Seven years ago I gave this update, where I surpassed $1MM net worth. I reflected on my financial successes and failures. I'm mid 40s married with 2 kids. I live in a relatively expensive neighborhood in a lower MCOL city. Things are different now:
* I no longer have a rental property but do have a primary residence
* My partner makes significantly more money and our lifestyle costs has inflated
* The huge cash position issue has been resolved
Assets
FI investments include $2.04MM in roughly stocks (86%) that has a strong US tilt, bonds (10%), cash (3%) and crypto (1%).
Other cash includes checking accounts, 529 plans, joint savings and partner's retirement is $415k.
House equity: $350k
Debt
Outside of my operating expenses on a credit card that gets paid every month, my only debt is about $460k in mortgage at 2.6% interest (soooo lucky).
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I don't find much value in tracking NW since the FI investment number is what matters, but my total NW is around $2.8MM.
Spending
My family spent about $160k in 2023, but the past few years there's always been "one more big house project" to do. I don't anticipate that stopping, but perhaps it'll slow. As the kids get older, I can imagine costs with sports, driving, etc will continue to become more expensive. Both our vehicles are ten years old, so those will need to be replaced in the next few years, as will some house appliances and systems.
Income
I make $225k as a contractor, my wife makes $150k with varyingly good benefits. I didn't share income last time, but my income is about the same inflation adjusted while my partner's was something like $40k per year.
How I Feel
Working feels pointless, at least in terms of saving. A 1% market fluctuations has a greater impact than my savings for 6 months. I feel less in control than when saving really mattered more. I'm proud of my accomplishments. I've always focused on earning and I've done a good job balancing a semi-chubby lifestyle for my family and me, but saving. With the lifestyle inflation and my partner being generally unsatisfied with work I don't feel much closer to FI though. It's crazy to have $2MM invested and not be absolutely FI, but such is lifestyle inflation. Reminder to self: enjoy the middle.
Goals
I don't know. After seeing dementia first hand, I have zero interest in RE. Making the assumption my partner continues to work, which I was more sure of until this year, I'm FI. I'm at the age that if I walk away from software I'll likely never be able to go back. Software provides ample flexibility, it keeps my mind from rotting, pays well, etc. OTOH, I don't and have never liked being tied to a computer all day. I always thought I'd start a second career, but I can't think of anything that sounds better, when thinking about the big picture.
My current inclination is to explore going part time for the longish term or take a sabbatical to explore a more fundamental career change. Going part time is appealing because it'll let me hang out with the kids more while they still want to. It's hard to find part time work though and would likely involve an outsized pay cut. I'm meeting with a career coach this week to discuss what's next. The coaching doesn't sound promising as it seems more geared toward people trying to climb the next rung on the ladder. If it's not fruitful, I'll explore therapists. I've tried a therapist before but didn't find it valuable.
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Feel free to ask any questions. submitted by /u/fi_document_change
[link] [comments]
* I no longer have a rental property but do have a primary residence
* My partner makes significantly more money and our lifestyle costs has inflated
* The huge cash position issue has been resolved
Assets
FI investments include $2.04MM in roughly stocks (86%) that has a strong US tilt, bonds (10%), cash (3%) and crypto (1%).
Other cash includes checking accounts, 529 plans, joint savings and partner's retirement is $415k.
House equity: $350k
Debt
Outside of my operating expenses on a credit card that gets paid every month, my only debt is about $460k in mortgage at 2.6% interest (soooo lucky).
---
I don't find much value in tracking NW since the FI investment number is what matters, but my total NW is around $2.8MM.
Spending
My family spent about $160k in 2023, but the past few years there's always been "one more big house project" to do. I don't anticipate that stopping, but perhaps it'll slow. As the kids get older, I can imagine costs with sports, driving, etc will continue to become more expensive. Both our vehicles are ten years old, so those will need to be replaced in the next few years, as will some house appliances and systems.
Income
I make $225k as a contractor, my wife makes $150k with varyingly good benefits. I didn't share income last time, but my income is about the same inflation adjusted while my partner's was something like $40k per year.
How I Feel
Working feels pointless, at least in terms of saving. A 1% market fluctuations has a greater impact than my savings for 6 months. I feel less in control than when saving really mattered more. I'm proud of my accomplishments. I've always focused on earning and I've done a good job balancing a semi-chubby lifestyle for my family and me, but saving. With the lifestyle inflation and my partner being generally unsatisfied with work I don't feel much closer to FI though. It's crazy to have $2MM invested and not be absolutely FI, but such is lifestyle inflation. Reminder to self: enjoy the middle.
Goals
I don't know. After seeing dementia first hand, I have zero interest in RE. Making the assumption my partner continues to work, which I was more sure of until this year, I'm FI. I'm at the age that if I walk away from software I'll likely never be able to go back. Software provides ample flexibility, it keeps my mind from rotting, pays well, etc. OTOH, I don't and have never liked being tied to a computer all day. I always thought I'd start a second career, but I can't think of anything that sounds better, when thinking about the big picture.
My current inclination is to explore going part time for the longish term or take a sabbatical to explore a more fundamental career change. Going part time is appealing because it'll let me hang out with the kids more while they still want to. It's hard to find part time work though and would likely involve an outsized pay cut. I'm meeting with a career coach this week to discuss what's next. The coaching doesn't sound promising as it seems more geared toward people trying to climb the next rung on the ladder. If it's not fruitful, I'll explore therapists. I've tried a therapist before but didn't find it valuable.
---
Feel free to ask any questions. submitted by /u/fi_document_change
[link] [comments]