Hi All,
Thought it would be good idea to update my case given it's been a full year.
Monthly savings: ~$7,000 --> ~$8,000 (Combination of increase salary and reduction in expenses, ~80% savings rate now)
Net Worth: $246,500 --> $385,000
I still haven't quite figured out the ideal balance between the RE portfolio and stocks. Right now, I am putting the majority of my savings every month into the SP 500. The RE portfolio continues to tick along with additional cashflow making extra principal payments.
Also, given the advice, I've adjusted my long term plan and now aim to work an additional 24 months abroad. At that point, I expect to have around $750,000+ net worth, with at least $300,000 in equities.
Thoughts on the updated plan? Should I look to pay down one of the properties for the CF?
Most of the other details are given in the earlier post. Thanks.
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Life Situation: I’m a 30-year-old American who has lived/worked abroad for the last five years. I mainly work in very low cost of living countries, which allows me to save a considerable amount of my income at this point in my life.
My current working contract expires at the end of 2018 and I’m wondering if I could potentially FIRE then (in 21 months)?
Taxes: For purposes of taxes, I am exempt on foreign earned income to a certain limit. Tax filing status: Single, no dependents.
Net Salary/Wages: $9,500 a month (note that I have no 401K, HAS, IRA, etc.)
Current monthly expenses:
Rent: $1,300 (this is my big weakness, I could easily get accommodation as low as $500, but the place I stay at provides many luxuries including; free cleaning, pool, gym, laundry, etc.)
Food/Drinks: $600
Travel $300
Electricity: $60
Insurance/Health Care: $50
Transport: $50
Misc: $50
Total: $2,410
Net Monthly Savings: $7,090 (~75% saving rate)
Assets:
Cash: $8,000
Individual Stock Brokerages: $96,000
Previously, I had been investing most of my money in the California property market. In my mind, I see it as a sort of hedge to my work, as all my income abroad is in emerging markets.
Also, I potentially would like to move back to California once my current contract ends.
Property 1: $110,000 Value / $70,000 debt - $40,000
Property 2: $145,000 Value / $80,000 debt - $65,000
Property 3: $310,000 Value / $260,000 debt - $50,000
Combined, all the properties operate at slightly above cash flow breakeven after taking into account PITI, maintenance, taxes, etc. (Net CF about $5,000 a year).
I use all the extra Cash Flow to pay down the mortgages.
All of the mortgages are at around 4.5% and due in roughly 25 years.
Total Combined Property Assets: $155,000
Debt:
Student Loan: $2,500 (at 2.1% Per year). This is the only debt I have and I’m not any rush to pay it down, given the rate.
Total Net Worth: $246,500
Big Question:
Is it possible to reach FIRE in 21 months?
I know eventually I would like to have a family/kids later in life, which would of course complicate things a bit.
Thanks.