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Not to mention, I'm not sure $200k would be enough for all that. Either that's a very small house or that business has no start up capital at all.
As for my number, with a paid off house I'd assume about $2M if it were in a Roth.
Assuming 5% return, that'll come to $100k a year. I think I could live pretty comfortably on that without having to draw down on the principal considering that's about what I make now, but it wouldn't be taxed. I also plan on having kids in the future, so I'm sure the difference vs my current lifestyle would get sucked up by that.
I'm only 30, so I don't think I'd have to worry too much about major medical expenses(the biggest part of the typical retirement budget) until about the time I qualify other government programs.
what's up thinking-man, I'll participate to this thread of yours.
Age: 32
Retirement Age: (None).
I will not retire, I will continue to work. I will start my own business and continue to work 'til my body doesn't allow me to.
It takes a lot to be retired at certain age because I have responsibilities such as raising kids. By the time they are 18 is probably I will be between 55-60. Raising kids are very expensive, I give at least 200K per child (give or take). I'll still have to work 'til they are done with college as well so really I'll never retire .
But if I ever retired, my bankroll would need to be at least $2mil pre-tax in order for me to be happy and enjoy the rest of my years.
Not to mention, I'm not sure $200k would be enough for all that. Either that's a very small house or that business has no start up capital at all.
As for my number, with a paid off house I'd assume about $2M if it were in a Roth.
Assuming 5% return, that'll come to $100k a year. I think I could live pretty comfortably on that without having to draw down on the principal considering that's about what I make now, but it wouldn't be taxed. I also plan on having kids in the future, so I'm sure the difference vs my current lifestyle would get sucked up by that.
I'm only 30, so I don't think I'd have to worry too much about major medical expenses(the biggest part of the typical retirement budget) until about the time I qualify other government programs.
No, but you'd pay penalties after you had withdrawn all of your contributions, until you reach 59.5.
No, but you'd pay penalties after you had withdrawn all of your contributions, until you reach 59.5.
True, but if I had managed to get to $2.5M in 7 years, I'm sure there'd be plenty of contributions to get me through the 30 until tax free with drawls. Probably only the last few years would be taxed.
If I found myself getting close, I'd probably actually consider a reverse mortgage/home equity loan if necessary. That would be cheaper than the penalties and I could just tap the Roth to pay it off once I hit 59.5(since I'm assuming I have no other income in this scenario).
True, but if I had managed to get to $2.5M in 7 years, I'm sure there'd be plenty of contributions to get me through the 30 until tax free with drawls. Probably only the last few years would be taxed.
If I found myself getting close, I'd probably actually consider a reverse mortgage/home equity loan if necessary. That would be cheaper than the penalties and I could just tap the Roth to pay it off once I hit 59.5(since I'm assuming I have no other income in this scenario).
You can't get a reverse mortgage before 62 and you can't get a home loan/HELOC without income from most lenders.
You could just pull out principal until you got near the threshold and then do a 72(t).
True, but if I had managed to get to $2.5M in 7 years, I'm sure there'd be plenty of contributions to get me through the 30 until tax free with drawls. Probably only the last few years would be taxed.
If I found myself getting close, I'd probably actually consider a reverse mortgage/home equity loan if necessary. That would be cheaper than the penalties and I could just tap the Roth to pay it off once I hit 59.5(since I'm assuming I have no other income in this scenario).
You'd have to live a long, long time to have contributed 2.5M.
I know it's just for giggles, feel free to ignore my comments.
Not if I pay others to run it for me including a bookkeeper to do all the banking, bookwork, etc.
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