How would you turn a $300k job and $100k into early retirement?

7 Replies

This post is inspired by another one I saw called "How would you turn $500,000 into 5 million in 5 years?". I would like your thoughts (and I would especially like thoughts/advice from those who have met or exceeded the below goal). 

I am 40 years old with a career that pays $300k/yr (but I work about 60 hours per week - 6-7 days per week). I own one home (which I live in), and have $100k+ cash in the bank. My goal is to "retire" in 6-8 years with around $10k passive income. If you were me (given my current time constraints right now) in this market (in the Phoenix, AZ area) how would you meet this goal? 

Great question Aaron, $10k / month would need 1.2 million of equity earning 10% or about 1.7 million equity earning 7%.

I think your first step is to educate yourself thoroughly on different passive investments that produce consistent income. From there you'll need to learn how to evaluate managers/sponsors of those types of assets. Doing this will greatly reduce your risk of losing capital. Mitigation of that risk should be your main focus.

Good luck!

Originally posted by @Kevin Martin :

@Aaron David Lietz 

1. Live off half your income 

2. Buy 2 homes for 75k each per year that bring in 1000/month.

3. In 5 years you have 10k/month passive (gross). 

Keep in mind income tax's 300k gross is more like 200k net or a tad less.. depending on the situation. Rental real estate depreciation can help with tax liability. I think personally you MAX out every IRA profit sharing plan etc.. that's number one.

I have already commented on what it takes in rental real estate in reality to get to 10k a month spendable on another of the OP threads.

also if its just 10k a month you need.. and you dig real estate get a license sell real estate  flip houses that kind of thing.. 

120k a year in a west coast market is very easy to do.. and if your only making that amount your not killing your self your having fun.. looking properties talking to investors talking to lenders home owners etc etc.

If its simply rental income then @Andrew Hogan   is correct you need to  get from 100k in cash to 1.2 to 1.7 so how are you going to do that ?? 

some will tell you BRRRR but I already ran the math on that one.. and if your working full time your going to take HUGE risk trying to BRRRR remotely.

I would engage with Andrew and  Ivan  those guys have some great investments.. I have personally been to their offices and interacted and reviewed their deals.. they are solid. this is not beginner syndicator .. which is critical. 

If you're looking to stay local I think you could purchase 3-5 single family houses a year with that income (Depending on your expenses and where you are buying). $10,000 a month cash flow should definitely be doable by the 8 year point, and I think you'd see some nice appreciation as well. Midwest markets would work better for cash flow, but you'd have to invest out of state, which isn't for everyone