March 13, 2008

My current asset & cash flow situation - March 13th

The purpose of this post is to define my starting point. The end goal of my journey is to retire at age 50 with $50k annual income. The start of my journey towards that goal is the sum total of my existing assets.

Below are my assets and cash flow situation as of March 13th at age 36. Some of the numbers below are rough and some are exact, but its close enough for planning purposes.

My assets:

Home: I own a house with approximately $140-150k in equity and $100k principal remaining on a 15 year loan @4.57%. I've had the loan for almost 5 years now so it is due to be paid off in just over 10 years. I am not going to count my home towards my retirement assets. My plan is to own my home outright and not use it for retirement income.

Rental property: I own 50% of two properties and my dad owns the other 50%. One is a 4 plex and the other is a 5 unit. They are lower value properties that my dad has been renovating. I paid $25k for the 4unit and $45k for the 5 unit. My half is now worth approximately $120k combined.

Retirement: $25,852 in a 401k and $85,108 in a company pension plan. 100% vested in both. I AM going to count my retirement account money towards my early retirement plan. Its retirement money, so if I don't use it right at 50 then I'll use it later at least.

Cash & Savings: $48,126 in ING direct, $6030 in bank, ~$400 cash, $5000 rental income owed to me by my dad

Stock: $27,588 in stock shares and $4,021 ($2,010 after tax) in exercisable options. I haven't had gains on the stock shares overall so it wouldnt' have a tax liability. But if I exercised the options I'd have to pay taxes so I will figure them at about 50% to be safe.


Net assets towards retirement plan = $319,214


Cash flow:

Base pay: $83,500
Bonuses : $6,000.
Stock incentives: $3,400
Rentals: $5,000

Gross income: $97,900
Taxes: $35,000
Medical contribution: $600
Total take home: $62,300

Mortgage : $14,400
Expenses: $18,000 (this is an estimate, I'll do a more detailed budget elsewhere)
Total expenses : $32,400

Net annual savings after expenses: $29,900

So there you have it, not bad at all in my opinion.

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