It’s the week between Christmas and New Year and the perfect time for me to recap my Exit Strategy and Financial Goals.
Here is the recap of my early retirement strategy from the About blog page.
- up to age 40 – Work and build up net worth as much as we can and live a somewhat frugal lifestyle.
See my How to Retire By 40 post to see what I’ve done so far.
- age 40 to 60s – Joe executes his exit strategy, explores self employment options and finds opportunities that generate some income. Michelle keeps working for now, she seems to like a regular job. Cut expense and maximize passive and residual income. Do not draw on the nest egg investment.
- age 60s to 100 – Both retire at some point and start to draw on nest egg.
We are still in the first phase above and are both working toward phase two. Below is my swag at the financial goals we will need to meet before we can transition into phase two.
Target Date – April 15th, 2014 or preferably earlier
- 1 Million dollars net worth (not counting primary residence)
- Additional 100k invested in yield producing portfolio to help with expenses
- Additional 50k seed money for when opportunity comes knocking
- Even cash flow so we do not have to draw on net worth unless there is a big emergency
Targeted Cash Flow
expense – $5,000/month or less
Michelle income – $3,000 after tax and deduction. Get health insurance through her employer.
rental income – $1,000
yield income – $400
side income – $600. Joe focus on growing side income once he is done with the 9-5.
I’m always looking for feedback and constructive criticism so please leave a comment.
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.