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Post by sd51555 on Feb 18, 2019 8:59:34 GMT -6
Is it bad when someone says they invest like $40k a year and that's not to far from what you make a year? LOL.......... I guess life for people is a bit simpler around where I live. I really enjoy conversations like this as it puts into perspective for me what is possible when you make a lot of mullah........ I ate a hot dog once... That's where I'm at dawg. It's been 4 years since I stepped down my career to get a better work/life balance. I think I've got a good handle on the tax/investing/saving side of the equation. I'm still learning the budget side of things, but I've been catching up to the 101 stuff. This is why I got rid of the truck, eliminated the electricity at the cabin, ditched cable, cook at home, can, wanna build a pond, and I'm trying to perfect throw'n mow in perennial clover. My gas mileage goes up a little each month as ten pounds of the body rusts away and falls off. There are lots of things I'm working to avoid simply because they don't fit my needs or are a best use of funds. I heard last night my buddy Ernie Dynamite is eyeballing a $40,000 ice castle fish house. For that, he could have bought my cabin and dug and stocked my pond. He gets more use out of it than I would, but it still calls into question "what else could you do with your recreational dollars?" I know he ice fishes some, but also camps a lot with it. It's just not my bag man.
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Post by MoBuckChaser on Feb 18, 2019 9:07:56 GMT -6
I stayed up most of last night looking at all the new ponzi schemes that have come to light since the Bernie Madoff 60 Billion one. I don't know if I want to put anymore money in the markets now. Holy Crap are the scams running wild again.
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Post by westbranch on Feb 18, 2019 9:37:19 GMT -6
There are tons of people out there retiring in there mid 60s with a few 100k in IRAs/401ks, social security and a paid off house. With a paid off house they should be able to cover 30k a year in expenses which is still a pretty damn good life. They can still go out to eat twice a week, go on a couple cheap vacations a year. They won't be owning multiple properties and hunting land, or leaving $100Ks to their kids but that is just fine for most people. If they are 65 at retirement an 8% withdrawal rate can work just fine. The biggest issue for a lot of these people is that they have the money sitting in money markets or bank accounts not earning anything and sometimes getting hit with fees. Anyone retiring with $4-5M and using a 3-4% withdrawal rate and having $$ properly allocated and invested has a very good chance of dying with a couple million still left. The 4% safe withdrawal rate that is often referenced comes from the Trinity study. Bogleheads wiki has a good summary www.bogleheads.org/wiki/Safe_withdrawal_ratesA couple good quotes from the study: To know how much you need to have saved you need to figure out what your expenses are. If you expect to spend $50k a year multiply that by 25 and you need 1.25M. For the vast majority of people with a paid off house $50k a year in retirement is a lot of cash. If you are 65 no reason not to increase that withdrawal rate to 5-8%. Let your kids figure out their own retirement. My wife and I are 30 and have had above average incomes since we got out of college, but we have always lived in small towns and could have made way more chasing the $$ in Minneapolis or another big metro. Our first few years with combined finances our net worth increased by >50% of our income when including debt payoff. I have tracked all income/expenses since around 2012 or so. Our current living expenses are <50% of our income and I feel like our life is pretty damn luxurious. At 50 we will have enough in IRAs/401ks/after tax invested to easily cover our expenses using the 4% rule, like others mentioned healthcare will be the biggest wildcard. Biggest wildcard for us is kids, so that will have to be decided in the next couple years. Other things could go wrong as well, but we have positioned ourselves to be able to be ok in most scenarios.
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Post by MoBuckChaser on Feb 18, 2019 9:46:27 GMT -6
There are tons of people out there retiring in there mid 60s with a few 100k in IRAs/401ks, social security and a paid off house. With a paid off house they should be able to cover 30k a year in expenses which is still a pretty damn good life. They can still go out to eat twice a week, go on a couple cheap vacations a year. They won't be owning multiple properties and hunting land, or leaving $100Ks to their kids but that is just fine for most people. If they are 65 at retirement an 8% withdrawal rate can work just fine. The biggest issue for a lot of these people is that they have the money sitting in money markets or bank accounts not earning anything and sometimes getting hit with fees. Anyone retiring with $4-5M and using a 3-4% withdrawal rate and having $$ properly allocated and invested has a very good chance of dying with a couple million still left. The 4% safe withdrawal rate that is often referenced comes from the Trinity study. Bogleheads wiki has a good summary www.bogleheads.org/wiki/Safe_withdrawal_ratesA couple good quotes from the study: To know how much you need to have saved you need to figure out what your expenses are. If you expect to spend $50k a year multiply that by 25 and you need 1.25M. For the vast majority of people with a paid off house $50k a year in retirement is a lot of cash. If you are 65 no reason not to increase that withdrawal rate to 5-8%. Let your kids figure out their own retirement. My wife and I are 30 and have had above average incomes since we got out of college, but we have always lived in small towns and could have made way more chasing the $$ in Minneapolis or another big metro. Our first few years with combined finances our net worth increased by >50% of our income when including debt payoff. I have tracked all income/expenses since around 2012 or so. Our current living expenses are <50% of our income and I feel like our life is pretty damn luxurious. At 50 we will have enough in IRAs/401ks/after tax invested to easily cover our expenses using the 4% rule, like others mentioned healthcare will be the biggest wildcard. Biggest wildcard for us is kids, so that will have to be decided in the next couple years. Other things could go wrong as well, but we have positioned ourselves to be able to be ok in most scenarios. How does health care cost figure into living off 50K per year?
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Post by leexrayshady on Feb 18, 2019 10:01:41 GMT -6
They make this shit so fucking complicated you need a 8 year CPA degree just to buy a fucking condom now! GEEZ! I have read every post in this thread and it's all over my head. I teach fourth graders, I'm too dumb for all of this money talk! Is there something a 30 year old teacher should be looking out for? Lol Listen to this episode, on the unfair advantage of teachers with the 457b www.choosefi.com/457b-free-money/then if you want to know more about fire (financial independence retire early) start here www.choosefi.com/038-the-why-of-fi/this podcast has changed me and my wifes lives in terms our retirement plans
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Post by Foggy on Feb 18, 2019 10:01:54 GMT -6
^ The other thing not mentioned is taxes. If you have income from stocks, bonds, Social Security, Contract for deed on your old property, or other investments......your going to pay taxes. Taxes, dental and medical expenses, and health care costs are huge wild cards. Then too....family members may need help, etc. It all happens.
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Post by MoBuckChaser on Feb 18, 2019 10:20:52 GMT -6
^ The other thing not mentioned is taxes. If you have income from stocks, bonds, Social Security, Contract for deed on your old property, or other investments......your going to pay taxes. Taxes, dental and medical expenses, and health care costs are huge wild cards. Then too....family members may need help, etc. It all happens. Foggy, since you are living the dream right now, place in Zona paid for. Give us a run down on some of the costs we don't know about. These are the ones I can guess about for a year. About $40,000 off the top of my head, what else am I missing?
Property taxes, $3,000
HOA fees $2500
Electric $$2000
Gas $1000
Garbage service $300
Cable TV $1200 Landscape services $1000 Upkeep $2000 Groceries, eating out $4000 Golf Fees/costs $4000 House insurance $1500 Cell Phone $1500 Car insurance $1000 Car repair, oil changes, fuel $2000 Medicare $3000 Supplement insurance $2000 Dental Insurance $500 Medical out of pocket $8000
Edit: I forgot water $1000? Booze $ 2000?
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Post by sd51555 on Feb 18, 2019 10:33:58 GMT -6
How does health care cost figure into living off 50K per year? That is the biggest budget wrecker of them all. Google bankruptcy reasons and you'll see medical issues are the #1 culprit. I think the biggest dividend payer in retirement is good health. I was on a collision course with an early heart attack and all the other issues that come with poor habits and lifestyle. That's one of many reasons I quit my shirt and tie job. I'm still not outta the woods. I've got see if I can hang on to a healthy lifestyle. What I do know, is in the past five years, my grandpa in his 90s has buried 2 sons in law, and 1 daughter, only one who made it past 60. My ex-girlfriend's dad dropped at 54. All were lifestyle driven maladies that got them. What's the takeaway? Be healthy if you can, adopt a cat, put a value on your time and enjoy life now too. Uncle Frank died a multi-millionaire at 54 and never got to enjoy it. I didn't bowhunt for 8 years cause of that fucking job, I barely fished, and did't screw nearly enough.
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Post by Bwoods11 on Feb 18, 2019 10:35:56 GMT -6
I stayed up most of last night looking at all the new ponzi schemes that have come to light since the Bernie Madoff 60 Billion one. I don't know if I want to put anymore money in the markets now. Holy Crap are the scams running wild again. How does one actually fall for a Ponzi Scheme? If you ever watch American Greed it is always the same story. Get 10-12% guaranteed, backed by this or that...usually real estate, then they write checks to Joe Thomas.... First few interest checks look good, then they eventually stop.
Why don't people just invest money in companies that are very well known. American Funds, Vanguard, Prudential, Fidelity, Ameritrade or maybe buy an apartment complex, farm land, gold silver....all better than writing a check to a so called friend who then ends up spending your retirement on a yacht and a mistress.
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Post by MoBuckChaser on Feb 18, 2019 10:38:34 GMT -6
I stayed up most of last night looking at all the new ponzi schemes that have come to light since the Bernie Madoff 60 Billion one. I don't know if I want to put anymore money in the markets now. Holy Crap are the scams running wild again. How does one actually fall for a Ponzi Scheme? If you ever watch American Greed it is always the same story. Get 10-12% guaranteed, backed by this or that...usually real estate, then they write checks to Joe Thomas.... First few interest checks look good, then they eventually stop.
Why don't people just invest money in companies that are very well known. American Funds, Vanguard, Prudential, Fidelity, Ameritrade or maybe buy an apartment complex, farm land, gold silver....all better than writing a check to a so called friend who then ends up spending your retirement on a yacht and a mistress.
Lets hope all the ones you listed are ok......
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Post by badbrad on Feb 18, 2019 11:24:27 GMT -6
^ The other thing not mentioned is taxes. If you have income from stocks, bonds, Social Security, Contract for deed on your old property, or other investments......your going to pay taxes. Taxes, dental and medical expenses, and health care costs are huge wild cards. Then too....family members may need help, etc. It all happens. Foggy, since you are living the dream right now, place in Zona paid for. Give us a run down on some of the costs we don't know about. These are the ones I can guess about for a year. About $40,000 off the top of my head, what else am I missing?
Property taxes, $3,000
HOA fees $2500
Electric $$2000
Gas $1000
Garbage service $300
Cable TV $1200 Landscape services $1000 Upkeep $2000 Groceries, eating out $4000 Golf Fees/costs $4000 House insurance $1500 Cell Phone $1500 Car insurance $1000 Car repair, oil changes, fuel $2000 Medicare $3000 Supplement insurance $2000 Dental Insurance $500 Medical out of pocket $8000
Edit: I forgot water $1000?
Forgot a big one? Booze.
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Post by MoBuckChaser on Feb 18, 2019 11:27:37 GMT -6
Foggy, since you are living the dream right now, place in Zona paid for. Give us a run down on some of the costs we don't know about. These are the ones I can guess about for a year. About $40,000 off the top of my head, what else am I missing?
Property taxes, $3,000
HOA fees $2500
Electric $$2000
Gas $1000
Garbage service $300
Cable TV $1200 Landscape services $1000 Upkeep $2000 Groceries, eating out $4000 Golf Fees/costs $4000 House insurance $1500 Cell Phone $1500 Car insurance $1000 Car repair, oil changes, fuel $2000 Medicare $3000 Supplement insurance $2000 Dental Insurance $500 Medical out of pocket $8000
Edit: I forgot water $1000?
Forgot a big one? Booze. I changed it, Thanks!
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Post by badbrad on Feb 18, 2019 11:42:36 GMT -6
$38 a week on booze? For you? Bwhahaahahahahahahahahahahaha
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Post by jbird on Feb 18, 2019 11:46:09 GMT -6
My dad is retiring this spring... I'm a long ways off yet...roughly 30 years per Uncle Sam's guidelines! Don't worry boys....I'll keep paying my taxes so you all can have your social security....
Based on even my 401K and my wife and kid situation....I'll probably work, work, work, work, die!
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Post by MoBuckChaser on Feb 18, 2019 11:47:15 GMT -6
$38 a week on booze? For you? Bwhahaahahahahahahahahahahaha I am going to try and cut back Asshole......
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