Poll

What's your CURRENT % of your Target Passive Income as of now?

< 0%: I'm Bleeding Money
1 (1.3%)
0 to 5%
12 (15.4%)
5.01 to 10%
5 (6.4%)
10.01 to 20%
4 (5.1%)
20.01 to 30%
6 (7.7%)
30.01 to 40%
7 (9%)
40.01 to 50%
4 (5.1%)
50.01 to 60%
4 (5.1%)
60.01 to 70%
1 (1.3%)
70.01 to 80%
3 (3.8%)
80.01 to 90% and FIRED
1 (1.3%)
80.01 to 90% and NOT FIRED
0 (0%)
90.01 to 100% and FIRED
1 (1.3%)
90.01 to 100% and NOT FIRED
1 (1.3%)
100.01 to 110% and FIRED
0 (0%)
100.01 to 110% and NOT FIRED
0 (0%)
110.01 and up, and FIRED
2 (2.6%)
110.01 and up, and NOT FIRED
1 (1.3%)
FIRED, other %
2 (2.6%)
Not applicable to me, I just want to see the results!
18 (23.1%)
Used to qualify for this poll, but MMM-style concepts helped up my income
5 (6.4%)

Total Members Voted: 78

Author Topic: Race to 100% FI (ONLY if below Median Household Income!!!)  (Read 6230 times)

spartana

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #50 on: December 21, 2019, 03:36:14 PM »
I probably don't qualify because I'm FIREd (voted anyways!) but made under the median single person household income before retiring single. When I was married (we had the same job and income) I still think we would have been below but not 100% sure. No kids either.
« Last Edit: December 21, 2019, 03:39:18 PM by spartana »

SwordGuy

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #51 on: December 21, 2019, 06:30:34 PM »
@Cezil , you have no idea how happy your story makes me!  You have done spectacularly well for yourself and, even better, you're now poised to get the fruits of all that hard work!

To put things in perspective, I pulled this from www.shnugi.com[/url]][url=http://www.shnugi.com]www.shnugi.com[/url], on their net worth percentile calculator.   A net worth of $110,000 puts you in the 52nd percentile of net worth among all Americans age 18 to 100.   You're in your early thirties, correct?    You've already done better than a host of people who have had decades more time on their side!

Quote
Net Worth Summary Statistics for Households Aged 18 to 100
Net Worth Percentile Rank : A net worth of $110,000 for ages 18 to 100 ranks at the 52.46%
Median Net Worth : $97,290
Mean Net Worth : $688,886
Net Worth 25th - 75th Percentile Ranges : $10,160 to $368,600
Quote

Now, let's compare where you are to folks in the 30-35 age bracket:

Quote
Net Worth Summary Statistics for Households Aged 30 to 35
Net Worth Percentile Rank : A net worth of $110,000 for ages 30 to 35 ranks at the 75.63%
Median Net Worth : $28,400
Mean Net Worth : $126,355
Net Worth 25th - 75th Percentile Ranges : $750 to $106,870

*************
You think you've been doing terribly and yet you've still done 4 times better than most in your age range!

$100,000 is where the amounts the market can earn for you in a given year really start to make a noticeable difference.

For example, the S&P 500 is up over 28% so far this year.   That's $30,800 on a nest egg of $110,000 in that index.   In a great stock year your wealth can go up an extra annual regular-time income from your job. That's huge!

And in a bad year when stock values go down 50%, it just means you're buying twice as much stock so your stash will grow twice as fast once the market recovers.

Talk about win-win!





SwordGuy

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #52 on: December 30, 2019, 02:57:21 PM »
Hey everyone!   Don't forget to update your status for the end of 2019!
« Last Edit: January 03, 2020, 04:37:35 PM by SwordGuy »

SwordGuy

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #53 on: January 03, 2020, 04:37:05 PM »
Update your status for the start of 2020!

APowers

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #54 on: January 03, 2020, 09:55:31 PM »
Update your status for the start of 2020!

Mine hasn't changed much yet. My goal this year is to purchase at least two more cashflowing rental properties, which should push me over the 100% mark. I'm excited and terrified at the same time, lol!

SwordGuy

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #55 on: January 03, 2020, 09:58:57 PM »
Update your status for the start of 2020!

Mine hasn't changed much yet. My goal this year is to purchase at least two more cashflowing rental properties, which should push me over the 100% mark. I'm excited and terrified at the same time, lol!
Oh, that's great!    What % of your FI income will come from rental properties?    The rest from stocks/bonds?

APowers

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #56 on: January 04, 2020, 11:54:05 AM »
Update your status for the start of 2020!

Mine hasn't changed much yet. My goal this year is to purchase at least two more cashflowing rental properties, which should push me over the 100% mark. I'm excited and terrified at the same time, lol!
Oh, that's great!    What % of your FI income will come from rental properties?    The rest from stocks/bonds?

Currently, all my passive income is from one single-family rental and my basement/MIL apt that I rent on airbnb. I find it hard to justify putting my meager cash savings into stock/equities when the returns on rental real estate are so much greater, especially when multiplied by my ability to stretch that monetary value with sweat equity and personal involvement.

If I achieve my goals, by end of 2020, I should be at 110-130% of FI through rental income. I almost certainly won't be able to stop all earned income, because if I'm not working on something, I'm sure I'll go crazy-- my goal is to integrate that with involving my kids, teaching them life skills and general knowledge and personal development stuff which heretofore has been very much sidelined by "working for a living".

TacheTastic

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #57 on: March 10, 2020, 03:22:32 PM »
Update your status for the start of 2020!

Not really much to update here. I did put myself in the 0-5% bracket, but I have realised that I should have been counting all the money I have in my pension pot. That probably takes me nearer to 10%, but it is not actually a material change, just the correction of a mis-calculation. Basically what Moonwaves said.

I have had an increase in income though. In late October my professional registration came through, so my income jumped by about 5k per year. Combined with the overtime I do that brings things closer, and when I rent out my spare room again I might even be within touching distance of the median, although I only plan to do that for another year or so to finish saving my house deposit.

I am being realistic. If I can be looking at retiring at age 60, then I think that will be a pretty fantastic achievement for me. Anything sooner than that is pretty unlikely.

SwordGuy

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #58 on: March 10, 2020, 03:29:37 PM »
Update your status for the start of 2020!

Not really much to update here. I did put myself in the 0-5% bracket, but I have realised that I should have been counting all the money I have in my pension pot. That probably takes me nearer to 10%, but it is not actually a material change, just the correction of a mis-calculation. Basically what Moonwaves said.

I have had an increase in income though. In late October my professional registration came through, so my income jumped by about 5k per year. Combined with the overtime I do that brings things closer, and when I rent out my spare room again I might even be within touching distance of the median, although I only plan to do that for another year or so to finish saving my house deposit.

I am being realistic. If I can be looking at retiring at age 60, then I think that will be a pretty fantastic achievement for me. Anything sooner than that is pretty unlikely.

Sounds like you're doing the right things to make good results happen!

Imma

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Re: Race to 100% FI (ONLY if below Median Household Income!!!)
« Reply #59 on: March 12, 2020, 04:59:41 AM »
I'm still as far away from FI as ever, but we're doing fine. I'm working from home fulltime due to Corona now and I've noticed commuting and office life takes up 90% of the energy I spend on working, and actually doing work is 10%. Which means that for as long as I'm at home I'm spending a lot less money because I have energy to food-prep and DIY. Also, my partner will get less hours at work due to the virus if this lasts any longer. They are going through a hard time now. Instead of being worried about money we've talked about how this might be a great opportunity for us to paint the house together! He does the sanding and the heavy lifting, I do the painting. If we each spend an hour a day we'd have 10 doors done in a week. Maybe we'll also be able to plant more in the garden this year.