Five Year Plan to FI/RE Review

Lets do a quick review of my 5-Yr Plan to FI/RE targeting April 15, 2020. It has only been a month and I am still working on the details of each step. I track my income, expenses and net worth on a regular basis so it’s easy for me to know how well I am progressing toward my goal in any given month.

Step 1: Pay Off Primary Home Mortgage

Part 1: Goal is to pay off mortgage until it reaches $40K. Starting balance was $84,652.24 and I paid $1,315.53 in principle, so now the current balance is at $83,336.71. I am on track to pay if off in less than 3 years. Payoff balance for Part 1 is currently at $43,336.71.

Part 2: Goal is to build up a Muni Fund until I reach $40K. Starting balance was $0 and I added 50 shares of MYC to this ETF, so the new balance is $749. Since I have been buying MYC before I started this plan, I will not count the initial 300 shares of MYC that I owned before the last purchase. For Part 2 I have $39,251 to go.

Step 2: Sell Las Vegas Rental

Currently we have  $1,100 of fine for 4 violations. One was consider a recurring and I am trying to get the board to remove one since it was a one time violation. At this point, we are not going to bother going to the HOA meetings to fight them. We neither have the time nor the energy to fly to Las Vegas mid week. I am just trying to survive this until next February when the tenant moves out.

Step 3: Become An Accredited Investor

At the end of April, my investable assets increased by 7.1% and my total net worth increased by 6.7%. I am quite happy with this progress and if this rate of return continues, I will definitely meet my goal. Last month I rebalanced my IRA account by moving most of my funds from actively-managed funds to passively-managed funds. I always knew this was the right move, I just didn’t have the time until now to research which ETF and how much to move to. I moved about 45% of my IRA funds to VNQ/VNQI, 20% to VTI and 5% to SLV. With this move, my IRA account has reached a new high at the beginning of May.


Lady Butterfly



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