Building Wealth At a Faster Rate

[DonJefe19]

Question: Given my circumstance and situation in life am I going in the right direction? How far off am I from financial independence?

Hi guys! Since this is my first post, I thought I'd make it with a question in mind. Some advice my wealth situation.

A quick introduction, I'm 38, no wife or kids, on a mortgage (condo), make about $250~ a year. My occupation is software development. My current investments is valued at $55k~. I have most of my value in a stable index fund and some of it in a REIT that I plan on switch over once I hit a certain goal. Each month, I try to contribute about 5k a month, sometimes a little less. Last year, I would contribute around $8000 but adjusted down because of life stuff.

The goal that I had in mind, as cliche as it sounds, is working much less but still making the same amount. I know it sounds laughable but the dream scenario is making the same amount of money but working less than 10 hours a week. It'd be preferable if I hit this goal sooner since life is not going to be as fun at 60. Especially, with my current situation with dating and women but I digress since this is about wealth and success.

The question I have: Given my circumstance and situation in life am I going in the right direction? How far off am I from financial independence? From simpler perspective, am I not doing certain things that successful men on here are?

* Things I'm not willing to do to earn more wealth:
* Freelance: I mean, I'll do it, but my time is so taken up by my day job that it's really hard to fit in. That, and I'm burnt out from coding.
* MLM: I don't find that way of doing business all that effective and requires a lot of effort and a large social circle. My social circle is too small.
* Real estate: The knowledge needed to leverage real estate I don't have. Even though most people think the risk is moderate, I think it's too high.

I appreciate you all taking the time to read my first post and I'm looking forward to your responses.

 

[Smok1nAce]

I'm only 34 so your probably need someones advises in there 50s.

Where do you live? In the US? The thing is the markets are very unstable at the moment and will probably be for the next 10-20 years as the baby boomers wealth transfer begins and ends. We probably wont have stable markets until you and I are in our 50s.

I'd be putting alot more into investing at your age especially with the money you make then slowly tapper off the closer you get to your goals. To live the life you want and still be progressing financially you need at least 2 mill in an investing profile. This would be the bare minimum for your goal and you'd still have to watch your portfolio carefully.

I'm not sure where you started but at 38 and only 55K in investments is damn near dirt poor. You would need to live off 40K a year now and invest the rest for the next 10 years you would probably barley hit your goal. But with the uncertainty in the market this plan could go sideways quick and many are predicting a recession and/or depression in the next few years where in that scenario cash will be king and investing at the low could double or triple your money in just a few years.

I'd say with the current situation (in the US) I'd hold off on investing and pay off your mortgage and get out of any debt. Still put money in your 401k, but pay off your mortgage asap. This will free up cashflow and you will be able to live off much less.

But your initial information is very vague, do you have any debt? whats left on you mortgage? whats your monthly expenses? when do you want to retire.

 

[DonJefe19]

I have $170k left in my mortgage but virtually no debt after that. Car has been paid off for eight years now as well as my student loans. My monthly expenses is about $1800 a month. Most of the money that is left over is discretionary ($5000-7000).

This is going to sound comedically unrealistic, but I like to retire by the time I'm 40.

 

[Oatmeal31]

Question: Given my circumstance and situation in life am I going in the right direction? How far off am I from financial independence?

Hi guys! Since this is my first post, I thought I'd make it with a question in mind. Some advice my wealth situation.

A quick introduction, I'm 38, no wife or kids, on a mortgage (condo), make about $250~ a year. My occupation is software development. My current investments is valued at $55k~. I have most of my value in a stable index fund and some of it in a REIT that I plan on switch over once I hit a certain goal. Each month, I try to contribute about 5k a month, sometimes a little less. Last year, I would contribute around $8000 but adjusted down because of life stuff.

The goal that I had in mind, as cliche as it sounds, is working much less but still making the same amount. I know it sounds laughable but the dream scenario is making the same amount of money but working less than 10 hours a week. It'd be preferable if I hit this goal sooner since life is not going to be as fun at 60. Especially, with my current situation with dating and women but I digress since this is about wealth and success.

The question I have: Given my circumstance and situation in life am I going in the right direction? How far off am I from financial independence? From simpler perspective, am I not doing certain things that successful men on here are?

* Things I'm not willing to do to earn more wealth:
* Freelance: I mean, I'll do it, but my time is so taken up by my day job that it's really hard to fit in. That, and I'm burnt out from coding.
* MLM: I don't find that way of doing business all that effective and requires a lot of effort and a large social circle. My social circle is too small.
* Real estate: The knowledge needed to leverage real estate I don't have. Even though most people think the risk is moderate, I think it's too high.

I appreciate you all taking the time to read my first post and I'm looking forward to your responses.

You make $250k and only have 55k in investments? Where is the rest of your money going? The bulk of that should be going into the market. You aren't going to see real financial independence and work 10 hours or less a week anytime soon. You need to be less frivolous with your spending and stop fantasizing.

MLM..what?

Stick to your job. That's a wonderful salary but you need to save and then dump it into an ETF, or some stocks when the market takes a cyclical nosedive

 

[DonJefe19]

You make $250k and only have 55k in investments? Where is the rest of your money going? The bulk of that should be going into the market. You aren't going to see real financial independence and work 10 hours or less a week anytime soon. You need to be less frivolous with your spending and stop fantasizing.

MLM..what?

Stick to your job. That's a wonderful salary but you need to save and then dump it into an ETF, or some stocks when the market takes a cyclical nosedive

I just started investing last year. It's a bit more than $55k now but I don't want to share the exact amount.

MLM =Multi-level marketing

 

[Oatmeal31]

I just started investing last year. It's a bit more than $55k now but I don't want to share the exact amount.

MLM =Multi-level marketing

I know what MLM is. It's the sh!tty pyramid scheme that losers resort to. Stay away from that

 

[Redwood]

I'm only 34 so your probably need someones advises in there 50s.

Where do you live? In the US? The thing is the markets are very unstable at the moment and will probably be for the next 10-20 years as the baby boomers wealth transfer begins and ends. We probably wont have stable markets until you and I are in our 50s.

I'd be putting alot more into investing at your age especially with the money you make then slowly tapper off the closer you get to your goals. To live the life you want and still be progressing financially you need at least 2 mill in an investing profile. This would be the bare minimum for your goal and you'd still have to watch your portfolio carefully.

I'm not sure where you started but at 38 and only 55K in investments is damn near dirt poor. You would need to live off 40K a year now and invest the rest for the next 10 years you would probably barley hit your goal. But with the uncertainty in the market this plan could go sideways quick and many are predicting a recession and/or depression in the next few years where in that scenario cash will be king and investing at the low could double or triple your money in just a few years.

I'd say with the current situation (in the US) I'd hold off on investing and pay off your mortgage and get out of any debt. Still put money in your 401k, but pay off your mortgage asap. This will free up cashflow and you will be able to live off much less.

But your initial information is very vague, do you have any debt? whats left on you mortgage? whats your monthly expenses? when do you want to retire.

I dunno, I think the Boomers right now are somewhat losing control and making desperate moves, imo. But I could be wrong.