Search found 14 matches

by nsherman2006
Mon Jan 11, 2021 1:31 pm
Forum: Personal Investments
Topic: 32 y/o teacher checking in...early retirement possible?
Replies: 12
Views: 2495

Re: 32 y/o teacher checking in...early retirement possible?

Thanks all for the input! Definitely helps to throw a little cool water on the plan, but all of this info is very helpful! I've edited my original post to account for changes made. I've opened a 457 and set that to max, so I'm hoping that between the 457 and taxable (starting at $190k and contributing $19.5k/yr), I should be able to get close to the $500k mark in 11 years. Again, the plan is to purchase a second rental property (once the single-family that is currently rented is sold), that should bring my net rental income each year up to over $30k, which is 1.5x my current non-housing expense level. However, this may result in a dip into my taxable account that will make hitting $500k in taxable/457 a bit harder. However, I will have 4 ye...
by nsherman2006
Fri Jan 08, 2021 1:28 pm
Forum: Personal Investments
Topic: 32 y/o teacher checking in...early retirement possible?
Replies: 12
Views: 2495

Re: 32 y/o teacher checking in...early retirement possible?

BashDash wrote: Fri Jan 08, 2021 1:17 pm Do you have access to a 457 plan.. believe it or not you can max that AND a 403b.
Welp....I feel like an idiot. I am eligible. Scratch the contributions to taxable accounts. I'm going to max out a 457 as well and adjust accordingly.

Thanks!
by nsherman2006
Fri Jan 08, 2021 1:12 pm
Forum: Personal Investments
Topic: 32 y/o teacher checking in...early retirement possible?
Replies: 12
Views: 2495

Re: 32 y/o teacher checking in...early retirement possible?

How much does your employer pay into medical insurance? My district pays about 18k and individuals pay another 4K-12k depending on your plan. Family? Kids? You have 75k in your 403b. If you max you’ll be assuming some crazy growth over the next 10 years. I'll have to look into insurance. I know I'm only paying around 2-3k per year. I do plan on having kids, but if the current relationship works out I believe that the second income added in will more than make up for any costs, and my goal is to continue this path so that I could retire and have more time for family. I have 180k between 403b and IRA, and am contributing 25k/yr toward the combination, so I don't think it's crazy to think that in 10 years that combined balance should be aroun...
by nsherman2006
Fri Jan 08, 2021 1:05 pm
Forum: Personal Investments
Topic: 32 y/o teacher checking in...early retirement possible?
Replies: 12
Views: 2495

Re: 32 y/o teacher checking in...early retirement possible?

anonenigma wrote: Fri Jan 08, 2021 12:44 pm Seems like a heavy lift.

As a CT teacher, you haven't been paying into Social Security. If you pay into Social Security for 30 years, your benefit won't be reduced by the Windfall Elimination Provision.
Can you expand on what you mean when you say a heavy lift? I understand that my plan is aggressive but if it has shortcomings, I'd like to find them out more specifically.

And even though I do have 6 years of pre-teaching employment in Social Security, I'm not planning on Social Security for any part of my retirement savings.

Thanks for the input!
by nsherman2006
Fri Jan 08, 2021 12:56 pm
Forum: Personal Investments
Topic: Investing Plan for Housing
Replies: 19
Views: 1290

Re: Investing Plan for Housing

I wanted to buy a condo so I can eventually pay it off and reduce my monthly expenses by a significant amount. I don't want to wait too long to do this as rent continually increases (my rent actually didn't increase this year due to covid but that is the outlier, not the norm.) My current rent is ~1200 a month after taxes and everything. Total mortgage with Hoa/insurance,taxes, etc on a 160k condo with 20% down is about 1050 for 30 years at 2.7% and about 1400 for 15 years at 2.433%. Like I said I don't mind renting, I just didn't want to keep paying 1200 a month any longer than I have to and figured that getting a condo sooner rather than later would work out better for me financially in the future. I did consider moving in with a friend ...
by nsherman2006
Fri Jan 08, 2021 12:31 pm
Forum: Personal Investments
Topic: 28 yo portfolio checkup
Replies: 7
Views: 667

Re: 28 yo portfolio checkup

Since you said down payment savings, I'm assuming a sizable part of that 133k is intended as a down payment on a house.

If that's the case, I would think about what your asset allocation would look like after a purchase like that and decide if that's what you want. If not, you can start adjusting now :)
by nsherman2006
Fri Jan 08, 2021 12:27 pm
Forum: Personal Investments
Topic: No Match 401K Question
Replies: 9
Views: 1278

Re: No Match 401K Question

.79% seems outrageous to me. I would move the money unless you have high confidence that the match will return in the near-term.
by nsherman2006
Fri Jan 08, 2021 12:10 pm
Forum: Personal Investments
Topic: 32 y/o teacher checking in...early retirement possible?
Replies: 12
Views: 2495

32 y/o teacher checking in...early retirement possible?

Hello! I posted a portfolio for review 4 years ago and got some great advice, but am now motivated to move up my retirement age from 58 to 43, which requires some shifting of my investment strategies. I'm not sure I will retire if I'm able to at 43, but I want to have the option. I'm sure that if I do retire, I will find some sort of enjoyable pastime that earns me some money (maybe flipping houses). Anyway, I'd love to have y'all take a look at my current standing and plan and let me know what you think: Emergency funds: Usually 3-5 mos. expenses in checking Debt: ~$110k Mortgage, 7 years remaining, 2.79% Tax Filing Status: Single Tax Rate: 22% Federal, 5% State State of Residence: CT Age: 32 Income: $71k/yr salary, ~$21k yr rental income ...
by nsherman2006
Sat Jun 17, 2017 8:33 am
Forum: Personal Investments
Topic: 28 y/o teacher looking for investment advice/critique
Replies: 9
Views: 3644

Re: 28 y/o teacher looking for investment advice/critique

Thanks for the time you have taken for those responses! I am going to take the time to read the links you provided. I don't remember my exact pension contribution, but it's around 10% for the first 10 years then drops by 3% after 10 years. I haven't yet gotten my first paycheck from the new job, and all of the paperwork is currently at school. No employer contributions to 403b unfortunately. I think I understand your general point, that I should be saving for not only retirement, but for the substantial pre-retirement expenses that I anticipate. Let's say I plan on maxing out Roth, and the discussion is now centered on what I do with the remaining 13k I have allocated to savings. My options are: 1. Traditional 403b 2. Roth 403b 3. Taxable s...
by nsherman2006
Fri Jun 16, 2017 12:36 pm
Forum: Personal Consumer Issues
Topic: Worth it to buy expensive clothes?
Replies: 91
Views: 16431

Re: Worth it to buy expensive clothes?

Holy smokes...I went to the thrift store yesterday and got a pair of Polo pants, a pair of Polo shorts, a brand new pair of Greg Norman shorts, a Nike Dri-fit polo, and 2 button-down shirts (Brooks Brothers and J Crew). All are in excellent condition and fit well (I'm fortunate enough to be an off-the-rack fit)

I spent $40 and have been wondering whether I overspent. I now feel entirely absolved of regret.

I will say that shoes are by far the most justifiable place to splurge (I say this wearing $12 thrift store Johnston and Murphy dress shoes that are more comfortable than sneakers). Bad shoes make for a bad day (or worse)
by nsherman2006
Fri Jun 16, 2017 11:28 am
Forum: Personal Investments
Topic: 28 y/o teacher looking for investment advice/critique
Replies: 9
Views: 3644

Re: 28 y/o teacher looking for investment advice/critique

1) Do others who are significantly exposed to the real estate market outside your investment portfolio avoid REIT? I like that there is significant non-correlation to the broader market (and still have 70% of my portfolio allocated to other equities), but if this is inadvisable, I will reconsider We don't avoid REITs, but the percentage allocated to it totals 6% of the overall investment portfolio. That's not including our home ownership. And the REITs are a mix of corporate, residential, and unfortunately - shopping mall/strip mall investments. We only asked about your portfolio allocation as you should consider your rentals that you currently own. Modern Portfolio Theory certainly will have a portion of your overall portfolio going to RE...
by nsherman2006
Thu Jun 15, 2017 1:15 pm
Forum: Personal Investments
Topic: 28 y/o teacher looking for investment advice/critique
Replies: 9
Views: 3644

Re: 28 y/o teacher looking for investment advice/critique

You'll have the need for cars, maybe a relationship, vacations, maybe a child some day, vacations - shorter term goals that might be 5 - 10 years out where you would like to build investments to help finance what comes along. Also I forgot to address this last part in my reply. I currently have more cars than I know what to do with (3 cars and 2 parking spaces), plus a couple of motorcycles. I don't think I need to allocate any more to cars than I already have. I definitely feel able to vacation within my means (this summer looks like just a bunch of weekend trips), as my last couple cross country motorcycle jaunts have been $2-3k for 1-2 months of travel. Assuming that my current relationship works out, that will only alleviate finanical ...
by nsherman2006
Thu Jun 15, 2017 1:10 pm
Forum: Personal Investments
Topic: 28 y/o teacher looking for investment advice/critique
Replies: 9
Views: 3644

Re: 28 y/o teacher looking for investment advice/critique

Thanks for the input! Just some high-point questions that stand out to me: 1) What percentage of 403(b) are Roth now? I am assuming none as you described the Rollover to Roth IRA when exiting existing employer. 2) Are you aware of the tax implications of Converting $24k from 403 to Roth in this tax year? Do you have the cash/funds to cover such a transfer? I considered this when I was younger, but ultimately decided not too -- as it seemed most advantageous in my 22% marginal tax rate to continue utilizing the tax advantaged space and worry about Roth / Roth conversions at retirement age. No one can predict this, but there are many articles and ideas surrounding this. 3) I am assuming you are filing taxes as Single at this point: could you ...
by nsherman2006
Wed Jun 14, 2017 1:01 pm
Forum: Personal Investments
Topic: 28 y/o teacher looking for investment advice/critique
Replies: 9
Views: 3644

28 y/o teacher looking for investment advice/critique

Hello, I am a 28 year old teacher finishing up my 6th year of teaching. I just transferred to a CT technical high school, so I am a state employee, but am continuing with the Teacher's Retirement Board plan. I'm in the midst of setting up my retirement accounts again and would like some general advice/critique. My current financial status: Salary: $54,000 annually (will increase to around $60k next year pending completion of degree) Cash Savings: $16,000 Retirement Savings: $55,000 ($31,000 Roth IRA and $24,000 403(b)) Debt: $57,000 (mortgage on rental property) Other Assets: 3 rental houses, total value approximately $300,000, monthly income (net) approximately $2,000. Vehicles paid off. My goal: Retirement at 58 with 35 years of service i...