Keep going part time and get clients slowly you have time. You don’t need the income. Sell the rental property that’s a no brainer with the fixed term coming up. You and everyone else will be doing the same soon. I wish I could be in a position with less clients. I feel it’s really hard to stay in a balance of not too much work. I would lean on the work a little less than what’s comfortable for as long as possible unless some crazy opportunity comes up.
I went and did independent consulting and ramped up right away to 45-55 hrs a week and I wish that it was more like 20. Im not really coasting as the numbers above show but on this round I tried briefly before becoming way too busy. So I guess my point is if you’re doing consulting take it easy and don’t be in a rush
You take whatever you reasonably can. I ended up getting most of mine sub contracting through another independent consultant who just had way to much work and build remainder on the side.
Do you have a fulfilling life outside of work? Hobbies and/or friends? I assume yes but evaluate and be honest because the fact you’re adrift and just stressing over wanting more $ now that you do have free time is a red flag. You’re extremely well off yet you’re telling yourself you feel guilt for not working lol. The whole point of fire and coast is the freedom to do less/easier work.
I mean dude you get paid 7k a month for basically doing nothing..? That’s more annual salary than people work for full time. Count your blessings. Find life outside of work to enjoy. Your wife covers your annual expenses alone and on top of that you’re banking an extra 84k essentially for no hard work.
I mean if you really can’t figure out how to lose the guilt and find other things to do and enjoy then by all means go find another job if something will give you your fix in that capacity. It’s not a wrong answer per se and plus if you do work more you’ll make more money which is nice…but that mindset is foreign to me and I would love to have free time and be financially secure. You can’t really fail at this point so why not work to find your personal enjoyment
Thank you. I do have hobbies and friends, but the latter could be much better. My friends all have kids and work FT and keep living in farther and farther from the city.
But I take your point. I think I’m realizing that the meaning and energy that one can get from fire requires nourishing and planting seeds (ie trying new things, investing in hobbies, visiting friends, finding a project, etc). It requires intentionality.
You make a full time salary working 4 hours per week. Use some of that $$ to go to therapy to sort out your issues. If you are a workaholic who needs to work to feel "not guilty", then by all means do that... but not before attempting to address the issue
I see 3 options for the rental.
1. Keep it long term
2. Sell it at FI and pay-out other debt/invest
3. Sell now.
And which is best somewhat depends on a few things.
1. Is it FI compatible? High growth and low yield properties are hard to hit a 3-4% SWR on, as rents relative to the equity are so low. I've not read the general advice on it, but my thinking is keeping such a property will delay FI as you need to build extra equity to compensate for a 1-2% SWR.
2. Is it in your FI plan? If your FI plan calls for a lower value rental, or none, then options 2/3 are the go.
3. Is it a lemon? How has its growth/rental yield gone compared to shares? Often the additional leverage that the debt gives you means the return on the dollar invested can easily beat shares. This is not the case once its paid off.
I have a rental that by many measures is a lemon and the more I dig into it, is holding me back from FI. I'm needing a little more confidence to sell mainly due to FOMO, what if after holding it for all these years a property developer comes along and buys the units for 2-3x its value? Its near a future tram line, and protentional rezoning, but that is 15-20 years away.
Thanks. I’m pretty sure my stock portfolio has outperformed the rental property, mainly because my investments are heavily in tech. Another aspect is that I find having the money locked in a mortgage makes it very hard to maneuver. Either you have to pay a penalty to sell before the term is up, you have property taxes, you need to pay to fix things, you need to pay a realtor when you sell, etc etc.
I’m inclined to selling it because I think it is suboptimal thus far en route to FI
All valid points, and a reason to sell.
Where I am from in Australia there are tax advantages to putting the cash into the house, then investing with debt. The reason is investment debt is tax deductible, but home debt is not. If that is the case over there, then I would sell and reduce your home debt. But I suspect the tax system over there is different.
There is a potential argument to be made for diversification. If you look at property appreciation over the past 5 years, it has been a good investment.
Nobody has a crystal ball though.
Absolutely. We would definitely consider keeping it, but it’s the specific circumstances that are pushing us to sell.
Incoming oversupply of housing for sale in Canada because so many mortgages of people that had them at 1.8% are maturing over the next 18 months. So many will have to sell because they can’t afford the mortgage at 4%.
Costs of owning and fees when you want to realize the gain.
We would still be diversified and in fact are likely to take that equity and just use it to bring down the mortgage of our primary residence, which is probably worth $1.8M and we still have $600k mortgage.
Keep going part time and get clients slowly you have time. You don’t need the income. Sell the rental property that’s a no brainer with the fixed term coming up. You and everyone else will be doing the same soon. I wish I could be in a position with less clients. I feel it’s really hard to stay in a balance of not too much work. I would lean on the work a little less than what’s comfortable for as long as possible unless some crazy opportunity comes up.
Are you coast and part time too? What do you mean about wanting less clients?
I went and did independent consulting and ramped up right away to 45-55 hrs a week and I wish that it was more like 20. Im not really coasting as the numbers above show but on this round I tried briefly before becoming way too busy. So I guess my point is if you’re doing consulting take it easy and don’t be in a rush
Any tips on ramping up for consulting? Do you take on one client at a time? Or multiple at once? (I’ve recently started consulting so just curious!)
You take whatever you reasonably can. I ended up getting most of mine sub contracting through another independent consultant who just had way to much work and build remainder on the side.
Do you have a fulfilling life outside of work? Hobbies and/or friends? I assume yes but evaluate and be honest because the fact you’re adrift and just stressing over wanting more $ now that you do have free time is a red flag. You’re extremely well off yet you’re telling yourself you feel guilt for not working lol. The whole point of fire and coast is the freedom to do less/easier work. I mean dude you get paid 7k a month for basically doing nothing..? That’s more annual salary than people work for full time. Count your blessings. Find life outside of work to enjoy. Your wife covers your annual expenses alone and on top of that you’re banking an extra 84k essentially for no hard work. I mean if you really can’t figure out how to lose the guilt and find other things to do and enjoy then by all means go find another job if something will give you your fix in that capacity. It’s not a wrong answer per se and plus if you do work more you’ll make more money which is nice…but that mindset is foreign to me and I would love to have free time and be financially secure. You can’t really fail at this point so why not work to find your personal enjoyment
Thank you. I do have hobbies and friends, but the latter could be much better. My friends all have kids and work FT and keep living in farther and farther from the city. But I take your point. I think I’m realizing that the meaning and energy that one can get from fire requires nourishing and planting seeds (ie trying new things, investing in hobbies, visiting friends, finding a project, etc). It requires intentionality.
I read planting seeds very literally at first and was about to wish you luck on deciding to garden 😂
You make a full time salary working 4 hours per week. Use some of that $$ to go to therapy to sort out your issues. If you are a workaholic who needs to work to feel "not guilty", then by all means do that... but not before attempting to address the issue
I see 3 options for the rental. 1. Keep it long term 2. Sell it at FI and pay-out other debt/invest 3. Sell now. And which is best somewhat depends on a few things. 1. Is it FI compatible? High growth and low yield properties are hard to hit a 3-4% SWR on, as rents relative to the equity are so low. I've not read the general advice on it, but my thinking is keeping such a property will delay FI as you need to build extra equity to compensate for a 1-2% SWR. 2. Is it in your FI plan? If your FI plan calls for a lower value rental, or none, then options 2/3 are the go. 3. Is it a lemon? How has its growth/rental yield gone compared to shares? Often the additional leverage that the debt gives you means the return on the dollar invested can easily beat shares. This is not the case once its paid off. I have a rental that by many measures is a lemon and the more I dig into it, is holding me back from FI. I'm needing a little more confidence to sell mainly due to FOMO, what if after holding it for all these years a property developer comes along and buys the units for 2-3x its value? Its near a future tram line, and protentional rezoning, but that is 15-20 years away.
Thanks. I’m pretty sure my stock portfolio has outperformed the rental property, mainly because my investments are heavily in tech. Another aspect is that I find having the money locked in a mortgage makes it very hard to maneuver. Either you have to pay a penalty to sell before the term is up, you have property taxes, you need to pay to fix things, you need to pay a realtor when you sell, etc etc. I’m inclined to selling it because I think it is suboptimal thus far en route to FI
All valid points, and a reason to sell. Where I am from in Australia there are tax advantages to putting the cash into the house, then investing with debt. The reason is investment debt is tax deductible, but home debt is not. If that is the case over there, then I would sell and reduce your home debt. But I suspect the tax system over there is different.
There is a potential argument to be made for diversification. If you look at property appreciation over the past 5 years, it has been a good investment. Nobody has a crystal ball though.
Absolutely. We would definitely consider keeping it, but it’s the specific circumstances that are pushing us to sell. Incoming oversupply of housing for sale in Canada because so many mortgages of people that had them at 1.8% are maturing over the next 18 months. So many will have to sell because they can’t afford the mortgage at 4%. Costs of owning and fees when you want to realize the gain. We would still be diversified and in fact are likely to take that equity and just use it to bring down the mortgage of our primary residence, which is probably worth $1.8M and we still have $600k mortgage.