I FIREd this year at 43. AMA [repost]

New DuQvV7x
Aug 17, 2018 32 Comments

[NOTE] My prior ID (DuQvV7) got locked by Blind (for responding too much?!). So this is a repost. I'll answer any questions on the initial thread too but it won't show me as the OP.

Admittedly a thin premise to base an AMA on... but whatevs. FIRE: Financial Independence + Retire Early I am retired.

[Original:
https://us.teamblind.com/s/jNKKtXVa]

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TOP 32 Comments
  • New
    Strtp2Crp

    New

    PRE
    IBM
    Strtp2Crpmore
    My understanding from the other post is that he did lots of real estate investments. Curios to hear his strategy?
    Aug 17, 20183
    • New DuQvV7x
      OP
      RE over time delivers an enhanced power of compounding.

      I’ve owned rental real-estate for 20 years which has swelled both the equity and rental returns from those units.

      Also, I have been careful to keep my spend low even as my top line increased.
      Aug 17, 2018
    • Google SoSad
      Are you still acquiring rentals or are you just happy with the mailbox money at this point?
      Aug 17, 2018
    • New DuQvV7x
      OP
      I’m still a sucker for a good deal.

      But I’m not vigorously pursuing them anymore. Whenever all my (rental) mortgages are paid off, I expect a significant bump in lifestyle
      Aug 17, 2018
  • Amazon / Design
    PhntmThvs

    AmazonDesign

    BIO
    TAKE YOUR HEART
    PhntmThvsmore
    it's easy as hell to FIRE if you're working in tech industry if you just know how to manage your budget and not pay for stupid shit.

    my annual living costs in SF from 2012-2017 were $40k/year which included eating out for lunch everyday (~$10 each), dinner twice a week ($20-30 each), and $5k a year in travel. if you're pulling in $120k after taxes that's enough for 3 years of living costs for every year worked.
    Aug 18, 20182
    • Amazon Xode
      Things change once you are married and have kids. I think FIRE for those is extremely difficult.
      Aug 18, 2018
    • Indeed / EngFelinefine
      How? Did you have 10 roommates or live in an RV
      Aug 18, 2018
  • Oracle / Othernogo
    Read your previous thread. Congratulations!
    1. What is OPM wrt Real Estate?
    2. Did you invest heavily in 401k? (Backdoor, mega back door and such)
    Aug 23, 20186
    • New DuQvV7x
      OP
      My best guess here is that OPM stands for operating margin. But that’s not a typical metric for real estate. Please clarify.

      My 401k languishes sadly. I’m not a great stock (or ETF) picker. It sits around 800k.

      In retirement I will have enough inflow to take good advantage of SEP IRAs though.
      Aug 23, 2018
    • Oracle / Othernogo
      Reference was this. Thanks for your reply!

      @Xyhy51

      Best question so far!

      Yes, I leveraged OPM. I still am. I never earned a ton and I’m a marginal at best stock picker. So, I used a lot of side gigs to build the capital to buy RE. I bought a bunch before 2008, I bought even more after. I’ve never (till today) pulled cash out of RE investments to do anything other than leverage other RE.

      Is this risky? Certainly. 2008-2011 were not comfortable years. But ultimately RE was the right call and has been very good for the last 8 years.
      Aug 23, 2018
    • New DuQvV7x
      OP
      OPM stands for Other People’s Money. Short hand for taking on debt to purchase RE.
      Aug 23, 2018
    • Oracle / Othernogo
      So you take debts to purchase RE? How can be that profitable?.
      First rule I have heard in investing is to be zero debt
      Aug 23, 2018
    • New DuQvV7x
      OP
      A mortgage is debt.

      Let’s say you put $50k down, for a 250k property. Rental would cover mortgage payment & fees.

      You get depreciation, while the property appreciates.

      Compare this to waiting to have $250k on hand to buy in cash? IMHO, I would rather buy 5 units then instead of buying just 1 with cash. The rental receipts is (are?) a multiplier.

      By the time you would save for one cash unit, the rent cycle would have been raised a few times and that leveraged unit is now raining cash.
      Aug 23, 2018
    • Oracle / Othernogo
      Ah okay mortgage makes sense. I was talking about other kind of debts
      Aug 23, 2018
  • Amazon Xode
    How did you made so much? What were your big investments ?
    Aug 17, 20183
    • New DuQvV7x
      OP
      I was never lucky enough to hit big with one thing. So I built the retirement coffers with side hustles and sweat equity. And time.
      Aug 17, 2018
    • Amazon Xode
      What was your profession ? Tech ?
      Aug 17, 2018
    • New DuQvV7x
      OP
      Tech. Yes, but also Midwest.

      My highest base salary was $130k (last year)
      Aug 17, 2018
  • Oracle / Othernogo
    Also do you own properties outside your city? How easy is to manage the properties outside the city/state you live in?

    Any out of the country investments? :)
    Aug 23, 20181
    • New DuQvV7x
      OP
      I own properties primarily in 2 cities where I lived for years (OH) and where I live now (IN)

      1 vacation home in AZ & 1 Airbnb experiment in GA though a sibling lives near there.

      Finding people I trust enough to do things locally is hard enough. Doing it remotely would amplify that many times.

      Nothing out of the country. Though I would love a small place in Den Haag.
      Aug 24, 2018
  • Indeed / EngFelinefine
    What kind of side hustles worked out best for you? What years were most productive? Have you considered a couple years at Fang to really buff up your savings? Are you concerned that we’re due for a recession which is the worst thing to happen early in a FIRE?
    Aug 17, 20181
    • New DuQvV7x
      OP
      There’s a list of 20 on the original post.

      I could do with much less sleep in my youth. I had multiple side gigs and main gigs running. However ummm bill rate was much less. So “productive” is subjective.

      No FANG. No more work for me. Unless ACA falls then I may have to go to FANG just to get health insurance.

      I’m buffered against a recession. At 2% inflation and 2% return I will burn though my savings in exactly 100 years. I’m skeptical I would live that long...
      Aug 18, 2018
  • Indeed / EngFelinefine
    Congrats!
    Aug 17, 20181
  • Dotdash dotdash
    Where do you live that you spend only 40k annualy?
    Aug 17, 20181
  • Amazon Pooper69
    How long were you intentionally pursuing FIRE prior to the exit?
    Aug 17, 20181
  • New / EngaYLx06
    Is rental property better than 401k/IRA/HSA?
    Aug 17, 20181
    • New DuQvV7x
      OP
      For me, it has been by far.
      Aug 17, 2018
  • Amazon BIE
    Where’s the original thread
    Aug 17, 20181
    • New DuQvV7x
      OP
      Added to initial post
      Aug 17, 2018

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