Retirement... (i.e. what are you going to be after you've grown up)

Khane

Khane

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Gravel said:
You seem to be purposefully missing the point just to create an argument. Have fun with that, not worth my time.

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I'm not. He made a silly argument that ignores CAGR trying to compare lifestyles of someone with 1m vs 5m. Its a disingenuous stance.
 
Cad

Cad

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Gravel said:
The point he was making was that if you have $5m, you're not flying a private jet. No matter how well your portfolio does, you'll never be the super rich. Yeah, it will provide you with more comfort, but you're still only living marginally better.

I hope this doesn't sound gloating, but when you've got as much money as we do, money isn't really a concern anymore. If I had an extra $5 million, what would I do with it? Not a whole lot different. Like I said, I'd probably build a nicer house in a nicer area. But it's not going to be a $10 million mansion on Hawaii. I'm not going to fly a private jet. I'd fly first class probably (assuming I fly, which I refuse to, but that's a different issue). I'd drive a slightly better car. I'd probably build a drum studio. Are any of these things life changing from where I'm at now, as someone who retired at 39? Absolutely not.
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For retirement though I'd argue the income provided by $5M will allow you to do a lot of things that $1M won't. If we simplify and just follow the 4% rule, $5M gives you $200k/yr you can use while $1M gives you $40k - to me that is a wildly different lifestyle.

I know I have more, but I plan to live off less than 50% of the gains so I'll continue to accumulate and models show if I make it to 80 or so I could have $100M by then, depending on my spending.

$5M is where it really starts to snowball like crazy and self-sustain assuming you don't start buying luxury items.
 
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Captain Suave

Captain Suave

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Cad said:
For retirement though I'd argue the income provided by $5M will allow you to do a lot of things that $1M won't. If we simplify and just follow the 4% rule, $5M gives you $200k/yr you can use while $1M gives you $40k - to me that is a wildly different lifestyle.
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I'm fortunate enough to be in the middle ground you and Gravel are talking about at ~45. The wife and I plan to work for another 10-12 years until the kids are solidly launched and their lives don't depend exclusively on us. By that point between savings and gains we should be where our target lifestyle is comfortably under the 4% rule, which has great appeal for the financial conservative in me.

My current #firstworldproblem is that we put too much money early in tax-advantaged retirement accounts and despite having enough total assets for retirement we might not be able to do it at the age we would otherwise want without paying a withdrawal penalty.

Cad said:
I know I have more, but I plan to live off less than 50% of the gains so I'll continue to accumulate and models show if I make it to 80 or so I could have $100M by then, depending on my spending. $5M is where it really starts to snowball like crazy and self-sustain assuming you don't start buying luxury items.
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Yeah, the best-case gains if you are living inside of the incremental returns are stupid. According to these monte carlo simulations there's a good chance of ending up sitting on an absurd pile of money, but that's kinda what it takes to ensure that there's a >90% chance that you'll never run out if things go REALLY badly. I plan so that the 10th percentile performance still lets us be comfortable.

 
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mkopec

mkopec

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Yeah, I got about 12 more years. I was a fool in my 20s and was silly with my cash, should have put more of it away. I would be well better off and prob retiring right now at 53. But I was a dumb fuck. But ive been pretty good since my 30s when I had the kids. Made me rethink a lot of shit. I dont regret any of it though. I had some good fucking times and memories. I mean I could probably pull it off right now but im still willing to work a bit longer.The job is easy and im good at it. Shit, post covid they have me going to office only 2x a week, lol. I still have both my 20 somethings living with me. So until they move the fuck on, there is no rush. I like having them around anyway. Place would not be the same without them. So yeah 10-12 more years is what I figure.
 
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Falstaff

Falstaff

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Gravel said:
The point he was making was that if you have $5m, you're not flying a private jet. No matter how well your portfolio does, you'll never be the super rich. Yeah, it will provide you with more comfort, but you're still only living marginally better.

I hope this doesn't sound gloating, but when you've got as much money as we do, money isn't really a concern anymore. If I had an extra $5 million, what would I do with it? Not a whole lot different. Like I said, I'd probably build a nicer house in a nicer area. But it's not going to be a $10 million mansion on Hawaii. I'm not going to fly a private jet. I'd fly first class probably (assuming I fly, which I refuse to, but that's a different issue). I'd drive a slightly better car. I'd probably build a drum studio. Are any of these things life changing from where I'm at now, as someone who retired at 39? Absolutely not.
Click to expand...
 
300Lane1

300Lane1

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Both me and the wife are 43. I'm in government work and have been a PERS member for 20 years. I can collect my full retirement at 55 and that's been the plan. I contribute the max to my deferred comp and the wife does the same to her 401K. We've been maxing for a few years now and part of me feels like we should be doing something else on the side but haven't put much effort into it.

We are both born/raised in Cali but the plan is to leave. We love it here but the political landscape isn't getting any better and the taxes are ridiculous. We enjoy traveling and have a 5th wheel so we are considering purchasing a house in a income tax free state and using that as home base and then getting a small motorhome/super C to do our travling in.

A lot could change in the next 12 years, but I do think about retirement every day.
 
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