It’s a slow month, but I’m now back to work in the usual corporate world in order to catch up on generating income for next month. I have conservatively calculated our “number” based on our annual expenses, and it is roughly $1.2 million at today dollar. At the current saving rate with the low expected rate of real return of 2%, it will take us 18.9 years to be financially independent (year 2031). After that, we have a few more years to make a smooth transition into early retirement permanently in 2035.
- Our Number: $1,191,385
- Years to Financial Independence: 18.9
Even though the latest appraisal from a third party on our house is $183,000, I’m going to adjust the housing value down to account for (a) the 6% realtor fee to sell, (b) the moving cost, and (c) the closing cost to buy a new house. The tentative plan to relocate is the summer of 2013 before our daughter enrolling in Pre-K. We have at least eight months to prepare on selling and moving to Florida to be close to family. Of course, if we cannot sell the house we will just remain in the same place. No problem.
As our debts drop under $100,000 for the first time in four years since we bought the house back in July 2008, here is the recap of the type of debts and their rates:
- Auto Loan fixed @ 1.49%
- Student Loan fixed @ 1.875%
- Home Equity Loan fixed @ 1.99%
As long as the inflation rate is above 2%, I’m happy to drag out paying those debts for as long as possible. Anyway, probably one day I’ll pull the finger and just pay off all debts for emotional reason as I just inherently hate debts. We’ll see if it ever happens.