Hi -
First: for privacy reasons I'm going to keep specific details of this a little bit vague.
Second: Thanks for taking the time to read and respond, I do truly appreciate it.
Me:
- Late 20s.
- Single, no kids.
- I rent a 1bd apartment for 1895 a month in San Francisco.
- 0 debt; cosigned a 20k student loan for my brother. he's still in school.
- 150k/year salary from job. i also get health insurance which covers dental and vision, too.
- My take home pay is roughly 7400/month after taxes.
- I save 30-50%+ of my take home pay per month.
- I do not own a car or any sort of real estate.
Stash:
- ~$818k in a vanguard portfolio, roughly allocated to 60% stock, 40% bonds. Because of a variety of complicated (but completely legal) reasons, approximately $425k of my stash is in my ROTH IRA. tl;dr i made an extremely speculative investment partly using a self directed roth IRA and partly using cash and it paid off quite a bit.
- Yes, I know my AA a bit conservative for my age, but I don't really see a reason to take on a lot of risk with my stash.
- My AA has my bonds, REITs, and some TIPs inside of my ROTH. My taxable account is split (approx 72.7% US and 27.2% international) between VTSAX and VTIAX. I have a little bit of VTSAX and VTIAX in my ROTH just to even out the AA.
- I get bond payments and REIT dividends and stuff in my ROTH, so those are tax free. I get quarterly dividends from VTSAX in my taxable account.
QUESTIONS/THOUGHTS:
I've considered purchasing and renting property in SF but the listing prices for even 1 bedroom apartments would run me around $100k as a down payment! I feel like buying property in another city would be a stretch for my first run as a landlord and I don't own a car, so driving out to a different city to do repairs seems like more of a headache than it would be worth.
Any thoughts or suggestions on the real estate thing?
I'm a little scared to actually flip the switch and quit my job and try to enter partial retirement without more income from my investments. Any suggestions for other things I should consider or look at?
I like the idea of retiring in my late 20s and traveling and living in various countries (I have several passports, so I could live and work legally in a lot of places), but I'm a little sacred to flip the switch without much income from my investments.
I feel like I have two choices here:
1.) change my investing game plan to generate income instead of long term growth.
2.) leave my investment plan the same and keep working for a few more years and save more money, since i feel like I don't quite have enough stacked away to pull off partial retirement. so i'd be flipping the switch in my mid 30s, probably ?
I think in either case I would need to move out of SF, though.
Thanks for any thoughts or comments.