My Goals for my 31st year on planet earth..

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FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

So I have taken a step back I suppose, or forward depending on you look at it. Although I have been pushing harder and harder to pay off my Home Equity Line of credit, which is my last debt aside from my home, and two cash positive rental properties. I actually went a little deeper. I took 5,000 out of my Home equity to re-start my LLC, which will this year, own the investment properties, to alleviate some potential liabilities, and makes taxes a wee bit cheaper.
So Here is where I left you guys last. I had sold my truck to pay off last of my wife's student debt, its gone, and I had set myself a $3000 budget for a new ride ( no car isn't an option for me). I have so far spent $1588.00 on my jeep ($500 purchase and parts i needed to fix it up luckily I'm a good mechanic) and will be in service with out a doubt another 100K miles, cheap to insure, will pull a trailer, so we are in great shape there.
I just turned 31 last month, and this is where I stand
Debt- $23,450 On Home Equity Loan

$286K on primary residence

$ 211K on one rental property

$ 266k on the second rental property
Assets- $77,000 in TSP retirement Plan

$10,980 in Roth IRA

Rental Properties
Plan for my 31st year on this earth…
5k Contribution to Roth IRA, even though i am building my retirement on rentals, i can't get that time back and pretty much have the 5k saved for Jan 1st.

COMPLETELY pay off the equity Line of credit, leaving just house loans. With that debt being the last, I am OBSESSED with making it go away. I will usually get about $5000 back from taxes, and have been paying $900/mo so that gets me $14,900 by my 32nd bday. which will leave me $8100 left to come up with. And I can hustle that on the side by june. Once that's gone I can actually save and invest, in the market, my savings, and my business.

To earn 200k PRE-TAX income. I know this goes against ERE, and living on less, and yes I still live on less but thats pre tax, and I own three houses, and live in NY. Plus it makes me really work at it and makes me aware of EVERY nickel and dime I earn.

Change ownership of rental properties into LLC name

REFI the rental properties into the LLC name

Open a Roth IRA for my 3.5 Yr old daughter, and fund $3,000 into it. With 56 years before she can touch it, I'd love for her to have the ability to go into life knowing that she's got a nest egg. Giving her that freedom to work where she wants, or do what she wants. She can borrow for college but Can't borrow for retirement. And I will cut her a check from LLC, give her a 1099, so she has income (model for website), so the $3,000 will actually cost me probably $3500 but if i can swing it I'd love to.

Unload EVERYTHING that I haven't used this year. I have 2 motorcycles in my garage, that i love…but the garage is collapsing…I mean may not make it through a bad winter. So i know that replacing that next year is not going to be an option. But made me think how often i actually ride them. I prefer building them and selling them….so this year EVERYTHING i don't need is going on Craigslist or Ebay. it will both help me it my 200K mark, and will just get rid of things i have, duplicates i have, give me more space and just make me feel better.

I want to run 400 Miles (I know its not ere related but just a goal for 31)

I want to cycle 1000 Miles (against, not money related but just a goal)

I want to be able to do 30 consecutive pull ups, I can do 13/14 now.

I want to be able to run a 9/min mile
I figure telling others, will motivate me more. Sorry for the long post, but I'll keep you posted as I go.


pooablo
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Joined: Sat Aug 20, 2011 4:32 am

Post by pooablo »

Very exciting. I'm interested to see how things pan out after the year passes. Keep calm and carry on. :)


BeyondtheWrap
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Joined: Thu Jul 22, 2010 3:38 pm
Location: NYC

Post by BeyondtheWrap »

If you just turned 31, that makes this the 32nd year of your life...


Nicoleismyname
Posts: 34
Joined: Thu Nov 08, 2012 1:45 pm

Post by Nicoleismyname »

Personally, I like to hear about the other goals too! I'm into health and fitness and think it's amazing to do 30 pullups. The guys I know in my gym do at most 25 and that's on a great day. Are you doing the extreme marathon or are you going to do 7.6 miles a week?

Best wishes,

Nicole


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

Yes, I suppose this will be my 32nd year on earth...but i just went with numerical age.
As for pull ups/run/push up totals. Just a total, some weeks, will be more, some less, but i set up a spread sheet to keep track, setting an arbitrary number helps keep me motivate.
As for my pre-tax 200k. I know it sounds anti ERE to earn that much, but its a. pretax, b. I have three rental incomes (and three morrgages). So that number was set so it forces me to use wit and brain to earn roughly 25-35k over the year. I like that cause it forces me to be creative, and if I manage to make 25-35k pre tax doing little side gigs....well ERE seems doable.
As it stands right now.

Total Income since 11/19-$13,508

Total Taxable Income since 11/19-$11,672

Total Per Diem ( non taxed ) since 11/19-@1,406

Total Cash earned (non taxed) since 11/19-$430.56
I travel for a living, so my per Diem isn't taxed, but used to survive when at work, I've found i can live off about 6% of my per diem while away, by bringing food ect with me. leaving 96% to repay debt.


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

Nicole,

as of now my best 1.5 mile run was 11:45 and that was nearly 10 years ago in military. So I know I CAN do a 9 min mile. As for pull ups, my best was 23, and I don't work too hard at it, So with some extra work Ill be at 30 soon enough. I'm not a big gym guy at all, but know it benefits me to stay in shape, so stick to basics, and has always served me well.


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

Ok, so here is where I am so far. My awesome jeep that i was into for almost nothing was hit and totaled, not bad between the insurance settlement, and then sold it as it I actually made almost a 400% ROI on it, so away it goes. I bought another truck, which I know is big, and not great on gas, but I use it to make money and don't drive around aimlessly.
I have been putting more into my business venture, which isn't cheap but needs to start.
I have kept up paying off the Line of credit. As I stand right now..
Total Taxable income since 11/19/12-$36,397.04

Total Non Taxable Income since 11/19/12-$9,919.79
I also just filled the vacant apartment, so that will be another $1900/mo. And My wife got picked up to teach a full time schedule at school so that will be $1,800/mo more than she was bringing it before.
Debts
Primary Home-$282,542.53

Rental #1-$260,559.77

Rental #2-$210,542.52

Home Equity Line of credit-$22,869
that's a whopping 3/4 MILLION in the hole!
Roth IRA-$12,851.83

Employer TSP-$78,614.50

Investment ACC-$1,371
I also have roughly 10k personal tied up in LLC, which after just doing my FY2012 taxes is a very helpful thing as my expenses are being funneled through LLC
Also based on increased monthly income, I should be able to have the line of credit paid off, Roth fully funded for FY2013 by September....


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

Ok just a fast update. Sold one of the bikes, for a profit (46% ROI). Entire selling amount went to the line of credit, which is down to 22,XXX. With the market doing well, investments are right at 93K. I have also began utilizing the LLC, and funneling 30-40% of all Personal expenses through it.
Health wise, I have been slacking a little. I am up to 19 pull ups, but I've realized that a total number is the priority, I am getting much more fit. I am down from 212lbs (a REALLY bad 212) to 185lbs. I may nee to buy new pants soon.
I am getting ready for the garden season, I try to keep a huge garden. I don't can and keep it for the year, but my daugter LOVES fresh veggies and will literally go eat cherry tomatoes off the plant all summer long. And things like fresh snap peas, tomamtoes and peppers aren't cheap.
Usually I will buy transplants, but they end up costing nearly $150 a season. This year I am going to try starting the seedlings in my basement. I've got the room, and essentially everything I am going to need. So it will cost nearly nothing. And It will be nice since I will have complete control over the plants.


Dragline
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Joined: Wed Aug 24, 2011 1:50 am

Post by Dragline »

Sounds good. Looking at your original post, if you live in a state that has income taxes, you may want to consider putting the money for your daughter in a 529 plan -- usually you can get a tax deduction in your state if you pick the right one. It would also save you the hassle of dealing with a 1099, paying any extra taxes and keep control of the funds in your name. Of course, its purposed for educational expenses, but you can pretty much count on some of those up to a point (and it can be rolled to other people later if you have more kids).


m741
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Location: Seattle, WA

Post by m741 »

Wow, great work losing weight!


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

Thanks guys. The weight thing has me feeling great. When I was younger and still in the military I took physical fitness for granted... My job is a lot of meals on the go and sitting so it snuck up on me. I am @ 186. But a good 186, I can see abs again and feel awesome.
As for the 529, I considered it, but she can borrow for school she can't borrow for retirement and k ow thing that she's got a big nest egg it takes retirement out of deciding what she wants todo with her life. And f she wants to take the family business all the better.
The one of credit is down to 19334, and based on what I'm scheduled for the next two months and my wife's pay check I should be down to 3700 by the end of may. Don't want to count my chickens, but excited.
I am also working on a non profit set up, I can't retire and sit, but is love to garden and work like that...so since I still want to be hugely productive, and that job may be hard to find I'm going to create it. I have a meeting with CPA next month ill let you know how the plan folds out.
Stay tuned.


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

Just Checking in...show some progress.
As of 3/30/13
Total Income Since 11/19- $67,008.68

Taxable-$54,665.29 (81.6%)

Non Taxable-$12,343.39 (18.42)
I managed to pay down the Line of Credit to $14,475 ( after Checks Clear on the second) And I just listed my last motorcycle and hoping that will bring in $3200 and bring Line of credit down to $11,275. Also with my wife working full time I should be able to get it down to $8100 by May first. I have been Killing myself to get this debt gone, because I want to max out my ROTH this year, and My 401K, and open a Roth for my wife too and max it out.
After the debt is repaid, and both my IRA and ROTH is maxed. I want to start putting money into my other brokerage account and start building Dividend stock porfolio.
The business, is showing a small profit, but I am aiming to get %38 of my personal expenses run through there in FY2013 to off set my income. We will see. The business will be taking on a few VERY large debts as I want to secure some property this year to build on...we will see and I'll keep you informed.
Health wise, I have been eating much better, and lost lots of weight, and can actually start to see abs, and muscle tone again. Haven't looked/felt this good since military days. Have also been drinking MUCH less, and looking to quit smoking by summer.


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

Hey everyone. So april is proving to be a good month. I did change my goals from nov-nov to Jan-Jan, it's just easier to keep track of for the Tax year...no biggie.
I am down to 7550 on the line of credit, and should be down to 3500 by the end of the month. I have been killing this debt, and makes me feel great because once It' is paid off I will be saving all of this money, I'm guessing close to 3/4k a month.
I quit smoking! I went to an acupuncture thing (usually not a fan) but it worked well and I've been smoke free a week now and feeling better. Signed up for my first marathon in october as well. Ill be back next week to update #'s for the month.


GPMagnus
Posts: 116
Joined: Tue Jun 05, 2012 2:24 pm

Post by GPMagnus »

Aweome progress FPMLLC - keep it up, esp. the no smoking / no alcohol - that in itself will add years to your life, you'll feel better, and save a decent amount every month!


BeanHead
Posts: 15
Joined: Thu Apr 11, 2013 6:09 pm

Post by BeanHead »

Great job on the quitting smoking! I've heard it's the hardest (legal) thing to quit, so good on you. Your wife, daughter, and lungs thank you.
Great debt progress, too. Can't imagine being that deep in the hole, so that's great you're making so much progress.


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

@GPMsgnus.....smoking I gave up, alcohol is a different story = )
so April was a good month, sold my last motorcycle, after all was said and done. The difference between my Income/expenses was just over $8,000. I am thrilled,
My home equity line is do $3300 which will be completely paid off by mid June.
Current investments total $105,xxx.
With My business/personal expenses and income completely separate I find it is easier to save, and see just where i am at.
I also start a new assignment at my job next month. It is a two year assignment, and although I will be taking a decent pay cut, and have more travel expenses. Overall quality of life will GREATLY improve, so I am going for it and will try to make up the pay loss with little side gigs here and there.
AS for the lifestyle/fitness goals. I am feeling pretty good, and signed up for a marathon in October so I am training for that. I've always wanted to say I did one, so now I am going to see if I can.
As for investments, once the home equity line is paid off, my goals are going to be my ROTH, which will be set up as a growth porfolio, and my regular investment account which will be a mix between grown and dividend paying stocks. With the debt gone, i should be able to save pretty fast since almost $4,000 a month (my wifes entire paycheck as well as a chunk of mine) has been going to pay it down, But I went from $23000 to zero in 9 months, so If i keep going on that path I should be able to get my investments up to $150K by years end. Just the thought of that makes me giddy.
I know it's not ERE style, or my own for that matter, but I don't have a really specific plan just yet. My hatred for my job has let up a little with this new assignment I got. And My wife loves her job. I've got a few things going on with the business, and all in all things are pretty good. So the plan is just save, save, save and save some more. I figure even if I don't have a perfect plan that's a pretty good cover all.


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Post by FPMLLC »

Double post


FPMLLC
Posts: 99
Joined: Tue Aug 14, 2012 4:24 am

Re: My Goals for my 31st year on planet earth..

Post by FPMLLC »

Ok, well today was the day. I paid off my home equity line of credit....it's zero! It took me 7/8 months but that $24,000 cloud over my head is gone. It's an odd feeling, for the past 5 years I've always had an outstanding debt there. And I've always paid something towards it. Today was the last day. So I have no car payments, No school debt, no credit debts....I am just holding my mortgage with 279K remaining (54% equity according to zillow).

Now every month that extra money that was ear marked for debt can go towards savings....I have a current net worth (not EVERYTHING i own, but house, car, investments, cash and equity in my business) of roughly $446K...going to try to hit $460 by years end.

Just an awesome day!

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