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Old 04-20-2019, 10:05 AM
 
Location: Shreveport, LA
1,234 posts, read 944,156 times
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https://www.google.com/amp/s/www.cnb...-millions.html

I would probably save double what she saved just to make sure I had enough and Iíd work with a 3% withdraw rate instead of 4% since my risk tolerance is on the low side.

Has anybody else had success using this womanís methods?
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Old 04-20-2019, 12:04 PM
 
Location: Aurora Denveralis
6,630 posts, read 2,326,192 times
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You're kidding, right? Yet another person who worked in NY investment banking, garnered six-figure income and frequent raises at a young age and decided a $2.3M nest egg was enough to "retire" at 28... what an inspiration to us all.

Might as well aspire to be a lottery winner.
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Old 04-20-2019, 12:08 PM
 
Location: Denver CO
20,490 posts, read 11,300,350 times
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Step 1. Get a job paying in the mid-6 figures.

How's that going?
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Old 04-20-2019, 12:14 PM
 
Location: NY/LA
3,281 posts, read 2,760,379 times
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Quote:
She did it thanks to a series of raises that put her income in the mid-six figures and then developing a savings rate of more than 70 percent.
This is a little ambiguous, but this should mean around $400k to $600k, correct?
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Old 04-20-2019, 12:17 PM
 
1,491 posts, read 492,768 times
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It's pretty much how I got where I did, albeit at a much later age and with some missteps along the way.

Up your savings rate: I got off to a very good start and then met the spendaholic who would become my first husband. Made a LOT of mistakes propping him up and providing him with his "wants" to keep the peace. At 50, I remarried, to a man who shared my financial priorities and we sold the houses we each owned, releasing a lot of equity we didn't need when we bought in a LCOL area. That's when the real savings started.

Increase your income: my degree was a BA in Math from a respectable state university but I became an actuary, which required taking a series of professional exams which took up most of my spare time for 8 years.

Put your money to work: I was fascinated with investing from the time I watched my Dad venture into it in the early 1970s. I started investing in the Bad Old Days of full-service brokerages, nothing on-line, etc. but it was a good habit to start and I made my mistakes early, when I could recover from them. Just understanding how compound interest works can dissuade you from carrying credit card balances and make you realize the implications of spending less over a long period of time. Right now about half my net worth is from investment income over the last 15 years (didn't track new money vs. investment income before then). I'd be in much worse shape if I'd stuck to T-bills and CDs.


I'd also add that living in a LCOL area can help, provided salaries aren't significantly lower. In NNJ it was all I could do to max out the 401(k) in some years because the mortgage limited what I had left over to save. DH and I both ended up doing very well when we sold our houses so maybe it evened out, but that's partly luck. In a rising interest rate environment or during a financial meltdown like the most recent one, things could have gone the other way.
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Old 04-20-2019, 12:19 PM
 
Location: Aurora Denveralis
6,630 posts, read 2,326,192 times
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Quote:
Originally Posted by Mr. Zero View Post
This is a little ambiguous, but this should mean around $400k to $600k, correct?
Vague ranges are always misleading. But a single person making $300k and living a modest (for NYC) lifestyle could easily save $150k or more a year; if done in decent investments (which I assume is a total duh in this case), she could easily see portfolio gains of $250k a year. One or two lucky moves (again, a bit of a duh, "luck" being dependent on info and ability to move) and a $300k gain isn't out of the question.

Scale up from there to whatever "mid" means to you. And scale down to W2 worker levels, too, by all means.
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Old 04-20-2019, 12:44 PM
 
Location: Denver CO
20,490 posts, read 11,300,350 times
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Quote:
Originally Posted by Mr. Zero View Post
This is a little ambiguous, but this should mean around $400k to $600k, correct?
That's what I assume when I see that phrase. If you live the same lifestyle as you did on 50-75K, and sock away all the rest of it, it's not unreasonable to think you'd have a few million saved up within a few years.

Of course, whether you can find a job paying that kind of money in an area where you could live on 50-75K is another issue.
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Old 04-20-2019, 01:06 PM
 
Location: Shreveport, LA
1,234 posts, read 944,156 times
Reputation: 584
Quote:
Originally Posted by emm74 View Post
That's what I assume when I see that phrase. If you live the same lifestyle as you did on 50-75K, and sock away all the rest of it, it's not unreasonable to think you'd have a few million saved up within a few years.

Of course, whether you can find a job paying that kind of money in an area where you could live on 50-75K is another issue.
It really depends. I live in a LCOL area and make 50k. It covers all of my expenses, including my embarrassingly inflated food budget (Iím aware of the problem and have made inways into spending less on food, but I have self-control issues with food, specifically).
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Old 04-20-2019, 01:31 PM
 
Location: Aurora Denveralis
6,630 posts, read 2,326,192 times
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Quote:
Originally Posted by Magic Qwan View Post
It really depends. I live in a LCOL area and make 50k. It covers all of my expenses, including my embarrassingly inflated food budget (I’m aware of the problem and have made inways into spending less on food, but I have self-control issues with food, specifically).
So you're under the impression that you can live adequately and put away a whopping $28k a year, and that this is a plan worth following?

Do you really not see the absurdities in this set up by your very first post? That someone who has $2-400k in discretionary income - over and above a comfortable life budget - and can work at ten times your income pretty much at will is not on the same financial planet as you?
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Old 04-20-2019, 03:01 PM
 
Location: Shreveport, LA
1,234 posts, read 944,156 times
Reputation: 584
Quote:
Originally Posted by Quietude View Post
So you're under the impression that you can live adequately and put away a whopping $28k a year, and that this is a plan worth following?

Do you really not see the absurdities in this set up by your very first post? That someone who has $2-400k in discretionary income - over and above a comfortable life budget - and can work at ten times your income pretty much at will is not on the same financial planet as you?
I just need to get a masters or doctorate in the right field. I’m good at school.

My main goal is working less so I can have more personal freedom.
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