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A place for Get Rich Slowly readers to ask questions
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It is currently Mon Apr 27, 2015 1:41 pm




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 Post subject: avocados
PostPosted: Mon Dec 22, 2014 7:27 pm 

Joined: Wed Jun 11, 2014 5:33 pm
Posts: 124
Posted our expenses in June 2014 (I'll add Dec 2014 in next post):

Annual Expenses (July 2013-June 2014):
Mortgage: $93,500 ($1.65M 30yr loan @ 4.0%)
Down payment on home for parents: $80,000
Home Repair & Improvements: $55,000
Prop. Tax: $30,000
Travel: $14,500
Charity: $8,000 (much lower this year due to home buy)
Home Services: $6,500 (gardening, pool, cleaning)
Eating Out: $6,500
Groceries: $6,000
Ed Loan: $6,000 ($50K @ 3.0%)
Insurance: $5,800 (homes, auto, umbrella)
Utilities: $3,600 (thank you California)
Phone & Internet: $3,200
Auto (Gas, Parking, Maintenance): $2,000
Public Transportation: $1,800
Shopping: $2,000
Entertainment: $1,600
Total: ~$320,000


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 Post subject: Re: avocados
PostPosted: Mon Dec 22, 2014 7:31 pm 

Joined: Wed Jun 11, 2014 5:33 pm
Posts: 124
As of Dec 2014 (6 month expenses annualized for comparison)
Mortgage: $93,500
Parent's condo: $15,600
Home Repair & Improvements: $11,500
Home Services: $6,500
Prop. Tax: $32,500
Travel: $5,800
Charity: $20,000
Eating Out: $7,300
Groceries: $5,800
Ed Loan: $6,000
Insurance: $7,800 (added to insurance)
Utilities: $4,800
Phone & Internet: $3,500
Auto: $4,000 (new car)
Shopping: $2,400
Entertainment: $2,800
Total: ~$226,000

Liabilities:
Home Loans: $1.97M
Ed Loan: $48K
Car Loan: $27K (0% int)

Assets:
Very Liquid (cash): $330K
Somewhat Liquid (stocks, et al): $1,300K
Somewhat Illiquid (real estate): $3,500K
Mostly Illiquid (retirement accts): $770K
Very Illiquid (private equity): no difference


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 Post subject: Re: avocados
PostPosted: Mon Dec 29, 2014 12:38 am 

Joined: Wed Jun 11, 2014 5:33 pm
Posts: 124
Although 2014 was a good year for the market, for the avocados, it was more about repositioning - we did a lot to diversify, taking pretty substantial charges to do so, and ended the year fairly flat.

Hopefully, we'll get back on track in 2015. A lot of different things are on the horizon for next year, and we could easily end up either much better off or much worse off.

Long term goal - financial independence (be able to cover expenses with non-wage income). Don't really have a timeline for this, nor does either of us expect to stop working once (if) it's achieved. It would be nice, though, to be able to post in the "success stories" forum.

2015 financial goals:
  • Save $80K of wage income (not including tax-deferred contributions).
  • Bring eating out expenditures (less avocados for the avocados!) back down to earlier $6K/yr levels.
  • Post semi-yearly updates on this forum to track progress.


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 Post subject: Re: avocados
PostPosted: Tue Mar 31, 2015 7:44 pm 

Joined: Wed Jun 11, 2014 5:33 pm
Posts: 124
Q1 2015 Expenses
Code:
Mortgage.......$33,600..($11,200/m)
Property Tax...$16,200...($2,700/m annualized)
Home Services...$2,100.....($700/m)
Transportation..$1,800.....($600/m)
Student Loan....$1,500.....($500/m)
Groceries.......$1,400.....($466/m)
Eating Out......$1,200.....($400/m)
Utilities.......$1,000.....($333/m)
Pets..............$650.....($215/m)
Phone.............$525.....($175/m)
Shopping..........$450.....($150/m)
Internet..........$300.....($100/m)
Entertainment.....$225......($75/m)
Other.............$100......($33/m)
Total..........$52,000..($17,600/m)

Q1 net worth: +7.5%. (Edit: reduced from +9.75% by eliminating unsubstantiated zillow valuations.)

Line item for insurance is zero due to carry-over from the previous quarter. Pet spending was a bit higher than normal due to some one-time costs. I'm jubilant about reining in how much we ate out :P. Savings are good, though we'll probably blow a chunk of it on a planned home remodel later this year :(.

I think it's completely wacky that over 80% of our expenses are on housing costs. If we were to downsize, we'd eliminate that, whatever we would be spending on home improvement, $700/m on home services, and probably around $150/m on utilities. Our annual expenses would go from $250K+ to $35K!


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 Post subject: Re: avocados
PostPosted: Thu Apr 02, 2015 2:08 pm 

Joined: Wed Jun 11, 2014 5:33 pm
Posts: 124
I discovered fireCalc yesterday. It's an interesting take on the retirement calculator that can be as simple as inputting three numbers: your current portfolio value, your planned withdrawal rate, and years that it needs to last, and simulates that using historical market returns for all of the N-year periods over the last 120 or so years.

It helped confirm something we already knew: if we move out of our current area we'd be fi/re with room to spare (100% success). If we tried to fi/re in our current location, however, we would fail 100% of the time!

What fireCalc helped us determine is a target number for fi/re in 10 years (with 100% success) while staying put (our preference). To hit our target, we'd have to average 8% returns/$120K annual contribution (or 9%/$85K or 10%/$55K). I think that none of these scenarios are actually likely for inverse reasons (8% returns are reasonable, but $120K annual savings is difficult, while on the flip side 10% returns are improbable, but $55K savings is reasonable).

This doesn't factor in any liquidity events, which are also just somewhat unlikely (but not extremely so).

What we have now is a target and a guide to let us know how we're doing. As of right now, we're at 0%. It'll be interesting to see if we can move the needle over the next several years!


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 Post subject: Re: avocados
PostPosted: Thu Apr 09, 2015 1:39 pm 

Joined: Wed Jun 11, 2014 5:33 pm
Posts: 124
Our water bill for last month was $105 for 14 CCF. We'll definitely be looking to conserve in the coming months. Ay California!


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