Author Topic: Surprise-Over a million in assets  (Read 6335 times)

CU Tiger

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Surprise-Over a million in assets
« on: September 24, 2014, 09:00:06 PM »
I am getting down to brass tacks on what we really have saved so I can figure out when I can retire from full time work.

Adding together all our retirement accounts, investments, savings/EF, and the paid off house and cars, we have over $1,000,000 in assets.

I realize that the cars and house will not support us, and they are about $250,000 of our assets, but still! I feel like my goals are even more within reach. When our investments and retirements reach a million alone, I am going to get out of full time work. That could be by the time I am 52. Much later than most of you, but I got a late start.

Feeling happy tonight.

iris lily

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Re: Surprise-Over a million in assets
« Reply #1 on: September 24, 2014, 09:33:46 PM »
way to GO!  And I will be a lot older than you when I retire, but I didn't hate my job until fairly recently.

Exflyboy

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Re: Surprise-Over a million in assets
« Reply #2 on: September 24, 2014, 10:07:37 PM »
Nice CU!!!

Not at all I quit at 52 with about 1.2 to 1.3M.

Besides its not really about how soon you get there.. its about removing stress from your life.. I mean suppose you could get to $0.5M then take a low stress job making $20k a year?

That's the same as a stash of $1M with no work.

Work is not all bad, if you enjoy your job then a half and half approach is perfectly valid..:)

Its just that as you have saved up $3/4M then why not go further and make yourself completely independent.. that last $250k will take a lot less time..:)

Frank

Dicey

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Re: Surprise-Over a million in assets
« Reply #3 on: September 24, 2014, 11:10:45 PM »
I agree with Exflyboy, a.k.a. Frank. Especially the part about the low-stress job.

I'm curious though, why one would include the value of a depreciating asset (car) in their net worth when considering their FIRE number? Seems the number would be more solid without it. Especially if you're a true mustachian: your jalopy's not worth all that much anyway. Not being critical, just musing aloud. I just realized I never did. I didn't count equity in my home either, because as a wise person once told me, you can't eat it and you'll always have to live somewhere.

You're on a good trajectory toward FI, keep up the good work!

NICE!

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Re: Surprise-Over a million in assets
« Reply #4 on: September 25, 2014, 02:42:47 PM »
Congrats! That is really impressive.

Go Noles.

marty998

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Re: Surprise-Over a million in assets
« Reply #5 on: September 25, 2014, 04:08:33 PM »
I agree with Exflyboy, a.k.a. Frank. Especially the part about the low-stress job.

I'm curious though, why one would include the value of a depreciating asset (car) in their net worth when considering their FIRE number? Seems the number would be more solid without it. Especially if you're a true mustachian: your jalopy's not worth all that much anyway. Not being critical, just musing aloud. I just realized I never did. I didn't count equity in my home either, because as a wise person once told me, you can't eat it and you'll always have to live somewhere.

You're on a good trajectory toward FI, keep up the good work!

Agree, don't include the car. But nonetheless a great position to be in overall. Well done!

TomTX

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Re: Surprise-Over a million in assets
« Reply #6 on: September 27, 2014, 05:41:17 AM »
I agree with Exflyboy, a.k.a. Frank. Especially the part about the low-stress job.

I'm curious though, why one would include the value of a depreciating asset (car) in their net worth when considering their FIRE number? Seems the number would be more solid without it. Especially if you're a true mustachian: your jalopy's not worth all that much anyway. Not being critical, just musing aloud. I just realized I never did. I didn't count equity in my home either, because as a wise person once told me, you can't eat it and you'll always have to live somewhere.

You're on a good trajectory toward FI, keep up the good work!

Agree, don't include the car. But nonetheless a great position to be in overall. Well done!

Car is still an asset. It's not an investment - but it is an asset.

CU Tiger

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Re: Surprise-Over a million in assets
« Reply #7 on: September 27, 2014, 06:40:03 AM »
Yes, the cars are assets, worth about $21,000. As I said in the first post, they aren't going to make me any money, but I own them, so when adding up my assets, I counted them. Same with house. I could sell it and make $200,000 - $225,000, but again, it doesn't MAKE me money unless I sell it.

So, it is fairly accurate to say that I have about $245,000 in concrete assets and $750,000-ish in investments, yes?

My husband likes his job a lot. Me...not so much. When we have $1,000,000 in investments and savings, I will definitely go to part time work that I like. I currently have a full time job and a part time job (in an exercise studio). I can imagine picking up a few hours at the part time job, and giving up the full time gig in two-three more years.

This all feels slightly unreal to me, because back at 25, I was making $18,000 a year and did not see any way I would ever be able to afford a house, much less save this kind of money. But getting better and better jobs, saving consistently, marrying a frugal man who is committed to saving for a comfortable retirement...24 years later I am doing better than the wildest dreams of my 25 year old self.

Exflyboy

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Re: Surprise-Over a million in assets
« Reply #8 on: September 27, 2014, 09:17:54 AM »
It is amazing isn't it how fast you go from being in debt to FI. The sad thing is this seems so for far off for most people that they don't even bother trying.

I was talking to a young man last night who wanted to understand my frugal ways. Of course you don't know how receptive they will be so one has to skirt around the issue a little bit to start.

After 2hours drinking our over priced coffee I think we got another convert...

Most exciting to see somebody who didn't even know that 401k deductions reduced your tax bill.. Now want to max the contributions out..:)

Frank

KBecks2

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Re: Surprise-Over a million in assets
« Reply #9 on: September 27, 2014, 04:15:59 PM »
Go get it!!!  It's got to be motivating to get that last bit in and then you can retire! 

We're a little younger and a have a little less saved, but I am so happy that there is a light at the end of the tunnel.  I just need to keep our day to day expenses under control, and keep up the intensity about saving, and we will join the 2 comma NW club in a few years too!

I count our home and cars in "net worth", but look at "investments" when I am thinking about retirement planning, btw.   

greenmimama

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Re: Surprise-Over a million in assets
« Reply #10 on: September 28, 2014, 09:56:34 AM »
The equity counts in your home towards retirement if you plan on selling and buying something smaller/ less expensive. Otherwise, yes you hav ego live somewhere.

Congrats OP, you are well on your way!

SugarMountain

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Re: Surprise-Over a million in assets
« Reply #11 on: October 21, 2014, 11:30:16 AM »
My thinking is that you can also count the house if you eventually plan to sell it and rent or do a reverse mortgage down the road.  I'm kind of using my house as "buffer" in my model, so if say I run out of money when I'm 80, it's there to sell or reverse mortgage.

Dicey

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Re: Surprise-Over a million in assets
« Reply #12 on: October 21, 2014, 11:51:24 AM »
Just re-reading this thread, CU Tiger. Since you don't want to stop working completely and your spouse still works, why not pull the plug on the job now? Could you scout out a PT job you would enjoy and jettison the FT job? If your 750K is diversified and well balanced, it's going to get to your goal by the time you need it without adding to it. If you're in a relatively low COLA, do you really even need $1M? Perhaps freedom is closer than you realize.

 

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