Poll

What's your CURRENT % of your Target Passive Income as of EOY 2017?

< 0%: I'm Bleeding money
2 (0.6%)
0 to 5%
21 (6.5%)
5.01 to 10%
14 (4.3%)
10.01 to 20%
28 (8.7%)
20.01 to 30%
43 (13.4%)
30.01 to 40%
33 (10.2%)
40.01 to 50%
30 (9.3%)
50.01 to 60%
28 (8.7%)
60.01 to 70%
24 (7.5%)
70.01 to 80%
16 (5%)
80.01 to 90% and FIREd
2 (0.6%)
80.01 to 90% and NOT FIREd
14 (4.3%)
90.01 to 100% and FIREd
1 (0.3%)
90.01 to 100% and NOT FIREd
14 (4.3%)
100.01 to 110% and FIREd
2 (0.6%)
100.01 to 110% and NOT FIREd
10 (3.1%)
110.01% and up, and FIREd
17 (5.3%)
110.01% and up, and NOT FIREd
20 (6.2%)
FIREd, other %
3 (0.9%)

Total Members Voted: 316

Voting closed: February 05, 2018, 08:11:44 AM

Author Topic: What's your CURRENT EOY 2017 % of your Target Passive Income?  (Read 23710 times)

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #100 on: January 22, 2018, 06:16:17 PM »
I suppose 30% or so, but frankly there are so many variables in the next 10 years to know whether that's 30%, 15%, or 60% (ok probably not that much higher :D).
@ender, give it your best educated guess.   (Or link to a case study and we'll help you figure it out.)

ender

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #101 on: January 23, 2018, 08:41:00 AM »
I suppose 30% or so, but frankly there are so many variables in the next 10 years to know whether that's 30%, 15%, or 60% (ok probably not that much higher :D).
@ender, give it your best educated guess.   (Or link to a case study and we'll help you figure it out.)

Well it's more that we are DINKs right now, hopefully becoming single income + kid(s) in the near future.

It's easy to predict out when you are making two fulltime salaries. At the rate we're saving it won't be long. But without a good feel for what children expenses might look like it's hard.

Can always check my journal @SwordGuy if you want ;) I think I still have a link in my signature? I forget, I have all signatures hidden lol.


PlainsWalker

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #102 on: January 23, 2018, 09:11:16 AM »
This is a neat way of thinking about progress towards the FI goal.
I am at 47% this January up from 36% a year ago.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #103 on: January 23, 2018, 04:09:12 PM »
This is a neat way of thinking about progress towards the FI goal.
I am at 47% this January up from 36% a year ago.

11% progress in one year!  That's awesome!

Particularly since, all things being equal, progress accelerates as your stash grows.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #104 on: January 23, 2018, 04:16:11 PM »
I suppose 30% or so, but frankly there are so many variables in the next 10 years to know whether that's 30%, 15%, or 60% (ok probably not that much higher :D).
@ender, give it your best educated guess.   (Or link to a case study and we'll help you figure it out.)

Well it's more that we are DINKs right now, hopefully becoming single income + kid(s) in the near future.

It's easy to predict out when you are making two fulltime salaries. At the rate we're saving it won't be long. But without a good feel for what children expenses might look like it's hard.

Can always check my journal @SwordGuy if you want ;) I think I still have a link in my signature? I forget, I have all signatures hidden lol.

Ah, ok, that makes sense!

If you're going to be FIRED before you have kids, they won't add much to your costs unless there are serious medical issues or y'all go crazy and turn into spend-a-holics about the kids.   Daycare is the biggest expense and you won't need that much of it if you aren't working full time.   If you're already FIRED then the lost income from a stay-at-home parent (or two) won't matter either.

Kids don't need nearly as much craptastic stuff as middle-class American parents provide for them.  If you're home schooling or supplementing public schooling with home schooling, you won't need expensive private schools to get good academic results.

Give the kids lots of love, lots of encouragement to grow, lots of freedom and lots of discipline and most of them will turn out just fine.   

Best of luck!

GoCubsGo

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #105 on: January 24, 2018, 01:48:29 PM »
67% of a $80K spend target (not including home equity).  At 55% last year.  The stock market run the past 8 years is causing eye popping results which I'm a bit wary of celebrating (paper gains) but it's much better than the alternative!

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #106 on: January 24, 2018, 05:22:30 PM »
67% of a $80K spend target (not including home equity).  At 55% last year.  The stock market run the past 8 years is causing eye popping results which I'm a bit wary of celebrating (paper gains) but it's much better than the alternative!

12% closer in one year is great progress!

ScreamingHeadGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #107 on: January 25, 2018, 09:09:33 AM »
91% of our calculated (bare-bones) FI amount
76% of our calculated (target) RE amount

I chose to respond to the survey based on the RE value.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #108 on: January 25, 2018, 05:17:01 PM »
91% of our calculated (bare-bones) FI amount
76% of our calculated (target) RE amount

I chose to respond to the survey based on the RE value.

I agree, the RE value is the one to use, because that's your real target number.

76% means you're getting close!

And a 91% bare-bones rating means you don't have near the level of financial stress that other folks would have in case of a job loss, etc.

ender

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #109 on: January 25, 2018, 06:05:51 PM »
Ah, ok, that makes sense!

If you're going to be FIRED before you have kids, they won't add much to your costs unless there are serious medical issues or y'all go crazy and turn into spend-a-holics about the kids.   Daycare is the biggest expense and you won't need that much of it if you aren't working full time.   If you're already FIRED then the lost income from a stay-at-home parent (or two) won't matter either.

Kids don't need nearly as much craptastic stuff as middle-class American parents provide for them.  If you're home schooling or supplementing public schooling with home schooling, you won't need expensive private schools to get good academic results.

Give the kids lots of love, lots of encouragement to grow, lots of freedom and lots of discipline and most of them will turn out just fine.   

Best of luck!

Thanks!

I think 30% is probably a reasonably decent guesstimate, though there are a lot of things that can change that either way obviously..

FireHiker

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #110 on: January 25, 2018, 06:12:12 PM »
I track both % of FI based on current actual spending, and on current expected retirement spending (meaning current spending minus mortgage and childcare, keeping everything else the same since kid costs will turn into travel costs hopefully). Current spending we were 24.2% EOY 2017. Target retirement spending 40.9%. I started tracking in the end of 2015, and our percentages then were 16% and 32.6% respectively, so we are making progress. Wish it were going more quickly, but we need to buckle down and really be more disciplined in our spending.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #111 on: January 25, 2018, 08:05:53 PM »
Ah, ok, that makes sense!

If you're going to be FIRED before you have kids, they won't add much to your costs unless there are serious medical issues or y'all go crazy and turn into spend-a-holics about the kids.   Daycare is the biggest expense and you won't need that much of it if you aren't working full time.   If you're already FIRED then the lost income from a stay-at-home parent (or two) won't matter either.

Kids don't need nearly as much craptastic stuff as middle-class American parents provide for them.  If you're home schooling or supplementing public schooling with home schooling, you won't need expensive private schools to get good academic results.

Give the kids lots of love, lots of encouragement to grow, lots of freedom and lots of discipline and most of them will turn out just fine.   

Best of luck!

Thanks!

I think 30% is probably a reasonably decent guesstimate, though there are a lot of things that can change that either way obviously..

30% is darn good progress!

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #112 on: January 25, 2018, 08:07:10 PM »
I track both % of FI based on current actual spending, and on current expected retirement spending (meaning current spending minus mortgage and childcare, keeping everything else the same since kid costs will turn into travel costs hopefully). Current spending we were 24.2% EOY 2017. Target retirement spending 40.9%. I started tracking in the end of 2015, and our percentages then were 16% and 32.6% respectively, so we are making progress. Wish it were going more quickly, but we need to buckle down and really be more disciplined in our spending.

8% per year is solid progress.    If you improve your spending or your income I bet you can do 10% or better this year!

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #113 on: January 26, 2018, 07:38:30 PM »
Only 10 more days to answer this poll.   So stop lurking and make your mark.  (You know you want to... :))

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #114 on: January 27, 2018, 06:41:32 PM »
We need about 200 more votes to equal last year's poll!

Omalley

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #115 on: January 27, 2018, 08:11:00 PM »
At our FIRE number just trying to find a way to ease the two of from our careers.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #116 on: January 27, 2018, 08:31:33 PM »
At our FIRE number just trying to find a way to ease the two of from our careers.

I understand that!  It took us 2 years past reaching our FIRE number to feel comfortable retiring.

Michael in ABQ

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #117 on: January 30, 2018, 07:04:07 AM »
I just looked at my spreadsheet were I track our net worth and used to track our debts as we paid them down. Though it doesn't feel like we're making a whole lot of progress our net worth actually increased about $25k in 2016 and again in 2017. Actual retirement contributions were a bit less than $5k (maybe about $8k with company 401k match) so a lot of that was just paying off debt and building our emergency fund. It felt like we were only saving about $10k a year as that's how much we were able to put in our emergency fund in 2017 but I wasn't considering that we finished paying off the last $4k of our debt at the beginning of the year. Gives me some additional hope for saving up a decent down payment for a house knowing that we can probably continue to save about $15k a year while still contributing at least enough to get my full 401k match. Hopefully a new job this year will boost my income as well. Taxes, though minimal already, will be less in 2018 with the new tax code and we might even get extra back with the higher child tax credit.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #118 on: January 30, 2018, 03:25:10 PM »
I just looked at my spreadsheet were I track our net worth and used to track our debts as we paid them down. Though it doesn't feel like we're making a whole lot of progress our net worth actually increased about $25k in 2016 and again in 2017. Actual retirement contributions were a bit less than $5k (maybe about $8k with company 401k match) so a lot of that was just paying off debt and building our emergency fund. It felt like we were only saving about $10k a year as that's how much we were able to put in our emergency fund in 2017 but I wasn't considering that we finished paying off the last $4k of our debt at the beginning of the year. Gives me some additional hope for saving up a decent down payment for a house knowing that we can probably continue to save about $15k a year while still contributing at least enough to get my full 401k match. Hopefully a new job this year will boost my income as well. Taxes, though minimal already, will be less in 2018 with the new tax code and we might even get extra back with the higher child tax credit.

Sounds like you're starting to make some good progress!

thriftyc

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #119 on: January 31, 2018, 06:06:33 PM »
I picked between 90-100%, however if I left my job my expenses would drop do to indirect and direct savings. More time to be creative to save money, credit card churn etc.   So in realty probably at 100-110% without the work related expenses.

Still working, for now...but job hopping on a regular basis.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #120 on: January 31, 2018, 09:47:38 PM »
I picked between 90-100%, however if I left my job my expenses would drop do to indirect and direct savings. More time to be creative to save money, credit card churn etc.   So in realty probably at 100-110% without the work related expenses.

Still working, for now...but job hopping on a regular basis.

Sounds like you're in great shape!     

Are you at 90-100% of your target FIRE number or at 90-100% of your "enough to be FI" number?

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #121 on: February 01, 2018, 09:40:35 PM »
Only a few more days to enter this poll!

thriftyc

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #122 on: February 02, 2018, 06:04:07 PM »
I picked between 90-100%, however if I left my job my expenses would drop do to indirect and direct savings. More time to be creative to save money, credit card churn etc.   So in realty probably at 100-110% without the work related expenses.

Still working, for now...but job hopping on a regular basis.

Sounds like you're in great shape!     

Are you at 90-100% of your target FIRE number or at 90-100% of your "enough to be FI" number?

FIRE #

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #123 on: February 02, 2018, 06:11:07 PM »
I picked between 90-100%, however if I left my job my expenses would drop do to indirect and direct savings. More time to be creative to save money, credit card churn etc.   So in realty probably at 100-110% without the work related expenses.

Still working, for now...but job hopping on a regular basis.

Sounds like you're in great shape!     

Are you at 90-100% of your target FIRE number or at 90-100% of your "enough to be FI" number?

FIRE #

Oh, then you're absolutely in great shape!

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #124 on: February 03, 2018, 07:06:02 PM »
Only two more days to enter this poll!   

EscapeVelocity2020

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #125 on: February 03, 2018, 08:01:43 PM »
Off the charts I guess, but it feels pretty much normal since 2011.  Still expecting the market to go back to finding bottoms this year or the next, and I can't wait to see if the next bottom is higher or lower than March 2009.  Plenty of things to freak out about, and this list is always growning and getting more 'serious'. 

In the meantime, I'm very fortunate to be able to live my life the way I prefer.

Blindsquirrel

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #126 on: February 03, 2018, 10:38:07 PM »
    Yeah, at CAPE >30 kinda concerned so still working for awhile. That and have a powerful desire to be bullet proof once I pull the plug on the day job. Call me a chicken.

Freedomin5

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #127 on: February 04, 2018, 03:16:34 AM »
If I’ve mathed it up correctly...

We need about $30k per year in FIRE.

We have a rental throwing off $12k per year.
We also have $200k in investments with a 4% withdrawal rate, so $8k per year.

So we are at 66.67%. 

Chuck Ditallin

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #128 on: February 04, 2018, 05:40:08 AM »
We're definitely RE; we're just waiting for our large illiquid asset (our business) to convert to lovely liquid index funds. This has taken a year to date and probably won't bve done til April/Easter/April Fools' Day...

We had managed to cut our hours down, but one of our key workers is off sick and unlikely to return before 1st March at the earliest, so we're currently working 6 days a week...
 Hopefully, once the sale is through, it's a nice easy gig working 1 day a week to assist the buyer... then out of the door forever on 29th August.

Yeah, hopefully!

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #129 on: February 04, 2018, 09:41:41 PM »
If I’ve mathed it up correctly...

We need about $30k per year in FIRE.

We have a rental throwing off $12k per year.
We also have $200k in investments with a 4% withdrawal rate, so $8k per year.

So we are at 66.67%.

Definitely solid progress, but it's cutting it pretty close for me.   

An empty rental, a big repair needed, and a really down market is a triple whammy that could easily happen.

Are you going to go with more rentals or focus on stock?



Freedomin5

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #130 on: February 05, 2018, 04:06:53 AM »
If I’ve mathed it up correctly...

We need about $30k per year in FIRE.

We have a rental throwing off $12k per year.
We also have $200k in investments with a 4% withdrawal rate, so $8k per year.

So we are at 66.67%.

Definitely solid progress, but it's cutting it pretty close for me.   

An empty rental, a big repair needed, and a really down market is a triple whammy that could easily happen.

Are you going to go with more rentals or focus on stock?

Yes. Both. Probably one more rental and beefing up on ETFs - likely stopping when we reach around $600k in our investment funds.

The way we chose our rental is not like the typical Bigger Pockets folk - the ROI is lower, but our rental pool is a lot more stable. We have a relatively new luxury condo in a very high demand building right on top of the subway station. We have never had one month empty in the six years that we’ve owned it and rent only to solid working professionals who have never been late on rent. This means that our rent  to purchase price is not 1% - it’s lower, but it also generates a reliable income. We have also never had a big repair come up, probably because of the newness of the unit. So far, it’s been a very hands-off, stress free kind of investment. The only negative is that our tenants tend to like our unit so much they stay for a few years, and rental increases are capped at inflation, so we are charging slightly less than market rates.

We are thinking of switching it up - splitting the equity we have in this unit into two newer units - because this unit is getting older and that means management fees are only going to increase in the future. We just need to find good units in good locations.

This idea of living off of passive income is kind of a theoretical exercise for us at this point, since we don’t really have any intention to retire at this point of time, or even in the next five years. Too many interesting projects going on, and most of them are paid (not well paid, but paid). Currently, our current passive income just gets rolled back into growing the ‘stache.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #131 on: February 05, 2018, 06:08:55 AM »
The way we chose our rental is not like the typical Bigger Pockets folk

We have also never had a big repair come up, probably because of the newness of the unit.

Stuff has been wearing out in that unit for 6 years.  You just haven't gotten the bill yet.

I'm guessing that since you've been following Bigger Pockets that you're setting aside money out of each month's rent to cover those future bills.
A surprising number of folks don't, so if I'm wrong on my guess, please go learn how to calculate your profit correctly and set aside reserves.

SwordGuy

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Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
« Reply #132 on: February 05, 2018, 06:29:32 PM »
21.3% of poll respondents have either FIRED or have reached a number they could FIRE at.

Not bad!