I would like some advice on moves you would make if you wanted to retire by 50

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  • #83764 Reply

      & Had a late start to investing. Single, 38, 3 kids.

      Annual Income pre-tax(varies): $160k-$200k – approx $8000/ month average after tax, but sporadic due to bonus pay cycle. Can’t save much this year due to some unexpected expenses and wanting to build 10 month emergency fund, but plan to hit hard in 2024.

      Monthly recurring expenses: $5000

      (not including rental mortgage or income in above)

      401k: $240k

      Ind. Stocks: $125K

      Roth IRA: $25k

      Traditional IRA: $7k

      Personal residence: value $325k, owe $179k

      Rental property: value $375k, owe $150k, rent covers mortgage + $600/month

      I owe on my car, which will be paid off next year and a little cc debt at 0% that will be paid off in 2023 before 0% expires.

      NOTE: Stock is discounted purchase through company. 401k 6% + match.

      #83766 Reply

        Assuming an average inflation rate of 3%, your annual expenses of $54k will be closer to $77k by the time you’re 50. To generate around this much, you would need a stock portfolio of about $2M, and at an average 8% return, investing $4k per month would get you there. This means maxing out your 401(k), maxing out your IRA, and investing the difference in a taxable brokerage account. This doesn’t account for the cash flow from your rental though.

        #83767 Reply

          When you say rental property covers mortgage + $600 are you also including taxes, insurance, maintenance, vacancy, and capital expenditures in that “mortgage”? If you’re not, then you are probably just breaking even or even losing some money.

          Don’t miss: My employer is beginning to offer a retirement plan

          #83768 Reply

            Keep building your RE portfolio. Look into commercial (not just REITS, but syndications). Enjoy the journey. Pay for vetted mentorship and build your network.

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