Hey FI-thusiasts,
I'm grateful a co-worker mentioned that FI is a thing. I've stumbled upon this community and it may be one of the most life-changing stumbles of my life. I'm posting here because it turns out I'm well on my way to keep pace with MMM, and I'm just wondering if someone could see if this is really as realistic as it seems.
Current Asset Balance:
40k 401k (I don't get 401k matching)
15k stocks: VSTAX
Home Value: 225,000 (bought for 198,000, zillow things 225k)
Remaing Mortgage at 2.85 interest, 15y fixed, 1.8k payment monthly until 2029: 145,000 (225-145 = 80k net)
two cars: 6k
30k Cash. 4.5 months worth of emergency funds (18k). 12k without a plan (? Need help with this one)
Net Worth: ~170k
Timeline
Age: 23
2015: Net Worth: 23k, Spending: 45k/ Take Home Pay:66
MMM Year 1 全tash: $5000
Got Married
24
2016: 70k net, 63k/76
MMM Year 2 全tash: $23,000
Bought house, 20k~ of home improvements
25
2017: 123k net, 52k/102
Year 3 全tash: 67k
No vacation this year, saving 10k for next year's vacation
26
2018: Current: 180k net, 18k/110k~
MMM DINK Year 4 全tash: $150k
See Current Assets at top.
Projected: stocks: 80k
Projected: 200 net
27
2019
300k
Year 5 全tash: $250k
28
2020
400k
Year 6 全tash: $365k
29
2021, Wife graduates, DINK 150k, 40k spending, 50/150k
500k
Year 7 全tash: $490k
30
2021
650k
Able to quit, wife wants to keep working to cover expenses at 60k~ a year
Year 8 全tash: $600k
31
2022
700k
Year 9 全tash: $720k
32
2023
750k
FI
Year 10 全tash: 800k or so
37
2029, last home payment
Current questions:
Investing:
1. Since I'm on path to be FI in 5 years, what stocks should I be putting most of my money in? MMM recommended VSTAX, but with recent dips, would it be a good idea to dip into VTIAX with my 12k that I'm waiting to invest? Or should I just smack it into VSTAX, and wait to invest in VTIAX until I have more assets in VSTAX? Should I be spreading it into other indexes (NASDAQ, DOW, etc.)?
2. I'm completely ignoring IRA's and bond's. Am I ok in assuming that when I'm a little older, 40~ I should re-evaluate, or is that too late?
3. I've essentially stopped contributing to my 401k. If I'm FI in 5 years (32y), there doesn't seem like much of a point worry about my 401k now. When should I?
4. Like MMM, I'm counting real estate/cars towards my net worth. I have no aspirations of being a landlord, or of selling for that matter. But that would also mean my dividends are only going to be off of 600k~ or so if 200k~ is in my house, so I may need to wait another year or so to consider myself FI right?
In the end, FI is an amazing avenue to controlling my most limited resource, time. Anyone who can actually achieve FI, regardles of age, is so incredibly fortunate. Thanks so much for the time, and help.