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Jun 22, 2021
11:59
:54
am
RdF3
Inactive user
I don’t think you guys understand the volatility aspect of this when making portfolio withdrawals.
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RdF3
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swishh_15
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RdF3
Joined
Nov 4, 2011
Last login
May 4, 2024
Total posts
39,958 (2,657 FO)
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Messages
Author
Time
I think it would be really hard to retire with $2.4mm at age 40
Mr. Rumsfield
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
Mr. Rumsfield
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
Mr. Rumsfield
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
Mr. Rumsfield
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
Mr. Rumsfield
6/23/21 8:37pm
I was looking at this through the lens of living in and raising a family in
Mr. Rumsfield
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
Mr. Rumsfield
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
Mr. Rumsfield
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!
Mr. Rumsfield
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.
Mr. Rumsfield
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.
Turnpike Lane
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
Mr. Rumsfield
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
TheLoneCougar
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.
TheLoneCougar
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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