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New goals for this year-investments

July 5th, 2015 at 11:45 am

Hi all

New investment goal this year and really pondering what I need to do to feel comfortable leaving this high paying high stress job and feeling able to choose a funner job (even if i went full time somewhere it would be great. full time would be like $100k). Right now I feel I need (or want) to earn as much as I can so really am doing $57 times 50 hours a week EVERY week which is approximately 140k a year. it is the most I have ever made but I am feelimgm stressed.. down and like I have no life and am tired .. and my speech is having a hard time keeping up.

Anyway I am pocketing as much money as I can each paycheck and investing. My goal was to have a $35k increase in investments this year. I have exceeded that already w investments going up and mostly deposits. New goal is to have $110k investments NOT INCLUDING my $15k rental emergency fund.. so to do that I have $27290 left to go for the year. I probably have almost $10k left to go w maxing out the 401k so I have that.. so that leaves $17k.... that will just have to be saving.. selling stuff. whatver

Also now that Dad's situation has calmed down. he is doing FANTASTIC at Silverado. love it there for him and me. I am thinking of how to pay off the 6 homes early next year. I will owe $119k after my December payment and $103k after the April 2016 payment. WHere do I get an extra $100k?

I am also considering the house. I have a house worth $510k w almost $170k equity. Do i really want this house long term? I do not know. It has an insanely large yard.. brick ranch though which is nice and the neighbors who moved in last year I do not like. not doing anything drastic but wondering if I moved to downtown Naperville (I live outside of downtown now) and got one of those mid sized homes w FRONT PORCH/hard wood which I love. I wonder if that will be less.. so if I could find one for $400k . I could put my equity in it $170k and only owe $230

Not doing anything big right now just thinking that realistically for me to feel at ease and have a smaller monthly nugget I need to reduce or eliminate the house payment OR cover it with pretty guaranteed income.

5 Responses to “New goals for this year-investments”

  1. AnotherReader Says:

    Great news about your dad! That's a huge weight off you.

    You do have a lot of catching up to do in your paper assets to meet your goals. Raising your 401k contributions if you are not already maxed out would reduce your tax bill as well as getting you closer to your goal. If I recall, you are on track to maximize your Roth IRA. The Roth contributions are flexible - no penalty if you have to pull them out before age 59 1/2.

    Selling expenses on a $510k property would take a chunk of your equity, plus you would have some expenses to buy something else. In your shoes, I would look at the difference in payment between the two properties. I don't think it's enough to warrant making a change today. I would wait until you have paid off at least the six houses before making a change.

    I don't think you will make all of your 5-year goals by June of 2018, but you should have the 6 houses paid off, and you might be close to knocking out the loans on the two triplexes not too long after that. Once the rentals are paid off, you will be in a much more secure position to make long term plans.

    For me it would be deep breath, head down, push forward.

  2. Rachael777 Says:

    Thanks for the comment. I already maxed out the Roth for this year. I put in $4500 and that was all my accountant said I could put in. I am maxing the 401k with almost $2k amonth.. the rest goes to investments or the 6 homes.

    My goals for 6/2018. I am looking at falling short w the rental income per month ($8000 was ambitious to start with! if I payoff both the 6 homes and 3 units I will be around $6k) , paying the house off and having $300k. but realistically I have 3 years left and a lot can happen in 3 years. I am looking to have approx $100k in investments at teh end of this year NOT including the rental fund. It would great if I could keep this job. so tired of finding a new job every year or two.. so may go full time. and still trying to figure a way to pay those 6 homes off next year. We did fill that one vacancy but still have one vacant that we just fixed up so looking to fill that soon too. I am only losing rent on that though from the first as Section 8 paid all of last month. Turning these over and fixing up has been hard but nice to be getting them solid..

  3. AnotherReader Says:

    In your shoes, I might set an ambitious goal to retire by 50 or a little less ambitious goal of 52. It might be a bit of a stretch to retire at 50. A couple of more years at your current savings rate plus saving the income from the free and clear properties will put you at the point where the house is covered if not paid off at 52. And as you say, who knows what will happen in the next three years? No one could have predicted what happened to you in the last three years.

  4. Rachael777 Says:

    It is occurring to me that if I was not so unhappy w my job situation I would not be so desperately thinking of retiring and leaving work every day. I was not so unahppy before but this job is killing me this time around.. I think I need to work on being happy where I am at (or more happy) that is why I was consdering cutting back on hours or responsibilities> I am currently doing basically 2-3 times the work of anyone else on the team and doing so in 50 hours which was the amount of time I did when I only had 1 large project . now I have 2. If I was happier it would not seem like such a long haul but still trying to be financially independent by 6/18.. shoot for the moon. hit the stars..I need to get a clearer idea of what that is for me. My guess offhand is house paid off (BIG HURDLE), $500k and STABLE rental income of $6k a month..I think of those the house is the biggest hurdle followed by $500k.. I figure w that I can grow my nest egg from there and take a lower paying fun job or just relax. that is my problem I am unable to relax right now

  5. AnotherReader Says:

    I think it helps to break the time into periods that depend on your stage of financial independence. For example, once the properties are free and clear in 2019 or maybe a little earlier, most of your basic income needs are covered, but you could work part time or on a project basis to pay for the house and to allow some of the property income to be added to your portfolio. As your asset base grows, you could pay off the house or downsize, and you might only work as a consultant on a couple of smaller projects during the year. Finally, you decide to retire completely, and donate the business suits and work shoes to Goodwill. You could be bagging the stuff for Goodwill by your early-mid 50's and would have had a much more relaxed time getting to that point.

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