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Post by mnfish on Feb 15, 2019 21:04:05 GMT -6
$4 million? That has to be pre-tax no? That seems like a whale of a nest egg. I'd ditch that New York shit entirely if at all possible. Actually.....I'd say most financial planners would tell you to have from 3 to 5 million in a nest egg to be able to live the way you want.....and still do something for your family, gifting, philanthropy. etc. At 3 million your not gonna be living the life of Riley (I bet most of you. guys don't remember that comic strip?). 5 Miillion is a good target in todays world.....IMO. Not that it matters what i think, but i disagree agree with those numbers. Especially under tax shelters like a Roth. At an average ROR of 9% inside a Roth, 5 million would be $450,000 annual income! Damn man thats a lot of golf
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Post by mnfish on Feb 15, 2019 21:07:57 GMT -6
^^^tax free i might add
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Post by biglakebass on Feb 15, 2019 23:13:59 GMT -6
$4 million? That has to be pre-tax no? That seems like a whale of a nest egg. I'd ditch that New York shit entirely if at all possible. Actually.....I'd say most financial planners would tell you to have from 3 to 5 million in a nest egg to be able to live the way you want.....and still do something for your family, gifting, philanthropy. etc. At 3 million your not gonna be living the life of Riley (I bet most of you. guys don't remember that comic strip?). 5 Miillion is a good target in todays world.....IMO. Oh shit am I fucked. Anyone else?
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Post by Foggy on Feb 15, 2019 23:59:21 GMT -6
Actually.....I'd say most financial planners would tell you to have from 3 to 5 million in a nest egg to be able to live the way you want.....and still do something for your family, gifting, philanthropy. etc. At 3 million your not gonna be living the life of Riley (I bet most of you. guys don't remember that comic strip?). 5 Miillion is a good target in todays world.....IMO. Not that it matters what i think, but i disagree agree with those numbers. Especially under tax shelters like a Roth. At an average ROR of 9% inside a Roth, 5 million would be $450,000 annual income! Damn man thats a lot of golf Well......MOST financial planners would like you to spend 3 to 4% of your nest egg.....if you want it to last......not the 9% said above. If you spend over 5% your money will not likely last long enough to see you to the grave. NOBODY is spending 9% and having their money last. You may be able to get as much as a 9% ROI in some years....but when your ability to EARN and income is gone in retirement you need to keep at least 40% of your money in bonds to minimize the affects of a prolonged market downturn. So.....if stocks fall to the shitter.....you still have some dry powder to bring to the table to recover....and some level of income to get you through without further depleting your nest-egg. There is also inflation and taxes to consider. THUS.....the 4% equation - which is quiet universal in nature. Therefore if you have 3 million in investments at 4% drawdown.....that is more like $120 k per year before taxes. That does not make for a "lavish" lifestyle. Not squaller either I grant you.....but not lavish. I rest my case.
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Post by Tooln on Feb 16, 2019 0:17:42 GMT -6
Actually.....I'd say most financial planners would tell you to have from 3 to 5 million in a nest egg to be able to live the way you want.....and still do something for your family, gifting, philanthropy. etc. At 3 million your not gonna be living the life of Riley (I bet most of you. guys don't remember that comic strip?). 5 Miillion is a good target in todays world.....IMO. Oh shit am I fucked. Anyone else? Yep
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Post by Foggy on Feb 16, 2019 0:40:17 GMT -6
Oh shit am I fucked. Anyone else? Yep If you get the first million put together.....just remember the rule of 72. (divide the ROI by 72 to get the time needed to double your investment.) If you can get a 12% ROI you can double your money in 6 years. Just do that twice at 12% ROI (12 years total).....and you have four million. No problem....right? Compounding is magic.....but you gotta do the hard part. save and invest accordingly. FORE!
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Post by biglakebass on Feb 16, 2019 0:54:15 GMT -6
Yep, I am fucked. Thank god for welfare!!!!!!!!!!!!!!!
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Post by Freeborn on Feb 16, 2019 5:08:03 GMT -6
Yep, I am fucked. Thank god for welfare!!!!!!!!!!!!!!! No worries Mark, AOC will take care of you. Lets see, there won't be any cattle so no smoking beef, how are you with smoking Tofu? :-) You will be living the good life in OTC, you have great things coming your way.
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Post by Freeborn on Feb 16, 2019 5:31:31 GMT -6
Not that it matters what i think, but i disagree agree with those numbers. Especially under tax shelters like a Roth. At an average ROR of 9% inside a Roth, 5 million would be $450,000 annual income! Damn man thats a lot of golf Well......MOST financial planners would like you to spend 3 to 4% of your nest egg.....if you want it to last......not the 9% said above. If you spend over 5% your money will not likely last long enough to see you to the grave. NOBODY is spending 9% and having their money last. You may be able to get as much as a 9% ROI in some years....but when your ability to EARN and income is gone in retirement you need to keep at least 40% of your money in bonds to minimize the affects of a prolonged market downturn. So.....if stocks fall to the shitter.....you still have some dry powder to bring to the table to recover....and some level of income to get you through without further depleting your nest-egg. There is also inflation and taxes to consider. THUS.....the 4% equation - which is quiet universal in nature. Therefore if you have 3 million in investments at 4% drawdown.....that is more like $120 k per year before taxes. That does not make for a "lavish" lifestyle. Not squaller either I grant you.....but not lavish. I rest my case. Yep, plan on 4% net return and 25 years of retirement and most likely you won't outlive your money. There are allot of assumptions required when modeling out your retirement finances. Most financial planners will want you to keep 100% of your principal in tact (they benefit from it) but each person needs to decide the amount they want to leave their children. One thing to avoid is a high level of fixed costs, multiple homes or multiple properties are a nice idea but each one will come with taxes, insurance and upkeep. Cash flow is key in retirement so you need to understand the timing of inflows and outflows.
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Post by nhmountains on Feb 16, 2019 5:51:14 GMT -6
So if I don’t have kids does that mean I don’t need $4-5 million? I havent lived a lavish lifestyle for my 55 years and don’t plan on it during retirement. I did go go to the store on the way to camp last night and picked up a few things for dinner and breakfast. 2 1/2 small plastic bags of stuff and it came to $42. I guess I eat well.
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Post by mnaaron on Feb 16, 2019 6:58:47 GMT -6
Yep, I am fucked. Thank god for welfare!!!!!!!!!!!!!!! No worries Mark, AOC will take care of you. Lets see, there won't be any cattle so no smoking beef, how are you with smoking Tofu? :-) You will be living the good life in OTC, you have great things coming your way. I guess you will be smoking fish caught in OTC when you retire.
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Post by MoBuckChaser on Feb 16, 2019 7:17:43 GMT -6
I have very little money in bonds or bond funds. Was reading for my age I should be at around 40% bonds. Are any of you guys thinking bonds for retirement when we have a stock market in good shape?
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Post by Freeborn on Feb 16, 2019 7:28:23 GMT -6
I have very little money in bonds or bond funds. Was reading for my age I should be at around 40% bonds. Are any of you guys thinking bonds for retirement when we have a stock market in good shape? I don't but most of my stuff is pretty liquid so I can move the bulk of my investments very quickly. Most of my assets are in a 401k so I am limited to what's in the cafeteria therefore I'm in index funds. These funds can be moved easily. if you have a diversified portfolio particularly that is outside a 401k type structure it can be more complicated realigning assets as you have tax effects plus you have to sell each investment. This 40% is a rule of thumb and based on where the market is I would probably adjust that percentage. 40% long into the cycle and less on the start of a new cycle. All of this is predicated on having a pulse on the market/economy.
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Post by MoBuckChaser on Feb 16, 2019 7:46:06 GMT -6
I have very little money in bonds or bond funds. Was reading for my age I should be at around 40% bonds. Are any of you guys thinking bonds for retirement when we have a stock market in good shape? I don't but most of my stuff is pretty liquid so I can move the bulk of my investments very quickly. Most of my assets are in a 401k so I am limited to what's in the cafeteria therefore I'm in index funds. These funds can be moved easily. if you have a diversified portfolio particularly that is outside a 401k type structure it can be more complicated realigning assets as you have tax effects plus you have to sell each investment. This 40% is a rule of thumb and based on where the market is I would probably adjust that percentage. 40% long into the cycle and less on the start of a new cycle. All of this is predicated on having a pulse on the market/economy. Diversified to me is more risk probably than diversified to others. I lumped mine into 4 categories for the most part. a healthcare index fund, a tech index fund, a stock index fund, and a Utility ETF. Wrong or right, I am liking it for now.
Edit: I forgot, I just put my last 20% of investing cash into a small cap fund at vanguard (VSMAX) 2 months ago. And man is it tearing it up right now.
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Post by sd51555 on Feb 16, 2019 8:09:30 GMT -6
I have very little money in bonds or bond funds. Was reading for my age I should be at around 40% bonds. Are any of you guys thinking bonds for retirement when we have a stock market in good shape? That rule of thumb shit is good for stuffing in someone's butt, and that's about it. For all the studying and self teaching I've done for myself when it comes to personal finance, I still do not understand how bonds work. And I hate things I don't understand. I do know a couple things. 1. Shorter the term, the lower the risk. 2. The longer the term, the better the return. Now, I still don't think today is a good point to get into bonds. You don't want to hold that shit when rates are rising. Even if we stay flat for a year, they're more likely to go up than down from here. Look at the Vanguard Long Term Bond Fund. Were you unlucky enough to get into it in July of 2016, you'd have fallen 20% to the trough in 2018. That's a convenient snapshot in time, but it illustrates the crap isn't risk free.
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