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Old 03-31-2016, 10:43 AM
 
Location: Woodinville
3,185 posts, read 4,059,695 times
Reputation: 6267

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Quote:
Originally Posted by DaveinMtAiry View Post
$5,000 compounded at 7% after fees will generate $1.4 million in 44 years. This means a 21 year old, many with student loans, will be expected to save $5,000 a year. How exactly do you expect them to save 2 or 3 times that amount?
Just to add to this, 7% has been optimistic of late depending on your retirement portfolio. Vanguard target retirement 2050 has been performing poorly for the most part. Only recently has it started to approach 7%. Every year you miss out on that target is a big deal in the beginning. 1 year return is currently negative.
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Old 03-31-2016, 10:43 AM
 
Location: Tennessee
23,777 posts, read 17,704,665 times
Reputation: 27824
Quote:
Originally Posted by Red On The Noodle View Post
I am single, no kids and I do not make near the salary that you do. I paid off my house in 13 years. My comments to your numbered items are in red
I only make a bit above $60k. I make a slightly above average salary, but by no means am I what I'd call "doing well." I also work in a very unstable industry.

Granted, I live in a fairly inexpensive area, but it would be difficult, if not impossible, for me to retire in my 40s. You really need to be "boring with a big augur" for that.

Quote:
Originally Posted by Port Pitt Ash View Post
That's all fine and dandy, but you need a wage (and a low enough dept level) to get to the point where you can grow your money. Never mind that money you've got growing is tied up so you generally don't want to keep taking it out for your day to day costs. Fees eat you alive & you lose out on the compounding effect.

Otherwise what are we talking about here? A Hail Mary business startup financed by credit cards or family money?

You know, even something like flipping houses is more difficult today than it was just a handful of years ago due to it being sold as a moneymaking miracle.
I'm just now getting to the point where I can afford my needs, some discretionary items, and invest. On 1/1/2014, I was barely making a little over $10/hr, which is fairly standard in east Tennessee. There's no extra left over on ten bucks an hour
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Old 03-31-2016, 11:00 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,727 posts, read 40,135,596 times
Reputation: 23887
Quote:
Originally Posted by Serious Conversation View Post
I only make a bit above $60k. I make a slightly above average salary, but by no means am I what I'd call "doing well." I also work in a very unstable industry.

Granted, I live in a fairly inexpensive area, but it would be difficult, if not impossible, for me to retire in my 40s. You really need to be "boring with a big augur" for that.
Not really that tough... I retired at age 49, never availed to more than a SINGLE income hourly wage. Believe me... Paying that first house payment of $128.84 on $2.65 / hr was a RISK! (Age 19).

I also worked to pay off over $100k of my disabled parent's debt (I was my parent's caregiver the day I turned age 18).

Life is not fair, but that is beside the point. You gotta make lemonade... Holding onto bitterness (or
'What-if's' ) will slow you down dramatically, and ruin your precious health. (Then you will be in a REAL fix).

We still eat and feed the family on $100/ month, just as we did 40 yrs ago. My 1976 daily driver still gets 50 mpg on FREE waste cooking oil (as it has for 40 yrs). The only major difference is that we no longer have Healthcare. ($50/ day premium was just too much), so... I (we) get sick?... We die. Very simple solution (only in USA). I had 3 USA friends succumb to that same fate last yr. Left the spouse with $500k in bills after depleting all assets and home / autos, then died. Life is not fair. Get used to it.

If you are REALLY serious about sticking with wage income, then look overseas for work. One of my renters left for Iraq over 10 yrs ago. He is not very skilled and has been banking $200k / yr TAX FREE in hazard pay. All his expenses are covered and he has NO WHERE to spend a dime (or a Dinar). Opportunities abound!
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Old 03-31-2016, 11:58 AM
 
Location: Florida and New England
1,239 posts, read 1,424,903 times
Reputation: 1689
Quote:
Originally Posted by Serious Conversation View Post
My five year plan is to be in FL by the time I'm 35. I'll have to work, but would be very willing to dial my lifestyle back to be able to enjoy the outdoors more and not feel confined to staying up north where the wages are higher.
I'm also in IT -- a very specific niche with high demand all over the US. It's 100% travel, so I can live anywhere (within reason). I've been working since 1988 and in IT since 1991, so I'm only a few years away from early retirement.

The big number ($1.8 million or near) is designed for people who are going to have a full-lifestyle retirement. I think a cautious, frugal person could make do on significantly less. The extra money also buys time (and health insurance) until full SS and Medicare kick in at 70 and 65, respectively.

BTW, moved to Florida last year and it's been fantastic financially -- the taxes are so much lower than up north. The only surprises were the real property stamp tax and an increase in vehicle insurance rates, but otherwise every other cost has decreased.
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Old 03-31-2016, 12:01 PM
 
Location: Tennessee
23,777 posts, read 17,704,665 times
Reputation: 27824
Quote:
Originally Posted by StealthRabbit View Post
Not really that tough... I retired at age 49, never availed to more than a SINGLE income hourly wage. Believe me... Paying that first house payment of $128.84 on $2.65 / hr was a RISK! (Age 19).

I also worked to pay off over $100k of my disabled parent's debt (I was my parent's caregiver the day I turned age 18).

Life is not fair, but that is beside the point. You gotta make lemonade... Holding onto bitterness (or
'What-if's' ) will slow you down dramatically, and ruin your precious health. (Then you will be in a REAL fix).

We still eat and feed the family on $100/ month, just as we did 40 yrs ago. My 1976 daily driver still gets 50 mpg on FREE waste cooking oil (as it has for 40 yrs). The only major difference is that we no longer have Healthcare. ($50/ day premium was just too much), so... I (we) get sick?... We die. Very simple solution (only in USA). I had 3 USA friends succumb to that same fate last yr. Left the spouse with $500k in bills after depleting all assets and home / autos, then died. Life is not fair. Get used to it.

If you are REALLY serious about sticking with wage income, then look overseas for work. One of my renters left for Iraq over 10 yrs ago. He is not very skilled and has been banking $200k / yr TAX FREE in hazard pay. All his expenses are covered and he has NO WHERE to spend a dime (or a Dinar). Opportunities abound!
I had a recruiter from Japan email me blindly about a position in the UAE. While not for me, I can imagine it would be $$$.

Quote:
Originally Posted by westender View Post
I'm also in IT -- a very specific niche with high demand all over the US. It's 100% travel, so I can live anywhere (within reason). I've been working since 1988 and in IT since 1991, so I'm only a few years away from early retirement.

The big number ($1.8 million or near) is designed for people who are going to have a full-lifestyle retirement. I think a cautious, frugal person could make do on significantly less. The extra money also buys time (and health insurance) until full SS and Medicare kick in at 70 and 65, respectively.

BTW, moved to Florida last year and it's been fantastic financially -- the taxes are so much lower than up north. The only surprises were the real property stamp tax and an increase in vehicle insurance rates, but otherwise every other cost has decreased.
The $1.8 million is going to be significantly less when I retire in thirty years or so. I don't think it's that far out of the question.

I live in Indiana, so this is "up north" to me being from Tennessee, but I am so surprised that wages here are so much higher than in Tennessee, and the cost of living isn't much different. I spent a couple of years looking for work in Tennessee (and would still like to return to Knoxville/Nashville someday), but could never find much at $40,000, even in Nashville. I could sneeze and find make $40,000 here in Indianapolis. My biggest complaints are the lack of outdoor opportunities, cold winters (not that much worse than east TN), and high taxes, but I'd probably like it better than coastal, liberal, high cost areas.

Still, the city is just ho-hum to me (no way I'd ever live here if I wasn't paid well and the economy wasn't good) and I have no personal connections here worth staying for. I don't really care about working in IT either - I'd gladly sacrifice some salary to get into something financial. I'll be 30 in under a month, so it's time for me to start living life the way I want to before I get much older.
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Old 03-31-2016, 12:01 PM
 
Location: Mount Airy, Maryland
10,496 posts, read 5,967,660 times
Reputation: 16278
We all live our lives differently and I'm certainly not going to tell the poster who never took a vacation that they were wrong. But nothing in life is guaranteed and people who compromised life just so they can retire early may never get that chance.

I have lived my life in a responsible manner but I don't regret for a second the great experiences I have had. As I crunch for a simple retirement I recognize that I will never go to Alaska or play a $150 round of golf again. But I could afford it at the time and I am very happy I did them. I won't be looking back on my death bed thinking about how much money I saved, I'll think about the week snorkeling in the Virgin Islands. I chose to live life rather than compromise hoping for a future that is hardly guaranteed. And I sure wouldn't risk my life for a big paycheck in the Middle East.
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Old 03-31-2016, 12:19 PM
 
Location: Tennessee
23,777 posts, read 17,704,665 times
Reputation: 27824
Quote:
Originally Posted by DaveinMtAiry View Post
We all live our lives differently and I'm certainly not going to tell the poster who never took a vacation that they were wrong. But nothing in life is guaranteed and people who compromised life just so they can retire early may never get that chance.

I have lived my life in a responsible manner but I don't regret for a second the great experiences I have had. As I crunch for a simple retirement I recognize that I will never go to Alaska or play a $150 round of golf again. But I could afford it at the time and I am very happy I did them. I won't be looking back on my death bed thinking about how much money I saved, I'll think about the week snorkeling in the Virgin Islands. I chose to live life rather than compromise hoping for a future that is hardly guaranteed. And I sure wouldn't risk my life for a big paycheck in the Middle East.
Even at my age, I've had a very interesting last five years. Maybe I shouldn't have done some of the things I've done (that move to Iowa and year back in Kingsport was a huge financial mistake), but even those financial errors have led to a lot of interesting experiences most people don't get to have.

There's a definite, reasonable middle ground between Mr. Money Moustache and charging headlong into excess.
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Old 03-31-2016, 12:31 PM
 
72,177 posts, read 72,150,380 times
Reputation: 49683
Quote:
Originally Posted by funisart View Post
That's a lot for dental. Fortunate that we haven't had anything like that. We opted not to re-up our dental insurance because without employers paying , it cost way more than it was worth. My husband has had no new cavities in 10 years and my last dental work was a crown replacement 4 years ago. We get our teeth cleaned 3 times a year. We did opt for medical F and a somewhat pricy Drug Plan with some doughnut hole coverage. We didn't need it much this last year but are keeping it because you never know . We have had almost no or very low copays on scripts and none on checkups. We do pay a little more for our part B but not the most because we appealed and were approved. Our medical is no where near 30K. We do splurge on glasses. I just bought 4 new pair and my husband got 3. All new frames except for husband's sunglasses. Our lenses are are close to $400.00 each - so you can do the math. My eyes have changed slowly- doc says he will see me back in about 2 yrs. my husband had his cataracts removed 2 years ago- his eyes are pretty stable.
wait , the best is i rejected 3 out of 6 implants put in 7 years ago . those 6 cost me 25k back then .

i was pre-diabetic and didn't know it so it destroyed my teeth and the implants .
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Old 03-31-2016, 12:44 PM
 
8 posts, read 4,161 times
Reputation: 18
nice, way to include all factors!

and I'm worried all my social security i have paid in since i was 15yrs. old won't be available for redemption when i retire at my scheduled year of 2032.....too many baby boomers collecting while not enough of the generation X's or the millennials paying in , its sure to be a bust.....I hope I am wrong....but then again I was told since the age of 20 not count on Uncle Sam to cover my golden years.....and those golden days are coming a lot faster then I would have ever thought!!!! damn i hate it when that happens.....
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Old 03-31-2016, 12:52 PM
Status: "Loving our retirement" (set 2 days ago)
 
Location: Asheville NC
1,631 posts, read 1,325,528 times
Reputation: 4333
Default Ouch

Quote:
Originally Posted by mathjak107 View Post
wait , the best is i rejected 3 out of 6 implants put in 7 years ago . those 6 cost me 25k back then .

i was pre-diabetic and didn't know it so it destroyed my teeth and the implants .
Ouch Ouch!!!
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