Killroy1999
Well-known member
Be careful, I think there are income limits on contributing to a regular Roth IRA, also. I'm not sure how it works, but I know I am over those limits.
Do you believe in saving for the future?
- Thread starter kuksul08
- Start date
Be careful, I think there are income limits on contributing to a regular Roth IRA, also. I'm not sure how it works, but I know I am over those limits.
Killroy1999
Well-known member
+1 for the 4% Rule
Mint.com is a good way to track your net worth, spending, credit, ect.
I like watching my mortgage debt get paid down by my tenants.
Mint.com is a good way to track your net worth, spending, credit, ect.
I like watching my mortgage debt get paid down by my tenants.
two wheel tramp
exploring!
Please, please, for the love of god put something away for retirement. My mom didn't. Guess who's footing the bill? :nchantr I love her, and she raised me--there's no question about what I need to do. I'm just lucky I have a couple of siblings who are helping with her care and bills.
NorCalAthlete
O_o
FatFIRE. I’m aiming for roughly $100k / year so my number is a bit lower but still definitely not leanFIRE. And given cost of living that number may still go up - particularly if/when kids enter the equation. Ideally I’d like to be able to retire early enough to still enjoy sports with my kids and never have to worry about missing important life events with them due to working.
cheez
Master Of The Darkside
Yup, been a r/FI and r/FatFIRE guy for a long, long time now. That's my goal as well- retire while I can still enjoy life and the world.
It's tough to find the balance. I fully fund a 401k and tuck away 15% into a brokerage account, and more into just a regular savings account. I spend everything else how I want because who knows how where I will be in 30-50 years.
I just found out my uncle has later stage brain cancer 2 weeks ago and that brought this question to my mind again recently. What am I saving for exactly? What fun is it making good money only tuck it all away and hope I get to use it when I'm senile? Theres a balance between "eat ramen and beans and save 50% of your income" and "save for the future" that I'm still trying to figure out in my late 20s
I just found out my uncle has later stage brain cancer 2 weeks ago and that brought this question to my mind again recently. What am I saving for exactly? What fun is it making good money only tuck it all away and hope I get to use it when I'm senile? Theres a balance between "eat ramen and beans and save 50% of your income" and "save for the future" that I'm still trying to figure out in my late 20s
Can you start drawing that right away, or do you have to wait until a certain age?
CalPERS like you. Eligible to draw at age 50 but won't get full benefit (2% per year of service) until age 55. Will live cheaply in Spain or Latin America and travel extensively in cost effective countries until until that kicks in, allowing for more fatFIRE spending. Brushing up on my Spanish in the meantime.
afm199
Well-known member
I never expected to live to 75, but I have. It's been a year since I was on the race track, but in 2019 I was turning laps under 2 minutes at Thunderhill. Not many guys of any age can say that.
The point is that nobody knows their future. Nobody. Eat healthy and plan for the worst, expect the best and avoid negativity.
You're up on me. I never got serious about life, but did start saving in my early thirties.
ScottRNelson
Mr. Dual Sport Rider
Most pensions don't start until you hit 65 years old - that's how mine was. That was still a year before I started with social security. I had enough to get by for a few years before those kicked in. I stopped working at age 62 - not my choice, that's just how it worked out.
GAJ
Well-known member
Congratulations; that's 10 years sooner than we retired.
The biggest single expense is Health Insurance so start looking into that.
Assuming you can manage your AGI, "Obamacare" can save you as much as 2/3 of the cost while it remains in place.
ScottRNelson
Mr. Dual Sport Rider
And this is the biggest drawback of retiring early. Health insurance is expensive!
When Medicare took over at age 65 it was reasonable again. We had to give it two tries to find the right supplemental insurance to make up the difference. United Health Care is what we ended up with and it's been great. They even include a gym membership. I guess they figure out that it's cheaper to help us work out regularly than to treat the results of not exercising. :cool
There are a few EU countries, Italy and France come mind, that offer very affordable health insurance options even for non-citizens. Considering that as well since living in the countryside isn't too expensive.
Do you have any regrets about retiring early? How did you determine the target level of finances?
lizard
Well-known member
A few cities in Italy are giving away homes so there’s that.
Same with Japan. These are town with decreasing population that result in vacant and abandoned homes.
Killroy1999
Well-known member
My CPA and I have this handled so I'm not breaking any rules.
I thought you had it handled. My post was just informational for other folks. I can open a retirement account with one click, but it does not mean I will get the tax breaks because of those pesky tax rules.
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Killroy1999
Well-known member
My mom is real estate agent and she did not plan for retirement properly and now she is trying to catch up with a self employed "defined benefit plan" - basically a self employed pension. It's caused her a lot of grief and I have told her not to worry since she has a lot of equity in her house to use.
The ironic thing is that is that she is the one that taught me about investing early and the power of compounding interest.
GAJ
Well-known member
My job was 24/7/365 as we had as many as 11 restaurants and many near death experiences financially, so, no, I don't miss it one bit.
Got lucky and sold on an upswing in the business in June 2008 just before the crash and put the money into three rentals (when that market was half what it is now).
Best investment ever for us as we found renters that we knew.
The first few years we were paying $16k/year on Health Insurance before ObamaCare, today for a couple it is $27k.
But ObamaCare cut that down to something like $1000/month now IIRC.
My wife does all the finances! :laughing
Killroy1999
Well-known member
That is why I have been trying to promote high deductible plans with a HSA (heath savings account).
-Pre-tax/ tax deductible contributions (federal only if in CA)
-Investment gains are not taxed
-tax free withdraws for medical expenses.
-Easy to use with a debit card -- buy bandaids with pretax money, ect.
-At 65 you can use a HSA for non-medical expenses with no penalty
My last company would put $2000 a year in my HSA if I took a yearly physical, because that is how much money it saved them over a traditional plan. Win-Win.
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