[USER]

How close am I to FI?
We need $84,000 a year to live off of.
I’m 38. My spouse is 39. We are both self employed.
Zero debt.

My Roth = $53k
Spouse Roth = $53k
My HSA = $12k
Spouse HSA = $12k

Taxable brokerage account total = $232k (split between VOO (45%), VTI (45%), & SCHG (10%).

HYSA (pays 4.75% APR right now) = $52k
We have a commercial building worth $150,000 that we use (no rental income).

Taxes & insurance are $2000 for the year. I could sell this when we are FI.

One rental property worth $200,000 (no rental income from it currently – we let a family member live there for free but only for 3 1/2 more years – long story.)

We pay taxes & insurance at $2500 a year on it. We could sell this after 3 1/2 years or keep it and rent for $1300 at that time.

We have another property (it is a flip) we are going to have sold in 90 days that will net us $90,000 cash.

Probably will put $80,000 of that into the brokerage account and the remaining $10,000 into our HYSA.

We save $7500 a month with all of it going into the taxable brokerage account right now.

When will we be FI if we need $84,000 a year to live off of? At that moment we wouldn’t save the $7500 a month anymore because we’d quit working + sell the commercial building mentioned above for $150,000.

5 years?
10 years?
15 years or more? Thank you!

[Lana]

You’ll be FI when your investments bring in passively 84k a year or more.

That’ll happen when you have $2.5-$2.8M of capital invested.

[Christina]

Did you account for capital gains tax when you sell your investment properties?

[Susan]

Do you work together? You could open a solo 401k, Sep IRA, etc to put more into tax advantaged accounts but those may not be as accessible prior to 59.5.

[Juliett]

You have a long way to go.
You don’t mention if you have children.

If you’re self employed yall need SEP IRA/401Ks.

[Cecily]

Could your commercial property being in rent when you retire? Do you want to own rentals in retirement or has the plan always been to sell them and buy invest?

[Mc]

Having read everything my finger in the wind was telling me 10 more years. However, I didn’t want to do any math so here is my friend AI friend to take over:

You will reach financial independence in approximately 9.3 years (about 9 years and 4 months).

At that time, your portfolio, including the sale of the commercial building, will be worth around $2,269,385, which exceeds your target of $2.1M.

This estimate assumes:
• You continue saving $7,500 per month until reaching FI.
• Your investments grow at an average annual return of 7%.
• The $150,000 from selling the commercial building is added at the point of retirement.

Would you like projections based on different scenarios (e.g., keeping the rental property, adjusting savings)?

[Author]

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