We are doing some minor work to the inside (repairing a crack, touch up paint, etc) & some bigger cleanup on the outside. The total cost of the work is estimated to be around $3200. We will also be covering the cost of the mortgage & utilities until the house sells, as our tenants are out as of 5/1.
We don't have all of the final numbers in, but have been using a range to predict how much we will clear after realtors fees, taxes, etc. It's exciting to think about next steps, after we sell. The Seattle house market is very hot, so we are hoping to draw multiple buyers.
As for the money leftover after all of the fees & taxes our paid, we are thinking of the following:
- $200,000 - boys college savings. We will then consider these as fully funded.
- $800,000 (estimate) - we will spread this across a variety of assets (conservative to riskier) to continue to generate income.
We debated back & forth putting some of the $800K into our mortgage in San Francisco, and then having our monthly payment rescaled back. We also debated the value of paying off our vacation house. At this point, we'd rather keep the money (relatively) liquid, at least in the short term.
Having this investment fund will ensure I can actually leave my job, and find something with no income requirements, that's much more flexible. We will draw down the investment fund each month to cover the gap between our expenses & income, but it will last well beyond when the boys are out of school. Unless something major happens, which is, as always in life, a possibility. It will also give M the option of leaving his job & finding something that doesn't pay as well, should an opportunity that he is very passionate about arise. We haven't given a ton of thought yet to our 10 year plan, but I think it's fair to say that we will not need a house nearly this big (or expensive) once the boys are out of school. That would drastically change our financial requirements. More to come on our 10 year plan!
In other news, M started his new job yesterday! So happy to have that resolved. He received six job offers (four internal, two external) & accepted the one that he thought would be the best fit. Apparently, his skill set is highly in demand. ;-)
We've worked really hard over the past 20 (and, 25 years for M) to build up a nest egg that will allow us the flexibility to leave our insanely demanding jobs. I don't think M will do it, but I am already feeling the relief that comes along with knowing that I have choices.
What do you consider "financial independence", and when are you hoping to achieve it? If you are already there, please share your story!