First, my thanks to this community for the education and inspiration. Thanks! If I had believed and applied all the common sense investment advice I heard in my youth, and lived the MMM lifestyle starting in my 20's or even 30's I wouldn't be writing this post. Oh well, it is what it is.
I am getting a late start in reaching my FI goal. I've always known I should save, and have had 401k accounts and even a small retirement account that I cashed out whenever I changed jobs. Big mistake, because that money, if I just left it, would have gave me my independence by now. Oh well. I'm not bitter. Just a little disappointed in myself. But I have had a good roll so far. I've enjoyed the last 3 years traveling around the country with my travel trailer, coast to coast, gulf to I-90. It was worth it, even if it wasn't the most Mustachian thing to do.
I have 10 years until I can start receiving full Social Security payments (at 66-1/2). I have a relatively meager amount of money in an IRA account, some cash, a Health Savings account and an individual investment account. However, in order to me to be able to quit working at 66.5, my investment holdings must increase by $360k. Here's my situation and plan. Criticism, tips and face punches encouraged... if warranted.
And just to let you know, the job I've accounted income for isn't mine yet, but I think it's a sure deal. If you don't want to waste the time or energy figuring out a financial situation for my "potential-but-almost-a-sure-thing" earnings, you can stop reading now. I understand.
Living Accommodations/Monthly Expenses-
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$0.00- 2011 Travel Trailer - paid off
$455- lot rent
$15- insurance/registration ($115 annual insurance/ $65 annual registration)
$35- electricity (averaged on the high side)
$20- TT maintenance/repair(I can fix anything myself, so repairs would be material cost only)
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$525- Total Monthly Housing ($6300 annual)
Vehicle Expenses- Annual
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$0.00- 2011 Ram Pickup - paid off
$1080- insurance/registration
$300- maintenance
$1200- fuel(amount = 5000 miles @ $3.50 per gallon @ ~ 15mpg-- or $0.25 fuel cost per mile)
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$2580- Total Annual Vehicle Expense
or
$215- monthly vehicle expense
or
$115- monthly vehicle expense PLUS $0.25 per mile driven(fuel cost)
Other Expenses- Monthly
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$210- Health and Long Term Care Ins. Premiums
$250- Health Ins. Deductible ($3k to have on hand if needed, invested in HSA account)
$90- cell phone($30 monthly) and internet($60 per month, locked in for two years)
$90- 10x10 storage unit (I know, I know- too much shit- I'm in the process of a great sell-off)
$200- food/misc grocery store stuff (estimated high, but I entertain and get drunk occassionally)
$10- clothing (I'm set with shoes/clothes for at least a year)
$25- fun/hobbies (maybe extra drinking money, if needed)
$15- laundry (could wash in a bucket and dry on a line for $0, but I don't think I will)
$20- propane for cooking
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$910 -- Total Other per Month
Total of all expenses
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$525+$215+$910= $1685 (assuming 5000 miles driven-I bike a lot so could be less)
Now, for the positive side:
~Annual Income, after taxes-
$12k- business income
$32k- job income (the potential job I mentioned above)
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$44,000 net annual
or
$3,650 net monthly
Investments:
$13.3k standard IRA account investments
$3.8k individual investment account
$15k cash in bank
$100k share of co-owned vacant property (listed for sale, but might take forever to find a buyer)
$20k- small pot of gold and silver
Debt:
---
None
Available Credit if needed:
---
$4k LOC
$15k CC
$4k Lowes, Home Depot credit
Credit score:
~800
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So, that's about it. This is my future as I see it.
Currently Invested:
$17k (not counting cash on hand, precious metals here- emergency/hedge stash)
(if/when property sells, I will invest total and redetermine FI date)
Monthly Contribution to IRA, 401k, HSA, and Individual Brokerage Account:
$1985
Plugged into Calculator:
$17k + $1985 monthly addition @ 8% annual return = $400k in 10 years.
A 4% SWR = $16k per year
Social Security will be ~ $2k per month, $24k per year
$40k per year will be living high on the hog for me, so if my calcs are on the money (ha ha) I will be OK.
But....
I would also like to buy a small acreage- more than 2, less than 10- that might have an existing mobile home or fixer upper house in place, or will be completely vacant, in which case I will build a "Tiny House" for myself, or to possibly rent while I live in my TT on the property. To buy the property I guess I could buy with a cash down payment, then use the $455 monthly lot rent as payments. Or I could use funds from the property sale, whenever that happens, and buy it with cash.
Actually, I think it would be cool to create a "Tiny Farm" enclave, with three or four small houses, each on a couple of acres that could be rented out to Tiny Minded Mustachians. And by Tiny Minded, I mean people with an awareness of creating a tiny footprint, using tiny amounts of resources, spending a tiny amount of money, etc. It's a good kind of Tiny Minded, not the bad kind.
And just so you know, I plan to live in my TT for as long as I can, but need to think about the day I'll be less physically able to care for myself. I might be better off in a stick house someday before I get stuck in the rest home. LOL. But I've got that covered with my LTC insurance. That's one of the smart moves I made, hanging on to a company LTC plan. It's $75 per month now, and only rises if I agree to the higher coverage. Currently it will cover something like 5 years or $500k rest home costs. Hopefully I'll just fall dead while riding my bike (or something more fun) someday and not end up using it, but the quick exit doesn't always happen.
OK, that's my story. Any thoughts?