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Old 12-05-2019, 09:17 AM
 
3,560 posts, read 1,628,861 times
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I kinda skimmed this thread. But get that OP wants to live lifestyle he has with this money.



Nope, not going to happen. Just look back at changes in prices in last 50 years.



But if you want a frugal do it yourself kind of rural lifestyle, you have money to buy a small farm with small old house in a very rural area with low property tax, and then spend next to nothing, living rustic life as many have done in the past. Grow your own food, do your own repairs and maintenance, drive a simple older vehicle that is easy and cheap to repair. Yea you can do it. Reason more dont is that speculators have bid up prices on this kind of place so you need big bucks to buy in. You arent going to buy such anymore with minimal jobs available in such an area. These places now sold to rich outsiders as hunting retreats and such.


And you wouldnt spend more than quarter of it on said small farm, you also have money left and enough time, you learn how to invest that brings in lot more than 2.5% quoted in some other post. Yea, if you want super safe passive income only, with no work, then yea, figure 2 to 3%. But with some work and without huge risk, you should be able to get 8 to 10% return. This requires discipline and you need to reinvest most of this return for a while. You do need to beat inflation significantly to survive. Not the pretend govt inflation rate that assumes you only buy cheap Chinese electronics, but real inflation of actual life necessities including real estate taxes. YOu dont want to get into a position where some rich guy buys your property out from under you on court house steps for year of back taxes.

 
Old 12-05-2019, 09:36 AM
 
1,800 posts, read 1,229,375 times
Reputation: 3603
Quote:
Originally Posted by eddiehaskell View Post
As a person you can know how your mind progresses mentally/spiritually/philosophically - my mind is in a different place since I’ve had so much time to be inside it thinking. Time becomes something you don’t sense like the average human so I could spend days or weeks dedicated to reading about a single topic from multiple viewpoints. I now have a different relationship with those around me. I’m more at peace with everything. Spiritually rooted. Perhaps it’s something you wouldn’t know unless you experience your brain working in this context at a young age.

Congrats on being the first person to pull the seasoned traveler “I’m better than you” card. Face it - not everyone likes to travel and you don’t have to travel the world to know that! I’m perfectly fine with never leaving the Carolinas. I love it here! Still finding new places to go in my own backyard. I did find a cool tubing spot on the river where I went 10-15 times this year.
You knew somebody was going to pull the “I’m better because I travel” card. I’ve never understood that either. I lived in London for a year as an expat when I was working for a bulge bracket firm. Travelled all over Europe. Another expat year in Tokyo provided Asian travels. I don’t think I’ve ever mentioned it on C-D before because frankly, who gives a f@#%. Then I get accused of being a phony because I’ve never posted in the travel forum. WTF?

I don’t understand why people get so infuriated at people like Eddie. The only explanation is they realize they don’t have what it takes to live that way. I retired at 42 with considerably more than 800k. Looking back, I wish I’d done it earlier. It certainly wouldn’t have impacted my lifestyle. Didn’t have the guts I guess. And hadn’t come to hate working quite so much.
 
Old 12-05-2019, 09:47 AM
 
1,800 posts, read 1,229,375 times
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Quote:
Originally Posted by mathjak107 View Post
so far all our trips this year were free as far as air fare and hotel just using the points we accumulated from charging as much of our living expenses as we can and never carrying a balance.
Exactly. The days of travel being an indicator of wealth are over.
 
Old 12-05-2019, 09:54 AM
 
5,342 posts, read 6,139,671 times
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Quote:
Originally Posted by Cabound1 View Post
Exactly. The days of travel being an indicator of wealth are over.
Well to be fair in order to get all of your travel covered by rewards means you spend a lot on those cards or you churn your cards. We spend as much as we can on our cards, but it wouldn't pay for much more than travel once a year for 2 adults, because we just don't actually spend a lot outside of our mortgage and our daycare costs, which both have to be from your bank account.
 
Old 12-05-2019, 09:57 AM
 
1,800 posts, read 1,229,375 times
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Quote:
Originally Posted by mizzourah2006 View Post
How is $25-30k/yr for one person with no car payment and no mortgage a Spartan lifestyle? Why do people keep saying this?

This makes me think people don't actually know what they spend per month or they are completely out of touch with the way the middle class lives.

The average American spends 37% of their income on housing. So...he still has to pay property taxes,homeowner's insurance, and utilities, so let's say we could add 25% to his income there to cover the mortgage. Then let's add 13% for transportation. Plus factor in he lives in a low cost of living area and let's remove income taxes from the situation as all capital gains would be tax-free at his withdrawal levels. So you'd essentially have to increase his income by about 65-75% to put him on par with the average American.

So..would you say that someone living with a roommate or spouse that pays all of their own expenses with an individual income of roughly $45-50k/yr in a low cost of living area is living a Spartan lifestyle? If you double that (assuming the partner makes the same) you're looking at a DINK household income of ~$100k/yr in a low cost of living area...sure seems Spartan to me.....
They keep saying that because they don’t have the ability (money management skills, discipline) to do it.
 
Old 12-05-2019, 10:32 AM
 
Location: annandale, va & slidell, la
9,267 posts, read 5,081,715 times
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Quote:
Originally Posted by eddiehaskell View Post
I’m a simple person too. And I know you’ve posted a lot here over the years - we argued quite a few times and then I came to respect a lot of your comments and views so I didn’t argue to the bitter end just to “win”. I’m guessing we both enjoy thinking a lot about a lot of stuff since we comment on so many different topics.

I’m hoping to grow my nest egg as I age so that I can prepare for the future. It’s like I’m trying to play the game of life as efficiently as possible so that I can live a upper-ish middle class lifestyle . I know 0 people that have come before me doing this so I know that I must proceed with caution. I’m not scared at all though.
All this is conjecture. You have many years ahead of you to build wealth and get to an age that retiring can be justified.
When you get arthritis and have a knee replaced, you'll finally understand how circumstances can change for the worse.

You may slow down physically. Or do like Willie Nelson and cut back on your weed budget!

Dreaming about retirement at your age may be fun, but serious decisions along the way will determine the path you take,
and whether you made good choices.
 
Old 12-05-2019, 10:37 AM
 
Location: Taipei
7,775 posts, read 10,088,940 times
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Quote:
Originally Posted by eddiehaskell View Post
How do you invest?

$0 debt. 3br home paid for. Car paid for.

How much do you live on per year?

Can you have fun?
Strictly speaking? Yes. Invest low-medium risk and live on $40k (preferably less). Move somewhere low COL, abroad being the best.

Realistically? No. I would want a family at some point and this would require more income/savings. I'd be comfortable at the $2M mark. What this situation ($800k savings and no debt) does do, however, is allow me to quit my job and pursue whatever it is that is my passion, and find a way to make some money doing it. So I don't need to "work" anymore, per se, though I still need to make more money in my lifetime.
 
Old 12-05-2019, 10:56 AM
 
5,342 posts, read 6,139,671 times
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Quote:
Originally Posted by projectmaximus View Post
Strictly speaking? Yes. Invest low-medium risk and live on $40k (preferably less). Move somewhere low COL, abroad being the best.

Realistically? No. I would want a family at some point and this would require more income/savings. I'd be comfortable at the $2M mark. What this situation ($800k savings and no debt) does do, however, is allow me to quit my job and pursue whatever it is that is my passion, and find a way to make some money doing it. So I don't need to "work" anymore, per se, though I still need to make more money in my lifetime.
Would you need 2 million for yourself or would you want your HH portfolio to be 2 million (as you reference a family)? OP is only referring to himself, so you'd effectively need to double what he is living off of to get what he would consider doable if it were him and his spouse. So you two aren't all that far off if you double his he's at 1.6 million.
 
Old 12-05-2019, 11:19 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,307 posts, read 8,469,695 times
Reputation: 16586
Quote:
Originally Posted by Cabound1 View Post
You knew somebody was going to pull the “I’m better because I travel” card. I’ve never understood that either. I lived in London for a year as an expat when I was working for a bulge bracket firm. Travelled all over Europe. Another expat year in Tokyo provided Asian travels. I don’t think I’ve ever mentioned it on C-D before because frankly, who gives a f@#%. Then I get accused of being a phony because I’ve never posted in the travel forum. WTF?

I don’t understand why people get so infuriated at people like Eddie. The only explanation is they realize they don’t have what it takes to live that way. I retired at 42 with considerably more than 800k. Looking back, I wish I’d done it earlier. It certainly wouldn’t have impacted my lifestyle. Didn’t have the guts I guess. And hadn’t come to hate working quite so much.
Well maybe it because he has gamed the system by not working and having benefits like medical paid for by the government. That was an intentional plan. Taxpayers that he laughs at for working while he doesn’t are paying for this. Did you intentionally look for loopholes at taxpayers expense to retire?

I’d rather see that money and aid go to someone who really needs it.
He says everyone can do it if they were as clever as him. But if they did, who would pay for all the benefits they would all get for free including his.
Do you think that someone as young as him and fully capable of working should be able to take benefits someone else could use?

Now if he pulled his own weigh by paying for things like medical like everyone else does and can still do it, I have no problems with it. But instead while someone else has to pay for their medical expenses out of pocket, he uses that money to buy a brand new car every year.

So I have to ask, are you ok with how he does this? Do you really think it’s jealousy that their should be fairness?

Also note he was the one bringing up travel as an “I’m better than the rest of you”.
Do you think him mentioning going on three cruises when many can often afford just one?
 
Old 12-05-2019, 11:20 AM
 
105,977 posts, read 107,921,072 times
Reputation: 79566
Quote:
Originally Posted by mizzourah2006 View Post
Well to be fair in order to get all of your travel covered by rewards means you spend a lot on those cards or you churn your cards. We spend as much as we can on our cards, but it wouldn't pay for much more than travel once a year for 2 adults, because we just don't actually spend a lot outside of our mortgage and our daycare costs, which both have to be from your bank account.
we charge our normal living expenses and the points are a rebate .
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