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I've seen a few of these Happy dances here, and I'd like to share one also. As many of you know, such financial milestones are not always the kind of thing easliy shared with friends and relatives... as not everyone understands or embraces the idea of LBYM or FIRE. But the good folks here at TMF... well, you know what I'm talkin' 'bout!!!

DW and I are on the cusp of turning 50, kids nearly through college, house nearly paid off, and generally enjoying ourselves.

FIRE stats:
401k/IRA funds $ 205,351.75
Taxable accounts $ 140,387.65
Vacant building site $ 30,000.00
Commercial Rental Equity $ 500,000.00
Home Equity $ 125,000.00
Total $1,000,739.40

So... a tentative hold on a major milestone of $1M!! I know some folks don't include their residence in their FIRE holdings, but my feeling is that at some point I'll sell it to pay for my monthly final years at at Sunset Village nusrsing home, so why wouldn't I include it?

We don't know when exactly FIRE is for us. Uswed to think that when we got to theis milestone, we'd bail! Kids in college for another year... daughter's wedding 8/07... I don't absolutely hate my job and haven't found the next big thing to replace it... but it's nice to be at a point where you have options...

I'd like to encourage everyone out there... we have done this on one income/SAHM, the only unusual thing being our rentals. We started with some IRAs in the 80's, LBYM lifestyle (not pauper but not extravagant), and by consistent savings. You can do it.

TYhoughts out there?

-AJ
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So... a tentative hold on a major milestone of $1M!!

cobgratulations!
now you can hang out on the millionaire fool board.

http://boards.fool.com/Message.asp?mid=23960184

Vickifool
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Well, if I include the house equity, then I am right around the 0.5M$ mark. I should hit 1M$ before I turn 50. That's my plan anyway. Who knows what will really happen? I have a good friend that would be ecstatic to just get to 50.
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Congratulations AJ and thanks for sharing your asset allocation.

It has made me come out of lurker mode for my first post. We are a one income family too and as the SAHM I'm trying to pull my weight by trying to LBYM and save as much as we can on a comfortable but not extravagant lifestyle. I'm intrigued by your equity in commercial property.

How did that come about and how did you do to build it up?

Most of our equity is in our primary residence and while this gives me a peace of mind I need I now feel its time to build up our other asset classes. Since investing in our home has proved successfull in the sense that I seem to enjoy my debt going down as fast as possible I feel comfortable with property now in a way I would not have thought five years ago. Hence we are thinking of acquiring more property.

Best Regards,
Ute
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Hi Ute,

Kudos on being a SAHM. It's a demanding job, but the payoff has proven to be huge for my wife and I. Wouldn't trade it for anything. Like you, one of her hats was keeping the LBYM process as much as possible.

Our commercial porperties are mainly storage rentals, and one commercial rental building. Along with a partner we bought an old storage facility in 1992. Approx 100 units, with room to expand to about 250. My partner saw the potential demand for more storage in the area... much better than I... but he needed someone who could handle the billing, accounting, paperwork, etc. My wife and I share those duties - but she handles most of the daily/weekly billing, payables, etc.

We were fortunate to enter a market that was underbuilt, and the town also had a growth spurt which allowed us to fill that location and add a second with a retail building on the frontage. We eventually added another facility in a neighboring town, but that barely pays it's way, so that's not been a great thing. Overall we now have about 550 units.

For the first 10 years we took basically no income, instead paying down debt aggressively. After recently paying off a note we have just started to drawn income (about 60k apeice annually) as we continue to pay the debt down, increasing our equity by about 20k annually (10k each).

In addition to still funding 401k/IRA, we are currently banking most of this new income, figuring that a few years will greatly reinforce the FIRE funds. We haven't really changed our lifestyle since we began drawing the extra $$$.

Now we are pondering how much FIRE funds we need to "retire" at 50, 52, 55, etc., and also what we would do with our time if we were to FIRE. We both want to stay active for the foreszeeable future, but freedom and flexibility would be nice too. All in all, good things to be pondering!

As you say, the residential equity is very comforting. We borrowed a little seed money against our home way back in 1992. We are also toying with the idea of buying some acreage, building a little smaller (empty nest) home, and selling some parcels/lots.

I've also thought if we had not got into storage rentals, we probably would have gotten into some rental homes/apts to build equity in a similar fashion. Have you ever considered that? Keep plugging away at your FIRE funds and consider some property investment if you're so inclined.

-AJ
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Congrats AJ! That's great. Sounds like you made some very good investments with the storage units.

I think it's quite OK to count the equity in your house when you are looking at hitting milestones - my recent happy dance didn't include that equity, but my next one will - should be by the end of the year.

I have goals (and keep track of milestones) for "net worth including the equity in the house" and "NW excluding the equity in the house".

Anyway, have fun planning and number crunching and deciding when to FIRE. Keep us posted!

Karen


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I'd like to encourage everyone out there... we have done this on one income/SAHM, the only unusual thing being our rentals. We started with some IRAs in the 80's, LBYM lifestyle (not pauper but not extravagant), and by consistent savings. You can do it.

That is pretty close to the strategy that we are taking so the encouragement is welcome. My DW is a SAHM and we max out the 401k and IRA contributions and invest in the taxable account with anything left over.

Congrats on your milestone!!!

dt
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