these numbers are ambitious but doable               
This puts us on schedule to be FI by around 41 and definitely able to retire at 48 as has been our plan.



Mezzie

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Re: 2030 FIRE Cohort
« Reply #101 on: December 26, 2016, 11:47:25 AM »
2030 is our ideal mortgage payoff year, so at that point we should be FI and my husband can retire if he wants. I'm hoping to work until 2032 or 2033 to get my full pension benefits, but I may not be able to work that long (disability), so 2030 seems like a good goal to me. :)
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FITortoise

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Re: 2030 FIRE Cohort
« Reply #102 on: December 26, 2016, 12:17:27 PM »
2030 is my goal as well! Thanks for starting this thread. Posting to follow, and to have a cohort to encourage each other.

skip207

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Re: 2030 FIRE Cohort
« Reply #103 on: January 03, 2017, 02:03:11 PM »
Also aiming for 2030, FI will probably come before but RE around this time, at 50 years old.
Currently sitting at c.375k of 1M target.  13 years to run so need c.45K PA over that period.

Saskatchewstachian

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Re: 2030 FIRE Cohort
« Reply #104 on: January 04, 2017, 01:12:35 PM »
So a bit of a change to the plans this morning. I was reviewing the year of paystubs from DW to ensure all of my RRSP contributions were correct in my spreadsheets. The numbers were a little off so I went looking online for the pension plans factsheet. Turns out that DW's pension is defined benefit!!!!

Took a major rejigging of the spreadsheet as contributions change whether you make above or below the Yearly Maximum Pensionable Earnings (YMPE), as well as penalties for early retirement, etc.

Overall the plan is much more generous that what I had in before, even with the penalties for RE. The earliest she could retire without penalty is 52 (as years of service + age will equal 80). For every year prior to that it's a 3% penalty.

What it works out to is that if she retires in 2031 at 40 y.o. she would get 11k/yr forever. If she waits until 45yo then it's 20k, 50yo=35k/yr, 55yo=51k/yr, 60yo=60k/yr . (All 2016 dollars)

So 2031 is still the goal however who knows how that will change in the future.

LWTG

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Re: 2030 FIRE Cohort
« Reply #105 on: January 05, 2017, 02:31:18 PM »
I'm not like mad about it and wanting to bail or anything

Ha, looks I did end up bailing!

Back though and ready to get back at it. Despite having lots of fun and doing a ton of traveling 2016 was still our best financial year by far.

Copied from my Update in the 2016 Net Worth thread:

Jan 2, 2013  -($33,302) 
Jan 2, 2014 -($20,162)    +13,140
Jan 2, 2015    $2,833       +22,995
Jan 2, 2016    $13,330     +10,497
Jan 2, 2017    $75,494     +62,164

$20K from property value increase along with about $9,000 in market gains.

But the rest was $4,700 in retirement contributions and $28,464 of debt reduction.

Pretty pumped that my 2016 efforts exceeded the previous 3 years combined :)


Have not finalized my exact 2017 goals yet but should cross into the 6 figure club by Summer!

I may have a long way to go but I'll have a helluva time getting there!!!

http://forum.mrmoneymustache.com/journals/somewhere-between-yolo-and-fire/

BrokenBiscuits

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Re: 2030 FIRE Cohort
« Reply #106 on: January 13, 2017, 07:03:54 PM »
I'm quite excited on my progress this month. For the first time ever I made enough money passively from my investments to live off of (for the month). 1351 in. I Can't see it happening again any time soon, as to achieve this all my shares went up between 4 - 14% in the last 30 days and I managed to sell some p2p holdings on the secondary market at a 20% mark up to what I paid. Unlikely scenarios to be repeated.

This has boosted my networth up so I am now 1/7th of a millionaire! With a bit of luck 1/6th (or 166k) is achievable by the end of the year.

Met a couple of friends today both talking about money issues, so definitely not appropriate to say I earned more than them in passive income even if I didn't go to work this month! Good job we have these pages to get it off our chests.

aceyou

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Re: 2030 FIRE Cohort
« Reply #107 on: January 13, 2017, 08:19:27 PM »
I'm quite excited on my progress this month. For the first time ever I made enough money passively from my investments to live off of (for the month). 1351 in. I Can't see it happening again any time soon, as to achieve this all my shares went up between 4 - 14% in the last 30 days and I managed to sell some p2p holdings on the secondary market at a 20% mark up to what I paid. Unlikely scenarios to be repeated.

This has boosted my networth up so I am now 1/7th of a millionaire! With a bit of luck 1/6th (or 166k) is achievable by the end of the year.

Met a couple of friends today both talking about money issues, so definitely not appropriate to say I earned more than them in passive income even if I didn't go to work this month! Good job we have these pages to get it off our chests.


That's AWESOME!.  Even if it's not repeatable yet each month, the material point is that you put yourself in a position where it can happen at all.  So cool, keep it up!!!

FrenchStache

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Re: 2030 FIRE Cohort
« Reply #108 on: January 22, 2017, 02:57:23 PM »
Have you guys set up your investment plan for 2017?

Ours is going to be mega simple.  I set up to max out my 401k as well as my wife's for a total of $36000 plus our employer matches of course.  The allocation in my 401k is 80% Vanguard S&P 500, 10% Vanguard Mid Cap and 10% Vanguard Small Cap.  My wife's allocation is a Vanguard fund spit 65% stocks and 35% bonds.

I have set up an Acorns account this year just for fun, it's an easy hack to force yourself to save a little more.

Any additional money we come across will go into cash savings or a Roth IRA Betterment account.  We have been setting aside some cash because we are thinking about purchasing our first rental property in 2017 if the opprotunity arises.  Since we are on that subject, if you guys have experience in that area I would be interested.

Thanks!   

CheapScholar

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Re: 2030 FIRE Cohort
« Reply #109 on: January 22, 2017, 04:02:36 PM »
Have you guys set up your investment plan for 2017?

Ours is going to be mega simple.  I set up to max out my 401k as well as my wife's for a total of $36000 plus our employer matches of course.  The allocation in my 401k is 80% Vanguard S&P 500, 10% Vanguard Mid Cap and 10% Vanguard Small Cap.  My wife's allocation is a Vanguard fund spit 65% stocks and 35% bonds.

I have set up an Acorns account this year just for fun, it's an easy hack to force yourself to save a little more.

Any additional money we come across will go into cash savings or a Roth IRA Betterment account.  We have been setting aside some cash because we are thinking about purchasing our first rental property in 2017 if the opprotunity arises.  Since we are on that subject, if you guys have experience in that area I would be interested.

Thanks!

My wife and I both max 403b accounts (plus match).  My wife also gets a 401a.  All this totals to $49,000 per year for us.  Beyond that, we pay extra on our mortgage.  I know some people here don't like that, but I sleep better at night as I own more of my home.  Our 403b cash is mostly in Vanguard retirement date funds and caps.  2030 is a long way away.  I don't invest in Roth IRAs yet because I'm slightly worried about the government reneging on the tax break when I'm 59.  I might also throw some money into some mutual funds as the year progresses, but we are spending a lot on vacations these days because our son is 7 and we know we won't get these years back.

Mezzie

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Re: 2030 FIRE Cohort
« Reply #110 on: January 22, 2017, 04:30:51 PM »
We got the stub from my husband's first 401k contribution! Yay!

I got the paperwork for my 457, and while the options for investment aren't very exciting, it is going to help me eventually defer double the amount I am with the 403(b).

We're on our way!
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aceyou

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Re: 2030 FIRE Cohort
« Reply #111 on: January 22, 2017, 05:14:12 PM »
Looks like the 2030 crew is representing well with hardcore savings this year.  Great job everyone and keep it up!!

Erma

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Re: 2030 FIRE Cohort
« Reply #112 on: January 23, 2017, 02:30:03 AM »
I would like to participate here. Our date is yet unknown, but probably we are aiming for semi-fire somewhen between 2030 and 2033. This is due to the strange mortgage rules here, where you mostly do not pay off your house. We do not know how to consider this point.

Our mortgage will be reassessed in 10 years and the most important point will be the ratio of monthly income to monthly housing costs which. Your income must be at least three times as high as interest (always calculated with 5%) + amortisation (probably won't apply to us, I want to pay this off in 10 years instead of the usual 15 years) and + utilities (calculated with 1% of the buying price).

Then I have trouble deciding if we should use our retirement accounts (accessible earliest at 58) to pay off part of the house. This is one of the exceptions where you can use the money earlier.

So many things to consider.

jillinsandiego

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Re: 2030 FIRE Cohort
« Reply #113 on: January 23, 2017, 10:02:06 AM »
We are on track, but may be able to accelerate our timeframe. I ran some numbers last week, and if we continue to save at a reasonably conservative level (about where we are currently), we will hit 2030 if the market averages 4% gains. That is without making any further changes from our lifestyle now, and we still have plenty of fat we can trim. If we can make some adjustments to our spending/lifestyle (I am pushing HARD on this) then it could be even better. I've had 2030 targeted because that is when our youngest will graduate high school, but I had never done the math to see how it panned out. I'm reassured to see that my feel for the situation was accurate. I am not even factoring in our home equity at ALL, just looking at projected investments and savings, so if we downsize our home before then (very possible) then we could bring the date in a few years.

Saskatchewstachian

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Re: 2030 FIRE Cohort
« Reply #114 on: January 23, 2017, 12:41:24 PM »
Have you guys set up your investment plan for 2017?

Simple as well over here. It looks like this year will be the last year we can use all tax advantaged accounts before creating a taxable. DW and I have a total of $104,000 room in TFSA's which we plan to finish filling up, as well as we RRSP's.

Next year we'll get a taxable account set up.

We did a little better than planned in 2016 so have come out with ~$250,000 NW. Still hoping to FIRE by about my 40th birthday (2031).

headwinds

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Re: 2030 FIRE Cohort
« Reply #115 on: January 28, 2017, 09:11:53 PM »
I think this is the right place for me. About ~-100K ATM but fiance and I both will be working as RN's come june. I already am, and pulling just barely 6 figures. She will start around 60K. I figure that combined we have ~15 years or so to go. Also as RN's we can soft-retire, sell the house and live out of a fifth wheel, travel around the country and pick up 3 month travel contracts whenever we need a bit of extra $$$. So I think this is my goal. 2030. I will be 50 years old. Not MMM material, but also not the awful 65 that so many others end up with.

I really want to retire with enough health to enjoy 10-20 years of travel and play before old age starts to really limit what I am able to do.


headwinds

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Re: 2030 FIRE Cohort
« Reply #116 on: January 28, 2017, 09:14:00 PM »
Post-FIRE plans  Whatever we want.  It's a long ways off, so my interests will change...right now things that sound fun include, but are not limited to...
  • Traveling the world with my wife
  • Spending time with our kids, wherever they might be
  • Coaching
  • Reading voraciously
  • Becoming a financial planner for teachers
  • Gardening/Hydroponics/Aquaponics, etc.
  • Sleeping when I'm tired and getting up when I feel awake
  • Cooking delicious meals every day
  • ...Basically, I don't ever see myself getting bored:)

Sounds pretty freaking amazing.

headwinds

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Re: 2030 FIRE Cohort
« Reply #117 on: January 28, 2017, 09:15:34 PM »
Count me in. I'm looking to retire in 2028-2030, at age 50-52.
I paid off my mortgage last week and my student loans will be gone by early '17.
I save about 50% of my gross income.

I am nowhere near this, really feeling the need to step it up.

headwinds

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Re: 2030 FIRE Cohort
« Reply #118 on: January 28, 2017, 09:22:13 PM »
I'm aiming for somewhere around 2030-2035.

I'm currently 31. My father retired at 54 so I've got to come in at least 5 years before him, yeah? :P


Well as long as your pecs and traps are bigger than his, and judging by your pics on the fitness thread you have go a good start on that front :)

NorthernDreamer

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Re: 2030 FIRE Cohort
« Reply #119 on: February 01, 2017, 10:55:40 AM »
I had joined this thread unsure of if we could meet the FIRE date of 2030, but hoping it would be before 2035. Well, I guess it's true that you have no idea what life is going to throw at you. Very unfortunately, my father passed away two weeks ago at the young age of 60 - massive heart attack. He was never very healthy but we had no reason to think he'd be gone any time soon. My parents aren't together so my two siblings and I are the beneficiaries on his investments/policies. He also had money invested away in different places. So far I know that I am "receiving" $16,000 from his RRSPs and TFSAs. Plus, another $5-10,000ish in RRSP money that I am figuring out. And, he was a public service member who hadn't retired so I am being mailed a package about his life insurance through work and what is happening with his pension fund. I have no idea how much this will be - it could be under $50,000 or well over $100,000/each. It's kind of terrible to feel like I am benefiting in any way from his death, but knowing him, he'd be pleased as punch to know that he is providing for his kids and grandkids.

It will be interesting to see how my younger siblings deal with their inheritances. One is a big spender, and the other one is not as bad but definitely not as thrifty as me. I had mentioned index funds/MMM/The Millionaire Teacher in the past to them. Maybe I should remind them of their non-mutual fund/financial planner options.

It has really got me thinking about how you really truly never know how long you have. Clearing out his apartment and going through his things has got me realizing how little much of that matters. You truly cannot put a monetary value on relationships and experiences. It's lit my FIRE fire even more now.

jillinsandiego

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Re: 2030 FIRE Cohort
« Reply #120 on: February 01, 2017, 02:33:38 PM »
I'm sorry for your loss, NorthernDreamer. My dad died at 58, ten years ago. He was just starting to look at retirement options, and it is hard to think that he worked his whole life and never got to enjoy his retirement. He had made a LOT of bad decisions (financial and otherwise) over the years, but things had really turned around for him in the years leading up to his death, and it is still hard to think about ten years later. It really does drive home how short and unpredictable life is, and the importance of experiences and relationship as opposed to things.


headwinds

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Re: 2030 FIRE Cohort
« Reply #121 on: February 01, 2017, 04:42:49 PM »
It has really got me thinking about how you really truly never know how long you have. Clearing out his apartment and going through his things has got me realizing how little much of that matters. You truly cannot put a monetary value on relationships and experiences. It's lit my FIRE fire even more now.

I am so sorry for your loss. It is so true, none of us know when we will pass on, and we don't get to take any of this with us...

aceyou

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Re: 2030 FIRE Cohort
« Reply #122 on: February 01, 2017, 05:23:51 PM »
Thinking of you NorthernDreamer.  We definitely have to make each moment count. 

semiretired31

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Re: 2030 FIRE Cohort
« Reply #123 on: February 22, 2017, 10:02:53 PM »
As my name implies, I plan to semi retire by 2031. Bunch of life/financial circumstances that make that year make sense. 15 years on my mortgage and two kids will be through college. My wife and I will be 52. That feels pretty badass to me (even though it's "old" in comparison to a lot around here).

Here's where we are at:
$50k equity in house (will downsize at some point)
$220k in 401(k)
$25k cash
$27k taxable Vanguard
NW of $322k

Glad to join the crew.

LWTG

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Re: 2030 FIRE Cohort
« Reply #124 on: February 23, 2017, 06:31:23 AM »
As my name implies, I plan to semi retire by 2031. Bunch of life/financial circumstances that make that year make sense. 15 years on my mortgage and two kids will be through college.

Here's where we are at:
$50k equity in house (will downsize at some point)
$220k in 401(k)
$25k cash
$27k taxable Vanguard
NW of $322k

Glad to join the crew.

Welcome to the Cohort! Sounds similar to our situation, our kids are 5 and 7 so finishing up school around 2030-2032.

My NW is only at about $85K which makes me feel way behind most in this thread, we will have a pension at 2033 for my wife which is not in the NW #.

My wife and I will be 52. That feels pretty badass to me (even though it's "old" in comparison to a lot around here).

Sounds badass to me, of course I'm probably biased since I'm hoping for similar :) Beats the He!! out of 65+
I may have a long way to go but I'll have a helluva time getting there!!!

http://forum.mrmoneymustache.com/journals/somewhere-between-yolo-and-fire/

semiretired31

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Re: 2030 FIRE Cohort
« Reply #125 on: February 23, 2017, 08:05:37 AM »
As my name implies, I plan to semi retire by 2031. Bunch of life/financial circumstances that make that year make sense. 15 years on my mortgage and two kids will be through college.

Here's where we are at:
$50k equity in house (will downsize at some point)
$220k in 401(k)
$25k cash
$27k taxable Vanguard
NW of $322k

Glad to join the crew.

Welcome to the Cohort! Sounds similar to our situation, our kids are 5 and 7 so finishing up school around 2030-2032.

My NW is only at about $85K which makes me feel way behind most in this thread, we will have a pension at 2033 for my wife which is not in the NW #.

My wife and I will be 52. That feels pretty badass to me (even though it's "old" in comparison to a lot around here).

Sounds badass to me, of course I'm probably biased since I'm hoping for similar :) Beats the He!! out of 65+

Yeah totally.  My daughters are 8 and 10.  I'm going to do my best to support them in an intelligent way through their college years (if they choose that path) and a little into their early professional years.  I had that support when I was getting started and it was a really positive thing for me. 

I've always been an "ok" saver.  But, stumbling upon MMM has really helped me with longer term goals of what to do with that savings.  Just started in January on the plan, but have been reading for the last year.  Good luck and hope to "see you around" the forum.

Guava

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Re: 2030 FIRE Cohort
« Reply #126 on: February 23, 2017, 10:40:51 AM »
I originally was thinking 2035 but now it looks like it will be closer to 2030, depending what life throws my way.

My starting point is about $60,000 investable assets and shared ownership of some rentals. Monthly savings target is about $2,300 while I am still in school.

When SO and I combine assets when we marry later this year, those numbers will go up nicely.

Update:
My invested assets: ~$87,000
Mortgage debt: ~$92,000
My total expected 2017 contributions: ~$33,000
DH's invested assets: ~$15,000
DH's total expected 2017 contributions: ~$12,000
Plus rental income and equity from shared houses.

We clearly have a long way to go and our minimum number is  $850,000 with a paid off house. I definitely feel a little behind in this thread and we are saving about 10% less than our target still.

Bumbles8

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Re: 2030 FIRE Cohort
« Reply #127 on: February 24, 2017, 03:38:25 AM »
Well I'm in a different boat than a lot of y'all, but 2030 would be my stretch goal (at least for right now)

In 2030 I will turn 36.  I have no idea if I will have kids, or how old they will be.  I kinda guess I will get married by then, but that's not a given.  Additionally, I may take a year off here or there.  Basically what I'm saying is I have a whole ton of wild factors that I haven't worried about.

So here are my numbers:  right now my net worth is ~10k and it increases about $2500 every month.  This year I wil max my 401k, max my Roth, and max an HSA.  Will probably also have some left over to do something with (taxable account...?).

I currently rent and plan on reading a bunch of real estate books this year.  I live in a market with a ton of renters, so it may be advantageous to start purchasing rental properties, but I need to know a lot more before that decision is made. 

Plugging numbers in right now would put me somewhere in the 600-700k range.  I could live off this, but hope to generate extra income through raises and then potentially real estate so I can get this number closer to 1 million. 

I will post updates every few months or maybe every year (monthly updates will be located in my journal).

Glad to finally join one of these cohorts.  Good luck to everyone, I enjoy reading everyone's numbers and thoughts

semiretired31

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Re: 2030 FIRE Cohort
« Reply #128 on: February 24, 2017, 05:13:32 AM »
Well I'm in a different boat than a lot of y'all, but 2030 would be my stretch goal (at least for right now)

In 2030 I will turn 36.  I have no idea if I will have kids, or how old they will be.  I kinda guess I will get married by then, but that's not a given.  Additionally, I may take a year off here or there.  Basically what I'm saying is I have a whole ton of wild factors that I haven't worried about.

So here are my numbers:  right now my net worth is ~10k and it increases about $2500 every month.  This year I wil max my 401k, max my Roth, and max an HSA.  Will probably also have some left over to do something with (taxable account...?).

I currently rent and plan on reading a bunch of real estate books this year.  I live in a market with a ton of renters, so it may be advantageous to start purchasing rental properties, but I need to know a lot more before that decision is made. 

Plugging numbers in right now would put me somewhere in the 600-700k range.  I could live off this, but hope to generate extra income through raises and then potentially real estate so I can get this number closer to 1 million. 

I will post updates every few months or maybe every year (monthly updates will be located in my journal).

Glad to finally join one of these cohorts.  Good luck to everyone, I enjoy reading everyone's numbers and thoughts

Way to get started so early.  Wish I would have. Good on ya!!

gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #129 on: February 24, 2017, 08:34:00 AM »
I'm waaaay behind many of you on the numbers, but so inspired by this thread and all of your stories!

I'm 41, my wife is 39, and our kids are 7 and 11. We live in northern New England.

We had a real financial crisis/epiphany this January, so we are just getting started on this FIRE journey. It's been a painful couple of months, realizing just how badly we've been botching things, but the silver lining is that we are both *completely* on board, and growing closer as a couple now that we've got a shared vision of the future (which is FIRE by 2030-32).

Current Status
Combined gross income: ~$177k

401a  - $78k
home - $315k
car - $5k
checking - $13k
total assets - $411k

mortgage - $283k (15-yr fixed @ 2.75%)
student loans - $69k (all at <3.8%)
home energy efficiency loan - $8k @ 1.99%
liabilities - $360k

net worth - $51k *sad trombone but with a hopeful note at the end* :-)

We have been putting just $11k/year (3% of salary from me, 11% from employer) in my 401a up until now. Starting in March we will be doing automatic $2000/month into a solo 401k (DW is self-employed) and also setting aside more in hopes of maxing that out at about $33k for the year. We pay down the home principal at a rate of about $1,300/month, and student loan principal at $845/month. So a net-worth increase of at least $70k this year. And probably more because if we actually max out the 401k our taxable income will drop and we'll get a sizable refund.

All non-mortgage loans will be gone by ~2022 or 2023, depending how much we accelerate payments. At that point we'll have an extra $1k/month to put into the mortgage if we want, or after-tax savings.

Our living expenses aside from loan payments are pretty low, so I think if we put in 14-15 years of this plan, we should be FIRE. I'm not factoring in a few positive things (raises, end of PMI, etc.) but I figure there will be ample bumps in the road as well, and college for two.

Our tentative FIRE vision is to rent our house about half the year (there's a great seasonal market here renting to members of our part-time state legislature, and our house is walking distance to the capitol building) and travel on the cheap during that time, visit our kids wherever they are, do some backpacking, rock-climbing, canoe trips, camping. And we would likely do some part-time work and inherit something from DW's folks at some point.

Future is bright! So thankful to have found this community!

aceyou

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Re: 2030 FIRE Cohort
« Reply #130 on: February 26, 2017, 07:16:20 AM »
@GAVIN

Welcome!  No beating yourselves up over the past, you are still in a tremendous spot at the moment.  It's not a contest, but if it was, you'd be beating most everyone. 

You have all the right things on your side right now: both spouses completely on board, high incomes, low debt relative to income, and you are young to boot. 

Thanks for joining the thread.  Good luck!!!

gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #131 on: February 27, 2017, 07:15:17 AM »
@GAVIN

Welcome!  No beating yourselves up over the past, you are still in a tremendous spot at the moment.  It's not a contest, but if it was, you'd be beating most everyone. 

You have all the right things on your side right now: both spouses completely on board, high incomes, low debt relative to income, and you are young to boot. 

Thanks for joining the thread.  Good luck!!!

@aceyou

Thanks for the kind, welcoming message!! And particularly for calling me young! :-)

I think you're right - we will come out of this fine. And I'm mostly able to not beat myself up for not starting sooner.

Sending the paperwork to open the 401k tomorrow! That feels like a real milestone.

aceyou

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Re: 2030 FIRE Cohort
« Reply #132 on: February 27, 2017, 08:47:38 AM »
@ Gavin

That's a huge milestone. Keep posting.

MoonLiteNite

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Re: 2030 FIRE Cohort
« Reply #133 on: February 28, 2017, 11:13:56 PM »
Current age 30, I plan to be FI around 2029. Retire from current job, take a year or 2 off for some hiking trips. Then possible do some side jobs for fun

As of April 1st 2017
Total networth -300k
Of that, home value is around 200k

Savings rate is around 65-75%, this includes house payments.
Around 50k loan left on home, personal loan. Intending to pay it down before adding to non-tax sheltered investments.

Mezzie

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Re: 2030 FIRE Cohort
« Reply #134 on: March 01, 2017, 02:15:36 AM »
I'm feeling very positive about this lately. Having a plan and goal date has actually lowered my stress considerably. If other things stop this from happening (e.g., a maket crash), I'll still know I did my part as best I could.
http://forum.mrmoneymustache.com/journals/preparing-for-forced-early-retirement-due-to-disability/

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gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #135 on: March 01, 2017, 02:04:42 PM »
I'm feeling very positive about this lately. Having a plan and goal date has actually lowered my stress considerably. If other things stop this from happening (e.g., a maket crash), I'll still know I did my part as best I could.

Mezzie, ain't that the truth! Having a concrete plan is such a great thing!

I just visited your journal and will follow you over there, too. You and I are in pretty similar starting points (last month I was also sitting around wondering if my net worth was positive or negative!).

Let's do this!

jillinsandiego

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Re: 2030 FIRE Cohort
« Reply #136 on: March 01, 2017, 02:35:19 PM »
I finally took the time to calculate our savings rate. So far, YTD, we are sitting at 33.7%. I don't include house payments on the savings rate though; we plan to sell and move to a lower COL area.

Welcome Gavin! Our kids are 5, 7, and 16. Targeting 2030 because that's when the youngest will graduate high school. Sorry to hear about your financial crisis in January, but the fact that you and your wife are on the same page will make a world of difference. I know it feels like an uphill battle, but you are moving in the right direction, and you have good company here to encourage you along the way. :) It's shocking once the light comes on here how many people don't know what net worth is, or whether their own is positive or negative! I was there until 2015. At least when you did calculate it, you found it was positive!

Mezzie

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Re: 2030 FIRE Cohort
« Reply #137 on: March 01, 2017, 08:05:40 PM »
I'm feeling very positive about this lately. Having a plan and goal date has actually lowered my stress considerably. If other things stop this from happening (e.g., a maket crash), I'll still know I did my part as best I could.

Mezzie, ain't that the truth! Having a concrete plan is such a great thing!

I just visited your journal and will follow you over there, too. You and I are in pretty similar starting points (last month I was also sitting around wondering if my net worth was positive or negative!).

Let's do this!

How did it turn out? Are you in the positive number club?
http://forum.mrmoneymustache.com/journals/preparing-for-forced-early-retirement-due-to-disability/

Join my ibotta team for rebates: https://ibotta.com/r/bdtnbyj

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gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #138 on: March 02, 2017, 05:19:03 AM »
How did it turn out? Are you in the positive number club?

YES! Here are my numbers as of about a month ago...

401a  - $78k
home - $315k
car - $5k
checking - $13k
total assets - $411k

mortgage - $283k (15-yr fixed @ 2.75%)
student loans - $69k (all at <3.8%)
home energy efficiency loan - $8k @ 1.99%
liabilities - $360k

net worth - $51k *sad trombone but with a hopeful note at the end* :-)

And now, with my wife and I both sprouting tiny mustaches, our monthly NW increase is something like $6k, not counting gains in the 401a.

p.s. One of your journal posts prompted me to think "hey, maybe *I* can contribute to a 457 at work"! And, sure enough, I can! And I will! Thanks for that! And, like you, when I mentioned it to co-workers, I got blank stares. Nobody had ever even considered it. Now I'm planning to become the evangelist of the 457 (it's got some amazing fund options - Vanguard Institutional Shares in both stocks and bonds, with ER of .04 and .05%).

jillinsandiego

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Re: 2030 FIRE Cohort
« Reply #139 on: March 02, 2017, 11:01:48 AM »
I have happy news! I got a promotion with a raise yesterday (no new responsibilities, mostly administrative to recognize work I already do). The first thing we did at home in the evening was max out both 401Ks! My husband turns 50 this year, so that includes catch up contributions. He'll find out what his raise is on Monday, but mine almost covers maxing them both out so for the first time in three years we should get an actual net increase as well. The last two years we put 100% of our raises into increasing our 401K contributions. Before that we were getting the company match but not contributing beyond that, although he used to put in a LOT more before we bought the current house.

gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #140 on: March 02, 2017, 11:06:34 AM »
I have happy news! I got a promotion with a raise yesterday (no new responsibilities, mostly administrative to recognize work I already do). The first thing we did at home in the evening was max out both 401Ks! My husband turns 50 this year, so that includes catch up contributions. He'll find out what his raise is on Monday, but mine almost covers maxing them both out so for the first time in three years we should get an actual net increase as well. The last two years we put 100% of our raises into increasing our 401K contributions. Before that we were getting the company match but not contributing beyond that, although he used to put in a LOT more before we bought the current house.

Congratulations!! On the raises AND on the wonderful way you celebrated! :-)

jillinsandiego

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Re: 2030 FIRE Cohort
« Reply #141 on: March 02, 2017, 12:45:08 PM »
Thanks Gavin! A couple years ago we would have gone out to dinner or I would have treated myself in some standard, consumerist way. Not anymore. :)

gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #142 on: March 02, 2017, 01:00:12 PM »
Thanks Gavin! A couple years ago we would have gone out to dinner or I would have treated myself in some standard, consumerist way. Not anymore. :)

I remember I used to think I was being *super* frugal and responsible when we got a windfall (tax return, work bonus, whatever) and we would each get 10% of it to do whatever we wanted, and the other 90% would go into our "budget" - which at the time consisted mostly of things-we-don't-need-but-buy-every-month. None of it went to savings.

[self-administered, retroactive face-punch!]

-g

aceyou

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Re: 2030 FIRE Cohort
« Reply #143 on: March 02, 2017, 02:03:54 PM »

p.s. One of your journal posts prompted me to think "hey, maybe *I* can contribute to a 457 at work"! And, sure enough, I can! And I will! Thanks for that! And, like you, when I mentioned it to co-workers, I got blank stares. Nobody had ever even considered it. Now I'm planning to become the evangelist of the 457 (it's got some amazing fund options - Vanguard Institutional Shares in both stocks and bonds, with ER of .04 and .05%).

That is seriously awesome news on the 457.  I've been diving head first into understanding my companies 403/457 options the last two years.  Here's a little that I've learned (ignore if you already know this):

The 0.05% you are seeing is he Expense Ratio of the fund.  That money will go to Vanguard, and yes, that's awesome that you have that option.  However, because it's a 457 through your work, you can't go straight through Vanguard.  Another company acts as a middle-man...the money goes from your paycheck to them, and they invest it in Vanguard on your behalf.  They charge you a fee to do this.  Here are some of the fees they might try to nab you with:
_________________________
Yearly Fee: This will happen for sure, and you need to figure out what it is.  When I went through The Legend Group, the fee was 2.25% of total assets...Agghhhhh!!!  (I put a couple thousand there before I found MMM)

Front Loads: When I was at Legend Group, they also charged me a front load of 5%, which meant if I was going to put $100 per paycheck into VTSAX, then they would put $95 into VTSAX, and pocket 5 bucks for themselves...then they charged 2.25% on top of that...it was criminal if you ask me. 

Back Loads: Same thing, but they take the 5% when you try to take your money out of VTSAX eventually.  Legend Group didn't have these. 

12-B-1 Distributions: These are fees that often get charged in addition to the yearly fee.  They generally amount to about 0.12% per year.  So, if a company says they charge .35% to manage your assets, you want to ask them whether that includes 12-B-1 fees, or if it's .35% plus the 12-B-1 distributions. 
_________________________

Put all that together, and The Legend Group was charging me an arm an a leg. 

I've since moved to PlanMemberDirect.  They charge a .35% annual fee plus the fund cost of whatever I choose.  Since I choose VTSAX at .05%, I have a total cost of 0.40% to invest with them.  Plan Member charges no loads or 12-B-1 distributions, so that's really it.  Of the 6 companies I'm allowed to go through with my employer, that's the best option I have available to me. 

If you haven't done so already, please look at those other things and make sure you get a true picture of what your costs were.  Had I not looked into it, I'd still be paying 2.25% plus a 5% load. 

gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #144 on: March 02, 2017, 02:12:55 PM »
Thanks for that detailed post, aceyou! Prompted me to go re-read the fine print of the plan.

The one I have access to charges 0.10% on top of the expense ratios, which are a mix, but includes those low VG Institutional Shares. Pretty great!

I'm counting myself *very* lucky after reading about the options you have in your 457. Sounds like you'd be lucky to get your contributions back with all those fees and loads.

Cornel_Westside

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Re: 2030 FIRE Cohort
« Reply #145 on: March 02, 2017, 04:48:52 PM »
Hi MMM forum members! I've been reading the blog for about 6 months and I've taken some of the lessons to heart. There will always be a part of me that loves consuming, but I'm conscious of it and focusing on those expenses that create happiness (trips, hobbies) and not ones that don't (gadgets, luxuries). I have been tracking my finances for a while, but I thought it would be good for me to write down all this stuff on this forum to add a little public motivation.

I've actually got a technical FIRE date of late 2027, but I don't know what my girlfriend will think or whether I'll want to buy a house, which will change things. So I figure a 2 year buffer couldn't hurt.

I'm 28, by the way. Started saving when I started working, but not efficiently. Too much money in savings accounts, not enough in retirement/brokerage accounts. But I'm fixing that now.

Start of 2017

Cash    $9k
short term investments    $45k
Retirement investments    $75k
Pensions    $0 (in 2 years my pension will vest at this company, then I will consider it to have value)
Car values    $0 (I have a car but it is worthless. It gets me around though.)
Home equity    $0
Net Worth    $129k
               
2017 plans

2016 was great for my finances but several things can be better. I never knew about a Roth Conversion Ladder until literally today, so today I increased my 401k contribution. I didn't max it (I need to check on the effects to my monthly finances), but I did bump it up 3% immediately. I see no obstacle to maxing my 401k and Roth IRA this year, but I need to not destroy my emergency savings. I am young and well qualified to find another job quickly if I have to, but I still am keeping 3 months expenses in cash (6k of the cash).

The most important decision for me is when or if I plan on buying a home. Based as a tax shelter, it makes financial sense, but I don't really want to pull money out of my short term investments if I don't have to. And if I want to do that, I don't want to be caught without a down payment. I am considering keeping all the extra savings I get after maxing out 401k and Roth IRA in a savings account at 1% interest until I have an appropriate down payment for the relative quality of house I'd want (40-80k). That would take 2-4 years.

Right now I'm saving ~45% of my takehome, but with focus, I'm confident I can get that to 55% and then 60% soon. That would put me on track faster than 2030 (2027 is based on a 54% savings rate), but that's all gravy. I don't know if a house makes that less likely to hit or more likely, but we'll see.

aceyou

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Re: 2030 FIRE Cohort
« Reply #146 on: March 02, 2017, 07:03:02 PM »

Car values    $0 (I have a car but it is worthless. It gets me around though.)


Cars that are worth less are far from worthless...they are the most valuable cars one can own:)

Welcome!

Mezzie

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Re: 2030 FIRE Cohort
« Reply #147 on: March 02, 2017, 08:16:52 PM »
Gavin -- great news all around! Your 457 sounds better than mine. :)
http://forum.mrmoneymustache.com/journals/preparing-for-forced-early-retirement-due-to-disability/

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aceyou

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Re: 2030 FIRE Cohort
« Reply #148 on: March 02, 2017, 09:13:49 PM »
Gavin -- great news all around! Your 457 sounds better than mine. :)

No kidding, that's a fantastic plan. 

gavinshmavin

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Re: 2030 FIRE Cohort
« Reply #149 on: March 03, 2017, 05:56:13 AM »

Cars that are worth less are far from worthless...they are the most valuable cars one can own:)

Welcome!

Amen to this! A car that gets you around but "isn't worth much" is the best kind. Low insurance, low stress, low costs!

And welcome, Cornel!