The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Basher51 on October 26, 2020, 09:52:34 AM
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I am in a position where I am uncertain how to proceed. I could take a sizable sum of money and pay off a real estate portfolio except for 1 rental (perhaps 2) and all my other bills with exception of taxes, utilities, phone bill ect. This would allow me to retire 17 years early. My younger wife would continue to work part-time for medical.
In this scenario we would bring in about $700.00 More a month than we do now and have a small 6 figure income during retirement. We would transfer my small work 401k to something like VTSAX, Keep around 100k in the bank.
I have good corporate job from a well-known fortune 1000. I get paid well, have stupid amounts of vacation, and the benefits are adequate. However, I have been working my rear off since age 15. When is enough, enough?
My accountant is not a fan of paying off my real estate, but I don’t fully understand why. Through Phone conversations, neither are financial advisors. – I fear they just want a donkey to make them money.
I just finished the Simple path to wealth. If I keep all my money in the Market, I will need to slowly pare down the real estate if at all but cannot retire. If Collins is right, the Money will make more in the Market @ 10-12% (estimated) vs the Known 8.6% that I see feel and calculate today from my real estate.
The big hitch: It seems to take more money in the Market to retire than it does in real estate. I cannot seem to escape that fact.
“A bird in the Hand is better than 2 in the bush” – Grandad always said that. This seems like a no brainer to me and I should just go for it. I can always open a metaphorical shop later should I get bored. Not wanting to be a fool, I will sit down with financial advisor to see if there are things I failed to consider.
Thoughts?
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I think you're going to have to post more details to get any real feedback. How much money/investments do you have in each account? What is the total value (if you sold today), remaining mortgage, interest rate, and monthly rent of each rental? What are your total expenses (broken down by category if you want people to suggest cuts)?
There are lots of people around here using real estate to retire early, but it doesn't seem like you're giving them enough information to go on.
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Agree with terran. We need more information to help. Please take a look at the amount of detail in other case studies. You might want to pay particular attention to costs, such as financial advisors. That might be a place where you can make a quick change for significant savings!
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Another idea in case it’s helpful: might you ask your employer to go part time or to become a consultant or to get a golden parachute? Depending on your relationship w your boss and the needs of the company, might they offer something?