31M hoping to retire by the end of 2030 (goal of 6M net worth or 4.5M excluding primary home), how am I doing?
Net Worth – 3M
Assets – 4.5M (50% properties, 20% brokerage, 15% crypto, 15% retirement).
Debt – 1.5M (all mortgages)
I started working part time in 2014 and full time in 2016 after graduating with a bachelors. Growing up was always aggressively finding ways to save money (still do). My wife and I live in a HCOL area and have a baby, and plan to have another late next year. Our household income of $240K falls within the upper part of the "middle class" range for the city we live in.
• 4/2016: First full-time job – was earning $75K
• 11/2017: Bought my first bitcoin – unfortunately it wasn't much, only a bit more than 3
• 7/2021: Bought my 1st house – in downtown, now renting it out
• 3/2024: Got married – combined our assets and debts, she had a net worth of about $450K and a house and mortgage
• 5/2024: Bought another house – moved out of the city into the suburbs
We spend about 90-100K a year (most of it on the primary house's mortgage), this isn't including the mortgages for the other two homes, of which rent more than covers their respective mortgages.
With 4.5M in assets and using the 4% rule this would be $180K a year, maybe about $145K after taxes. Estimates on high end of healthcare insurance for two adults and two children seem to be about $25K, I have seen a large range in the estimates on this, does this seem reasonable?
My current worries are too much % in property (illiquid) and crypto (unstable), therefore all new investments have been towards retirement & brokerages.
Feel free to ask me anything!
31M looking to retire by the end of 2030
byu/HoGinLung infinancialindependence
Posted by HoGinLung
3 Comments
If I were you, I’d look at the MSTR preferred stocks for income. STRC, STRF, STRK, STRD
Net Worth doesn’t really convert to readiness for retirement. You should figure out your annual expenses in retirement and multiply that by your estimated retirement duration which in 2030 would mean a roughly 40 year period of expenses.
Real estate, while good for NW, does nothing to help you retire unless you’re generating positive cashflow after mortgage, taxes, insurance, etc. are factored-in.
I’m confused by how you were able to get to $3mil net worth in that short of time with that salary? Was it the appreciation of the homes? Good stock returns?