Hello folks, thanks for taking the time to glance at my happy predicament. I’ve been following MMM for about 5 years and have enjoyed lurking on these forums for the past couple years. You all have greatly benefited me with angling my finances towards FI.
Anyway, I’ve got a piece of industrial real estate that cash flows and the note will be paid off in 2030. Once this occurs it will generate enough net income to cover my retirement living expenses. I currently have enough liquid assets to cover my living expenses until that occurs. However, it would be an aggressive draw-down and by 2030 those accounts will be approaching zero. It's not a SWR for 60 years like most people around here discuss. More of a SWR for 15 years.
Working/saving another year or two would actually put me in a much cozier 4% or 5% withdrawal rate on the liquid assets… but once 2030 hits I’ll have about 2x more than I need. Not something I’m complaining about, just something to note.
I may be, in some estimation considered FI now, but I’m hesitant to quit my job now and do this aggressive draw down. Cash is king after all…
But with this future cash cow, should I be so hesitant on drawing down the cash? I suppose my real question is, how much faith would you put in these future earnings of the RE? Enough faith to dwindle your cash to zero?
Thanks… y’all are the tops.
Added for clarity: The property contains four buildings with four different tenants in Seattle. Heavy machine shops... mostly servicing Boeing and shipping industries. 5yr +nnn leases, 3% increase to base/year... these companies survived the big down turn in these spaces and are well established. I would hope things continue to be great in Seattle... but one never knows.