Let's paint a Bob Ross. We'll begin with a few snow topped mountains under a bright blue sky.
I'm about to turn 29 (in April). My plan the last 5 years was to try to double my income and pay off school loans (28k total @ 5.8% avg). Mission Success! Completed in 4 and spent the last year heavily investing in myself, emergency savings and 401k.
*Currently renting my step-dad's house with knowledge it will be passed to me eventually. 19 years remaining @ 121,000 - house value 270,000. Rent for me and roommates is 1,350 a month. I love this house. *My mother has owned her own beauty salon for 30+ years and has a quilting/nonprofit business on the side. She's an amazing person, but I need to plan around fully supporting her in ~10 years. The economy and some bad luck have her pay check to pay check with no retirement.
*I've had a girlfriend for 4 years and marriage/children will hopefully be within 1-3 years :) I'm not accounting her pay into my situation as we are not married yet, but this wouldn't change my plan a lot. She is onboard with my thoughts and we'll keep my mother's care to my income only.
Wow. Such lovely mountains we've made. Mountains need a friend too, why don't we add some trees. Yes, a few tall dark and handsome pine's.
Income - $80,800 -Primary: $70,000 -Passive (rent): $10,800
Assets: $71,091 -Cash: $7,192 -Emergency Saving: $10,157 -401K (mix of Roth/Trad): $48,742 -Car Value: $5,000
Liabilities: ($4,861) -Car Loan: ($4,861) (24 months left @ 3.9%) -Credit Card: 0 Net Worth: $66,230
Expenses (Yearly): $62,700 (Per Month): $5,225
Bills (Rent, Cell, Insurance, Utilities, Car Loan): $1,949 Savings: $2,296 -401k: $991 -17% Gross -Roth 401K: ~$280 - 4% Gross -Emergency: $900 (can stop this as I'm at 4 months living emergency) -Vacation: $125 Everything Else (Food, Entertainment, Health, Clothes, Gas ect..): $980
The mountain range and trees are better than I've imagined. They are getting a little thirsty though, lets add a happy river.
I want to:
*have a home for my mom to live out her days in comfort (Not in the same residence as me) *Stay in my dad's house and raise a family there: This will include marriage and hopefully 1-3 healthy children - pets included.
*Have 2 million in retirement account by 67.
*Have 2-3 rental properties paid off by the time I'm 60.
*Be the first full time resident of Mars
Isn't this wonderful? A serene brook shadowed by the snow cap mountains and trees. Wouldn't a little cabin be nice?
Seeing as my 401K is at a healthy level and my emergency fund is adequate, I can comfortably move around 1,800 dollars a month (leaving 4% at 401K to utilize company match). Over 5 years this is ~108k. *Next 3 years - plan around 30-50k for ring, wedding, 1st year of baby (low cost EFTs?) Vanguard? *Years 3-5 - Plan to save 50k for down payment on first rental property to start building my mom's residence. (straight savings or continue EFTs?) *Years 5-10 *Buy out the remaining mortgage on my dad's house to live rent free there. *Increase my 401k back up to annual limit to drive towards 2 million goal *Remaining savings would go towards paying off 2nd property *Year 10+ - Purchase second rental or upgrade 1st. Have mom's residence ready and assume her lifestyle cost less SS/Medicare
There it is, a joyous mountain landscape where we can all live peacefully in our cabin.
Hopefully my thoughts and recap made sense. Is there anything I should alter or change to stay on track?
*Editting - Formatting - First lengthy post
Submitted March 17, 2017 at 12:03PM by FCSnapshot http://ift.tt/2mXrV6z
