About me:
- 43 year old female, single, no kids
- Live in Pacific Northwest, USA
- I own my condo outright (25-year old tiny studio condo in a great neighborhood for walking everywhere and on bus lines)
- I own my car outright (10-year old car with no working gauges but runs great)
- I work a standard corporate-America job that I find mostly boring but it pays very well
My goals:
- Restructure my life for a hybrid-ERE situation in 2012.
- Establish ERE income to cover my basic living needs (housing/food/health ins.) and use temp or contract work to earn mad money (mostly for travel)
ERE Goals:
- Resign from job with last work day of Oct. 31, 2012. This will allow me to stay long enough to collect my annual bonus ($5 – 7K), and to stay in the PNW through prime hiking season.
- Rent or sell condo (need to crunch the numbers to choose best option)
- Restructure life to live in southern-U.S. during winter (with family) and in PNW in summer (to escape heat/humidity/mosquitoes)
Monthly financials:
- After-tax income: $5,400
- Average expenses: $2,500 ($500 condo dues + property taxes / $2,000 everything else)
- Average savings: $2,900 ($500 401k / $2,400 non-retirement)
Financial Snapshot:
- Est. condo value: $200,000
- Retirement assets: $433,000 (401k/IRA/pension)
- Brokerage/money market account: $26,000
Short-term ERE Actions:
- Reduce monthly 401k contribution to $214 (minimum amount to get company match)
- Increase monthly non-retirement savings to $4,000 (will bring non-retirement savings to $66,000 by target quit date)
- Identify property manager and request estimate for monthly condo rental income
- Identify potential temp/contract job opportunities
- Start clearing home clutter in preparation for ERE
- Investigate monthly car rentals in PNW (will need a car to drive to hiking trails and to temp jobs)
- Forecast post-ERE expenses, including health insurance
frygirl's journal
For at least 8 years, I’ve been dreaming about ditching my job as I find it dull and unchallenging, plus I deeply dislike my boss. I have no respect for her, and she has absolutely nothing to offer me either intellectually or professionally. The only reason I’ve put up with her for so long is that I’m a remote employee, meaning I work in a different state than her so I never have to see her face-to-face other than once or twice a year during business trips. My job also offers some nice perks: 6 weeks of vacation a year (nearly unheard of in the US), a very comfortable salary, very low stress environment, and I’ve recently started working from home (which I love). It’s VERY hard to walk away from easy money. But it’s also hard to be bored for 9 hours a day and to have a complete idiot to answer to at work. So far the money has won out. If I work 12 more years (to age 55), I’m eligible for retiree health benefits. That’s tempting given the rising cost of health insurance, but I’ve learned from my ERE readings that I don’t need their stinkin’ heath benefits.
Because of my diligent saving over the years, there’s no reason I have to work full time anymore – I just need to restructure things and focus on intensive saving. My parents are in their mid-70s and I’ve lived 5 states away from them for the past 15 years. I now want to spend more time with them. I could relocate to their city and keep working in my current job, but I’m looking forward to resignation day.
I spent several months earlier this year trying to do a “proof of concept” attempt to secure a contract job so I could quit my current position. I wasn’t successful. After several telephone interviews with various contract agencies and gobs of e-mails to recruiters responding to my monster.com resume, I failed to secure one contract job. I discovered that most contract jobs are contract-to-hire for full time positions, and I was very clear that I only wanted a short-term contract so I think that was part of the issue. I’m going to tweak my approach next year to focus more on temp agencies, which may be lower-skill and lower-pay jobs, but easier to get and shorter duration which fits better with what I want.
ERE housing will be an issue. When I’m in the southern-US during the winters, I’ll stay with family and will contribute to their household expenses. I already have their very enthusiastic support of this idea. During the summers I want to return to the PNW to hike and do temp work. I don’t need a car while living down south as I will compensate my parents for use of their vehicles (they don’t live in a walk/bike or public-transit friendly area). But when in PNW, I’ll need a car to drive to the trailheads and to a temp job. I’ll have to find housing (room-rental via Craigslist) before securing a job, so it will be difficult to coordinate housing location with work location. I will have to figure that one out.
As I firm up my numbers and start doing my homework, I’ll have a better idea if my Oct. 2012 target quit date is feasible.
Because of my diligent saving over the years, there’s no reason I have to work full time anymore – I just need to restructure things and focus on intensive saving. My parents are in their mid-70s and I’ve lived 5 states away from them for the past 15 years. I now want to spend more time with them. I could relocate to their city and keep working in my current job, but I’m looking forward to resignation day.
I spent several months earlier this year trying to do a “proof of concept” attempt to secure a contract job so I could quit my current position. I wasn’t successful. After several telephone interviews with various contract agencies and gobs of e-mails to recruiters responding to my monster.com resume, I failed to secure one contract job. I discovered that most contract jobs are contract-to-hire for full time positions, and I was very clear that I only wanted a short-term contract so I think that was part of the issue. I’m going to tweak my approach next year to focus more on temp agencies, which may be lower-skill and lower-pay jobs, but easier to get and shorter duration which fits better with what I want.
ERE housing will be an issue. When I’m in the southern-US during the winters, I’ll stay with family and will contribute to their household expenses. I already have their very enthusiastic support of this idea. During the summers I want to return to the PNW to hike and do temp work. I don’t need a car while living down south as I will compensate my parents for use of their vehicles (they don’t live in a walk/bike or public-transit friendly area). But when in PNW, I’ll need a car to drive to the trailheads and to a temp job. I’ll have to find housing (room-rental via Craigslist) before securing a job, so it will be difficult to coordinate housing location with work location. I will have to figure that one out.
As I firm up my numbers and start doing my homework, I’ll have a better idea if my Oct. 2012 target quit date is feasible.
welcome again!
I don't know enough about the contract vs temp jobs... In my field, most people (who want a flex lifestyle) do temp jobs (get themselves signed up with an employment agency, then get placements to various companies "clients"). Then inevitably they get multiple permanent job offers from their clients.
So this may be the most important thing to watch out for... not falling for that FT corp employment trap again since you don't need it
I don't know enough about the contract vs temp jobs... In my field, most people (who want a flex lifestyle) do temp jobs (get themselves signed up with an employment agency, then get placements to various companies "clients"). Then inevitably they get multiple permanent job offers from their clients.
So this may be the most important thing to watch out for... not falling for that FT corp employment trap again since you don't need it
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Bingeworker
- Posts: 48
- Joined: Fri Nov 04, 2011 7:41 pm
Hi Frygirl- I already live a lifestyle similar to the one you're pursuing (I think), it's a great idea, and I love that Halloween quit date!
I wonder why you are so sure you want to sell or rent your condo? As one who travels extensively for both work and leisure, I'd advise you to think this one over carefully. Having a home, a place where your stuff is waiting for you when you get back, where you can keep stuff without packing and unpacking it, is really worthwhile. I went 2 years of living place to place and just storing stuff and renting short-term accommodation, and I can tell you this is a very time-consuming way to live.
$500 a month to carry the condo whether you are there or not sounds worth it to me. Mine is $650 or so for fees/taxes a month, and I find it worthwhile, even though I am only there about 4 months a year. It's not the cheapest option, but other options are very expensive on time and mental energy, and means you are always up in the air in finding a place to live when back in your home city, getting your stuff out of storage and set up, etc. etc. Tenants can be a hassle, too- I had one (in the house I previously rented out before selling and buying the condo) who got seven months behind in rent- and that was with one of those agencies that supposedly screens people to the nth degree.
I guess there won't be any possibility of getting contracts here and there with your current employer? If you could, sounds like that would be ideal, since the money is good and the work sounds OK. Having a remote boss who is an idiot is better than having one next to you at your contract job, especially if contract work pays less than what you make now.
Good luck with everything, I will be following your journal.
I wonder why you are so sure you want to sell or rent your condo? As one who travels extensively for both work and leisure, I'd advise you to think this one over carefully. Having a home, a place where your stuff is waiting for you when you get back, where you can keep stuff without packing and unpacking it, is really worthwhile. I went 2 years of living place to place and just storing stuff and renting short-term accommodation, and I can tell you this is a very time-consuming way to live.
$500 a month to carry the condo whether you are there or not sounds worth it to me. Mine is $650 or so for fees/taxes a month, and I find it worthwhile, even though I am only there about 4 months a year. It's not the cheapest option, but other options are very expensive on time and mental energy, and means you are always up in the air in finding a place to live when back in your home city, getting your stuff out of storage and set up, etc. etc. Tenants can be a hassle, too- I had one (in the house I previously rented out before selling and buying the condo) who got seven months behind in rent- and that was with one of those agencies that supposedly screens people to the nth degree.
I guess there won't be any possibility of getting contracts here and there with your current employer? If you could, sounds like that would be ideal, since the money is good and the work sounds OK. Having a remote boss who is an idiot is better than having one next to you at your contract job, especially if contract work pays less than what you make now.
Good luck with everything, I will be following your journal.
Hi Frygirl,
Are you especially tied to the PNW vs. some other outdoor playground type area? There may be a place that you could get a similarly priced condo that you could enjoy in the nice weather but would be able to rent as a vacation property near a ski area during the winter. Usually owners lose money during the summer, whereas for you, it could be good match. Tahoe, CA... Sun valley, ID... Brundage, ID... Whistler, BC... Stowe, VT.... Steamboat Springs, CO. Some are more expensive than others, but maybe something to consider.
Interesting to see your post though... I'm in very similar circumstances numerically (age/$/timeframe) and have come up with similar concerns. Unfortunate to hear about the contracting, but keep us informed if your alternate tack proves fruitful. Great idea testing the waters ahead of time, btw.
Are you especially tied to the PNW vs. some other outdoor playground type area? There may be a place that you could get a similarly priced condo that you could enjoy in the nice weather but would be able to rent as a vacation property near a ski area during the winter. Usually owners lose money during the summer, whereas for you, it could be good match. Tahoe, CA... Sun valley, ID... Brundage, ID... Whistler, BC... Stowe, VT.... Steamboat Springs, CO. Some are more expensive than others, but maybe something to consider.
Interesting to see your post though... I'm in very similar circumstances numerically (age/$/timeframe) and have come up with similar concerns. Unfortunate to hear about the contracting, but keep us informed if your alternate tack proves fruitful. Great idea testing the waters ahead of time, btw.
@Bingeworker, you make an excellent point and touch upon the biggest drawback to having tenants...that there is always the risk of deadbeats even with proper pre-screening. I do like the idea of keeping the unit unrented, but the thrifty (greedy?) side of me likes the idea of collecting monthly rent. I'll have to weigh the pros/cons of being a landlord vs. the simplicity of having a home base at my beck and call. $500/month isn't a burden while I'm working full time. But when I eventually resign, it's suddenly a $6,000/year burden I need to carry. If I can find lucrative temp work then this may be a very feasible option. Although my condo rules preclude short-term rentals, I may be able to leverage the unit for house swaps (no money to change hands) while traveling. It's a technicality and I'd have to test the waters with the board's approval on that one.
@chilly, I am not especially tied to the PNW. Any place that provides a similar summer climate and opportunity for an outdoor play would be acceptable. I don't mind starting over to make new friends. I just came across a quote in a book I'm reading that sums up how I feel about my current batch of friends, "I don't go out of my way to make friends, that's all. It just leads to disappointment." (from Norwegian Wood by Haruki Murakami).
@chilly, I am not especially tied to the PNW. Any place that provides a similar summer climate and opportunity for an outdoor play would be acceptable. I don't mind starting over to make new friends. I just came across a quote in a book I'm reading that sums up how I feel about my current batch of friends, "I don't go out of my way to make friends, that's all. It just leads to disappointment." (from Norwegian Wood by Haruki Murakami).
When you consider keeping your condo as a home base, you may want to factor in capital costs too. Consider that if you sold the condo outright for $200k and put that into a 4% investment, it would generate $666/month. +$500 is pushing $1200/m.
Kind of conversely to my initial thought - there are a lot of ski areas that are nice in the summer (for your likes) that owners have trouble renting and may be interested in seasonal rentals for cheap. Usually the ones that aren't near lakes I'm still digesting your quote (I know personally I'm just not all that good at it), but if you are very untied, the rental option allows you the ability to to try different places year after year. Maybe settle down when you fall in love with someplace.
Good luck.
Kind of conversely to my initial thought - there are a lot of ski areas that are nice in the summer (for your likes) that owners have trouble renting and may be interested in seasonal rentals for cheap. Usually the ones that aren't near lakes
I'm still digesting your quote (I know personally I'm just not all that good at it), but if you are very untied, the rental option allows you the ability to to try different places year after year. Maybe settle down when you fall in love with someplace. Good luck.
@chilly, you have touched on my weak point, and that is investing knowledge. Where could I find a "4% investment?" I have absolutely no interest in managing a portfolio. I use Vanguard for my money market account and when I'm ready to invest my money, I was going to look at either a dividend/income fund, or one of their managed payout funds. If CDs were paying 4% I'd do that, but that's a pie-in-the-sky figure right now.
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George the original one
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
frygirl - seriously, it is not difficult to manage a portfolio that yields over 4% and, like children, it only takes as much time as you decide to give them. A quick perusal of a list of dividend stocks will generate the following list of reasonably solid (though sometimes distasteful) companies:
T: AT&T (the phone company) yields 5.9%
AVA: Avista (electric utility) yields 4.3%
TRP: Transcanada Holdings (oil & nat gas) yields 4%
LMT: Lockheed Martin (aviation) yields 5.2%
SJR: Shaw Communications (cable TV, phones) yields 4.6%
MO: Altria Group (tobacco, wine) yields 5.7%
T: AT&T (the phone company) yields 5.9%
AVA: Avista (electric utility) yields 4.3%
TRP: Transcanada Holdings (oil & nat gas) yields 4%
LMT: Lockheed Martin (aviation) yields 5.2%
SJR: Shaw Communications (cable TV, phones) yields 4.6%
MO: Altria Group (tobacco, wine) yields 5.7%
Yeah, investing is a necessary evil in that scenario. I dislike investing too, but have learned about all the different vehicles available, the rules, risks, and tax implications. Unfortunately, that's the easy part. The hard part is actually making the picks and pulling the trigger (and dealing with the times they don't work out).
3-4% is fairly conservative, but definitely not risk free, and it isn't simply plug and play.
It would probably be worth your time to see if you can trudge your way through a general investing book (not a strategy or advice book, but a how things work book). Even if you don't change anything, you might find that you feel better about it at least. Plus, retirement planning calculations are so much more depressing when it's all in CDs!
BTW, I use vanguard too... but if you really do have a lot of money just in a money market, an online savings account or CDs might be a better. Some of them pay 1%-2% vs. nearly 0% for the money market. Not much but...
3-4% is fairly conservative, but definitely not risk free, and it isn't simply plug and play.
It would probably be worth your time to see if you can trudge your way through a general investing book (not a strategy or advice book, but a how things work book). Even if you don't change anything, you might find that you feel better about it at least. Plus, retirement planning calculations are so much more depressing when it's all in CDs!
BTW, I use vanguard too... but if you really do have a lot of money just in a money market, an online savings account or CDs might be a better. Some of them pay 1%-2% vs. nearly 0% for the money market. Not much but...
Frygirl,
Income Idea!
Do you live in Washington State?
If so check out Boeing Employees Credit Union. BECU.org
They have a checking / savings account combo that yields about 6% for the first $1000.00 you deposit. You have to sign up for the "Member Advantage" part. It's really just a monthly transfer from any outside account of a minium of $10.00 per month. When rates were better, they were paying 7.50%. Any washington state resident can join. Or, if you had a family member work or retire from Boeing.
We make an extra $60 to $65 bucks a year for very little effort.
Income Idea!
Do you live in Washington State?
If so check out Boeing Employees Credit Union. BECU.org
They have a checking / savings account combo that yields about 6% for the first $1000.00 you deposit. You have to sign up for the "Member Advantage" part. It's really just a monthly transfer from any outside account of a minium of $10.00 per month. When rates were better, they were paying 7.50%. Any washington state resident can join. Or, if you had a family member work or retire from Boeing.
We make an extra $60 to $65 bucks a year for very little effort.
@George the original one, do you have any interest in becoming an ERE portfolio manager? I'll be your first client! I definitely need to do my homework. Thank you for the sample list of dividend stocks.
@Chilly, I've definitely been an armchair investor until now. I've focused on my contributions to 401k/IRA and plopped the money into managed funds. It's time for that to change.
@larry, thank you so much for the BECU idea. I will check that out!
@Chilly, I've definitely been an armchair investor until now. I've focused on my contributions to 401k/IRA and plopped the money into managed funds. It's time for that to change.
@larry, thank you so much for the BECU idea. I will check that out!