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This cracks me up... you really can't find anything better to do with your life than work?
Actually, it's pretty sad that a young person (I am assuming) such as yourself feels like your life can't be fulfilled unless you are "productive" by working.
Are there any causes you believe in, people you could help, family you could spend time with, worlds you'd like to explore, hobbies you'd like to try, or just feel free?
I don't condone the whole "early retirement extreme" philosophy or FIRE-ing on a shoe string, but I wholeheartedly disagree with your idea that work is the better alternative.
I question the whole idea that a lot of work that gets done is even productive. I have a friend who's a psychiatrist. He tells me he spends at least 80% of his time doing paperwork on the computer. They even have dictation software because it helps them do the paperwork a lot faster...it's insane. And that's just one example of many that I could give.
Yeah, not so much. 100K income in California would mean about 33K in taxes, so you think people can save 60K per year and live on 7K per year in California?
In any case, I agree that OP's pointed refusal to respond to questions about the source of his financial resources makes his entire premise suspect, not to mention the fact that most people have a vastly different definition of "living the good life."
It wouldn't mean 33K in taxes. People don't understand the concept of MARGINAL tax rates.
And you can shelter 18K of that 100K by putting it in your 401k. That 18k isn't taxed until you start withdrawing it.
Standard Deduction & Exemption: $10,350
401k contribution: $18,000
Taxable Income: $71,650.
Last edited by mysticaltyger; 04-07-2017 at 08:38 PM..
Federal tax would be 9816.
FICA taxes: 7650
CA taxes: 4450
Total: $21916 or 22% effective tax rate.
How do you figure 7650 for federal? 71650 in taxable income for a single filer puts you are 13650 in federal taxes anything over 37951 is taxed at 25% plus 5226.00
It wouldn't mean 33K in taxes. People don't understand the concept of MARGINAL tax rates.
And you can shelter 18K of that 100K by putting it in your 401k. That 18k isn't taxed until you start withdrawing it.
Standard Deduction & Exemption: $10,350
401k contribution: $18,000
Taxable Income: $71,650.
And some people don't understand the meaning of the words "In California."
Quote:
In California, United States, if you make 100,000.00 USD a year, you will be taxed 32,261.99 USD.
Salary100,000.00 USD
Federal Income Tax- 18,218.75 USD
Social Security- 6,200.00 USD
Medicare- 1,450.00 USD
State Income Tax- 6,393.24 USD
Total Tax- 32,261.99 USD
Net Pay*67,632.01 USD
32.30% average tax rate
41.95% marginal tax rate
I've already explained why I think it's inappropriate to assume a maxed out 401K contribution for the purposes of this thread, since I was responding to a post about earning 100K per year and accumulating a 600K cash nest egg in 10 years, for someone to retire with in their 30s.
I've already explained why I think it's inappropriate to assume a maxed out 401K contribution for the purposes of this thread, since I was responding to a post about earning 100K per year and accumulating a 600K cash nest egg in 10 years, for someone to retire with in their 30s.
They can treat the nest egg as two "buckets" - taxable and tax-favored, and draw only from taxable for the first few years or decades after early retirement, leaving the 401k funds for later. This can be done even if the 401k is maxed out every year. Additionally, the 401k can be rolled to an IRA when that time comes around, and thus the 72(t) exception can be used if the account holder is still too young.
depends on their income . the greatest gift the tax gods give us is the fact that if we delay ss we can draw up to 22k tax free from our retirement accounts using just standard deductions .
we can draw out 40k at a effective rate of about 4% .
you will never get a gift like that again once rmd's and ss start .
couple that 40k with some roth income and cash you set a side and you can have a nice whopper of an income and almost no tax . better yet is you already took the deduction in your peak earning years likely with 2 pay checks coming in if married .
I concede that someone who gets a good job out of college with little to no student debt can probably retire in their late 30's if they don't mind being childless and living with multiple roommates for the rest of their life...happy now?
Why do you say childless, roommates and late 30s?
Buy a home in a low COL area...preferably rather small ~700-1400 sq ft. No roommates needed unless you just want a little extra income.
A child actually doesn't add much to living expenses if a parent can stay home while maintaining a $15-20k+ income. The biggest expense is typically childcare. Clothing, diapers and food can all be had pretty cheaply with a little frugal shopping.
BTW - start saving when you're 7-8 yrs old. Probably not a lot to work with but the concept of delayed gratification comes in handy if you later decide working into your 40s, 50s, 60s+ just doesn't seem appealing.
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