I am on the path to financial freedom and a different form of early retirement. Today I have paid off my student loans! That means it is time to get serious with my life goals, and it isn't a goal until you share it with others.
I am ready to take the next step towards moving to Kaluia Kona and operating a small organic coffee farm. This is not a pie in the sky as I have connections there and would have work in some fashion, as well as a temporary place to stay while I build our Yurt on the land we purchase.
I have set this goal to be in 4-7 years or sooner if at all possible! I am really struggling with how to invest/save/hoard the money I have coming in now. Here are the relevant details. I am including the data but you can skip down if you would like.
I am 28, my wife is 23.
Income
2200 - Primary job take home pay, (currently 15% into retirement matched at 5% ~$670 into 401k/mo)
1175 - Small business/second job take home pay
400 - PT job doing books for small business
950 - Rental property income
$4,675 Take home pay
Expenses
400 - Grocery for 2
60 - Cell phone for 2 Republic Wireless
1300 - First Mortgage, taxes, insurance on primary residence
120 - Health Insurance for 2 HSA
40 - Internet
10 - Netflix
100 - Second Mortgage on Rental (interest only)
600 - First Mortgage on Rental ($150 a week)
0 - Utilities (not paid by me)
150 - Pocket money, lunches, Misc
40 - pets
400 - deposit into HSA
$3,220 - Total expenses
Assets
$150,000 - House
$80,000 - Rental
$1,000 - HSA
$5,000 - IRA
$6,500 - ROTH IRA
$5,000 - 401k
$247,500 - Total Assets
Liabilities
$111,000 - Mortgage on home, 15 year 4.25%
$53,000 - Mortgage on Rental, 10 year 3.25%
$27,000 - second on rental , 5 year interest only 4.75%
0 - Student loans as of TODAY!
$191,000 - Total Liabilities
$56,500 - About what I'm worth today
All of that information to say that I have about $1,500 extra every month above my current savings (400 in HSA and 600 in 401). What would be the best approach knowing that I want to make a major life change in the next 4-7 years? I travel to HI once a year for work and have priced out what I want and I can estimate it will cost anywhere from 200-300k to make the move safely, but I welcome anyone with realistic advice on this. Does it make sense to just invest in a ROTH IRA and then put the rest in taxable accounts so I can get it easily? Is it better to continue to invest in the 401k above the ROTH? Aggressively pay off the mortgages? I welcome any input.
As far as the goal. We want to live on a few acres at elevation on the big island, working small jobs and farming boutique coffee. We would build a self sustained Yurt off the grid. I estimate the cost for the Yurt to be $55,000, fully furnished. The land......that can go anywhere from 50k-400k, there is a huge savings since we are going self sustaining we don't need to be connected to utilities.
I am on these forums everyday and respect the different opinions here, so please, everything is welcome. What would you do to make this happen?
Thank you all so much for always finding new ways to motivate.