here we go

[pokerboy23]

Hi,

Decided to write blog about my journey to financial freedom.
stats
Age-33
total portfolio 717,822.69
emergency fund 20k

Portfolio
401k
152,747.2 (Vtsax)

Roth
51,075.21k (vtsmx)

taxable
187,471.94 vtmfx
165,052.45(vtiax)
161,826.31 (vtsax)

Plan to be 100stocks in my retirement plan to the age of 50 or when I reach One million dollars (which ever comes sooner) and then change my allocation to a permanent portfolio 60/40 (vwenx) for the rest of my life. as for my Taxable just hoping it grows 1mil were I can safely withdrawal 25k a year and work p/t.

The next three years will probably be the last few years that Ill be investing this aggressively (40k a year) I plan on starting a family with my g/f 3 years from now.

Currently monthly expenses
900 (rent) southern ca
272 (car lease)
180 (health insurance)
500 (food)
200 (cloths) high maintenance like to dress well
300 (miscellaneous)
100 (tennis, tournament, gears)
30 (gas drive chevy volt)
30 (phone bill)
150 (car insurance)
2662 (monthly expenses)


However the next 3 years if things go according to plan will start a family and my living expenses will increase dramatically which will give me less money to invest. Hoping that am able to still invest the maximum amount in my solo-401k (18k) and Roth ira (5k) but it will be challenging.

Anyways tx for reading and I hope you enjoy my journey


Edited.. Was rounding number and made a mistakes. Just went straight to my Portfolio and got exact numbers

[BRUTE]

very impressive numbers
2,512*12*25 = 753,600
512k+152k+20k+51k=735,000

y not FI sooner?

[thrifty++]

@ Brute I was thinking the same thing and wondering if I had misread something or whether OP made a typo.

[pokerboy23]

need at-least 1mil in my taxable account to comfortably withdrawal funds on a monthly basis (25k) WIll stop contributing in my taxable account at the end of 2020. Since taxable account is currently 512kish how long would it take for it to turn 1million? assuming nobody has a crystal ball therefore have to patiently wait what the market does in the upcoming years

[wolf]

How did you manage to earn and save such an amount of money by the age of 33, I'm wondering?
It is a good basis for your plans starting a family. If you manage your finances properly and learn some ERE skills, I guess you could FI earlier.

[pokerboy23]

I was fortunate enough to start investing aggressively in late 2008. Was contributing close to 70% of my income. Bull Market run has exceeded my contributions

Its interesting how luck plays a big role to your portfolio as well.

[BRUTE]

sure does

[Dragline]

need at-least 1mil in my taxable account to comfortably withdrawal funds on a monthly basis (25k) WIll stop contributing in my taxable account at the end of 2020. Since taxable account is currently 512kish how long would it take for it to turn 1million? assuming nobody has a crystal ball therefore have to patiently wait what the market does in the upcoming years

Simplest way to project/estimate this is to use the Rule of 72. Divide your expected rate of return into 72 and it will tell you how many years it will take for that investment to double. So if you were to assume an 8% return, your 512K becomes 1024K in about 9 years.

Of course, your rate of return is not guaranteed and the variance is high with an all-stock portfolio.

I'd guestimate that you'll hit $1M on the total portfolio in about 4-5 years at the rate you are going, unless the stock market takes a dive. Could happen in 3 if random factors operate in your favor.

In any event, you're in great shape and your biggest variable going forward is going to be expenses.

[JollyScot]

I'm sure you could probably just stop now if you wanted, I remember when I ended up taking leap the first year off and I made more than when I was working full time. Although its somewhat anecdotal a lot of those who do make the number very rarely end up earning nothing after stopping. You can find more than one who ends up making far more once they leave than they did when working towards the goal.

I understand the nature of risk for people though, I was much the same. Still you have nailed the savings and if you have a target and plan I'm sure you will be there in no time.

[pokerboy23]

dragline-My taxable account is what am really focus on and slowing adding more bonds. The market will really determine if i can comfortably retire in my 40's or not.

jollyscot- My job is becoming more difficult each year that goes by. Good chance that 7-10 years from now I wont be able to make a living doing what I do now therefore, going to work until the job simply isn't sustainable. If the market does well then going to look for job that is meaningful to me regardless what it pays however if the market tanks then how much the job pays will be priority to me.

[BRUTE]

I ended up taking leap the first year off and I made more than when I was working full time.

how did that happen?

[JollyScot]

That's fair enough, not saying you should retire yet if you think its best to make the most of the job now. I think if I were back at the almost there point I would spend more time thinking what I would do after stopping. I had a basic plan of learn this do this and so on but I ended up reading and looking into all sorts of stuff (I spent a good 2 months researching indoor farms). Fun, but not much direction in it, maybe that doesn't matter though.

We too might be considering kids shortly, everyone keeps telling me they will be very expensive. I have looked at what they need more than once and decided I am largely going to ignore these people. Unlimited free time will cancel out a lot of those costs in my mind.

@Brute, it was a case of I quit and maybe a couple weeks after someone I did some work with called and asked me to do a 3 month contract with them at "insert stupid number here". So I agreed, then maybe 4 months after that one finished they called again asking me at "insert even stupider number here". Some will consider this cheating, but whatever point is I'm in the position to do what I like and the "job" would never have happened had I not taken the leap.

[pokerboy23]

my balance since i started investing 2008 till now

2008-5000
2009-149,619k (put my down payment in a house in stocks)
2010-244,934
2011-281,476
2012-397,391
2013-496,636
2014-532,287
2015-363,689 (took out 150k from taxable to start a business)
2016-611,065 (was able to put back the 150k short term loan to stocks again)
2017 update dec 31

[wolf]

Maybe you will top the 700k if stock prices rise

[pokerboy23]

"Maybe you will top the 700k if stock prices rise"

I know your being a troll.

Am writing this journal to share my experience. Psychology I think its best for me to just update my stock portfolio at the end of each year consistently since throughout the year my portfolio jumps around 20-40k or sometimes more. Therefore, instead of focusing on my daily,weekly, or monthly portfolio I should just look at it once a year..

[wolf]

First I didn't understand what you mean by troll, because I am not a native English speaker. Then I googled it. Now I understand.
It makes sense now, because you also wrote about the Update dec 31.