Hi All,
First post after reading all the blogs on this site, so thank you for taking the time to read.
We believe we live pretty frugally and are looking for advice and thoughts on our situation and to see if any others have gone the same route.
I am 32 and wife is 31 with a 2 year old and another on the way. We are saving as much as possible and plan to sell everything, "retire" and live on a sailboat in the Caribbean and eventually sail around the world. Our plan is for August 2020 to set off. We are hoping to live off of about 20-25k per year max, which should allow us some spending money and account for smaller repairs as needed, but also allow us to trim this down if needed (down market, unexpected big expenses, etc).
Current situation:
I, engineer, earn 1582 biweekly after all taxes, 401k, etc. (should be raising to around 1750 after a raise in the next couple months)
Wife ,teacher, earns 1380 biweekly after taxes, health insurance and other teacher pensions etc.
We also earn about 500/month from loans to our real estate business.
We have three 4 unit buildings that generate 6k gross when full and have fixed expenses of about 2500/m. I assume about 1500/m can be transferred to us after all expenses, vacancies, etc. This should hopefully start in the next couple months after the LOC for the business is paid off.
Current assets:
3200 - checking acct
1250 in scottrade - 50/month deposited
6250 in vanguard - 900 / week deposited starting 4/8/16 (will increase once business starts paying us more)
2020 in Robinhood 100 / month and 35 / week deposited
4350 in Prosper - 50 / month deposited
56000 in 401k - 8% with 4.5% employer match
7500 in IRA - 2500 /year deposited
Business - 250k - minus 38k in mortgage/business loans
House - 72k mortgage left on 120k house
monthly expenses
mortgage is 758 piti plus we are putting an extra 300 towards principle (will be incrementally increasing this to hopefully have house paid off by 2020)
car (2011 sonata)- 266 /month - 5000 left - 4.5% rate
insurance for 2 cars and a motorcycle - 1200 / year
student loan 4k left - 199 /m (2.5%)
electric - 40 /m
gas - 50/m
water - 20 /m
phone - 90/m
internet/tv - 75/m
food - 300 / m
gas for car - 150 /m
dogs - 50 / m
charities - 75 /m
misc - 150 / m (this will go towards wedding gifts and the occasional house needs and outings with friends)
whole life insurance policies - 350 /m (these will act as emergency funds as they have a cash value and pay ~ 5% dividend/year after fees - Mass Mutual)
credit card gets paid in full every month
We do a lot of biking / walking / kayaking around town and water front, use gift cards when we want to go out to eat. We have been very selective on where we spend our money and try to save everything. With the new kid on the way, I know some of our expenses will go up, but by that time, we both should have gotten at least one raise to cover any increases. Her health insurance should cover all medical expenses as well.
I try to setup everything as automated as possible and just keep an eye on things and watch the stash/kitty grow!
We are hoping to sell the apartments near 2020 to not have to worry about managing them and put the money in our vanguard acct. Our house sale will go towards the boat purchase/refit, this will allow us to not have to pay capital gains on taking money from another account to buy the boat. My plan is to have about 600k by 2020 in accounts (not including house). Does this seem doable/reasonable with my situation as long as nothing drastic happens such as losing a job?
Anyone do anything similar? Any other suggestions or comments? Am I crazy?...haha
Thanks again!