Author Topic: Help me get on right path  (Read 14290 times)

kd2008

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Help me get on right path
« on: October 23, 2012, 06:30:58 PM »
Hi, This is an awesome community with a real badass mission. I would like your help in getting me on track or letting me know if I am on track.

Age: 31yrs, male, single
Income: $89K/yr

Retirement savings: $83K in 401k, $33K in Roth, $67K in taxable account = $183K

Emergency funds: $17K (10 month)

Housing: Fully paid condo.

Debt: Auto @ 0%, 4 yrs remaining

Expenses (annual basis):

Condo fees+ property taxes+insurance = $2.8K
Utilities (Electricity+Internet+Cell phone) = $2.2K
Food    (groceries, household items, eating out) = $6K
Auto   Payment = $3.6K
Gas & auto Insurance = $2K
Travel & Misc donations, gifts, hobbies = $4K
Total    = $20.6K

Do you think early retirement is possible for me? If so, when? Can I optimize my expenses further?

I like my job. But I would like more time off to pursue volunteering for my local community & travel. I could take 1 or 2 weeks of unpaid leave on top of my vacation. But I would like to maximize my financial footing before I starting doing that.

Thank you for your help.

Honest Abe

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Re: Help me get on right path
« Reply #1 on: October 23, 2012, 06:37:13 PM »
Dunno, man.. looks like you're doing great to me! :)

nealashley

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Re: Help me get on right path
« Reply #2 on: October 23, 2012, 06:48:52 PM »
Congratulations on being in such a good position.

Once the auto payment is gone, looks like your annual living
expenses are going to be only 17K/year. Using the standard
safe withdrawal rate of 4% (this could be debated and has),
you'd realistically be looking at early retirement with 425,000.

Now, about 60% of your cash savings are tied up in retirement
plans. If you could manage to save 70,000 of your income over
the next five years in taxable accounts, you would roughly have
the amount you need. Add the investments returns and you would
be looking pretty.

This also assumes you're lifestyle doesn't change much like getting
married and such. Either way, I think you're in a damn fine position
and definitely think early retirement is possible for you.

Neal

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Re: Help me get on right path
« Reply #3 on: October 24, 2012, 06:20:52 AM »
If you punch the numbers you have supplied into the networthify calculator http://networthify.com/earlyretirement#, you get a great result ie according to the calculator you could retire in 3.7 years assuming a 4% withdrawl  rate and 5% return on your investments.

BUT

This assumes 89k is your NET salary and 20k is ALL your expenses ie you SAVE 69k a year, and you will continue to live on 20k expenses ( or less but not more). If these assumptions are correct  and sustainable you have  magnificent savings rate of around 78%, well done!

The other issue is to consider at what age  you can access your money in Roth/401? One of the experienced Americans I'm sure will come by and clarify this. If you can't access that proportion of funds until  59 or so, you need to make sure the remainder of your stache will last til then.

Spend some time having fun plugging figures into the calculator. If you read the MMM blog you'll also find a few other calculators people around here also use.  The more you play around changing variables, the better feel you will get about what's possible and what you are comfortable with. On the face of it you look like your going great. But the right answer is different for everyone.. for example some people prefer to use a 3% withdrawl rate rather than a 4% giving them an extra safety margin.




kd2008

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Re: Help me get on right path
« Reply #4 on: October 25, 2012, 12:46:16 PM »
Thanks for the feedback. The 89K is gross pay. The net is $69K of which $17K goes to 401k, $5K to Roth, $8K to taxable account, about ~$21K is spent and the rest is banked.

Out of the $21K I spent last year, I spent $14.5K using credit cards - paid in full before due date. My average cash back on that spending was about 3.75%. Do you folks have suggestions for increasing this? I use Amex Blue Cash Preferred and Chase Freedom. I am think of Discover More and US Bank Cash+ in addition.

kd2008

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Re: Help me get on right path
« Reply #5 on: October 29, 2013, 06:57:18 PM »
Hey guys,

It has been a year since I wrote. Just to give you an update:

Age: 32yrs, male, single
Income: $108K/yr; post tax it is 81K/yr

Retirement savings: $115K in 401k, $50K in Roth, $99K in taxable account = $264K

Emergency funds: $13K (7 month)

Housing: Fully paid condo.

Debt: Auto @ 0%, 3 yrs remaining

Expenses (annual basis):

Total    = $20.6K same as last year.

Getting closer to my goal.

Thanks for the encouragement. May be in another 4 yrs ready to pull trigger?

theSchmett

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Re: Help me get on right path
« Reply #6 on: October 29, 2013, 07:19:22 PM »
Congrats on the raise!

What did you ever decide on the rewards cards? I realized I was doing lazy, sloppy, silly math putting everything on my Discover (1% or higher promo rates).

Thinking about the Amex Blue Cash for the 6% on groceries, and I think 3% on gas? Easily our two largest expenditures we can put on cards.

If only there was a card that gave us 5% back on DAYCARE.

kd2008

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Re: Help me get on right path
« Reply #7 on: October 29, 2013, 07:26:28 PM »
I have them all - Amex Blue cash preferred, Discover More, Chase freedom. Between all of them, I mostly earning 3 to 4% back.

kd2008

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Re: Help me get on right path
« Reply #8 on: October 02, 2014, 08:28:23 PM »
Yearly update:

Age: 33yrs, male, single
Income: $110K/yr <--- Not growing as fast as I would like, but  can't complain.

Retirement savings: $143K in 401k, $60K in Roth, $122K in taxable account = $325K <--- Hopefully on right track. What do you think?

Emergency funds: $7K (4 month)

Housing: Fully paid condo.

Debt: Auto @ 0%, 2 yrs remaining

Expenses (annual basis):

Condo fees+ property taxes+insurance = $2.8K
Utilities (Electricity+Internet+Cell phone) = $2.2K <--- May go down by $0.6K  next year due to cheaper cell phone plan
Food    (groceries, household items, eating out) = $6K <------- This may blow up to $7K next year. I like pay for friends groceries when we get together and cook, drink & be merry. I don't mind as it is not any thing extravagant but it brings me a lot of joy.
Auto   Payment = $3.6K
Gas & auto Insurance = $2K
Travel & Misc donations, gifts, hobbies = $4K <--- May end up $6.2K this year as I have had an international trip, yellowstone trip, new york city trip so far, booked another international trip for November, plus two more short vacations in the US before the year ends.
Total    = $20.6K <--- Probably be $23K this year and next year as well.


kd2008

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Re: Help me get on right path
« Reply #9 on: September 30, 2015, 05:07:19 AM »
Time for yearly update!

Age: 34yrs, male, single
Income: $112K/yr <--- Not growing as fast as I would like, but  can't complain.

Retirement savings: $159K in 401k, $64K in Roth, $146K in taxable account = $369K <--- Hopefully on right track. What do you think? Lot lower in past few months. Investing more spare cash.

Emergency funds: $12K (8 month)

Housing: Fully paid condo.

Debt: Auto @ 0%, 1 yrs remaining

Expenses (annual basis):

Condo fees+ property taxes+insurance = $2.8K
Utilities (Electricity+Internet+Cell phone) = $0.6K <--- No internet, just use my cell phone for it
Food    (groceries, household items, eating out) = $5.6K <--- Less than I thought it would be, great time with friends & family, lots of merry!
Auto   Payment = $3.6K
Gas & auto Insurance & routine maintenance = $2.2K
Travel  = $2K <--- Less than usual expense but more than usual travel, thank you credit card rewards
Gifts & donations = $1.5K <--- More than usual and feeling good about it
Health & fitness = $0.8K <--- Swim lessons, gym, doc visits, meds etc, Have a fitter body to show for it.
Shopping, entertainment & personal care = $0.9K <-- Good old splurging, LOL!

Total = $20K <--- Less than budgeted. Woohoo! Still a lot of fat to cut. Slowly working it up. May not trim it all since want to align spending with my values that means food, travel & gifts will mostly be where they are!
« Last Edit: September 30, 2015, 05:13:24 AM by kd2008 »

Killerbrandt

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Re: Help me get on right path
« Reply #10 on: September 30, 2015, 07:59:47 AM »
I love these updates!! Keep up the good work!

Easye418

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Re: Help me get on right path
« Reply #11 on: September 30, 2015, 08:28:28 AM »
You are doing great in my eyes for the life you chose. 

Good salary, no family expenses, and no mortgage. 

You won.  Congrats. 

I have no idea the calculation, but I think if you stay at your current salary and savings rate, you should be able to retire within the next 6-10 years if you wanted too.



mozar

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Re: Help me get on right path
« Reply #12 on: September 30, 2015, 11:03:03 AM »
If you are saving 5k a month you could retire in less than 2 years.

kd2008

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Re: Help me get on right path
« Reply #13 on: September 30, 2015, 12:39:38 PM »
If you are saving 5k a month you could retire in less than 2 years.

I have not made up my mind about retiring just yet :)

I hope to be financially independent so that I can pursue opportunities without considering a paycheck. I like what I do for a living. I just would like to be more of a boss of my time - independent contracting of work I like or more unpaid weeks off or whatever else that I may fancy.

But yes, most calculators show that FI could be had in 2 years if the bottom does not fall out of the market.

nereo

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Re: Help me get on right path
« Reply #14 on: September 30, 2015, 01:59:12 PM »
Income: $112K/yr <--- Not growing as fast as I would like, but  can't complain.

Retirement savings: $159K in 401k, $64K in Roth, $146K in taxable account = $369K

Emergency funds: $12K (8 month)



Expenses (annual basis):

Condo fees+ property taxes+insurance = $2.8K
Utilities (Electricity+Internet+Cell phone) = $0.6K <--- No internet, just use my cell phone for it
Food    (groceries, household items, eating out) = $5.6K <--- Less than I thought it would be, great time with friends & family, lots of merry!
Auto   Payment = $3.6K
Gas & auto Insurance & routine maintenance = $2.2K

Overall you seem to be in fantastic shape financially.  You have not specified how much you are putting into your 401(k) and IRA accounts. I'm guessing (hoping) you are maxing them both out?  Likewise, what is the equity in your paid-off condo? 

A few things you might want to consider - at your salary you almost certainly would do better putting money in a traditional IRA account and then converting it once you stop working. 

You are also a prime candidate for doing a mega backdoor roth.  You can put up to $53k into your 401(k) account annually (combined employer and personal contributions) - with $18k of your contributions being tax advantaged that year. 

I would argue that you already have a high degree of FI.  Your expenses are low and your savings are high - you would not need to work much in order to stay in the black.

I question why you would want an 8mo emergency fund with such low expenses, a paid-off condo and so many assets.  Currently you are sitting on 3.25% cash, which is a lot.

overall very well done.

kd2008

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Re: Help me get on right path
« Reply #15 on: September 30, 2015, 02:06:47 PM »
Overall you seem to be in fantastic shape financially.  You have not specified how much you are putting into your 401(k) and IRA accounts. I'm guessing (hoping) you are maxing them both out?  Likewise, what is the equity in your paid-off condo? 

A few things you might want to consider - at your salary you almost certainly would do better putting money in a traditional IRA account and then converting it once you stop working. 

You are also a prime candidate for doing a mega backdoor roth.  You can put up to $53k into your 401(k) account annually (combined employer and personal contributions) - with $18k of your contributions being tax advantaged that year. 

I would argue that you already have a high degree of FI.  Your expenses are low and your savings are high - you would not need to work much in order to stay in the black.

I question why you would want an 8mo emergency fund with such low expenses, a paid-off condo and so many assets.  Currently you are sitting on 3.25% cash, which is a lot.

overall very well done.

Thank you for the encouragement.

Yes, I max out 401k and Roth IRA. Mega back door Roth option is not available for me at my employer.  Emergency fund is just that - for emergencies. I have seen lot of unexpected stuff come up for friends and family. So a larger emergency fund is something I am comfortable with. It is earning 1.5% interest in my rewards checking account so there is something to show for it.

nereo

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Re: Help me get on right path
« Reply #16 on: September 30, 2015, 02:21:46 PM »

Thank you for the encouragement.

Yes, I max out 401k and Roth IRA. Mega back door Roth option is not available for me at my employer.  Emergency fund is just that - for emergencies. I have seen lot of unexpected stuff come up for friends and family. So a larger emergency fund is something I am comfortable with. It is earning 1.5% interest in my rewards checking account so there is something to show for it.

I'd push your employer about not being able to contribute more of your own money - it costs your employer nothing additional and could potentially save you tens of thousands down the road.  Sometimes some persistence with the HR department is all that's needed - since they almost never see people who want to do this it' often uncharted territory for them as well.

Also, still not sure why you'd choose a ROTH over the tIRA at your income level.  You've got 7x current annual expenses in your taxable account so no worries there.

now it's primarily up to Mr Market.  You certainly certainly hit full FI in less than 2 years. Since you have so much saved up relative to your expenes you certainly could start taking jobs based on what you want to do and allow your savings to 'coast' the remaining ~14% until you have enough to never work again.

kd2008

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Re: Help me get on right path
« Reply #17 on: September 30, 2015, 03:10:34 PM »

I'd push your employer about not being able to contribute more of your own money - it costs your employer nothing additional and could potentially save you tens of thousands down the road.  Sometimes some persistence with the HR department is all that's needed - since they almost never see people who want to do this it' often uncharted territory for them as well.

Also, still not sure why you'd choose a ROTH over the tIRA at your income level.  You've got 7x current annual expenses in your taxable account so no worries there.

now it's primarily up to Mr Market.  You certainly certainly hit full FI in less than 2 years. Since you have so much saved up relative to your expenes you certainly could start taking jobs based on what you want to do and allow your savings to 'coast' the remaining ~14% until you have enough to never work again.

Yes, I have talked to my employer about it. I am on the 401k committee for my company etc. They may consider it at the end of the year. You have to build good will slowly for such changes and have a buy-in from management. They do not want the plan to be top heavy etc.

tIRA is nondeductible for me so why would I contribute to it? With Roth my earnings grow tax free. Also if I were to do mega backdoor Roth later then, having tIRA will be an issue.

Yes, I know that I could start taking jobs based on what I want to do. But there are external factors like immigration and other things that need to sort themselves out for me to have complete freedom. My current gig allows me to learn a lot of new things so ok with it for now.
« Last Edit: September 30, 2015, 03:14:46 PM by kd2008 »

nereo

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Re: Help me get on right path
« Reply #18 on: October 01, 2015, 08:26:47 AM »

tIRA is nondeductible for me so why would I contribute to it? With Roth my earnings grow tax free. Also if I were to do mega backdoor Roth later then, having tIRA will be an issue.

Sorry - I mistakenly thought you were married filing jointly.  You are correct if you are filing single.
Not sure what you mean about a tIRA being an issue when doing a mega backdoor ROTH (you can have both), but since your employer won't allow larger contributions it's a mute point.

see you next year!  You are on a great track so far.

kd2008

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Re: Help me get on right path
« Reply #19 on: April 01, 2016, 09:28:57 AM »
So, as I am getting close to FI, I decided on posting every 6 months instead of annually.

Age: 34yrs, male, single
Income: $115K/yr <--- Not growing as fast as I would like, but  can't complain.

Retirement savings: $181K in 401k, $73K in Roth, $173K in taxable account = $427K

Emergency funds: $9K (6 month)

Housing: Fully paid condo.

Debt: Auto @ 0%, 5 months remaining

Expenses (annual basis): Coming close to $21.6K this year. My car loan gets paid off in 5 months so that should help reduce it by $1.2K by year end and $3.6K every year after that as long as I  do not buy another one. We will see.
« Last Edit: April 01, 2016, 09:31:13 AM by kd2008 »

AZDude

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Re: Help me get on right path
« Reply #20 on: April 01, 2016, 09:53:52 AM »
Damn, I'm envious. You are doing great. FIRE is getting closer and closer.

What are your plans post-FIRE, not that it is close enough that you can see the finish line?

kd2008

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Re: Help me get on right path
« Reply #21 on: April 01, 2016, 10:50:35 AM »
My employer is getting acquired. So I am in for a big change. I work in a small satellite office. There is chatter about moving us eventually. I hope they don't get rid of us. All this I believe will flow into my thinking about my next steps. I like what I do. But I am also at the top of my current level - this is as high as I can go in my my current setting. If I can negotiate greater autonomy for my work I may continue it. 

So basically nothing drastic. The way I see it your career is your biggest financial asset, worth millions of dollars. If you take the right steps, you can make it worth millions more. Just because you are FI, does not mean you have to RE. I am hoping to use FI to generate more autonomy for me.

kd2008

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Re: Help me get on right path
« Reply #22 on: June 09, 2016, 09:49:52 AM »
Update to record a milestone ...

Age: 35yrs, male, single
Income: $115K/yr

Retirement savings: $191K in 401k, $77K in Roth, $183K in taxable account = $451K

Emergency funds: $13K (8 month)

Housing: Fully paid condo.

Debt: Auto @ 0%, 3 months remaining

Expenses (annual basis): Coming close to $21.6K this year. After my car loan drops off about $18K

$18K/$451 ~ 4% Woohoo! It feels good.

Incidentally, a company evaluator is showing up on Monday to decide if our office stays or closes. Please send good thoughts this way.
« Last Edit: June 09, 2016, 09:56:17 AM by kd2008 »

nereo

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Re: Help me get on right path
« Reply #23 on: June 09, 2016, 10:02:49 AM »

Incidentally, a company evaluator is showing up on Monday to decide if our office stays or closes. Please send good thoughts this way.

Best wishes with the job search.  Regardless of what happens you are in a very solid financial position.

Quote
$18K/$451 > 4% Woohoo! It feels good.
I think you meant $18k/$451 < 4% (3.99%). 
Congratulation on having 'won the game'.  Going forward you only need to work if you want to.  Alternatively, work enough to meet expenses (~$20k) and let your 'stache grow via the magic of compounding interest.  Or keep working another couple of years to drop your WR even further (but beware of "OMY syndrome). It's up to you!

kd2008

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Re: Help me get on right path
« Reply #24 on: June 09, 2016, 10:09:44 AM »

I think you meant $18k/$451 < 4% (3.99%). 
Congratulation on having 'won the game'.  Going forward you only need to work if you want to.  Alternatively, work enough to meet expenses (~$20k) and let your 'stache grow via the magic of compounding interest.  Or keep working another couple of years to drop your WR even further (but beware of "OMY syndrome). It's up to you!

Yes, that correct. Too much excitement. Thank you for your wishes. Yes, I would like to work a few more years to get the WR down a bit. Oh yes, thank you also for reminding of the OMY syndrome.

tarheeldan

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Re: Help me get on right path
« Reply #25 on: June 09, 2016, 10:22:12 AM »
Update to record a milestone ...

$18K/$451 ~ 4% Woohoo! It feels good.


Congratulations and good luck!

kd2008

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Re: Help me get on right path
« Reply #26 on: August 22, 2016, 02:12:39 PM »
Update ...

Age: 35yrs, male, single
Income: $115K/yr

Retirement savings: $198K in 401k, $80K in Roth, $203K in taxable account = $481K

Emergency funds: $11K (7 month)

Housing: Fully paid condo and CAR - paid it off!

Debt: ZERO!

Expenses (annual basis): 18K

18/481 = 3.74% < 4% all smiles....

FLBiker

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Re: Help me get on right path
« Reply #27 on: August 22, 2016, 02:30:09 PM »
Very cool!  It was interesting to follow your journey on this thread.

Also, I enjoyed the networthify calculator.  Apparently, I'm closer to FIRE than I thought... :)

PARedbeard

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Re: Help me get on right path
« Reply #28 on: August 22, 2016, 02:45:53 PM »
Congrats! Debt free, low expenses AND 450+K? Fantastic!

Lunasol

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Re: Help me get on right path
« Reply #29 on: August 22, 2016, 02:54:33 PM »
Wow well done!! :):)

kd2008

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Re: Help me get on right path
« Reply #30 on: January 03, 2017, 09:20:47 AM »
Update at start of 2017...

Age: 35yrs, male, single
Income: $118.5K/yr

Retirement savings: $207K in 401k, $85K in Roth, $216K in taxable account = $508K

Emergency funds: $10K (7 month)

Housing: Fully paid condo and car

Debt: ZERO!

Expenses (annual basis): 18K if I travel as planned, may shoot for $16K this year if I travel only some of the trips.

18/508 = 3.54% < 4% all smiles....
« Last Edit: January 03, 2017, 09:23:06 AM by kd2008 »

nereo

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Re: Help me get on right path
« Reply #31 on: January 03, 2017, 09:29:15 AM »
Congrats - sounds like you've made it!
Are you planning on pulling the plug in 2017?  At this point you can pad your savings a bit to cover some future unexpected and very large expense, but with a $10k E-fund you've largely already accounted for this (i.e. it's not included in your 3.5% WR).

Go forward knowing that you work only because you want to, not because you need to.

kd2008

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Re: Help me get on right path
« Reply #32 on: January 03, 2017, 09:36:29 AM »
Thank you for the kind words. I do plan on continuing on for the near future. Simply because I do not know what ACA repeal may bring for near term and long term. I know that will affect my preparedness. For now the work is not bothersome.

Livingthedream55

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Re: Help me get on right path
« Reply #33 on: January 03, 2017, 09:45:49 AM »
WOW! Way to go! Congratulations on this - please do keep us posted. I love reading your updates.

kd2008

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Re: Help me get on right path
« Reply #34 on: June 22, 2017, 06:42:57 AM »
Update at mid 2017...

Age: 36yrs, male, single
Income: $118.5K/yr

Retirement savings: $238K in 401k, $96K in Roth, $260K in taxable account = $594K

Emergency funds: $6K (4 month)

Housing: Fully paid condo and car

Debt: ZERO!

Expenses (annual basis): Bumping up to 22.6K - to include more food, more travel, healthcare expenses if ER, will bump up further to account for taxes in ER later (minimal amount). 

22.6/594 = 3.8%

Guide2003

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Re: Help me get on right path
« Reply #35 on: June 22, 2017, 10:32:02 PM »
Wow really impressive. Do you anticipate spouse/kids?

dreams_and_discoveries

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Re: Help me get on right path
« Reply #36 on: June 23, 2017, 01:15:29 AM »
Congratulations, you are officially FI.


So what's next then kd?


former player

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Re: Help me get on right path
« Reply #37 on: June 23, 2017, 01:48:56 AM »
Nice progression over this thread: congratulations.

As long as work is OK, and there are other things going on in your life that meet your goals, will you continue as is?   That gap between income and expenditure is one of the most impressive I've seen on this forum.

Although you are FI, your budget looks a bit bare bones as is (not sure if you are accounting for future capital costs, eg replacement vehicle, computer and appliances, or extra expense on the condo).  If it fits your goals, you could also look at working fewer hours.

kd2008

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Re: Help me get on right path
« Reply #38 on: June 23, 2017, 07:48:51 AM »
Wow really impressive. Do you anticipate spouse/kids?

Thank you for the kinds words. Spouse, in future, yes, hopefully. Kids, no. My beau is on track to retire in 6 years. Both of us sooner if we end up combining finances. But that is not on cards today.

Congratulations, you are officially FI.


So what's next then kd?



Thanks. I want to continue working. I want to see where the healthcare chips fall. My parents are getting older and getting a few health issues. I may need to help them out a bit, both financially and being there. So want to save up more for it.

Nice progression over this thread: congratulations.

As long as work is OK, and there are other things going on in your life that meet your goals, will you continue as is?   That gap between income and expenditure is one of the most impressive I've seen on this forum.

Although you are FI, your budget looks a bit bare bones as is (not sure if you are accounting for future capital costs, eg replacement vehicle, computer and appliances, or extra expense on the condo).  If it fits your goals, you could also look at working fewer hours.

Thanks. I appreciate the kind words. Yes, I want to continue as is for now.

Actually, the budget includes lots of fluff - travel and food and drink for merry making.

Replacement vehicle: My current car (bought new - Ph.d. graduation gift for myself) is under 6 years old and under 40 K miles. I am hoping I can keep it going for a long time. I am hoping by the time I get around to it, autonomous vehicles would have disrupted the car ownership model. It is silly to spend thousands of dollars for a car that mostly stays parked for 23.5 hrs a day for me.

computer and appliances: Last laptop I bought with cash was in 2006. Since then credit card rewards (amazon gift cards) have fueled the purchases of laptops and they all have been gifted to family. I still have my old one running. But I use tablet mostly nowadays - also didn't pay cash for it.

Appliances can be something major in future. I need to think this more. Currently cook on a 50s top-of-the line o'keefe and merritt. My beau fixes it when needed and there is nothing fancy/electronic in it. My beau also fixed the washer by buying a $10 spare part and watching a youtube video. Refrigerator is over 20 years old but has a good icemaker. New ones break down after a few years. So reluctant to replace it. Have money set aside for a new one. A/C on the condo may need to be replaced eventually as it is really old. Need to build up cash for it.

Fewer hours are not an option in my industry. More hours for the same salary are the norm.

Workload has been erratic lately after the merger with megacorp. Quiet for a few weeks, major 14-16 hours days for a few weeks. As long as I am learning something new, improving my skills, I enjoy it. Hopefully that will continue.

kd2008

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Re: Help me get on right path
« Reply #39 on: October 11, 2017, 09:18:17 AM »
Documenting 3 month update ...

Age: 36yrs, male, single
Income: $118.5K/yr

Retirement savings: $253K in 401k, $107K in Roth, $287K in taxable account = $647K

Emergency funds: $5K (4 month)

Housing: Fully paid condo and car

Debt: ZERO!

Expenses (annual basis): Bumping up to 22.6K - to include more food, more travel, healthcare expenses if ER, will bump up further to account for taxes in ER later (minimal amount).

22.6/647 = 3.5%

Cwadda

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Re: Help me get on right path
« Reply #40 on: October 11, 2017, 10:11:54 AM »
Documenting 3 month update ...

Age: 36yrs, male, single
Income: $118.5K/yr

Retirement savings: $253K in 401k, $107K in Roth, $287K in taxable account = $647K

Emergency funds: $5K (4 month)

Housing: Fully paid condo and car

Debt: ZERO!

Expenses (annual basis): Bumping up to 22.6K - to include more food, more travel, healthcare expenses if ER, will bump up further to account for taxes in ER later (minimal amount).

22.6/647 = 3.5%

It's been super interesting and encouraging to see your progress from day 1.

You've won at achieving financial life freedom.  Enjoy it!

happy

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Re: Help me get on right path
« Reply #41 on: October 12, 2017, 02:55:20 AM »
Congratulations on reaching the finishing line!  It is indeed nice to see the progression from 2012.

MrThatsDifferent

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Re: Help me get on right path
« Reply #42 on: October 12, 2017, 07:39:35 AM »
5 years! Nice. Great work!

kd2008

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Re: Help me get on right path
« Reply #43 on: October 12, 2017, 09:18:54 AM »
Thank you MrThatsDifferent, happy and Cwadda.

I am studying for the Series 65 exam to be a Registered Investment Adviser (RIA). If I pass, we will see what new avenues it opens up.

Things at work stabilize and flare up, without a long term plan so a bit jittery. But hanging in there. They say it is a norm in the megacorp where everything revolves around the next quarter.

My beau is expected to retire in 6 years. So I want to OMY till then. Hopefully, if I can get my autonomy built up as RIA, and may be make a few bucks at it, then we would be good. But it is wishful thinking for now. Ploughing ahead ...

nereo

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Re: Help me get on right path
« Reply #44 on: October 14, 2017, 08:42:18 AM »
My beau is expected to retire in 6 years. So I want to OMY till then. Hopefully, if I can get my autonomy built up as RIA, and may be make a few bucks at it, then we would be good. But it is wishful thinking for now. Ploughing ahead ...

As I (and many other people) have already said:  Congrats.  You are FI and have made incredible progress over the last year+.

One thing remains unclear to me though - what are your long-term goals, particularly now that FI has been achieved (and then some).  Your WR is already low enough to survive every modern historical economic conditions, and will likely leave you with a firehose of cash.

So where do you go from here?  Making extra bucks with an RIA is all find and dandy if oyu enjoy it, but completely unnecessary from a financial standpoint.  You've bumped up your travel budget considerably and still you have a theoretical WR of 3.5%

Money isn't the end-game... so what  is, for you?

kd2008

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Re: Help me get on right path
« Reply #45 on: October 14, 2017, 10:39:28 AM »
My beau is expected to retire in 6 years. So I want to OMY till then. Hopefully, if I can get my autonomy built up as RIA, and may be make a few bucks at it, then we would be good. But it is wishful thinking for now. Ploughing ahead ...

As I (and many other people) have already said:  Congrats.  You are FI and have made incredible progress over the last year+.

One thing remains unclear to me though - what are your long-term goals, particularly now that FI has been achieved (and then some).  Your WR is already low enough to survive every modern historical economic conditions, and will likely leave you with a firehose of cash.

So where do you go from here?  Making extra bucks with an RIA is all find and dandy if oyu enjoy it, but completely unnecessary from a financial standpoint.  You've bumped up your travel budget considerably and still you have a theoretical WR of 3.5%

Money isn't the end-game... so what  is, for you?

Thank you nereo for asking really difficult questions. It helps me evaluate my path more clearly and directly.

There are many uncertainties that I cannot gauge right now:
1. My job with all the swirling drama of the month, each month - there is not much I can do here. Thankfully, I am not bothered by it as I have been quick to understand the situation.
2. My parents - it is not clear if they may need any financial help in future or need me to come live them for a while etc. Same goes for my beau as his parents may need him. Additional savings cushion will help mitigate much of it.
3. ACA in future. This may necessitate much more additional saving depending how things shake out. My needs are low right now.
4. RIA is something of an aspiration. If I can transition to it and have fun, then great. If not, I still will feel proud of giving it a shot.
5. If I marry my beau and he is not ready to retire as he may not have saved enough, then I believe we have to jointly work together to make it happen sooner. Part of me, thinks my continuing to work may be because of this.

Part of me thinks, I am not owning up my FI yet. May be because of the uncertainties. I need to understand this better. Not owning it means I am also not looking at my next steps objectively.

Any help from this forum will be great.

kd2008

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Re: Help me get on right path
« Reply #46 on: December 26, 2017, 09:03:41 AM »
Documenting 2017 Year end update ...

Age: 36yrs
Income: $121.8K/yr (2018)

Retirement savings: $276K in 401k, $118K in Roth, $291K in taxable account = $685K

Emergency funds: $5K (4 month)

Housing: Fully paid condo and car

Debt: ZERO!

Expenses (annual basis): Bumping up to 25K - to include more food, more travel, and one time home improvement expenses. Will bump up further to account for healthcare and taxes in ER later.

25/685 = 3.65%

former player

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Re: Help me get on right path
« Reply #47 on: December 26, 2017, 12:58:05 PM »
Another great update: you really have this dialed down.

I particularly like that you are allowing some modest lifestyle inflation and can still keep within the 4% withdrawal rate that means FI  (I'm definitely not one of the hardcore ones on expenses, but I don't have to be and nor do you - it's a good position to be in).

How are you getting on with nereo's questions?  Has work settled down, and have you been able to make any progress on the RIA? (Your progress as charted here makes me think you could do a lot of good as a RIA.) 

I'm in the UK so I watch the difficulties and uncertainties of healthcare in the USA with a certain amount of detached dismay.

Imma

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Re: Help me get on right path
« Reply #48 on: December 27, 2017, 03:06:50 AM »
I just discovered this thread today, but I wanted to congratulate you on achieving FI in just a few years! I think it also says a lot of about you that you're concerned about your parents, your beau and his parents.

kd2008

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Re: Help me get on right path
« Reply #49 on: December 27, 2017, 09:56:48 AM »
I just discovered this thread today, but I wanted to congratulate you on achieving FI in just a few years! I think it also says a lot of about you that you're concerned about your parents, your beau and his parents.

Thank you for your kind words!

Another great update: you really have this dialed down.

I particularly like that you are allowing some modest lifestyle inflation and can still keep within the 4% withdrawal rate that means FI  (I'm definitely not one of the hardcore ones on expenses, but I don't have to be and nor do you - it's a good position to be in).

How are you getting on with nereo's questions?  Has work settled down, and have you been able to make any progress on the RIA? (Your progress as charted here makes me think you could do a lot of good as a RIA.) 

I'm in the UK so I watch the difficulties and uncertainties of healthcare in the USA with a certain amount of detached dismay.

Here is where I am currently with my uncertainties:

1. My job: They have put in a brand new organizational structure but with the same old failed management people. The new structure is a tad better. Thankfully, I feel that my role has transitioned to skills expertise and no longer gauged on revenue generation (which is/was out of my control anyways). This is new and in some ways scary. But it will lead to less drama at work for me personally.
2a. My parents - My goal is to communicate better with them so that our actions and plans are better aligned for the future whatever they may be. I try not to be imposing/burden with expectations etc. We have made some good progress. I have a good idea of what each parent wants if the other passes first. That has helped in planning a lot.
2b. My beau's parents - It is now a question of when and not if. He has been working really hard to get a clearer picture.
3. ACA in future - with the mandate penalty gone, cost are going to rocket higher. I am really dismayed that this has become politics rather than sound policy design. This still gives me a pause and not to ER.
4. RIA - My goal is to pass the exam. That's it. No other expectation.
5. Marrying my beau - we are aligning finances one step at a time and have done really well. Current plan w/ new tax bill but w/o marriage we will save 5K more in 2018. If we end up marrying then it will save us additional 3K. If we consolidate to a single property, it will save us another 4K. Consolidation will help us pay down his mortgage faster. With his mortgage paid off, it will save us another 5K. So there are many steps to take still. But we have made good progress in optimizing tax savings rate and taxing savings placement for retirement accounts, and I am happy about it.

« Last Edit: December 27, 2017, 09:58:36 AM by kd2008 »