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Unless I missed it in a previous post I didn't see your timeline which makes a big difference. Either way, you now did and I'm not sure I still buy it but I wish you luck.
You don't buy it? What don't you buy? I've given you simple numbers and it's these additional comments by you that prompt the snarky replies fwiw
I also asked you what questions I didn't answer or explain but you failed to respond to that
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Me, as I said, I make more than you but I didn't make that much in my earlier years, in fact I was born into near poverty and then most of my life I was working middle class. Now in my 50's I don't have your timeline. I am what is referred to as a HENRY (High Income Not Rich Yet). That's why I found Obama so offensive when he defined high income as rich. Rich to me is having enough money invested that it can throw enough passive income to support yourself in a reasonable good lifestyle. Making a high income does not make you rich, especially if it's w2 income. Only financially uneducated buy that and yes, I used to buy it too. Experience has taught me anyone who thinks high income means you are rich is wrong.
You keep saying you make more than me but that's really not relevant to my plan and the questions you've asked. I also was at or nearly the poverty line for much of my early life but it's clear I ramped up my earnings faster than you did and I'm making good use of it. My wife and I are DINKs and both decently high earners in a lower col area so we have a lot of utility with our income
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Because I didn't have your timeline and because government "thinks I'm rich" it's harder to make up for lost time because I get HAMMERED with high taxes. A lot of deductions you get are phased out at my income level. I do everything I can but because of my elderly mother I am not able to be as aggressive (real estate) as before. I'm not complaining, I'm thankful except for the out the ass taxes I have to pay.
I don't mind the taxes even as my bills rise. It's a part of a functioning modern society and I firmly believe that those who make more should pay more
You don't buy it? What don't you buy? I've given you simple numbers and it's these additional comments by you that prompt the snarky replies fwiw
I also asked you what questions I didn't answer or explain but you failed to respond to that
You keep saying you make more than me but that's really not relevant to my plan and the questions you've asked. I also was at or nearly the poverty line for much of my early life but it's clear I ramped up my earnings faster than you did and I'm making good use of it. My wife and I are DINKs and both decently high earners in a lower col area so we have a lot of utility with our income
I don't mind the taxes even as my bills rise. It's a part of a functioning modern society and I firmly believe that those who make more should pay more
Seriously... good for you. Your paying 13-14% I think it was is much better than what I pay and I do mind paying more. I'd be happy if I were paying 13-14% too.
Seriously... good for you. Your paying 13-14% I think it was is much better than what I pay and I do mind paying more. I'd be happy if I were paying 13-14% too.
You do realize that I am paying 13-14% now while pushing a growing tax liability down the road right?
I like how you pick and choose what you respond to and then act as though others aren't fully addressing questions
we have a bunch of trips we want to do so we have been putting together our wish list .
one of the greatest feelings is the ability to have choices to go anywhere and do anything because you saved enough to do so . for lots of folks retirement isn't just about paying the bills. it is about doing the things and going to he places you always dreamed about.
i can honestly say no matter how much we had there is still more we would want to do than our funds would allow .
Finance gurus say 66% is good guess. I am assuming someone would not want to become a penny pinching tight wad after being a CEO unless someone wants to really put away the retirement money to make up for lack of saving over the years or make up for a disaster that befell them with health or employment.
My local area has become very economically depressed causing lots of work scam tolerance, low wages, obscene staffing shortages close to negligence, temp work common and REALLY low wages even for skilled people. Add to this a lot of people who ended up on SSDI payments here due to very physically demanding manufacturing work and bad mental health care traps. Area was a disaster for most who tried to hang on here who lost all their retirement money trying to be okay after employment problems or health issues.
Some of us have to see retirement another way, I would be THRILLED to only work part-time in something I may enjoy and spend more time on hobbies & my housing. I have had little country fantasy thing going which is VERY easy to afford for most, easier to afford than city. Part-time work will obviously be necessary to remain okay as long as possible in retirement. But, we also need to focus on hitting retirement with no debt. To remain debt free it will require careful management of health for lowest cost. Consistent exercise does not feel like work when you are used to it and goes the farthest to reduce your retirement expenses.
For the middle class and lower middle class, I still think there is reason to be positive if you adjust on your mindset about work in retirement and see it as a positive.
work in retirement isn't retirement for the most part . it only means you quit one job ,and took another with less hours and went from full time to part time worker . .
Last edited by mathjak107; 07-29-2015 at 02:54 AM..
For what I am reading here, people forget that your income can also increase in retirement. Our annual income is now more than during our earning years. We also lost over a million during the market decline but have recovered all of it plus some. In retirement we earn $10K per month, our taxes are low, effective rate of 11% or 12% and $6K for property tax. We have no mortgage or car payments. Even after withdrawing our RMD, the investments keep growing. We do not need half this amount and make sizable gifts to our son, we purchased a new CNC machine for his machine shop. In turn, he was able to hire an addition employee.
I am 74 and been retired for a very long time. We travel constantly and enjoy our lives.
You don't buy it? What don't you buy? I've given you simple numbers and it's these additional comments by you that prompt the snarky replies fwiw
I also asked you what questions I didn't answer or explain but you failed to respond to that
You keep saying you make more than me but that's really not relevant to my plan and the questions you've asked. I also was at or nearly the poverty line for much of my early life but it's clear I ramped up my earnings faster than you did and I'm making good use of it. My wife and I are DINKs and both decently high earners in a lower col area so we have a lot of utility with our income
I don't mind the taxes even as my bills rise. It's a part of a functioning modern society and I firmly believe that those who make more should pay more
You were fortunate to ramp up your earnings earlier extending your timeline to build your wealth. My income curve is steeper putting me right in the target for the tax the rich lie ....although "I am not rich". Democrats know as Gruber put it, the stupidity of the American voter and Obama was able to play to the "lack of financial understanding" to get support to take more money from the American people.
I would think you would understand this being that you claim to know so much.
Oh and I don't mind paying taxes but for those of us who don't have your timeline the so called "tax the rich" tax code makes it more difficult to build our wealth. Many people who will suffer the consequences of the lie.
You do realize that I am paying 13-14% now while pushing a growing tax liability down the road right?
I like how you pick and choose what you respond to and then act as though others aren't fully addressing questions
uh yes, you've said you max out your contributions (not exact wording, I believe you gave the amount).
So what else do you do to bring your taxes down to 13-14%?
We max out pre-tax plus the catch-up contribution, the standard deductible gets phased out for us. Interest deduction gets phased out. Just like lower income could care less about what deductions I can't take I could care less if they took away the mortgage deduction. If we invest in real estate, we don't get depreciation. Oh and there's that nasty ATM that was originally passed to "tax the rich". Adjustments for inflation was not written in the law.... Now you can't tell me that politicians didn't realize that?. We lose a lot of deductions than people with lower income get to take.
Frankly I'm taking more time off and not growing the business instead of investing to build and busting my ass to make more because government takes too much and the incentive is gone.
Maybe if our income curve was like yours and we didn't get raped by taxation I would be more interested.
For what I am reading here, people forget that your income can also increase in retirement. Our annual income is now more than during our earning years. We also lost over a million during the market decline but have recovered all of it plus some. In retirement we earn $10K per month, our taxes are low, effective rate of 11% or 12% and $6K for property tax. We have no mortgage or car payments. Even after withdrawing our RMD, the investments keep growing. We do not need half this amount and make sizable gifts to our son, we purchased a new CNC machine for his machine shop. In turn, he was able to hire an addition employee.
I am 74 and been retired for a very long time. We travel constantly and enjoy our lives.
Now you're living the life that I aim for, a nice passive income, no bad debt, traveling.
Also you're obviously not taxed on W2 income (highest taxed). At $120k passive income you're in the sweet spot, meaning deductions don't get phased out, and with the right type of income. To achieve that kind of passive income I have to build more wealth and invest it well, a tough nut to crack (especially in a short time span).
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