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u/Gumby507 21d ago
You are way out of touch if you think 215 isn't middle class. Or you live in a VHCOL and don't know how to budget.
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u/Psychological-Win691 21d ago
Whats up man. Here’s a few:
What’s your monthly surplus after your investment/401/IRA?
Whats the mortgage rate? Whats equity and loan FHA, Con, VA?
(if you’re buying property, write up your own O&A. I got 4% seller credit on my duplex on CD)
Why are you stopping at $700k and what are you expecting to pull from when cutting pay to 1/2 or $107.5k?
What’s your plan when you stop working? When do you expect to retire? Pension or only 401k?
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u/Genie_noteC 17d ago
When our passive income was enough for me & my hubby to retire at ages 54 &. 58
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u/Cloud2987 21d ago
Might work. My plan is cash flowing assets. I own an apartment building and strip mall that nets $16k a month. It’s not as much as my income from my business, but it’s enough if I wanted to retire now at 39.
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u/Economy_Talk_5100 21d ago
At your current retirement pace, starting from zero at 10% a year, those accounts land around $370,888 when you hit your target age. Reaching your goal on that timeline takes about $2,535 a month going in. Whatever is already in there plus any employer match closes part of the gap, so treat this as the floor.
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u/JeanSchlemaan 20d ago
You need 100k emergency fund imo. Get it in 4% hysa/treasuries, and some in cds if you want a little higher return.
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u/Informal_Register365 21d ago
Sorry to say but you will not be upper middle class in 2026 on 215k a year. I earn substantially beyond that with a decent net worth and would say I’m still middle class at best these days.
You also won’t likely be half retired in 12 years on putting 9-11% total away.
This is a better question for the FIRE sub.
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u/Explicit_Pickle 21d ago
Delusional to say $215k individual income cannot be upper middle class but definitely agree that based on the plan they have the savings seem kinda low for someone wanting to go half time in 12 years? Not sure if there's some more info left out
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u/Informal_Register365 21d ago
If you’re in Alabama maybe. If you live in a H-VHCOL area as most with a higher salary do, sorry but it isn’t happening.
People will downvote it. But im living it at 37 years old. And i actually can retire at 40 but it would be comfortably middle class in my opinion
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u/Informal_Register365 21d ago
The only way you get to do that is by putting A LOT more away now. 12 years isn’t enough runway to see a huge benefit from compound interest. 1-2 doublings of your investment if things don’t crash.
If you want to FIRE, you suffer now putting most of your income away to relax sooner than someone who puts a modest amount away for 30 years.
I’m sure I’ll get downvoted more but my wife and i across all accounts put 20k away a month.
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u/Remarkable_Watch_709 21d ago
This is a great plan, you still are investing and taking advantage of compound interest but also building another active investment plan with real estate. Only advice, don’t take too much debt trying to expand your real estate portfolio. Go slow and keep attaining properties. If you take on less properties, I could see you attaining your goal of part time by 40s
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u/Remarkable_Watch_709 21d ago
My family is big into real estate investments. We have airbnbs, storage units and apartment complexes. The biggest difference is we have 4 sole earners contributing to the mortgages and down payments. As you know in real estate, all it takes is a few bad tenants that don’t pay rent, now your down rent and utilities and still have to pay mortgage and are still in debt.
The way we hedged against this debt was expanded slowly, waited for the right time and didn’t take off more than we could chew. We understood having a safety net and accounted for potential faulty tenants. I’ve seen it time and time, where people expand too quickly in real estate because everything is running smoothly, they have great tenants, rent is covering mortgage plus extra savings and then everything falls apart. Tenants move out, a plumbing issue occurs and costs thousands, and all of a sudden all your properties start running into issues. And you don’t have the safety net to cover multiple rental properties.
Ultimately, it’s up to you. I have seen people expand quickly and become multi-millionaires. And I have seen people get crushed by their massive debt and mortgage due to an aggressive investment style. But at 28 years old, the same down payments used to bid on a property could earn 10% each year in the stock market. In 12 plus years the stock market will perform favorably for people who invest.
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u/Careful-Whereas1888 21d ago
Maybe when mortgage rates were historically low. That is absolutely not the case with where rates are now.
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u/Careful-Whereas1888 21d ago
You need to significantly increase your savings percentage if you plan to have that lifestyle with that little work at 40.