Daily FI discussion thread - October 01, 2016

I put in my resignation notice with my big4 CPA firm last week. I've been working at big4 accounting firms since college, and didn't particularly have the best experience at the latest one. In total I've spent 9 years climbing that corporate ladder. I put in my notice as long as soon as I wouldn't have any clawback into my signing bonus, 2 very long stressful years, and I can't wait for my last day to come. Leaving a salary of $123k/year behind.

Single, male, 32. Not planning on getting married or having kids until my late 30's, if ever.

Current financial situation: Cash: $17k (will have closer to $25-30k once refi and vacation accrual payout in the coming weeks). 401k: $82k Roth IRA: $19k HSA: $6k Trusts: $775k House: $675k, mortgage $345k. Car: $10k. Paid off. No debt other than the mortgage and CC which gets paid in full every month.
Net worth hovering around $1.2-1.3m range.

Primary residence: I struck gold and bought in one of the hottest neighborhood in one of the hottest real estate markets on the west coast 2 years ago. Paid $480k, Recently appraised for $675k, which I think is low and would sell for for $750k. In the final stages of refinancing the mortgage of $345k to 2.875% 15-year. Currently 2 years into a 3.75% 15-year mortgaged. Mortgage payments (including tax and insurance) will go from $3600 to $2900. I'm overpaying into escrow for property taxes which are $5k/year. And I'll get $5k escrow refund once the refinance funds.

The house has an auxiliary dwelling unit, imagine a free standing 1 bedroom house, which generates about $35-40k/year through Airbnb after expenses and before income taxes. It takes roughly 2-3 hours per week of my time. I outsource the cleaning to my friend's wife who is very responsible. It's been very successful, and is currently one of the highest rated Airbnbs in the city, and I enjoy and take pride in hosting.

I also rent the three spare bedrooms to young working professionals, which generates rents of $2575/mo. I don't mind having the roommates, as they are responsible and add to the overall mood to the house, free dogsitters, security, package receivers, etc.

Trusts: I'll gain full access to two trust funds (Thanks great grampa!) on my 35th birthday. $700k of the value is held in a diversified portfolio. The other $75k represents an interest in an LLC which holds a timber property owned equally with 15 siblings and cousins. I plan to use a roboinvestor (Betterment) once I have access to reduce the fees. The trustee is a national bank which charges a fee, which invests the funds in mutual funds which charge their own fees, so I'm dying to gain access for the fee reductions alone.

When my earned income allows, I'll contribute to my ROTH IRA. I'll explore laddering my 401k if/when my taxable income warrants. Currently, my income is too high to contribute to Roth IRA, but I maxed my 401k for 2016.

My immediate plans are to enjoy the fall getting my gym routine and hobbies back, watching football, generally decompressing, and enjoying the holidays. I'm looking to go to SE Asia for Jan-Feb. After that, who knows enroll in some community colleges classes for spring term, get a part time job, continue my CPA continuing education or not(?!).

I don't really have any questions other than I hope I'm not crazy for doing this! My house alone, covers my expenses, and my savings and inheritance will provide me with a safety net. I won't even come near the 4% safe withdrawal rate. I'm hoping to not have to touch the trusts until my 35th birthday, and am hoping to get by in the meantime with my cash and rents, and perhaps I'll want to find a job related to my skills at some point, but no rush.

/r/financialindependence Thread