I’ve done an AMA in the past that had over a 1000 questions. Thought I’d provide an update. Waiting for wfh to end before putting in my notice. 42 plus wife and two kids under 10. $1.1M primary home paid off in Texas. $2.3M (current market value of ~10 single family homes) in cash flow real estate paid off bringing in $150k rent. Mainly in Atlanta. Managed by property manager. Recently sold two rental properties in California and dumped all of it ($1.2M) into VOO. $3.2 M in VOO now making $57k in dividends. $1M in 401k (all in VOO as well) - leaving this untouched till 60. So paid off home, $5.5M invested generating $207k/year ($165k after taxes), and $1M in 401k. In other words, $11k/month for expenses and another $3k/month for eventual self bought health insurance. Based on historical data, stock portfolio should keep growing at 5% after dividend payouts, or $160k/year plus compounding. Income trajectory: First 5 years: Under $100k Next 5 years: Under $200k Net worth was zero at this point. Too much travel, partying, stupid cars. Next 5 years: Under $350k Next 5 years: ~$1M due to stock growth Never spent more than 30% of take home TC in the last 10 years. Invested the rest in VOO, QQQ and real estate. Wife contributed $150k/yr for 10 years. Now she contributes as a home maker (by choice) and works very hard to keep the family healthy and happy. You can do it too and escape the stress if you plan right. It’s not rocket science, just a marathon instead of a sprint. I’ll say weird Flex before someone else says it and it becomes the top comment and takes away from a meaningful conversation. #personalfinance #investments #FIRE #FatFire #FinancialIndependence
Was your wife on board with FI from the beginning or did you have to convince her?
She’s naturally frugal. We come from humble backgrounds (with great parents). I was the spendthrift and I have learnt my lesson.
2.3 million secondary homes and how much you have invested and how much mortgage still pending . Can you let us know how did u reach here ? Did you bought any specific stocks or options ?
Has your happiness increased or decreased in relation to your net worth and TC?
Very happy in 20s. Then it went downhill in 30s (kids, midlife crisis, work stress). Now happiness is back up.
That gives hope ☝️ So far more TC above a "provided for" baseline has not increased happiness for me.
I just turned 25, NW is 500K, W2 should be like 340K TC This year and I expect to save and invest another 80K by end of year. I mostly invested in index funds like vtsax and growth like vug Any advice? The aspect of real estate sounds awesome just don’t know if I really wanna do all the management aspects (the ability to have a LLC to write off a bunch of stuff would be amazing) - not sure if you got anything to suggest I do or don’t do
If real estate sounds awesome but not the management aspects, check out REITs. Real estate investment trusts. Basically buying a slice of a real estate portfolio someone else manages. Be aware though, it isn't the most tax advantaged if not held in a 401k/roth/ira
thanks for your response Affirm - the thing about real estate I guess that got me particularly interested was actually building equity in the property and having a business to write off expenses I’m all VTSAX basically right now and was considering buying some REIT in my Roth IRA - just curious if this makes sense - I.e is it an optimal investment compared to VTSAX ?
What do you spend your time on these days?
Researching how to build an FBA business
What motivates you to do this?
How was your experience with remote rental properties? It seems so risky for me to get into real estate where I cant get there within a 2h drive.
That’s why you hire a good property manager. I’ve never seen most of the properties. It’s like buying stock really - numbers and future outlook need to work.
That’s really good Net Worth, congratulations! 🙂 In your experience what gave a better ROI in the long term? Investing in stocks like VOO/VTI or real estate? Also, have you invested in crypto as well?
I think both end up being same in the end. Real estate is more work but it’s peace of mind as you can simulate a paycheck. But I’m comparing it to the best stock market in history so 🤷🏼♂️
Got it, thank you!
Welcome back FI-guy. The real estate properties in Atlanta were intriguing. As far as I recall, these are all "class B" right? How did you get started. Acquisition of the homes and finding a good property management companies? Did you live in Atlanta at the time when you started acquiring them? How often do you need to visit go check on them now. Did you use rootstock? I recall you didn't.
I don’t use roofstock. Yes, most class B. I have never lived in Atlanta. You can simply Google top fastest growing cities in USA and figure out where you can make numbers work.
Did you pick your properties based on appreciation, or Rent vs Cost ratio (cap rate), or a combination of both. Per rootstock places like Alabama/SC seem compelling. Additionally, did you care about the condition/age of the properties, as well as the "neighborhood rating"
What was your TC/level before hitting FIRE?
$1M, tenured L7
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A) Don’t be an ass and rude just because it’s anonymous. Have some character. B) No I don’t because they’ve both returned roughly the same in the last 5 years. I believe US government will keep the top 500 companies its afloat come what may.
Snowflake is jelly.