I just wanted to start off by saying thank you all for taking the time to give my your advice. First off I have read MMM articles back to front and yes, I knew about how MMM felt about cars. But I already had both with one paid off. Yes I knew I would catch some criticism, but wow I must say, MMM really taught you guys well. You just don't let up on me. I figured after reading the article about cars that the damage was done already. But you guys have shown me the light. I will ditch the ML350 for something more economical.
As for the commute. Well that is just life folks. I live in NY. I moved upstate to escape the HIGH taxes and shitty schools for my kids. My taxes are a fraction of most peoples. If I move close to my job. Well I would not only NOT be able to afford a house in that area, I would definitely not pay those taxes.
Now as for the 6 year wait. Im also waiting six years because I want to put myself in a better place financially for FI. Every year, for six years I will get two things from my job, a cash bonus and stock incentive. Each year I will get at least $40,000 cash and $50,000 in stock. If I leave now I will be walking away from $240,000 in cash and $300,000 in stock incentive. If I pay my mortgage off I will also be able to contribute at least $3,500 a month to my vanguard account. Over six years that would be $252,000 I will contribute to my vanguard. So, if I leave now, I will be walking away from at least $792,000. And no, I will not find a job in GA that would could come close to paying me this. Yes I stepped in a big huge pile of dog poop when I got hired at this job. But again, I could use the extra cash from paying my mortgage off to buy the house in GA now, but if I put it into the Vanguard it will GROW. But if I wait the prices in GA for a home will go up. See the dilemma
EscolegroveI'm bias because I love rentals and they are a very important part to our early retirement plan! That being said, are you comfortable with leverage. If so, what about buying your future house in Georgia as a rental now? This way you have 6 years of someone else paying off your principle, locking in a low mortgage and price rate?
Thats exactly what I was wondering. But then could I make MORE money by putting this cash into my Vanguard account or buying another home?
Setters-rBetterSo about 1.1 million in assets if you liquidate home and stocks? Is that how much you want? I think set some goals with your wife, decide what you want your retirement picture to look like, and then work together to get there. With your income and 6 year time table you can get lots done. I wouldn't move the kids either.
Im not sure how much I want. More I guess. Im a graphic designer, I'm creative but I suck at numbers. I figure get at least $500,000 into my Vanguard account for FI and I should be good then with all the other money when I retire.
ZootsTwinJust a thought from a current resident of Georgia and native Tennesseean: if you like the mountains, check out eastern Tennessee in addition to north Georgia. TN has no state income tax, whereas GA does.
Never been to TN. We love the Blue Mountains but might have to make a trip to check it out.
ThegoblinchiefNC is too far from FL. We have family in FL that we visit and in GA it would't be too far of a drive. Also any state I move to MUST be a shall issue state. I am full believer of your
first second Amendment Right.
I will have to check int the state college systems.
You say you spend $600 a month. I don't know where you live but NY is an expensive state. And yes we eat almost all organic. We even have chickens.
The heating cost this year and last year have been high. Last year and this year are wicked cold. We are well below average. This Saturday we will be -10 without the windchill and -20 to -30 with the windchill. I just put new windows in last February which are helping alot this year. I am definitely not burning through pellets as much as last year. My house is 3200 square feet. I have done alot of work (myself) on my home. New windows, new efficient boiler, solar panels (just put in last June).
To give you a frame of reference, I would be FI (actually, almost 1.5x) TODAY with your asset sheet. Obviously, everyone's vision of retirement is different, but I'd start mocking up a retirement budget now.
Is your side hustle just for cash, or is it a fun pursuit? Because the way I see it, you're FI right now. If the side business is fun and something you want to continue in retirement, use that to cover part of the living expenses.
Maybe real estate down there has changed a bunch since I've traveled (been a few years), but you should be able to find a nice, modest house for far less than your $350K max budget.
How do you figure that!?!?! How could you be FI on what I have today.
My side business is not cash. Its online and is Inc. I am currently working on expanding the business so I will have more income going forward, when I reach FI and when I retire. I recently started selling on Amazon and so far it is growing very nicely.
The homes I have looked at are new homes. I have done my share of renovations. I did alot to the house I own and the next one I just want finished. Must be in the mountains with views. Like I said $350,000 was my max.
Numbers ManIm not worried about the kids staying in NY. My kids HATE cold and LOVE the ocean. As mentioned above, we have family in FL and both of my kids want to go their. Both kids want to become marine biologists (now you know whey I need to save so much) and FL has alot of marine animals.
FrugalSpendthiftCurrent Expenses:
Mortgage: $1993 a month - approximately $22,000 left on mortgage - I have the $22,0000 to pay it off just not sure if I should do this yet (tax purposes?!?!).
If this is what you are second guessing, then just calculate how much tax it saves each year. With the balance being so low, you probably aren't paying much interest at all, so the amount that you are deducting is probably very minimal. The simplicity and freedom of not having a mortgage might be more valuable than the tax deduction.
Thats what I thougt. I used an online calc but now Im confused because of what "So Close" stated.
So Close My rate is 4.5%
The side business is tattoo aftercare products. I think if I did a Roth it would have to be a backdoor Roth. No my company does not offer a deferred compensation plan. I read about the HSA on either this site or Jlcollins site. Yes, thank god we are all healthy.
4alpacsI'm not sure of your complete tax situation, but I would highly recommend contributing to a Roth IRA. You'll have to do a backdoor Roth.
yes that is what I was thinking. I have to look into it.
MishMashHoly sh@$t. I did not know that. That is very very tempting. But again, if I leave now I will be walking away from at least $792,000.
MrsPete,Cars yes, my house, not at all. My home is my investment. The value of $450,000 to $500,000 is the market value. I am being modest with the cost. I know if I go to sell it I would get alot more. I did all the work in my house but it has ALL custom moulding throughout, built-ins, two trex decks, completely finished basement with full bathroom and brazilian coa hardwood floors. Many people invest in the stock market, since I suck with numbers but am very talented wood and home improvements I got a great deal on my home and improved it so when I sell it I would be able to by my retirement home and have cash left over. By the way, I live in upstate NY, I live in a middle class area. The prestige area is 2 miles away. Those homes start at 1.2 million.
You are correct. The kids are not in college. The little one will start college in six years. My kids go to school in NY. Part of the reason we choose the part of NY we are in is because of the low tax and exceptional schools. The school my kids are in are in the top 5 best schools in the country. Like I mentioned above, I really like the sound of a scholorship. Both my kids have an A average, but again I would be walking away from at least $792,000.
NinjaneerThank you, I have been saving like a crazyman paying down my mortgage. Gonna get rid of the ML but gonna keep the c-class. Its been paid for, it has AWD which I need in the winter and my buddy is a merc mechanic. Anything does wrong he fixes it for me. I know I know, get an economy car for the gas saving.
Mary W
Again, that is what i was thinking.