Financial Freedom Plan - 2015 Update

I finally sat down to get an updated view of our progress towards our financial freedom plan that I laid out a few years go in terms of asset allocation.

Some notes:

  • Our asset allocation to fixed income (interest) will continue to be a gap for us while government drive the low interest rate environment. No sense in putting assets to work here as generally the return is not worth the risk in my opinion. If interest rates normalize well likely shift focus to here.
  • Our invest-able cash flow focus has been on paying down the rental mortgages over the past couple years, but that has not kept pace with the growth of our retirement assets.

No major course corrections for now. We will continue to pay down rental mortgages to boost cash flow, build cash savings, and continue to take advantage of tax incentives to save in retirement vehicles.

Related in Financial Goals:

Financial Freedom Plan (Aug 25, 2013) Almost two years ago I laid out a plan for the net asset allocation I thought we needed for our financial freedom plan. It was a rough guide for asset allocation that I believe could generate enough income to cover...

2012 Passive Income: Dividends (Jan 27, 2013) Here is a summary of our 2012 dividend income. All this income comes from our taxable stock portfolio that is included in our monthly investment review. All retirement investment holdings are excluded from this dividend income summary. This passive income...

Can We Coast to Our Financial Goals? (Nov 12, 2012) As I continue to reflect on getting closeer to reaching our millionaire net worth milestone, I am becoming more optimistic and excited about what the future holds. I've pondered whether we could just tread water at this point and still...

Comments (1)


Do you have a backup plan if interest rates don't normalize anytime soon? What I'd you hit the $2 million mark and want to retire but can't count on interest income? Will you switch to a stock/bond mix of taxable investments until you can tap your retirement accounts?

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A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,701,144

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