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Early Retirement / Re: FI - Am I there?
« on: October 15, 2018, 02:38:20 AM »
Thank you for pointing that out Prognastat. As much as I read and follow these FI experts, there are still a lot details to understand.
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2
Early Retirement / Re: FI - Am I there?
« on: October 12, 2018, 12:15:29 AM »
prognastat:
Thank you for replying. Yeah, I have been gauging my number by the 4% rule, and prepare to be flexible in spending once I leave regular work. I thought the base of the 4% is the net worth --- it seemed you used my investment part as the base. Is this typical?
Jeremy:
Thank you for assuring on the withdraw from dividends or selling stocks. I will research more into the mathematics.
My main concern is how to time the FI moment based on the portfolio value ---it varies throughout the year, the value I have now in my portfolio is on high side, especially my JEC stocks portion has basically doubled than the normal low value throughout the year (It typically swings bwtn $35+ and $70 during a year). Once I leave work, I am planning to unload this stock and invest into VTSAX, of course have to watch out to time it at a higher selling price.
Appreciate your opinions!
Thank you for replying. Yeah, I have been gauging my number by the 4% rule, and prepare to be flexible in spending once I leave regular work. I thought the base of the 4% is the net worth --- it seemed you used my investment part as the base. Is this typical?
Jeremy:
Thank you for assuring on the withdraw from dividends or selling stocks. I will research more into the mathematics.
My main concern is how to time the FI moment based on the portfolio value ---it varies throughout the year, the value I have now in my portfolio is on high side, especially my JEC stocks portion has basically doubled than the normal low value throughout the year (It typically swings bwtn $35+ and $70 during a year). Once I leave work, I am planning to unload this stock and invest into VTSAX, of course have to watch out to time it at a higher selling price.
Appreciate your opinions!
3
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!
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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