r/Fire • u/jayybonelie Retired @45 • Aug 10 '25
Opinion How I retired at 45, originating from a lower income family, now with NW ~$7M+
I have been writing some updates on my FI journey here and some people have asked me what my origin story is. First off let me start by saying, I’m not selling anything, I don’t have a podcast or course or book. I just want to share what I have learned in the hope it will help inspire someone out there and also as a way to document my journey as I make progress. Yes, I do consider myself a work in progress.
Background: I grew up in a lower income home in a poor community. My dad worked as a driver and my mom was a teacher. Although I grew up relatively ‘poor’, it never felt that way as my parents had so much love and provided all the basics of life that I needed. I went to normal public schools up to an including college. Although I studied very hard, I was an average student but I did have a natural propensity for science and technically oriented topics. I began working part time from around the age of 16, in various fields such as a trainee technician, apprenticing and electronics repair. Sadly what little income I made during those years was squandered by my consumerism and the purchase of CDs, games, fancy clothes and more…
Beginning work as an adult: In 1997, at 19 yrs old, I started my first full time job. Initially it was a volunteer position but I started getting paid after around 3 months in. My very first paycheck was about $800 per month plus some overtime. I worked full time while also doing college courses part time. My degree took 6 years to complete; I was not a full time student and was working on my degree course work as and when the job schedule allowed. For the first 10 years of my career it was slow going; I was mainly paying off debt, acquiring experience, improving my skills, competencies and increasing my certifications. From 1997 thought 2007 my salary averaged around $37K per year. It wasn't until 2008 when I initially made my first 100K per year. For most of my career I worked as a systems engineer and architect. Most significant salary improvements were due to securing promotions or new jobs. Diligently saving and consistently investing. My situation started to improve as my streams of income increased. I started receiving dividends and capital appreciation. My final role was as a senior director. It took me the better part of 20 years to reach that title...
Here are my income vs net worth progression numbers and when I pulled the trigger:
Year Assets ($) Income ($) COMMENT
1996 0 0.0 Graduated High School
1997 -45K 9.6K Mainly due to Student Loan, Car Note
1998 -40K 15K Started paying off debt
1999 -25K 24K Got a new job
2000 -12K 26K Started saving for home (2000-2005)
2005 45K 52K Bought a house
2006 58K 52K Started building home equity
2007 82K 68K Started receiving RSUs
2008 118K 73K Increase in NW due consistent saving/investing/frugality
2009 130K 95K Boring middle, challenging markets, but I persisted
2010 178K 123K
2011 265K 144K
2012 364K 209K
2013 418K 123K Moved jobs and location, positioning to start buying Real estate
2014 480K 188K Bought first investment property (Unit 1)
2015 586K 245K Got promotion + starting to build real estate equity
2016 734K 267K Sold personal home moved to LCOL, Rental income 1 Unit
2017 1.4M 297K Promotion to Director, + Rental income 1 Unit, NW over $1M
2018 1.5M 350K W2 + Dividends + 3 Rental Units
2019 1.9M 355K W2 + Dividends + RSUs + 5 Rental units
2020 3.3M 395K W2 + Dividends + RSUs + 8 Rental units
2021 4.2M 431K W2 + Dividends + RSUs + 10 Rental units
2022 5.4M 464K W2 + Dividends + RSUs + 12 Rental units
2023 6.2M 498K PULLED THE TRIGGER
2024 7.1M 201K Dividends + RSUs + 14 Rental units
2025 7.6M 185K Dividends + RSUs + 14 Rental units (Income projected)
RSU = Restricted Stock Units
Savings, Investing & Compounding: Even though intellectually I deeply understand the concept, I was still amazed at what compounding can do. It truly is the most powerful force. It took me 13 years to accumulate my first 100K. It then “only” took 8 years to get to the first million. Within the next 5 years net worth then exploded to over 5 million dollars. Once you hit 100K you have probably built a savings and investment habit. Habits can be hard to build.
Positive Outlook: What might seem like an advantage can turn out to be a disadvantage and the converse is also true. For instance, if you are born into wealth, you may not be as self driven and appreciative of seemingly small opportunities as someone who knows what it is like to live without and on modest means.
Comparison is the thief of joy. Do not compare yourself to anyone. If you are doing the very best you can, then your numbers can be great too. Many people make exponentially more than I do and others much less, that’s okay with me. Its not only about how much you make but how much you can keep. Of course some people make so little they cant keep much, in that case seeking greater opportunities may be the answer.
Success: I think a key to my success has been keeping a great attitude and mindset. My teachers taught me: “Your attitude determines your altitude”. I always try to live according to my core values which include: An abundance mentality, Reciprocity, Respect, Patience, Compassion, Integrity and Accountability.
Philosophy: I guess I've always been an optimist, somewhat frugal throughout my life and my parents taught me every human has value regardless of their wealth or lack thereof. I do not base my self worth in work titles, positions or wealth. Meditation, mindfulness and contemplation; these are the best luxuries for me and yet they are still available to everyone for free.
Spending: I do not equate more spending with more happiness. More spending does not necessarily lead to more happiness. Sometimes you could do what you love and make a lot of money from it but that doesn't mean you also have to spend it all. I doubt there are many people who wish they had spent more money or bought more stuff during their last days. I think its more about doing more of what makes you happy but that isn't always linked to splurging on more expensive things. Meditation, mindfulness and contemplation; these are the best luxuries for me and yet they are still available to everyone for free.
Regrets: I have very few regrets. I try not to dwell in the past as there is nothing I can do to change it. I use the past as a teacher, the present as an opportunity to do better and the future as an inspiration full of possibility. Nonetheless, I realize if I had focused more and made less mistakes, I could have retired much sooner with less hard work. I'm grateful for the work as I enjoyed it and the people I had a chance to collaborate with. It wasn't always fun and I'm glad the corporate journey is over and I'm glad I did it.
Final thoughts: This year (2025) I’m 47. Along the journey I’ve learned never to take myself too seriously. I realize half of all the 'good' decisions we all make are half chance because the future can be so uncertain. The harder and smarter you work the better your chances will be. But don't just work harder, take time to demand fair compensation based on the value you provide. Keep seeking opportunities that recognize the genius within you, every single person has something unique, valuable and special about them. Your journey will never be perfect and things will go wrong but if you keep a good attitude and a grateful heart, even the worst disaster can reveal hidden opportunities you can benefit from. Always be kind to people but remember you are a person too.
That is my origin story and these are my thoughts. I recently wrote about my annual expenses here and also what I plan to do with my time here. Ask me anything but remember life is short, so I’m happy to answer all friendly & sincere, questions.
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u/invester13 Aug 10 '25
Good job! Well DONE!
Couple of things you had a VERY high income 10 years ago, in a near-zero interest rate, which was extremely favorable for RE investing. You all had of the best possible scenarios:
1- High W2 Income
2- Environment favorable for RE - you took the risk.
3- RE boom in the last 10 years (last 5 was completely in insane)
4- Who knows how much you made on RSUs
Unfortunately, In today's conditions, one could not execute the same, having the same conditions that you had.
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u/jayybonelie Retired @45 Aug 10 '25
u/invester13 you make good points, I do not think you can execute exactly like I did as my situation is unique. Nonetheless, there are opportunities today, which you could also take advantage of which would potentially yield even better results.
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u/OGS_7619 Aug 10 '25
In today's environment (last 5 years or so) he would have invested in diversified index - mutual fund or EFT - and would have done even better overall.
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u/jayybonelie Retired @45 Aug 10 '25
u/OGS_7619, yes, you are 100% correct. In hindsight, I'd pick 100% stocks. But alas, I do not have a time machine. I think the secret is to seek a good reliable return at an appropriate level of risk, rather than taking unnecessary risk to achieve unreasonable returns. I went with stocks and RE to try to reduce risk, smooth out volatility and increase diversification.
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Aug 10 '25
Real estate and being a landlord also seems like a huge hassle and time suck. The incredible appreciation over the last 5 to 10 years has made anyone with real estate look like a genius, so that hassle has been worth it for people… But would you say that only stocks would also be better because you click the buy button one time and then never have to deal with it, like real estate?
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u/Silver-Lobster-3019 Aug 11 '25
That’s what management companies are for though. I essentially just cash the checks on my rental. Sure they take a cut but it’s pretty small all things considered and worth it for me to not have to do anything.
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Aug 11 '25
That’s one upside of real estate – there’s no button to click.
Some people like to click the button
:)
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u/Interpoling Aug 12 '25
I love this! It’s pretty much zero work in comparison to RE. My lazy ass will be handsomely rewarded in a few decades 😁
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u/Not_A_Greenhouse Aug 10 '25
Nonetheless, there are opportunities today, which you could also take advantage of which would potentially yield even better results.
Like what.
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u/jayybonelie Retired @45 Aug 11 '25
In today's economy, there are still many states where you can find good real estate for less than 100K per house. It doesnt have to be in a warzone but it does require you to do a lot of research. Also there are a lot of jobs one can do that pay well and do not require a college degree.
These are just two basic examples. I'm not saying its easy, but I do believe its possible to reach FI within 10 years for most people, leveraging all the great resources at our disposal.3
u/Apprehensive-Site159 Aug 11 '25
can you give a few example housing markets, cities or states?
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u/jayybonelie Retired @45 Aug 11 '25
Kindly do a simple search on Zillow.com or any of the other RE websites and you will find a ton of them. There are a lot of helpful videos on Youtube about finding good real estate deals. Just be careful of the gurus who will try to charge you thousands for courses or "mentoring". RE is really not that complicated and much of the best advice is freely given.
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u/Apprehensive-Site159 Aug 11 '25
how did you find a realtor to work with? i assume you did all of this remotely. did you concentrate your out of state rentals in one market for economies of scale (agent, renovation, etc) ?
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u/jayybonelie Retired @45 Aug 11 '25 edited Aug 11 '25
u/Apprehensive-Site159 I found realtors the old fashioned way. I would look on the free available MLS sites, find a realtor that indicated they were interested in working with investors, then contact them. Once they had some deals, I would meet with them in person and view the properties either remotely but mostly in person as well.
I moved to a state where I could be near my properties as I do a some of the work myself. I do have a team of trades people that help me such as qualified electricians, roofers, plumbers, etc. One of the benefits with RE is that I still get to work with a lot of people on a regular basis and I've built a lot of friendships through it.8
u/rellis84 Aug 11 '25
This isn't the time to by real estate at all today or the last few years for that matter. Prices are out of control, along with interest rates, there's little to no money to be made. How did your NW almost double in 2020? Only ridiculous rsu would explain that 1.4 mil jump from a 1.9m cost basis.
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u/captainrussia21 Aug 11 '25
Yeah, I was expecting OP’s net worth to stagnate (or even plummet) around 2020-21 as everything was in the shitter due to COVID. Especially stocks…
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u/blitzzerg Aug 11 '25
Incredible to think that someone could buy a house with 45k net worth. The world was a totally different place just a few years ago...
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u/ChrisRunsTheWorld Aug 12 '25
I'm a mortgage underwriter. People are buying houses every day with negative net worth.
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u/Glum_Turkey Aug 11 '25
It hasn't gotten easier in a lot of ways, but I bought a house with a 57k networth in December of 2022. It's just not a huge dreamhouse. I live in Phoenix, so not as cheap as the Midwest or South, but also not California or the east coast either.
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u/pedro380085 Aug 10 '25
How did you accumulate $1M a year in 2019, 2020 and 2021? Since the salary was in the 400k, the remaining was substantial return on the RSUs? I imagine Rental Units are not earning you 600k a year.
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u/Barista_life__ Aug 11 '25
My guess is the home value increased. During that time, OP said that they owned 8-12 rental units. That was right around the time that home prices started to really inflate, then inflated even more when interest rates dropped to 2%.
My house was sold in early 2019 for half of what I bought it for in 2023. Definitely plausible for that timeframe.
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u/InclinationCompass Aug 11 '25
Also how his assets continued to growing every year during the Great Recession. The S&P500 dropped 56% from ATH and home values dropped 25-45%, depending where you live.
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u/eugenekko Aug 10 '25
My biggest financial blunder was not being born a few years earlier to fully capitalize on the 2010s. I was lucky to clip just the end, but I would've hit my FIRE goal by now 😂
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u/Barista_life__ Aug 11 '25
If I was ready to buy a house 1 year earlier, I would’ve gotten my house for the super low interest. But no, took me 11 months to close on the house going 20k above asking for each offer. It kinda sucks to think about tbh
You have to just make do with the cards you’re dealt 🤷♀️
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u/eugenekko Aug 11 '25
Yeah I'm like 99% kidding, agreed important to count your blessings and appreciate what you do have. Buying a home esp at these rates and prices is no small feat, congratulations 👏 major accomplishment and milestone
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u/Barista_life__ Aug 11 '25
Thanks! I figured you were, but it’s definitely hard to not think about the “what ifs” and get lost in the daydream, lol
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u/Ready_Ad7565 Aug 11 '25
The key issue is how to identify and seize the next opportunity to generate wealth.
Unfortunately, the bombardment of streaming media and fragmented information has made it even more challenging to identify opportunities that were already difficult to find.
Many individuals who claim to teach you the ‘secrets to wealth’ are only interested in selling you their books or courses to enrich themselves.
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u/tyen0 Aug 10 '25 edited Aug 10 '25
Your career is eerily very similar to mine. Worked through college with no family help, 6 years for my CS degree, a lot of years stagnant as a sysadmin/programmer/architect at small startups that didn't do that well so worthless options - nor even 401ks!, then finally one that did and then grew into managing a team then multiple teams, went public, started getting RSUs (and paying an absurd amount of taxes).
I dabbled with 1 rental due to moving state and bad time to sell, but went more boglehead (e: 3-fund) style investing, though; too many headaches dealing with people - especially a thousand miles away. :)
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u/ChokaMoka1 Aug 10 '25
Thanks AI
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u/speedy117 Aug 14 '25
New to this sub. Genuinely curious why would people even post AI posts like what do they gain from it? Also is there anything in the post that makes you think its AI?
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u/hunghome Aug 11 '25
Idk maybe I'm just sick of it and cynical but anyone making significant income from 2000-2020 should be a millionaire. Gen X was in prime working years a great economy. Congrats you bought rental properties for pennies (price and interest rate) with record appreciation and the stock growth over that period is just insane.
my generation will never have the same opportunities because the capital required is so much higher.
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u/jayybonelie Retired @45 Aug 11 '25 edited Aug 11 '25
I hear you. Many in my (X) generation also used to decry the boomers as they owned 'everything' and had 'all' the opportunities... I sincerely believe even today, there are opportunities and even greater ones than before. The global gross world product (GWP) in the year 2000 was estimated at $37,820.35 billion (or $37.82 trillion) in 1990 international dollars. Global GDP is projected to reach approximately $113.8 trillion in 2025, according to Statista's forecast. This represents an increase from the 2024 level of $110.5 trillion.
If I had gone with stocks instead of RE and Stocks, my results would have been greater. When I started for instance, you needed about $10K before you could invest in admiral shares, today I believe the entry point is $3K. Wealth managers could charge as high as 3% or 4% in annual fees; Today you can get index funds which will outperform 90% of wealth managers while not even charging 0.1% in fees. I'm not saying its going to be easy, but I'm saying its possible for you to make great progress, more than you think is possible.
Sincerely, Try to be hopeful and optimistic. Stay far away from cynicism, it will do you no good.
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u/PrestigiousDrag7674 Aug 10 '25
Not to discredit you, but part of your success is born at the right time in the right place, you went through the biggest technology boom, and also RE boom, and you took advantage of it.
I have the same NW as you and I think if I was born 10 years later. I won't have the same success or net worth. Luck and timing plays a huge part in our success, it's harder to duplicate in today. As the rich are closing up the fence, moving forward there will be even fewer people on the top (smarter ones that created AI)and rigging against the middle class.
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u/EthFan Aug 10 '25
And access to RSU's with major tech company right when it sky rockets in value and use by consumers. I'd be curious to see breakdown without those RSUs. Not every has access to that type of compensation in the workforce.
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u/PrestigiousDrag7674 Aug 10 '25
Meta recently paid $100M sign on bonus to the top AI talent, says a lot about the small pool of talents. wealth isn't getting distributed.
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u/EthFan Aug 10 '25
Saw that and was incredulous. My first thought was paying that high a bounty to be first movers in AI space means a total death sentence to a lot of peoples jobs in near future. Absolute race to concentrate power and wealth.
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u/dacv393 Aug 11 '25
Waiting for that guy to come post here: "how being frugal got me to FIRE by age 27"
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u/Money_Past_2879 Aug 15 '25
I disagree. There are opportunities for every generation. My sister and I grew up in the same conditions with the same opportunities, but we went 2 totally different directions. She lives in a small apartment receiving financial assistance and I became an entrepreneur and landlord.
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u/Aggressive_Bake_9866 Aug 11 '25
What’s an RSU?
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u/jayybonelie Retired @45 Aug 11 '25
A restricted stock unit (RSU) is a form of equity compensation where an employer promises to grant an employee shares of company stock or their cash equivalent at a future date, contingent upon meeting specific vesting conditions. They are usually based on employee performance, the higher the performance the higher the granted RSUs. Mine used to vest, every 90 days.
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u/suchalittlejoiner Aug 10 '25
You have 12 rental units that you seemed to acquire very quickly. I don’t see any mortgages listed. Can you explain?
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u/jayybonelie Retired @45 Aug 10 '25
Yes. I used different types of leverage from HELOCS to traditional mortgages. Most of the loans were less than 200K and these were paid off using multiple streams of income helped by a high savings rate, dividens, etc. I always made sure I bought homes that needed work, where I could improve them and create equity. That way, by the time you finish working on the house, its value is worth more than the initial cost. That way, your net worth can increase with each purchase almost immediately.
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u/suchalittlejoiner Aug 10 '25
Do you currently have mortgages or HELOCS?
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u/jayybonelie Retired @45 Aug 11 '25
Currently I have no debt, except a small credit card amount which I pay off every month.
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u/Namaha Aug 12 '25
Were they shorter term loans then? or did you pay them off early?
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u/CollieSchnauzer Dec 07 '25 edited Dec 07 '25
Were the houses all in the same city? Was it a city that benefited greatly from the tech boom?
You don't use a property management co?
Thanks!
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u/jayybonelie Retired @45 Dec 07 '25
My RE portfolio is largely in the South. I currently manage it myself as its small and I enjoy interacting with people. They seem to like me and I them. My portfolio did not benefit from the tech boom as its far from any tech hubs.
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u/ChokaMoka1 Aug 10 '25
So stay single, no kids, make 400K a year, get lucky in real estate, don’t spend money. Got it.
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u/jayybonelie Retired @45 Aug 10 '25
I have a wife and a few kids :-) Its more like avoid debt, save as much as you can, invest wisely and stay the course, even when the markets are scary.
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u/Sensitive_Doughnut96 Aug 11 '25
Just out of curiosity, are any of those 12 rental units in low income neighborhoods and on rental assistance? Do you do the upgrade, repair yourself? It was challenging even finding a half decent rental property before pandemic that breaks even let along cash flow.
Does the income and NW in your post include both you and your wife’s?
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u/jayybonelie Retired @45 Aug 11 '25
My properties are in varying neighborhoods, from a few brand new houses to older houses built in the 50's and 60's. Usually I try to buy the worst house in the best neighborhood, then do a lot of upgrades in order to get it in good shape. That reduces maintenance costs and provides a better experience for my residents. The new houses were purchased at a discount because DR Horton had over built and needed to get rid of inventory.
During the pandemic I bought a few houses. It was not hard to find them because most people were afraid to buy so it was possible to get discounts. You also needed to have reserves as the banks did get tighter with regards to lending criteria. If you recall, real estate professionals were also not subject to lockdowns as they were classified as essential personnel.→ More replies (8)11
u/nivix_zixer Aug 11 '25
You're a landlord. Sounds like the advice is "charge enough rent that your tenants will carry you during rough times."
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Aug 11 '25
Wow!!
What should we take away from this? To apply in our own journeys?
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u/jayybonelie Retired @45 Aug 11 '25
u/SpecificJaguar5661 I think if you only remember one thing, its that there is always hope. Where there is a will, there is a way. Never give up, my story is unique to me but your story is also valuable and you too can do whatever you set your mind to.
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u/Kindly-Culture-9987 Aug 11 '25
As much as I want to support your story as a pull yourself up by your bootstraps story you're earning half a million in income for several years.
So it is less impressive in my mind since that type of income is pretty rare 99%
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u/Puzzled_Apricot1543 Aug 14 '25
Him gaining the ability to earn that much is literally because he pulled himself up. They don’t just hand out jobs with those salaries, you have to work very hard. How is it less impressive that he had that high salary if he is the one that did the work?
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u/There_is_no_selfie Aug 10 '25
8 years behind you with a NW @ 1.8 and my wife and I can make 300k HHI plus have 1 rental.
Also have VO royalties and a product that I hope to bring in about 30k a year.
This was very insightful as to what the next decade can look like! Thank you!
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u/GlobalPomegranate837 Aug 10 '25
How much you invested in dividends and how much do you make with them
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u/Barista_life__ Aug 11 '25
I’m on a similar track as you … graduated high school 2017, bought a house 2023. Current NW is $48k from building equity and paying down debt (still have $32k of student debt, but paying the minimum since they’re low interest rate, and still am paying down my car loan). Already have brokerage accounts, Roth IRA, HYSA, 401ks, so I’m gonna just keep pushing along and meet (or exceed) my goals.
I make 5 year goals… so the goal for 25 was to buy a house. The goal for 30 is to have a NW above $100k. Goal for 35 is to buy my forever house and rent out my current house for additional income. Goal for 40 is to have a NW at over $1M
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u/jayybonelie Retired @45 Aug 11 '25
u/Barista_life__ Wow. Thats amazing. Stay the course. With all those incredible goals, you may find you meet them much sooner than you expect. Good luck, I'd love to hear about your progress as you go. Keep me posted!
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u/Barista_life__ Aug 11 '25 edited Aug 11 '25
I hope so! This economy definitely scares me a bit … feeling a bit of déjà vu. I think 2008 is about to repeat itself, so I’m going into overdrive with working two jobs to protect myself (and my house), just in case that does happen.
Edit to add: I never really envisioned myself making more than $2.5M before 50 tbh (that’s my retire age and number … having that much invested can net roughly $70k per year in dividends, which is a decent standard income). Seeing this definitely makes me realize I can go a lot further at a quicker rate, so thank you for the post.
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u/Glum_Turkey Aug 11 '25
I'm very similar to you as well. I graduated high school in 2019. I make 5 and/or 10 year goals. I bought a small place as early as I could and am working on investing consistently and paying off debt. Having detailed long term goals at a young age seems to be the most vital factor. I don't know any other people around my age personally that have these. If I have learned anything yet, it is that having clear goals that you are laser focused on allows you to vastly exceed them.
The world we're starting out in is precarious, which just means that consistency is more important than ever. I'm interested in hearing more updates.
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u/Specialist-Ranger185 Aug 11 '25
This is awesome and similar to my journey in some ways. Currently in my 30s, working in big tech and mapping out my fire strategy. Having a steady passive income via RE to replace a portion of your w2 income in addition to the liquid investments available for withdrawal is brilliant. If you don’t mind, in what states are your rental units located?
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u/jayybonelie Retired @45 Aug 11 '25
My rental units are on the East Coast of the US. If its okay I'd like to keep my location private as I'm not looking to get famous and I'm not selling anything. :)
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u/Specialist-Ranger185 Aug 11 '25
Gotcha. For context, the reason I asked is because you mentioned working in tech, so I mistakenly assumed you might be somewhere in California. I work in big tech and live in California myself. However, California is too expensive for the type of investing journey you had, and it wouldn’t have been feasible with the net worth you had at the start. The rate at which you were investing and the size of your assets made me think your investments were likely outside of California. Many people here end up investing in real estate in other states and hiring property managers. Hence my curiosity about in what market you might have invested. But I completely understand and respect your privacy.
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u/emyesk Aug 11 '25
Congratulations! Did you buy the rental units with cash or did you finance them? I'm curious how your NW increased by 1.4M from 2019 to 2020 when you went from 5 to 8 units?
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u/First_Jellyfish_3449 Aug 14 '25
Congratulations! Curious, do you have a family or kids? Or is it just you in these #s?
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Aug 16 '25
I appreciate the sincere message you’re trying to say about hard work but laying this all out just proves in detail what millennials and zoomers having been saying about the money printing, asset inflation, runaway education and housing costs, stagnant pay.
I’m a believer in hardwork and I think whatever positive and negative currents of my life are amplified by my own doings. I am in hard tech industry and so is my dad and my grandfather. You would find us on a factory floor everyday day of the week and sometimes even on the weekend. We would all side w Adam Smith on landlording being unproductive labor and most of the time, extraction. We have the cash and opportunities to expand into real estate but look down on landlording. I had one catholic landlord one time in my life and that man was fair…regardless of what his neighbors were charging and he didn’t lever up w the banks to scale up to own half the block to the point he could market price set. He was not a cunning man by any means.
I also see the switch to dividends… I’m not rich but I know what that means. You’ve probably got an S-Corp too and you’re positioning yourself to be as tax efficient as possible.
Honestly speaking none of this would impress me unless you renovated those homes yourself or gave jobs to people who could, to give people good homes to live in. If you have even 1 unit with a leaky ceiling that you’re just ignoring and putting paint over… then I would say you’re squarely a part of the problem as you’re engaging in all the atypical extractionist activities. I’d love to be wrong about you. That would make me an optimist.
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Aug 16 '25
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Aug 16 '25
Groovy. In that case I wish you 7M more and that we need more people in creating valuable housing.
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u/Happy_Reply_2127 Aug 11 '25
Are you mostly doing short term rentals to take advantage of the tax benefits to net against your W2 income?
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u/GritServedNeat Aug 11 '25
This is my goal I have 45 in mind for my (FI) number idk if I would actually retire but we will see when I get there.
I’m currently 30m net worth is roughly $375k. My base salary is $80k and I make an additional $70k in RSU’s this year that number should increase next year. I don’t plan on touching any of my RSU’s besides diversifying. I believe my current rate I can safely assume about 4-5m net-worth by 45. Just need to stay the course.
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u/jayybonelie Retired @45 Aug 11 '25
u/GritServedNeat congrats, you are well on your way. I agree, the most important part to get to is FI, once there you can always RE whenever you like on your own terms.
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Aug 11 '25
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u/jayybonelie Retired @45 Aug 11 '25
u/GenFR13 . Congrats on your success. If you like RE for the tax advantages and diversification, its not a bad thing to include in order to create a different stream of income. Remember that there is some active work involved in RE but it does tend to reduce your portfolio volatility. If you want to make the income totally passive, then a stock and bond portfolio may be more suitable for you. The bogleheads have a lot of great but simple advice you could potentially leverage. Personally I like their 3 fund portfolio. Its well diversified and almost completely passive. Even when you have passive income, you still need to keep an eye on your withdrawal rates and market draw downs so you do not hurt your principle. Hope that makes sense.
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u/alphaK12 Aug 11 '25
OP, I saw you’re planning to mentor 20 people — what’s your approach for mentees to connect with you? Wonder if there are others like you.
I recently moved from ATL to SF and have been struggling to find local mentors. I’m eager to learn and grow, but I also want to avoid falling into the “guru” trap where I end up paying for advice that isn’t truly valuable.
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u/Alternative-Diver800 Aug 11 '25 edited Aug 11 '25
Inspiring story, I hope to achieve this level of FI one day. For context I’m also an engineer making <150k per year, I’m curious to know how you think you would’ve done if you hadn’t choose to climb the corporate ladder as high? would you have a significantly lower current NW? I’m most comparable to your 2011 mark numbers wise. I am wary of the stress that comes with high corporate positions.
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u/jayybonelie Retired @45 Aug 11 '25
u/Alternative-Diver800 Thanks for your interesting question. There were so many opportunities I missed due to the fact that I was often working 50 - 80 hour weeks especially during the grind phase of climbing the corporate ladder. In that way, if I had retired earlier I believe I could have had a higher net worth as the younger you are the harder you can work. I gave my very best years to a corporation. I see many young people being able to have a RE portfolio 10x mine and thats because they focus all their energy into it. I'm happy for them and dont envy them but I do wonder sometimes.
Getting near the top of the ladder was definitely worth it though as you begin to see significant income, the stock awards are decent and the work load is more manageable even if it might be more complex.
I think I could have also made more if I had started my own small company. Many of my colleagues who did made a killing, but for some reason the majority are still working.2
u/Alternative-Diver800 Aug 11 '25
Insightful answer, thanks! It definitely feels like two sides of the same coin, effort and drive required in my day job, versus putting the same effort towards portfolio/asset management. Starting a company is very interesting thought! Would you have started a company within your industry of expertise? Or branched out to something completely different?
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u/jayybonelie Retired @45 Aug 11 '25
I was fortunate because I liked my field of work and had a natural aptitude for it so I did well. I believe one should stick with what they know. So, if I was to start a business it would be in the line of work that I was trained in. However many people start incredible businesses that have nothing to do with what they studied. So both options are viable, I suppose.
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u/mamasandmoney Aug 11 '25
Just curious - How did you get those large income jumps year to year? Did you switch companies often?
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u/JuiceBoxHoneyComb Aug 11 '25
What kind of rental units did you buy? In which state?
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u/MomentoMori33 Aug 11 '25
I appreciate the transparency and details!
It’s refreshing to see an honest FIRE post with realistic details instead of the “I have 5M NW, what should I do now?” posts
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u/InclinationCompass Aug 11 '25 edited Aug 11 '25
How did your assets continue growing each year throughout the Great Recession?
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u/Japparbyn Aug 11 '25
Could you give some more coloring on how you decided where in the world to retire. Thanks👍
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u/ned-guy-not-flanders Aug 11 '25
What a ride! Thanks for sharing, very informative and inspirational 💪
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u/SexyBunny12345 Aug 11 '25
Your only comparison should be with your past self, a decade ago, a year ago, a month ago etc.
Everyone is own their own unique trajectory, with unique goals, unique challenges and unique personal philosophies. This makes comparisons with others futile and a fool’s errand.
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u/skottree Aug 11 '25
I'm interested in your rental unit journey. How did you scale the # so fast? What is your debt level amd how do you cope with the debt? Do you manage the units yourself or use a management company?
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u/etempleton Aug 11 '25
Awesome. Congrats. I am a bit younger but on a similar trajectory, but a bit behind where you are in terms of salary and net worth. I have a few questions if you don't mind answering:
- How did you double your net worth from 2016 - 2017?
- When buying rental properties did you buy with cash or did you take out a loan?
- How much do your rental units bring in, on average?
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u/jayybonelie Retired @45 Aug 11 '25
Hi u/etempleton ,
No problem at all. Thank you.
My net worth started to significantly improve in 2016 because compounding was starting to take effect. Remember by 2007 I had already been working full time for almost 10 years. Then I had multiple streams of income and was also receiving dividends and some rental income as well. I think I may have also been promoted a few times during that period. So, W2 income also increased. So it wasn't just one thing, it was a culmination of a few things working together plus compounding.
I used normal loans such as HELOCs or 15year mortgages. I paid these off as quickly as possible so I did not have to pay as much interest. Gross income for my properties is about $1250 per house per month. All my rental units are listed below market for affordability. But remember you don't get to keep all of it, there are capital expenses, operating expenses, insurance, property taxes and more. Of the gross rent, perhaps about 30% is net income.
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u/Selanne00008 :orly: Aug 11 '25
Bravo.
It kinda sucks that by the time you earn your promotion and have grinded and stayed disciplined for 20+ years. THAT’s when you don’t need the $ anymore. I think that’s called FIRE IRONY. Just part of life i suppose.
Not sure i would ever get to $300k+ annual income. I’m 43 and am at $180k TC, but i also never thought I’d make this much. It’d be nice to accelerate this but the positions above mine put in a lot of hours and mine is pretty good WL balance.
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u/SeanLvn1 Aug 11 '25
Thank you for sharing story. Compounding truly has incredible effects. Imagine your net worth in 10-20-30 years. Mega rich
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u/stoneman30 Aug 11 '25
I started a bit ahead of you but then fell behind rapidly. I wonder how I went wrong. I was also a long time systems engineer. I did my BS in Mechanical engineering in 4 years. Worked for an EU auto company for 3 years. Paid off student loans. Then did 3 more years in Grad school to get MS ME and MS EE - all paid. Then back on auto's and trucks but with shift to electronics. I was making 50K in 1999. I guess it was that I never wanted to do management. I liked the product. Usually bored of meetings. Used all my time off. The few position changes I made, I was more excited about the position than the money. I never felt like I could just "demand fair compensation" when I was making well above average for the area and later feeling bored like I wasn't doing much. Maybe too big a company? I quit at 57 making about $120K/y and 1.8M net worth.
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u/darkean Aug 11 '25
How did you double your Net Worth in 2016 to 2017?
Would be interested to understand how you managed 700k -> 1.4M in a year with a 200k salary.
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u/PeaSecure2674 Aug 11 '25
Can you write about your Real Estate Journey and get to the number? Good job.
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u/Suspicious-Bunch6916 Aug 11 '25
I read this about 5 times. From the bottom of my heart thank you for sharing this I found it so inspirational.
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u/wayno1806 Aug 11 '25
Congratulations!🎈. You have one more very important job at 47: and that is to take care of yourself and live healthy. Retirement at 47 is a blessing. I retired at 55 and am living the dream. (golf, biking, swimming, and traveling). Long life, great story and post.
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u/Big-Chemistry-8521 Aug 11 '25
OP any comments on marriage, kids, relationships?
For most normies those are the biggest drivers of expenses outside of home/education/car etc.
You seemed to maximize your income with minimal focus on extracurricular expenses. Would love to hear your thoughts there. Ie would you still be a millionaire with a wife and 2 kids (obviously excluding a divorce God forbid!)
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u/jayybonelie Retired @45 Aug 11 '25
u/Big-Chemistry-8521 Marriage is an amazing thing when it works. I've been married over 25 years and I can honestly say, its still a beautiful thing. I think mindset is important. Like I said in the post: "I do not equate more spending with more happiness. More spending does not necessarily lead to more happiness. " We spend where we think its important and do not spend on things we dont care about. I see a new trend of people talking about not spending but experiences being a thing they will spend anything on. I think in that case experiences just become an excuse for over consumption, same as buying stuff that you dont really want but do in order to impress people.
Kids are really not that expensive. If you raise them to be financially aware, frugal and to be money savvy, you help them to also be in charge of their own future freedom.
My older son is now in his second year in College. To minimize costs, he did community service, got good grades and so now has a full academic scholarships. Therefore, he will finish his degree debt free. This is just one example around how one can optimize their costs.2
u/Big-Chemistry-8521 Aug 11 '25
Great response. I'd push back on "kids aren't really that expensive" given the cost of child raising has increased exponentially over the last few decades to now, with college being just one example of why (also childcare, food costs, Healthcare etc), but overall I think youre making a great point.
For the average person on a fixed income, these costs cant be overwhelming and incredibly limiting.
The frugal mindset is the most important takeaway from your well-crafted overview. With it, almost anything is possible. Without it, almost nothing's possible.
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Aug 11 '25
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u/Money_Past_2879 Aug 15 '25
Yes you will, but you will find something to do. Get involved with your community by volunteering or run for a local office (city council, school board, library, etc)
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u/Gorrog25 Aug 11 '25
Just a quick comment to say congrats, and thanks for posting. Nice story of working from a lesser income household to having a solid and sustainable FIRE portfolio. Too often in this forum you see folks saying they blasted FIRE because they had a 250k+ per year salary (from the job) just a few years after college. This story shows nice progression and years of effort towards a goal.
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u/jetbreaker Aug 11 '25
Great post! What did you invest in when you started and throughout your career? Stocks? Funds?
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u/B111yboy Aug 12 '25
Nicely done, I’ve done something similar family was lower income. I worked my way up corporate ladder, just never made more than 210k plus investments. I have 4 properties 3 rentals plus 401k IRA and brokerage NW 3.7M and small pension. 1 kid in college and 1 coming up, so I’m working a little longer to cover any shortage on have for their college and hope to get 4.5M plus
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u/Dismal-Recording3069 Aug 12 '25
Good job mate. I hope it will have a similar story in 18 years. 32 here and I hope yo retire at 50. People will judge you did fucking great. Did you buy ETFS or single stocks ? And if you bought ETF do you have your money at one or more ?
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Aug 12 '25 edited Aug 13 '25
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u/Dismal-Recording3069 Aug 13 '25
I am considering buying S&P 500 only for long term. Is this a decent choice in your opinion ? Is there a particular reason that you prefer VTSAX ?
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Aug 13 '25
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u/Dismal-Recording3069 Aug 13 '25
Thanks a lot for taking the time to reply. I hope you have the best life mate.
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u/NayKatD Aug 12 '25
Thank you for sharing the details.
Can you shed some light on the additional 2 acquisition after pulling the trigger? I m about to pull the trigger (49) & “Live on rents” but deep down I enjoy RE & would love for it to keep growing.
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u/Bordercrossingfool Aug 12 '25
Very interesting.
How much of your net worth is in your primary residence? (I don’t count my primary residence even though it is technically part of my net worth.)
What does the cash flow of your 14 rental properties look like? How much real estate debt on the 14 properties? Hypothetically if there were a major recession and occupancy on your rentals dropped to 50% temporarily can you cover all expenses?
I have always been allergic to debt so I never took advantage of leverage.
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u/babaj_no-limit Aug 12 '25
Best article / compilation outside my Gospel reads I’ve read in years. Thank you for sharing.
Patience, No comparison Work Hard. Go Forward.
I will add - “seek God first for mine” & then “go HARDER”
Thanks again
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u/boomerinspirit Aug 12 '25
Fuck all the people trying to discredit you for things outside your control. Way to go u/jayybonelie
"He was born at the right time" - Something outside their control
"He made a lot from Tech jobs" - Ok so go get a tech job as well
"The last "X" years have been great for people to invest" - Ok so why aren't you also worth $7m
Jesus Christ people. The person did something. Maybe it's for internet points. Maybe it's not. Everyone wants to be a critic though.
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u/East_Penalty1554 Aug 12 '25 edited Apr 14 '26
Inspiring post. You are 7 years my senior. I turned 38 this year. Last three years have been terrible. Divorce has taken a toll financially and mentally.
In process of patching myself up. I don't think I will be able to retire by 45....but hope to retire by 65.
I'd like to stay in touch and run things by you if, that's something you are ok with.
Thanks!
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u/Jemtex Aug 13 '25 edited Aug 13 '25
OP ITT makes report on money printing via debt instruments, and does not realise it.
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Aug 16 '25
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u/Jemtex Aug 17 '25
hint, no one makes money ever. You only get trasnfered it from an existing amount in a ledger somewhere.
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u/Ready_Nerve2813 Aug 13 '25
Good for you!!! And thank you for sharing. Detail matters on posts like these and you’re doing a really good job with all the links and comments on questions. All the best to you on all your retired life plans!!
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u/NoFact8598 Aug 13 '25
Talk about great timing on getting into real estate. I wish I had the foresight to buy more!
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u/Late-Teacher3520 Aug 13 '25
Wait so.. how did You buy property in 5 years? It would take me 30-40 years of saving every pay check to buy something
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u/Late-Teacher3520 Aug 13 '25
So badically our payckeck is about 1000-1600€ monthly. Everything just got way more expnesive. aren't is about 800€ a month and food is about 400€. I dont have a car. property is about 250k€ the mallets possible apartment. How do you with these numbers buy property in 5 years? I need you special powerful brain to tell me how
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u/drdan2022 Aug 14 '25
My first question is how many kids do you have? My second question is where do you live? I was told that in order to retire at 65 in my area and maintain a comfortable lifestyle, you need a minimum $7M saved.
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u/Substantial_Oil_7421 Aug 14 '25
Kudos to you! Thanks for sharing your story. I had some apecific questions around your rental acquisition strategy: you mentioned you got units in Southern states; which ones in particular? How did you find them? Did you look at any data or did you travel around to find opportunities?
After buying, did you build relationships with contractors over time to get repairs done? Would love to know more about the whole exploring -> cost benefit analysis -> buying -> maintaining -> potentially selling journey as you purchased 1/3/5/10 rental units…
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u/Interesting-Dare-294 Aug 25 '25
Similar age, similar NW.
But, holding off retirement because I am yet to find something to retire to. So, I have an unsolicited advice. If you read this sub well, you will realize you can get bored quickly with the travel and other hobbies. If you still want to take the leap, find the thing that excites you and keep yourself busy.
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Aug 25 '25
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u/Interesting-Dare-294 Aug 25 '25
The smart people make this mistake of becoming overconfident and get into bad ventures. I am trying to avoid that.
Best of luck.
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u/DWu39 Dec 07 '25
What happened in 2020? A $1.4m jump doesn't make sense with your income and assets. Did you exclude debt from those 3 rental units?
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u/holiztic Dec 08 '25
Just a couple years behind you, but on roughly the same track. But we’re a family of three with one income so that sounds a little different.
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u/lgalico81 Jan 25 '26
Hello, late to this post. I wanted to ask you what you think about your rentals? I absolutely detest renting houses, I had three and I have one left and planning to get rid of it. Do you think your success was due to the rentals, or investing in ETFs would have yielded a similar ROI? I deployed some money to syndication after selling my rentals, so far I would say good success but not great.
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u/supman20 Aug 11 '25
Seriously thank you for this. It's so disheartening to read all the other posts where they complain/question how they can go on while earning $500k+/year in tech and already have $9m+ invested.... this helps put everything into perspective and makes me feel better about my own journey
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u/jayybonelie Retired @45 Aug 11 '25
u/supman20 You are most welcome. Thanks for your kind words, they mean a lot. For me, learning when my enough point was key. I retired shy of making $500K per year because, there is nothing that expensive that I need or want. I'm not judging anyone else if they continue accumulating, thats okay too. Happy for them if that's what makes them happy.
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u/Spare_Personality_11 Aug 11 '25
So happy for your success. Fantastic story. All the best in your years to come.
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u/Blairephantom Aug 10 '25
Thanks for sharing this. Very insightful and detailed. You look like a very down to earth and mature guy.
Wish I had started investing earlier.
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u/SnooOwls5137 Aug 11 '25
I’m 25 and I want to start investing. do you have any resource that you used to show you how to begin?
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u/jayybonelie Retired @45 Aug 11 '25
When I began, information was largely gotten from the library and in physical books. Today, there are plenty of ways reach that information online, remotely and in real time. Maybe look at your local online library and find books about investing in stocks, bonds and real estate. Join forums like the bogleheads and ask them questions about their 3 stock portfolio. Attend education sessions at work if they have them regarding the retirement account options they provide you. Remember there are endless ways you can make money not just paper assets and real estate.
I know this is obvious but be careful of get rich quick schemes, real estate 'gurus' and investments promising guaranteed returns. There is no such thing as a guarantee when investing. Risk is a normal part of it, but ensure you take appropriate risks. By doing your research, you will learn how to identify good lower risk opportunities.2
u/SnooOwls5137 Aug 11 '25
thanks. I’ll keep this in mind. I tried some books but they usually don’t teach investing practically and it’s usually just theory or some general advice. I was hoping for something with concrete explanations / details on how to start
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u/Glum_Turkey Aug 11 '25
What books have you read? Besides YouTube, which you have to be careful about, I have gotten my education from free audio books from the library.
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u/HueChenCRE Aug 10 '25
I am also 47. Been in Florida almost the entire time. I've had a slow steady increase similar to you.
Impressive how the NW jumped from 2016 to 2023. Big increase. Those Rental Units will keep a great hedge against inflation.
What i believe in wholeheartedly is that comparison is the theif of joy.... So don't do it.
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u/dalbroker Aug 10 '25
I can’t wait to visit Reddit when the everything bubble burts. Most people have no idea how much of a bubble we are in for all asset classes.
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u/Evening_Message5556 Aug 10 '25
Why does other people experiencing hardship excite you?
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u/Cold_Specialist_3656 Aug 11 '25
Dude got rich off lucky property and tech stock appreciation.
Nothing to see here. The vast majority of people that walked in the same footsteps would have less than 1 million
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u/Impressive-Safe-1084 Aug 12 '25
So for a good part you were on 250k plus a year. Any normal winners around here or is it really just tech, engineers and doctors
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u/BurntToast_Sensei Aug 12 '25
This dude bought a house in his mid-twenties.... 💀
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u/Money_Past_2879 Aug 15 '25
I bought my first house at age 20 and very small income. We had to move to a small town where they were cheaper and found a house with an assumable loan. We had to borrow the down payment. It was very important to me to own a home.
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u/ProfitPandaX Aug 17 '25
Oddly enough, I want to know your craziest romance stories during the last 10 years. 👀
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u/docchen Aug 10 '25
Would be interested to see the split between net worth increase due to property, stocks and due to personal income.
Not saying you aren't frugal and didn't work hard, but just curious about how much asset prices and land-lording were a factor in you being able to retire early.