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Do a retirement calculator and see for yourself. There are plenty available online.
I already did one for this exact couple a while back and posted it somewhere. It seemed doable to me based on the information given. Check my posting history if you really want to know.
Hoping there will be an article about a couple who retired in their 30's that either worked at Wal-Mart, Home Depot, or Applebee's. Seems that only Engineers can retire in their 30's.
An engineer in what? What at Microsoft??
My sister worked as a project manager. She came from a Masters Background in business. So what was hers?
SOooooo???? what kind of place are they living in? A town house which is a one bedroom studio? A big mansion or basically somewhere cheap. Honestly they do not really sound like they are doing anything at all but burning time. If they were really retiring I would assume they would have a pension.
Also, they run a blog that generates $57k per year. So they work. Likely not much, but running a blog is a “job”.
Just another variation on the "they're lying" argument. These folks typically don't make money on their blogs until after they retire. It typically takes them several years for their blog to make significant money. Lots of bloggers don't make anything or very little.
He says that he’ll have $200k available in 19 years to pay.
Full-pay tuition today is already $250k. College has more than doubled in price over the past 20 years.
So he’ll likely have only a fraction of the tuition available.
Lol, assuming their kid has to go to a private ivy for school is a bit of a false narrative. The state school in my State is less than 1/3rd that for all 4 years and that assumes you live on campus all 4 years, which is more expensive.
If my stash was 10 million (which it isn't) the dividends from taxable accounts alone would knock me out of any ACA subsidy threshold.
Quote:
Originally Posted by mathjak107
Exactly . It already knocked me out of the park when I was 62-65 and I don’t have 10 million dollars
That's exactly the point that I've been reiterating. No matter how frugal one is, even a few million in a taxable account - if completely left alone! - will break through the ACA subsidy-ceiling, from dividends alone, never mind capital gains (from turnover in the subject funds).
The trick is to so arrange one's finances, that the bulk is in a tax-advantaged account (ideally, Roth IRA). If we're talking about multiple millions, this seems to be possible only if there's enormous growth within the account, relative to the actual contributions that were made. Barring such a trick, we're going to be stuck with (1) a lifetime of taxes, and (2) a lifetime of non-eligibility for subsidized healthcare, at least until reaching age 65. And if the tax-advantaged account is a traditional 401K or traditional IRA, then we face (3) a tax avalanche, in the form of RMDs, at age 70... but at least then, we can enjoy the ACA subsidies.
Bottom line: shove those nickels into a Roth IRA or Roth 401K... and hope that the invested money really burgeon. Otherwise, the tax man cometh....
He says that he’ll have $200k available in 19 years to pay.
Full-pay tuition today is already $250k. College has more than doubled in price over the past 20 years.
So he’ll likely have only a fraction of the tuition available.
You're wrong again.
1. It says right there in the quote I made that he's calculating it in inflation adjusted dollars.
2. Avg cost for year of college is 20k public, 47k private (tuition, room, board) source = https://www.collegeraptor.com/find-c...sts-2017-2018/
Quote:
Originally Posted by PuppiesandKittens
YOU map out their financials. Then come back to me. Don’t take what they say at face value without verifying it yourself.
He's got pretty detailed answers to all your questions on his blog. You're the one saying he's lying without having bothered to investigate, so the burden is on you to prove otherwise not me.
Quote:
Originally Posted by PuppiesandKittens
Also, they run a blog that generates $57k per year. So they work. Likely not much, but running a blog is a “job”.
He (not they) writes one post per week, but it's irrelevant to our discussion whether one considers that a job since we're disagreeing on your claims that he's living in poverty, lying about his net worth, not caring for his family, can't afford to pay for their college, etc. whatever other unfounded BS you're slinging because his life doesn't conform to your world view.
1. It says right there in the quote I made that he's calculating it in inflation adjusted dollars.
at least in the us, college is one thing that increases faster than inflation... so not sure using "inflation" as an adjustment works for college tuition
but his kid is foreign too, and college in other countries is cheaper, doubly so if he is paying for it with american dollars
That's exactly the point that I've been reiterating. No matter how frugal one is, even a few million in a taxable account - if completely left alone! - will break through the ACA subsidy-ceiling, from dividends alone, never mind capital gains (from turnover in the subject funds).
Are you sure? The ceiling for subsidies is 400% FPL which for 2018 is about $64k. Depends on how you're invested but I think it's possible to have 60k income from 3 million in taxable.
Quote:
Originally Posted by ohio_peasant
The trick is to so arrange one's finances, that the bulk is in a tax-advantaged account (ideally, Roth IRA). If we're talking about multiple millions, this seems to be possible only if there's enormous growth within the account, relative to the actual contributions that were made.
Not everyone needs millions and millions of dollars. A couple who've built up a million taxable, a million tax-deferred, and 200K in Roths could retire quite comfortably (depending on their spending habits) while taking advantage of ACA subsidies.
at least in the us, college is one thing that increases faster than inflation... so not sure using "inflation" as an adjustment works for college tuition
but his kid is foreign too, and college in other countries is cheaper, doubly so if he is paying for it with american dollars
He uses the inflation rate of college tuition specifically. Here's a chart from his blog that compares the two rrates of inflation:
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