I'm 54 and my wife is 52 and we are just like you are describing. Accumulation

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Jun 22, 2021
11:53:18am

O Gaucho All-American

I'm 54 and my wife is 52 and we are just like you are describing. Accumulation

is pretty much a thing of the past and we are clearing stuff out. We hope to downsize to a smaller home soon. We will replace some things like cars and clothes but expenses are mostly for travel and medical. We tell our kids we don't want any more stuff so when it is birthday or Christmas time, they get us tickets to a show or invite us to go with them to do something. Top Golf has become a new family favorite.

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O Gaucho

Previous username: 93 cougar
Bio page: O Gaucho
Joined: Dec 11, 2002
Last login: May 4, 2024
Total posts: 17,819 (321 FO)

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Messages

Author

Time

I think it would be really hard to retire with $2.4mm at age 40

6/22/21 11:10am

could do it easy. This amount of take home pay is probably top 10% in country

Mayor of Cougartown

6/22/21 11:11am

Yeah, but what will it be in 15 years? You aren't going to be getting raises on

cougaman

6/22/21 11:16am

yes, I'd love to have that I wouldn't work another day.

Mayor of Cougartown

6/22/21 11:19am

If I was in that situation, I'd probably go another 3-5 years and have a lot

cougaman

6/22/21 11:24am

Yep, good point. I edited my OP to make the case that my bigger argument is that

6/22/21 11:17am

You don't have to generate income through dividends. You can do it through

Baron

6/22/21 11:31am

Withdrawal rate success chart. See 4%

PCCoug

6/22/21 11:57am

What about 20 years from now?

JuicyJam

6/22/21 11:17am

Agree, that is tough right now, let alone with inflation.

JohnnyComeLately

6/22/21 11:11am

I'm older and have seen MANY do it on less than that. Depends on lifestyle.

grandpacoug

6/22/21 11:15am

Im just speaking for myself as a 39 year old. I could not live on 6500 a month right now.

JohnnyComeLately

6/22/21 11:16am

As a 54 year old with 2 grown kids, we lived on about half of that for most of

O Gaucho

6/22/21 11:21am

Cool. Once again I was speaking only for myself, where I live, and my own costs of living.

JohnnyComeLately

6/22/21 11:22am

Right. It is very subjective to where you live.

O Gaucho

6/22/21 11:22am

96k a year is hard? What kind of life are you living bro?

Hotlanta

6/22/21 11:12am

That's true. I should specify that I live in CA. $96k with four kids doesn't go

6/22/21 11:14am

Yes, but with a steady stream of money, you could live anywhere in the world.

Hotlanta

6/22/21 11:22am

You do not have to take huge risk to get 4%.

rad dawg

6/22/21 11:48am

Correct. An average of 4% after fees per year is actually incredibly bad.

ekiben

6/22/21 11:54am

I don’t think you guys understand the volatility aspect of this when making portfolio withdrawals.

RdF3

6/22/21 11:59am

Exactly

6/22/21 12:08pm

That is why I put 4% in my post which was the basis for OP.

rad dawg

6/22/21 12:10pm

I don't think 4 percent is too hard.

Scrog

6/22/21 12:00pm

The entire FIRE movement is based upon this with massive success

Nat Gas Man

6/22/21 12:03pm

Yep

Scrog

6/22/21 12:04pm

With kids at home I couldn’t live on $96k/year gross.

RdF3

6/22/21 11:25am

Tax minimization is critical

Nat Gas Man

6/22/21 11:12am

I could. My wife couldnt. Therefore, I can’t.

Iman23

6/22/21 11:12am

That's literally how much we bring home with a mortgage and 4 kids

keilbyu

6/22/21 11:13am

Try it in a major Metro on the coasts and it is not possible if you want to

Iman23

6/22/21 11:33am

You can move, I see so many articles about how you need so much money to retire

BYUFootballisBack

6/22/21 11:36am

All true. We talk about it. But I make enough to survive here…it’s just

Iman23

6/22/21 11:38am

Valid points I didn't consider. Location matters.

keilbyu

6/22/21 12:41pm

The most critical thing would be your dependency rate. Get it down and

Nat Gas Man

6/22/21 12:47pm

I think we have differing definitions of major metro or your budgeting is off.

ekiben

6/23/21 10:05am

Yeah, 100k is above the median household income in every city in the US but 3

Hotlanta

6/23/21 10:13am

This thread is jaw dropping

rad dawg

6/23/21 10:29am

What will $96K be in 30 years? Most likely it will be equivalent to $50K or a little less in today's dollars

Clark Addison

6/23/21 10:39am

In 30 years you would be 70 with 2.4 million in the bank.

rad dawg

6/23/21 10:40am

And, presumably, a paid-off house and no debt

Hotlanta

6/23/21 11:26am

If you are still only getting 96k a year in 30 years off of a 2.4 mil investment

ekiben

6/23/21 10:51am

$96K per year would be a raise for me.

Eddie

6/23/21 10:46am

We are a massive consumer country, the average person spends what they bring in

BYUFootballisBack

6/23/21 10:46am

Social psychology studies show that regardless of income people feel they'd be

ekiben

6/23/21 10:52am

I think it's very indicative of how out of touch Cougarboard really is.

Hotlanta

6/23/21 11:25am

“Out of touch” with what? Most here likely make far more than that

cougfanz

6/23/21 1:34pm

You really think "most" here make far more than $100k? I would be very surprised

BYUFootballisBack

6/23/21 2:31pm

The evidence would indicate otherwise

6/23/21 8:37pm

I was looking at this through the lens of living in and raising a family in

6/23/21 11:36am

Outside of a handful of the biggest cities, $100k should work for most anyone

BYUFootballisBack

6/23/21 12:34pm

Very doable in Portland, Vegas, Dallas, KC, etc.

ekiben

6/23/21 3:35pm

I don’t think 4% after taxes is unrealistic

Nat Gas Man

6/22/21 11:14am

<< Deleted >>

Buffalo

6/22/21 11:15am

capital gains taxes are probably going up

6/22/21 11:21am

<< Deleted >>

Buffalo

6/22/21 12:04pm

It's not a hypothetical. Biden wants to raise them from 20% to 39.6%. Would suck

6/22/21 12:09pm

That would only be for people with $1+ million income, aka non factor

BYUFootballisBack

6/22/21 12:11pm

You are correct sir. My bad....and phew!

6/22/21 12:25pm

Yeah its not "as bad" as it is constantly talked about being

BYUFootballisBack

6/22/21 12:33pm

I couldn't live on that much without working. I'd need more to be able to

CougarTwins

6/22/21 11:16am

Exactly. People who are busy at work don’t spend as much as people who have time

garyfan

6/22/21 11:18am

Actually retirees spend very little. Most are past the accumulation phase

Nat Gas Man

6/22/21 11:22am

Because most retirees aren’t 40. People in their 40’s and 50’s with time on

garyfan

6/22/21 11:28am

I'm 54 and my wife is 52 and we are just like you are describing. Accumulation

O Gaucho

6/22/21 11:53am

"We don't spend much anymore. Instead we just go to Top Golf on the regular."

garyfan

6/22/21 11:58am

That is what the kids get us for birthdays.

O Gaucho

6/22/21 12:57pm

I'd find a job that I could work as little as possible and still have insurance.

cougaman

6/22/21 11:19am

My photography teacher in high school was independently wealthy

Hotlanta

6/22/21 11:29am

This is probably the best idea to make it last. Plus, you would fill your time.

6/22/21 11:31am

Yep, adding 30K a year and not having to pay insurance would be a game changer.

cougaman

6/22/21 12:07pm

I’m willing to try it.

BW84

6/22/21 11:16am

Why don’t y’all chip in and I’ll prove it can be done. I’ll even give you a

Penske Material

6/22/21 11:18am

I could do it, but I wouldn't. There are several ways you could get screwed, and I would not be able to live

Clark Addison

6/22/21 11:21am

There's only one way to find out. I propose a long-term test. You all pull

DeekLyfter

6/22/21 11:24am

I could easy. And have 2 kids at home. My lifestyle would be just fine as well.

6/22/21 11:24am

You don't have to invest in bonds. Just do the stock market. All that matters is

Baron

6/22/21 11:28am

Easily, seeing as my current target number is just over $1 million at 40

BYUFootballisBack

6/22/21 11:29am

I could do it if single.

cougfanz

6/22/21 11:29am

I have 3 kids under the age of 8 and I could unequivocally make that work. I probably wouldn't attempt it because I'd

Pimpin4Paradise

6/22/21 11:34am

If you can make that without working you just move out of Cali.

Druick

6/22/21 11:36am

You don't even have to leave the coasts, you just need a cheap area on them

Hotlanta

6/22/21 11:42am

25-35% in taxes isn’t even close to accurate

PCCoug

6/22/21 11:52am

Huh? In order to generate $96k a year and live off that for the rest of your

6/22/21 12:16pm

Again, the tax increase is ONLY for those with $1+ million in income

BYUFootballisBack

6/22/21 12:25pm

Read this at the “$100k to spend. Zero tax.” part

PCCoug

6/22/21 12:29pm

Not at all. You're using a "traditional" retirement definition. Do you really think a 40yr old isnt going to work at all

6/22/21 1:06pm

That sounds more like a career change than a retirement to me

Clark Addison

6/23/21 6:54am

Running a blog, working at a golf course for free golf... not a career change for me. Sounds like a great retirement.

6/23/21 8:08am

My plan is to retire, take $50 a month, rent a powerwasher, turn it into $5mm

runitup590

6/22/21 4:53pm

Nah do the tomato plants plan instead!

BYUFootballisBack

6/22/21 4:59pm

Come on, man! That will never work.

Eddie

6/22/21 5:18pm

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