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Topics - sxliquin

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Early Retirement / FI - Am I there?
« on: October 10, 2018, 11:01:53 PM »
Hello folks!
  Glad that Jeremy pointed me to this Forum! The discussion I want to have today is how do I know I'm FI ready -- Am I there?

Personal info:  I am 44 years old, single, no kids. Have one house rented out in Maryland. A paid off car sitting in San Diego now, since I'm on expat assignment ---planning to sell it to my ex BF to avoid paying CA insurance and title fee. Following the 4% withdraw rate after FI and planning to live off flexibly on $30k-40k a year.

My Portfolio:
1. Investment: $756,830 today: (Allocation is about 93% stocks, 6.6% Bond, 1% cash). 
   a. Vanguard: $567,321
           1.) Brokerage: $279,716 (VTSAX 90%, VBTLX 10%)
            2.)Roth IRA: $18,990 (VTI 82%, BND 18%)
            3.) 401K: $268,614 (Inst 500 Index 73.3%, Inst
                                                 Bond7.7%, Mid Cap 19%)
   b. Fidelity: one single stock JEC:- $188,875 value today. This is my employer stock --- discounted purchase over the years. I no longer buy it. But can't unload it while I'm still working, to avoid paying high capital gain tax.

2. Cash in banks: $20,223
3. Rental property market value: $248,885
4. Rental property mortgage: $73,000
5. No other debts beside normal credit card use for daily expenses.

Total net worth by Personal Capital: $951,265 today.

My questions are:
1. My dividends is not that much every year from my investments (2017 Vanguard dividends: $3675, of which $287 non taxable).  Is this something I should be seeking to achieve?  I think it's mainly because half my investment is in retirement accounts?  I also am trying to read how to increase non taxable dividends....

2. Without dividends being the main resource for spending after leaving work, I am still trying to figure out how do I withdraw to fund my expenses ($30-40K a year). I have read the post by JLColin and other blogs. But it just feels unsafe if I am tapping into the investment initial amount (selling some VTSAX) from year 1...

3. Allocation wise, I re-read JLColin's stock series again, I need to re distribute the bond and stocks between taxable accounts and 401K, so I can minimize the tax I am paying now while still working.

4. When evaluating the initial value for the day leaving work, to see if I truly reached the $1M --- the market value could really vary within 6 months,  How did you look at it to say "today it's good".  Do you judge the "average" over a period time or purely look at the market value of that day?

5. I do have an apartment in China, fully paid, with my parents living in it. Market value is about $100k if I ever decide to sell when they are gone --which I don't plan, because I hope they live healthy longer age.  My original plan is to be minimalist normad after leaving work, travelling for a couple of years; then be based backed between US and China and do short travels or some other businesses. But renting only.  Now, being single, I feel the need to have a home base in US. Planning to buy a house or apartment in Orlando/Tampa area, ideally a duplex or quadplex, so I can rent the other units out while having mine airbnb when I am travelling for longer term.  -- what's your thoughts on this?

6. I also have an investment of $50k in a Chinese company(Hoverstar) that is dedicated to design and manufacture flying car (Hovering car). Right now they are designing and manufacturing Water entertainment machines, like AquaJet ....  Hopefully I can make a fortune when they go IPO, but I am not betting my FI on it.  So the main strategy is still totally rely on what I have accumulated in investment.

Really appreciate comments and opinions!

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