[blurr]

Net Worth $2.7M — Looking for Advice & Balance
I’m 35, married (43), no kids. Just looking for some honest feedback on our situation.

I want to retire early, but I’m also trying to find a better life balance. As we have always worked 2 jobs and do real estate.

We want to buy a personal home and stop house hacking. $1M gets a nice and small home.

$1.3M equity in rentals (with $1M in mortgages)
$6,400/month net rent
$230K crypto
$423K in 5% high-yield
$380K in 401(k)
~$260K in cash (some at 4.5%)
$23K in gold
Cars paid off and newer

Jobs:
I make $90K (36 hrs/wk) — took a $150K pay cut recently for less stress

Partner makes $98K (40 hrs/wk)
Living expenses: $5K–$7K/month
Savings rate: Lower now after the job change

At 20, someone told me I’d need $5–$7M to retire. Not sure if that’s accurate anymore. I’ve got a decent foundation, but unsure where to optimize from here.

Questions:
Would you shift any of this mix?
Too heavy on cash or crypto?
Should I go harder on index funds or real estate?

[Kay]

If you 35 and have 2.7m I’m looking to you for advice not the other way around.

[Liana]

You have over $650k in cash. Thats a bit much imo. I’d plan to dollar cost average into an index fund with at least 400k of it, individual brokerage not traditional retirement vehicle so you can use it whenever.

I think you’re OK with finding something you love that will bring you some income.

I didn’t run all the numbers but after quickly looking this over, you’re in a good spot.

[Rochelle]

Is your Crypto in Bitcoin?? If not I would consider converting to Bitcoin as it’s a winner so far.

To retire you would need 3 Million

[Akhlaq]

Where do you get 5% hysa? Your rent seems high, it could easily be a mortgage instead building equity in your own home.

Otherwise, you seem to be on a solid ground IMO.

[Akhlaq]

What is your anticipated retirement expense? Multiply that annual expense 30 times for what is a safe savings goal if you plan on retiring early.

Your rental income will offset a large fraction of the savings goal.

Also, you are too heavy on cash and HYSA. Bulk of that money should be in the stock market.

[Charlie]

You mentioned $6400 gross rent, how much of that is net? This could be a good chunk of your retirement if it nets you well.

If not, then I’d seriously consider either paying this off more or selling for better returns if the cap rate isn’t as good in the end.

[Jason]

The crypto seems a little scary to me but maybe you could lose it all and not be too hurt. It might go to the moon too but who knows.

If it was me I’d probably sell it, look for a screaming deal on a house and pay cash.

Then rent out the live-in unit and throw that toward principle each month. But that’s just because I hate crypto and love real estate.

[Dean]

Well what’s the larger goal for FIRE-ing? Without kids, you’re neither working to build their future nor ceasing working to spend time with them, so it seems the answer to your question will depend on what you want to do long term… travel and be detached from serving as a landlord?

Garden and stay close to your properties? Something else?

Plenty of ways to go about it financially, but it depends on what sort of life you’re trying to build, besides ‘less stressful’ as a goal.

[Mikkel]

You have done very well for yourselves, seems like you’ve got a good system for generating wealth. Use the 4% to figure out how much you need to retire.

If you don’t know what that is, educate yourself.

Read Simple Path to Wealth or I Will Teach You to Be Rich, watch YouTube videos.

Find out for yourself how you want to allocate your investments. You are on the path

[Kathleen]

Your net worth is very attainable investing in s&p 500 index funds (Vanguard or Fidelity) just depends how risk adverse you are. (which even at 55 we are not.)

Also easier to attain with higher salaries.

If I were you I’d definitely buy a cheaper home with cash.

especially with no kids.

[Brenda]

It seems like everyone is giving you the standard advice. If that’s truly net rent (after mortgage and all expenses paid), then you’re basically there today.

That $6400 covers your average monthly expenses.

The savings/investments provide the cushion for unexpected expenses.

I would go do what you want for employment to keep your mind active, since you’re so young but live life.

I wish I had at your age!

[Daniel]

Too heavy in cash. Keep a 6 month emergency fund in a high yield savings account account and move all the rest of the cash into an s&p500 index fund (my opinion).

[Author]

Posts