Buying my Freedom

Where are you and where are you going?
Post Reply
val_2073
Posts: 7
Joined: Thu Jun 15, 2017 9:55 pm

Buying my Freedom

Post by val_2073 »

I am 34 years old M from Texas. I regret not investing when I was younger. I gambled most of my money and made very bad decisions back then. Now that I'm older, I am now devoting everything in creating passive income streams to eventually exit the workforce. I hope to be able to retire when I'm in my early 40's. My strategy is focused on creating a portfolio of Monthly Dividend stocks/bonds.
I have just recently started investing so I do not have much. I have total assets of approx. 600k with liabilities of about 250k.
I have one rental house that nets me $1702 after management fees every month. I want to eventually buy another house for rent but in the mean time,I will build my non-retirement investments. I have two retirement account that I will not track on here. This Journal will primarily display my Non-Retirement Vanguard accumulations towards my goal in having at least 1million portfolio.


Image
bb code img

val_2073
Posts: 7
Joined: Thu Jun 15, 2017 9:55 pm

Re: Buying my Freedom

Post by val_2073 »

I want to add the following stocks but I do not have the funds till next month.

CLDT Chatham Lodging Trust
GNL Global Net Lease Inc
MAIN Main Street Capital Corp
STAG STAG Industrial Inc
VET Vermilion Energy Inc

Noedig
Posts: 191
Joined: Tue Aug 26, 2014 10:15 pm

Re: Buying my Freedom

Post by Noedig »

Dude, you have net 350k at 34.

Notwithstanding bad earlier decision making, that is freaking awesome compared to the 40-and-in-debt origin stories I sometimes read round here.

Strategy sounds solid - HYP plus rental property.

All I can say is the usual stuff: control what you can of your outgoings and vices, keep physically well, and try to harvest some joy out of life along the way (because life seems infinite when you are young, but it is really really not).

Good luck my man.

wolf
Posts: 1102
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Buying my Freedom

Post by wolf »

Do want to invest in single stocks? Why do you prefer them over indexes?

350k @ 34 is impressive. Is your income as impressive as your net worth?

If you follow your personal strategy and goals I guess you won't have any problems reaching your financial goals.

val_2073
Posts: 7
Joined: Thu Jun 15, 2017 9:55 pm

Re: Buying my Freedom

Post by val_2073 »

I prefer monthly dividend stocks because I prefer to get paid monthly. Some stocks pay on the 1st and some pay on the 15th. So its almost like replacing/supplementing my work paychecks. I do not think selling principal to pay for cost of living expenses is preferable. Besides, bills and everything else usually comes in monthly so budgeting is more predictable.
I bought 100 shares of GNL Global Net Lease Inc today. I will add my other accounts also to get a better picture where I stand.

My current totals

Vanguard Taxable= $39,431
Vanguard Roth IRA = $1,653
457 Retirement = $9197
Pension Account = $133,533
Last edited by val_2073 on Mon Jul 17, 2017 9:01 pm, edited 1 time in total.

val_2073
Posts: 7
Joined: Thu Jun 15, 2017 9:55 pm

Re: Buying my Freedom

Post by val_2073 »

This month I was able to pay almost 5k in liabilities and have also started investing in Monthly dividend ETFs using Robinhood.
Both of my real estate properties appraised higher and my net worth went up to almost 400k. My current focus is to pay more liabilities and also invest in more ETFs. Most of my liabilities is tied to my properties. I hope to pay off one of my rentals soon so I would be in a better position to acquire another rental.

My current totals:

Total Asset_____ $702053
Total Liabilities _$308487
Net Worth______$393566

Robinhood Taxable = $1200
Vanguard Taxable= $41394
Vanguard Roth IRA = $2323
457 Retirement = $11364
Pension Account = $134,553

val_2073
Posts: 7
Joined: Thu Jun 15, 2017 9:55 pm

Re: Buying my Freedom

Post by val_2073 »

Future Plans: I hope to be able to create enough passive income so I can quit trading hours for dollars. I want to travel to different countries at a slow pace and be always on the move to different locales at will. I will be traveling with my wife so I would need enough money for two people.
I want to focus more on health and fitness and pursue other projects that's more meaningful. There is so much more to this world to experience and this life than being spent toiling away working for someone else. I am glad to have woken up and realize the slave system that is being perpetuated in this world. This is my journey to buying my freedom.

wolf
Posts: 1102
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Buying my Freedom

Post by wolf »

Hi Val_2073. Interesting update. I follow your journal with quite an interest, because I found it always worthwhile to read about ERE'ers in similar situations (34yo). It seems that your rental property generates good income and increases your networth. There are some other people aspiring ERE and FIRE with properties and I almost read good stories about income and networth. I don't have anything to rent, but when I read those success stories I question it, if it would be also a good idea to buy and rent properties. Well, have you specified your goal to retire around 40? Would be interesting to read, how you define your FIRE-goals. It's always good to know when "enough is enough". Personally, I have set various targets, e.g. SWR, networth, and a specific date (year 2024). Thanks for sharing your journal and your progress. Keep on going. I guess, if you continue as you have already, you won't ever have an problem with personal finances. Wish you best luck.

val_2073
Posts: 7
Joined: Thu Jun 15, 2017 9:55 pm

Re: Buying my Freedom

Post by val_2073 »

Hi MDFIRE2024. Rental properties are only good on certain markets. Having properties on prime locations is a big part of it and also having a good property management team. Offloading the headaches of managing properties to a third party is a must and it truly makes investment properties a passive source of income. Dividends is still my preferred source of passive income but having rentals is a great way in diversifying passive streams of income.
I do not have any specific timeframe on when I can retire but I do have various targets. Any of the following is when I know it is time to stop working:

1. > than $7,000 a month passive income with no debt.
or
2. > than $1,500,000 net worth
or
3. > than $750,000 in pension account

wolf
Posts: 1102
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Buying my Freedom

Post by wolf »

val_2073 wrote:
Tue Jul 18, 2017 8:59 am
I do not have any specific timeframe on when I can retire but I do have various targets. Any of the following is when I know it is time to stop working:
1. > than $7,000 a month passive income with no debt.
or
2. > than $1,500,000 net worth
or
3. > than $750,000 in pension account
Thank you for clarifying it. Having various goals seems good to me. I gotta think about that too.

val_2073
Posts: 7
Joined: Thu Jun 15, 2017 9:55 pm

Re: Buying my Freedom

Post by val_2073 »

I haven't updated in awhile. I have sold all my taxable stock Vanguard/Robinhood and just kept just my 457k and pension account.
I used the sell proceeds to pay off my rental house and use the rest to pay off some loans.
After doing so, I went ahead and proceeded to purchase another property for my primary residence.
I will move out of my current house and also put it up for rent.

House #1 purchase for 135k (2007) appraised at 250k. PAID OFF and rents for $1850. rent is discounted rate due to long term tenants.
House #2 purchase for 255k (2016) appraised at 265k. 205k left on mortgage. will rent out for approximately $2100 a month
House #3 purchased for 300k (2017) appraised at approx. 315k-350k. Primary Residence
Cash and other assets. Appox. 200k

Goal for the next year: I will redirect most of available funds to pay off House#2 and then acquire House #4 for rental income.

wolf
Posts: 1102
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Buying my Freedom

Post by wolf »

val_2073 wrote:
Mon Oct 16, 2017 4:11 pm
Goal for the next year: I will redirect most of available funds to pay off House#2 and then acquire House #4 for rental income.
Hi val_2073! How are you in Texas? Already acquired your house #4?

Post Reply