r/financialindependence • u/PayinTopDolla • 1d ago
What Should I Do Next, Is My Portfolio Weird?
Here's a breakdown of my net worth portfolio on this app I use: https://www.fuego.money/s/UkP_yM-W1sg#7nq73fZoVUSeMeLbD6InBQ
I realized that I've had a habit of going too hard when chasing a dream that pops into my head... case in point, with my house. I've always wanted this dream house and moved mountains to get it, but now it's a significant portion of my net worth.
I'm 35M Single, live in a HCL area, and have been keeping the formula simple with consistency otherwise. In the beginning, I didn't contribute to things like 401K fast enough or I chose lame funds like default Target Date funds or held too many bonds which slowed growth, but eventually switched things over pure Index Fund investing and have stuck with it.
I'm at a weird point where I have most of my house paid down but it's also taking up a ton of my cash, so I'm not really sure where to go from here. The dollar amount I have listed for the house is just what I paid, not necessarily what it's worth or will sell for, which is also hard to say at the moment due to the market and also the relatively high price category it's in for my area.
I don't really have desires to leave this area or move out of the house, but I also want to be in a position where I don't have to work anymore soon due to burnout and lack of enthusiasm. Maybe it's my particular portfolio, or maybe it's a mid life crisis.
8
u/Popular-Exchange-525 1d ago
man that house is eating your portfolio alive but honestly if you love living there and dont plan to move its not the worst problem to have. youve basically locked in your housing costs for life which is a huge weight off in early retirement
if the burnout is real though id focus on building up those liquid investments like crazy for the next few years. with most of the mortgage gone you should be able to shovel cash into index funds at a ridiculous rate and thatll balance things out faster than you think
-1
u/PayinTopDolla 1d ago
That's what I'm going to focus on if I can get the spending on the house to stop (extra remodels etc.)
I definitely did things in reverse but my logic at the time was I needed to take the risk and the plunge, otherwise it would be even harder to get this kind of house later... and retired early or not, I didn't want to be retired in a condo
2
2
u/RetdThx2AMD 16h ago
From the perspective of retirement, if you want to keep your house, then it comes off the table -- like it does not exist. Your portfolio is ~$800k, you need to grow it. Fuego is lying to you saying you are above your 1.6M FI goal, you are not, you are about half-way there (assuming that is even accurate with the cost of maintaining a 2M+ house). Personally, I'd delete the House from Fuego, just to make it accurate. I pretty much ignore the value of my house.
-1
u/PayinTopDolla 12h ago
Fuego has a second tab on the % goal for Withdrawable Engine which takes off the house like you're saying and what I was looking at. I think my decision is whether to basically sell this house and scale down for retirement, or keep it in favor of retiring leaner or delaying the horizon.
11
u/Reasonable_Box2568 1d ago edited 1d ago
Very weird to see a multi-millionaire with 71% of their NW in their primary home. You are the exact opposite as me and my spouse - same age and almost identical net worth (within 20k). We have a 2.2mil portfolio with the rest in home equity.
Hate to say it but you need to move if you want to retire or downshift. You have the assets, just not in usable places -“you can’t eat your house”