Author Topic: Race from $2M to $4M...and Beyond!  (Read 856308 times)

Taran Wanderer

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Re: Race from $2M to $4M...and Beyond!
« Reply #5450 on: October 24, 2021, 11:06:35 AM »
I logged into my 401k today to download a statement. Its retirement calculator says I’m at 107% of needed funds for my planned fat FIRE. I had plugged 50 into the calculator, and I don’t think it would accept anything younger. It seems like we just hit $1M NW, and now we just passed $3M. While I know I could FIRE or downshift at any time, there are things I still want to accomplish.  And seeing mid 6-figures roll in each year to add to the stash is reassuring. So we’re carrying on… for now.

JoePublic3.14

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Re: Race from $2M to $4M...and Beyond!
« Reply #5451 on: October 24, 2021, 07:58:15 PM »
The inflation rate is more than 10%, probably at around 100% for some daily items.

I monitor my expenses pretty closely. I'm still spending less on a monthly basis than pre-covid.

I don't monitor closely, but discretionary items go on our credit cards and those balances are significantly higher month after month than they were both pre-Covid and, after a dip for the first year, now post-Covid.  As far as I can tell, our lifestyle hasn't inflated :)

This is about as close as I track also, and have seen the same. Is what it is I suppose.

2sk22

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Re: Race from $2M to $4M...and Beyond!
« Reply #5452 on: October 25, 2021, 07:42:32 AM »
It's been a full year since I retired - my last paycheck was at the end of September 2020 so here's an update in our finances: Our invested net worth (i.e. IRA, 401k and post tax accounts) has grown from $5M to $6.2M. This increase is due to my wife's salary, a chunk of her RSUs vesting and market appreciation. My wife's company got nervous that she might leave in the middle of the year so they are paying her a retention bonus at the end of this year - I'm not complaining :-)

We did not hold back on spending! We did a major home renovation project right after I retired to create a comfortable study and space for my hobbies (among other things). Bought a new Honda CR-V and gave my ten year old Prius to my older daughter. Paid for the first semester of my younger daughter's college. Not a whole lot of travel however, just a few short domestic trips.

Exflyboy

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Re: Race from $2M to $4M...and Beyond!
« Reply #5453 on: October 25, 2021, 02:24:01 PM »
It's been a full year since I retired - my last paycheck was at the end of September 2020 so here's an update in our finances: Our invested net worth (i.e. IRA, 401k and post tax accounts) has grown from $5M to $6.2M. This increase is due to my wife's salary, a chunk of her RSUs vesting and market appreciation. My wife's company got nervous that she might leave in the middle of the year so they are paying her a retention bonus at the end of this year - I'm not complaining :-)

We did not hold back on spending! We did a major home renovation project right after I retired to create a comfortable study and space for my hobbies (among other things). Bought a new Honda CR-V and gave my ten year old Prius to my older daughter. Paid for the first semester of my younger daughter's college. Not a whole lot of travel however, just a few short domestic trips.

Wait you have TWICE as much money as I do and you bought a CRV?.. I at least bought a Passport so I think you should do your duty and stimulate the economy a bit more!

Well done of the stash, thats very impressive!

2sk22

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Re: Race from $2M to $4M...and Beyond!
« Reply #5454 on: October 25, 2021, 03:34:57 PM »

Wait you have TWICE as much money as I do and you bought a CRV?.. I at least bought a Passport so I think you should do your duty and stimulate the economy a bit more!

Well done of the stash, thats very impressive!

Thanks - the stash is mainly the result of 28 years of steady index fund investing (JL Collins is right). My main achievement was simply staying in the game long enough to allow compounding to do it's magic.

Regarding the CRV: I was willing to spend up to $50k and looked at every possible alternative and test drove a few of them. But none of them came close to meeting my needs as well as the CRV. Once you have leather, sunroof and Apple CarPlay, the other feature seem pretty much irrelevant :-)

Car Jack

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Re: Race from $2M to $4M...and Beyond!
« Reply #5455 on: October 26, 2021, 08:01:56 AM »
It is never inappropriate to buy below one's "station in life" because of savings.  I'll use myself as the example here with reasons that high priced cars don't "fit" me in a lot of ways.  We just crossed over $3.6M and have another couple hundred grand in checking.

Cars considered because I'd really like them and reason I won't consider them:

high maintenance cost or poor reliability:
Gallardo
R8
Vantage
Cayman/Boxster
BMW (would only consider n/a straight 6)
Audi
Mercedes
MINI

No manual:
Lexus
Supra
NSX
GT-R

Under strong consideration:
Lotus Emira 6 manual (toyota drivetrain)
2022 Subaru BRZ 6 manual

With the Emira being new and under high demand, the added dealer markup will likely throw that car out of my consideration.  Honestly, the BRZ/86 is a nicely improved car for a worldwide market of 345 people, so after dealers do their markup for 6 months and realize they've sold zero cars, they'll become cheap enough.  I personally like no sunroof and manual seats, so whatever trim I can get those works for me.  I have found that limited Subarus (leather) tend to be far better built than non limited (have had several of both), but the roof/seat are more important to me.  So I guess I'm looking to buy beneath my station in life.

And to be honest, I'm considering just getting some nicer wheels and summer tires for my Crosstrek and calling it a day.  I really like the car and don't need more power.

Bateaux

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Re: Race from $2M to $4M...and Beyond!
« Reply #5456 on: October 26, 2021, 03:37:28 PM »
We'll buy a new car in the next 18 months.  It's probably the Acura MDX, Lexus 350 or Honda Pilot.  I want a real transmission and non turbo V-6.  It needs to haul 4 bicycles on a hitch, tow 3500 pounds, be long enough for seat down sleeping inside and carry 6 passengers when needed.  I'd love an EV but don't think we'll see that in 18 months.

Exflyboy

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Re: Race from $2M to $4M...and Beyond!
« Reply #5457 on: October 26, 2021, 03:45:51 PM »
We'll buy a new car in the next 18 months.  It's probably the Acura MDX, Lexus 350 or Honda Pilot.  I want a real transmission and non turbo V-6.  It needs to haul 4 bicycles on a hitch, tow 3500 pounds, be long enough for seat down sleeping inside and carry 6 passengers when needed.  I'd love an EV but don't think we'll see that in 18 months.

Just got ourselves a new Passport Sport model.. We love it!

I bought a $12 circuit from Amazon to push the "A" button that stops the damn thing doing the auto stop-start thing. Tows 3500lb (5000 with the tranny cooler) .

It goes like stink in "Sport" mode and they seem to have fixed the 9 speed auto.

The Passport is long enough to sleep in but I made a head rest extension of around 10 inches for the rear seat backs.. This provides a full 6'-4" of sleeping length. The Pilot is 6" longer than the Passport.

You can find all the mods I've done so far on my journal if you haven't seen it.

Bateaux

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Re: Race from $2M to $4M...and Beyond!
« Reply #5458 on: October 26, 2021, 10:42:28 PM »
We'll buy a new car in the next 18 months.  It's probably the Acura MDX, Lexus 350 or Honda Pilot.  I want a real transmission and non turbo V-6.  It needs to haul 4 bicycles on a hitch, tow 3500 pounds, be long enough for seat down sleeping inside and carry 6 passengers when needed.  I'd love an EV but don't think we'll see that in 18 months.

Just got ourselves a new Passport Sport model.. We love it!

I bought a $12 circuit from Amazon to push the "A" button that stops the damn thing doing the auto stop-start thing. Tows 3500lb (5000 with the tranny cooler) .

It goes like stink in "Sport" mode and they seem to have fixed the 9 speed auto.

The Passport is long enough to sleep in but I made a head rest extension of around 10 inches for the rear seat backs.. This provides a full 6'-4" of sleeping length. The Pilot is 6" longer than the Passport.

You can find all the mods I've done so far on my journal if you haven't seen it.

I'll have to look at your journal.  Pilot is the most likely candidate unless we find some unforseen deal on the MDX.  Passport does share many features.  Rock solid vehicles.  The Lexus is no slouch either.  Retirement car for my wife.

Taran Wanderer

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Re: Race from $2M to $4M...and Beyond!
« Reply #5459 on: October 27, 2021, 01:09:53 AM »
You all could go with the Odyssey. Same drivetrain and towing capacity as the Pilot and a full 8 feet of room in the back to sleep. Of course, the body style is the dreaded minivan…

Fomerly known as something

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Re: Race from $2M to $4M...and Beyond!
« Reply #5460 on: October 27, 2021, 07:15:59 AM »
Two commas in my TSP (401k) So I can now go back to to not checking it every morning after every good market day.

sixwings

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Re: Race from $2M to $4M...and Beyond!
« Reply #5461 on: October 27, 2021, 09:43:02 AM »
You all could go with the Odyssey. Same drivetrain and towing capacity as the Pilot and a full 8 feet of room in the back to sleep. Of course, the body style is the dreaded minivan…

Nothing says more about your virility than a mini-van.

Bateaux

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Re: Race from $2M to $4M...and Beyond!
« Reply #5462 on: October 27, 2021, 10:47:20 AM »
You all could go with the Odyssey. Same drivetrain and towing capacity as the Pilot and a full 8 feet of room in the back to sleep. Of course, the body style is the dreaded minivan…

Nothing says more about your virility than a mini-van.

I'd love the Odyssey or Sienna mini-van.  The wife says no way.

Taran Wanderer

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Re: Race from $2M to $4M...and Beyond!
« Reply #5463 on: October 27, 2021, 01:31:27 PM »
You all could go with the Odyssey. Same drivetrain and towing capacity as the Pilot and a full 8 feet of room in the back to sleep. Of course, the body style is the dreaded minivan…

Nothing says more about your virility than a mini-van.

Yeah, sure, that’s what I tell myself when I drive ours.

couponvan

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Re: Race from $2M to $4M...and Beyond!
« Reply #5464 on: October 27, 2021, 01:42:26 PM »
You all could go with the Odyssey. Same drivetrain and towing capacity as the Pilot and a full 8 feet of room in the back to sleep. Of course, the body style is the dreaded minivan…

Nothing says more about your virility than a mini-van.
Legit spit laughing reading that. My hubs was glad to trade the Odyssey for a Pilot. I made him keep my old baby wagon!

soccerluvof4

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Re: Race from $2M to $4M...and Beyond!
« Reply #5465 on: October 28, 2021, 04:34:28 AM »
You all could go with the Odyssey. Same drivetrain and towing capacity as the Pilot and a full 8 feet of room in the back to sleep. Of course, the body style is the dreaded minivan…

Nothing says more about your virility than a mini-van.

I'd love the Odyssey or Sienna mini-van.  The wife says no way.



That made me laugh because usually the Wife wants the mini-van . I had to talk my DW into our first Sienna years ago and with the kids here just wasnt a better vehicle. We beat down 2 of them and they were great vehicles to say the least.

tooqk4u22

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Re: Race from $2M to $4M...and Beyond!
« Reply #5466 on: October 28, 2021, 06:54:27 AM »
You all could go with the Odyssey. Same drivetrain and towing capacity as the Pilot and a full 8 feet of room in the back to sleep. Of course, the body style is the dreaded minivan…

Nothing says more about your virility than a mini-van.

If life made sense it really would be a sign of virility.....afterall, it would mean one is capable of producing offspring to fill up said van.   And strong and confident enough to drive said van, but noooooo the Porsche guy gets all the attention, who is probably sterile.  🤔 🤣🤣

In all seriousness, the minivan is a pretty perfect well rounded vehicle...ok gas mileage, sits up high, comfortable, decent performance, holds many passengers, can fit a sheet of drywall or just about any other cargo, etc etc...........OTHER THAN THE FACT ITS A GOD DAMN MINIVAN!!!!

I have a 2007 Ody that is now our backup/utility vehicle that has seved us well but will probably be sold in the near future bc it gets less and less use as time goes on.   But I do like having a backup vehicle for when the other older vehicle needs work.   

ysette9

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Re: Race from $2M to $4M...and Beyond!
« Reply #5467 on: October 28, 2021, 11:24:35 AM »
I am very firmly in the No Minivan camp, even with three kids.

I showed my husband last weekend how the Tesla S has seating in the trunk for kids with 5-point harnesses. That would be something I would consider if we needed to haul more children. But for now my GTI is the perfect car for me and I hope it lasts forever. At the rate we had been putting miles on lit cars this last year it will probably last another 20 years. Hah

Taran Wanderer

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Re: Race from $2M to $4M...and Beyond!
« Reply #5468 on: October 28, 2021, 08:58:17 PM »
In all seriousness, the minivan is a pretty perfect well rounded vehicle...ok gas mileage, sits up high, comfortable, decent performance, holds many passengers, can fit a sheet of drywall or just about any other cargo, etc etc...........OTHER THAN THE FACT ITS A GOD DAMN MINIVAN!!!!

This.

CANStache

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Re: Race from $2M to $4M...and Beyond!
« Reply #5469 on: October 29, 2021, 02:36:14 PM »
It's been longer than I intended since I chimed in here, but I guess I'll go for an almost-Halloween update.  Oct 2020 had my wife and I at $2.26M, which was growing faster than I expected it could considering she had left her executive job earlier that year, so we were dealing with one income, 3 kids including 1 in university, and a woman with some serious free time :)

One year and some rather crazy markets later, we're at $2.63M.  My wife has just decided to re-enter the workforce due to some boredom, the expectation of her least favourite weather to come, and an exciting opportunity from an old friend.  As this position will pay a new record salary for either of us (almost $200K) it should provide some great investment fodder, considering we've continued to save on just a single salary all this time.  We'll see what the next year brings, good luck to all of you on your journey!

Well done! Do you have any plans of retiring?

It's been over a year since I retired and our stash has grown substantially on my wife's salary alone. She was considered to be a "flight risk" in her company so she was given a pretty substantial retention bonus which she will be getting by the end of the year. This is all great but it looks like I will not get opportunity to do any Roth conversions until she retires :-)

We do, in 2 or perhaps 3 years.  So 50 or 51 yrs old.

It's always great to hear about those like yourselves who exceed their financial expectations post-retirement.  Granted, this has been an easy year/couple of years/decade to do that, considering how the markets have treated us, but just the same, I want to enjoy my life and my money and that means hitting that next phase of my life.

KitchenSink

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Re: Race from $2M to $4M...and Beyond!
« Reply #5470 on: October 29, 2021, 08:00:38 PM »
For those still working, I thought I'd share my OMY experience in the $2M-$4M club.  Thanks!

American GenX

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Re: Race from $2M to $4M...and Beyond!
« Reply #5471 on: October 31, 2021, 02:38:38 PM »
I don't think I've posted in this thread before, but I'm in this range as a single older GenXer with no kids in a lower cost of living area - and that's stash only, not counting net worth items like my paid-off home.  So in that sense, I think I'm doing alright and am considering FIREing or going part time (if it's an option) before next summer.

At last calculation, I was around 90X expected FIRE bare bones spending (excluding income taxes), to give me plenty of discretionary $ to spend, but with all my costs going up about 10% over the last year with skyrocketing inflation, it's probably going to be much less than 90X if this keeps up, and that's without even factoring in a likely big drop in stocks at some point.

I might have to OMY again to help compensate for the inflation effect.

lhamo

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Re: Race from $2M to $4M...and Beyond!
« Reply #5472 on: October 31, 2021, 03:07:09 PM »

At last calculation, I was around 90X expected FIRE bare bones spending (excluding income taxes), to give me plenty of discretionary $ to spend, but with all my costs going up about 10% over the last year with skyrocketing inflation, it's probably going to be much less than 90X if this keeps up, and that's without even factoring in a likely big drop in stocks at some point.

I might have to OMY again to help compensate for the inflation effect.

You are joking, right? How bare bones is bare bones?  You could double it and still be at 45x, which is probably perfectly safe.

Dicey

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Re: Race from $2M to $4M...and Beyond!
« Reply #5473 on: October 31, 2021, 04:40:05 PM »

At last calculation, I was around 90X expected FIRE bare bones spending (excluding income taxes), to give me plenty of discretionary $ to spend, but with all my costs going up about 10% over the last year with skyrocketing inflation, it's probably going to be much less than 90X if this keeps up, and that's without even factoring in a likely big drop in stocks at some point.

I might have to OMY again to help compensate for the inflation effect.

You are joking, right? How bare bones is bare bones?  You could double it and still be at 45x, which is probably perfectly safe.
Totally agree with @lhamo. If you're at even 45x expenses and not FIRE, why are you hanging out here? Unless you're a SWAMI, something doesn't add up.

SwordGuy

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Re: Race from $2M to $4M...and Beyond!
« Reply #5474 on: October 31, 2021, 04:45:55 PM »

At last calculation, I was around 90X expected FIRE bare bones spending (excluding income taxes), to give me plenty of discretionary $ to spend, but with all my costs going up about 10% over the last year with skyrocketing inflation, it's probably going to be much less than 90X if this keeps up, and that's without even factoring in a likely big drop in stocks at some point.

I might have to OMY again to help compensate for the inflation effect.

You are joking, right? How bare bones is bare bones?  You could double it and still be at 45x, which is probably perfectly safe.

Yep, 45x is almost twice that of the "4% rule" guideline, which as we all know, has gobs of safety margins in it already.

Fomerly known as something

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Re: Race from $2M to $4M...and Beyond!
« Reply #5475 on: October 31, 2021, 05:52:25 PM »

At last calculation, I was around 90X expected FIRE bare bones spending (excluding income taxes), to give me plenty of discretionary $ to spend, but with all my costs going up about 10% over the last year with skyrocketing inflation, it's probably going to be much less than 90X if this keeps up, and that's without even factoring in a likely big drop in stocks at some point.

I might have to OMY again to help compensate for the inflation effect.

You are joking, right? How bare bones is bare bones?  You could double it and still be at 45x, which is probably perfectly safe.

Yep, 45x is almost twice that of the "4% rule" guideline, which as we all know, has gobs of safety margins in it already.

So what do you really spend?  Because I’m sure it’s far more than bare bones.  How much is enough?

My bare bones is likely 40k assuming I have to pay for health care.  That is not my planned budget.
« Last Edit: October 31, 2021, 05:54:27 PM by Fomerly known as something »

Finntastic

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Re: Race from $2M to $4M...and Beyond!
« Reply #5476 on: October 31, 2021, 07:53:41 PM »
Jan 2021 - 1.19m$
Feb 2021 - 1.23m$
Mar 2021 - 1.28m$
Apr 2021 - 1.35m$
May 2021 - 2.65m$
June 2021 - 2.61m$
July 2021 - 2.62m$
August 2021 - 2.82m$
September 2021 - 2.79m$
October 2021 - 2.87m$*

Good month for crypto's also invested some money to real estate renovation which will show in the assets later after the building is ready and rented.

61 days to fire

EscapeVelocity2020

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Re: Race from $2M to $4M...and Beyond!
« Reply #5477 on: October 31, 2021, 08:21:47 PM »
Jan 2021 - 1.19m$
Feb 2021 - 1.23m$
Mar 2021 - 1.28m$
Apr 2021 - 1.35m$
May 2021 - 2.65m$
June 2021 - 2.61m$
July 2021 - 2.62m$
August 2021 - 2.82m$
September 2021 - 2.79m$
October 2021 - 2.87m$*

Good month for crypto's also invested some money to real estate renovation which will show in the assets later after the building is ready and rented.

61 days to fire

Personally I think your cash allocation is too high and stock is too low.  I have no idea how to evaluate your private equity, if it is functionally equivalent to stock, but you need a good AA and long term plan if you ER.  Close to $3M is great if you're living on less than 100k/yr, otherwise you need to tighten up your plan.  It is very possible that the easy times from 2009 onward will not continue.

I also think that crypto will ultimately be worthless, and this comes from someone that has a small allocation.  Unlike gold, when governments outlaw holding it, bitcoins will have no residual value.

American GenX

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Re: Race from $2M to $4M...and Beyond!
« Reply #5478 on: October 31, 2021, 08:58:02 PM »

At last calculation, I was around 90X expected FIRE bare bones spending (excluding income taxes), to give me plenty of discretionary $ to spend, but with all my costs going up about 10% over the last year with skyrocketing inflation, it's probably going to be much less than 90X if this keeps up, and that's without even factoring in a likely big drop in stocks at some point.

I might have to OMY again to help compensate for the inflation effect.

You are joking, right? How bare bones is bare bones?  You could double it and still be at 45x, which is probably perfectly safe.

Not joking at all.  I'm thinking about and reading up on this stuff quite a bit.  Bare bones just means paying my necessary bills, and I include required long term costs like required home maintenance and auto ownership, just averaging out those costs over the long term.  What bare bones doesn't include is any discretionary spending, such as dining out, entertainment, travel, elective home improvements, and unnecessary purchases.  Also, I'm basing bare bones on early FIRE expenses, and I can definitely see those bare bones expenses increasing faster than inflation as I get older, mostly due to health care costs.  At any rate, I certainly wouldn't want to be limited to a bare bones budget!

Also, as I mentioned in my previous post, that was based on my last calculation of expenses (before the big run up in inflation) and was excluding income taxes, but it was based on my current stash.  So, with updated expenses and taxes included, that figure is probably only 80X for bare bones + taxes combined.

Then I'll add that I expect to have very significant discretionary spending when I FIRE, probably a 15% increase in bare bones expenses due to an increase in estimated health care spending in a decade (on top of inflation), the wild card possibility of relocation (that could be >$100K + higher ongoing costs), and $50,000 in planned home maintenance/improvement during early FIRE, and I expect true inflationary costs to increase from year to year higher than the CPI figures.  And if high inflation continues at least another couple years as expected along with a big drop in stocks, which is certain to happen at some point, which can take many years to recover based on historical records, things will get a lot tighter, and I'll have to cut way back on discretionary spending.  So, this is why I consider OMY again.

Why am I still here?  In the past 2 1/2 years, it was more about delaying FIRE because of the uncertainties with the health care law, and my stash was considerably lower back then.  Now it's more of a concern of expenses rising increasingly faster.  As one example, my living costs over the last year are roughly 10% higher, but my stable value fund through work dropped earlier this year from earning 3% to 1.36%.  So, it been 3% or higher going back 20 years, meaning it went from keeping ahead of inflation to becoming a big loser to inflation in a flash.  This sudden change after 20 years was completely unexpected.

In some ways, I'm happier than ever with my job - I have my own private office, the work day goes quickly, the work is fairly interesting and sometimes challenging, benefits are still fairly good (although there have been some steps back of late), dept. meetings are done by video conference, no expectation of extra work hours, and I feel I have plenty of down time at work most days.  But the benefits aren't as good as they had been, and there are times that I feel stressed out, usually by co-workers, and I think it would be great to get away and not have to deal with it anymore or at least work part time.  Of course, the additional free time would be a big plus regardless.
« Last Edit: October 31, 2021, 09:12:09 PM by American GenX »

American GenX

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Re: Race from $2M to $4M...and Beyond!
« Reply #5479 on: October 31, 2021, 09:10:10 PM »

At last calculation, I was around 90X expected FIRE bare bones spending (excluding income taxes), to give me plenty of discretionary $ to spend, but with all my costs going up about 10% over the last year with skyrocketing inflation, it's probably going to be much less than 90X if this keeps up, and that's without even factoring in a likely big drop in stocks at some point.

I might have to OMY again to help compensate for the inflation effect.

You are joking, right? How bare bones is bare bones?  You could double it and still be at 45x, which is probably perfectly safe.

Yep, 45x is almost twice that of the "4% rule" guideline, which as we all know, has gobs of safety margins in it already.

So what do you really spend?  Because I’m sure it’s far more than bare bones.  How much is enough?

My bare bones is likely 40k assuming I have to pay for health care.  That is not my planned budget.

If I went by my actual spending in the last year (not yet FIREd), including discretionary, my stash is probably 105X.  But for my bare bones in FIRE, I'm adding in estimated higher health care costs plus averaging out long term home & automotive costs, that I didn't actually spend on in the last year, but I think these costs should be accounted for over the long term, so I consider them required spending and part of my bare bones, like a sinking fund.

Discretionary spending isn't in my planned budget - it's just whatever is leftover after bare bones that I can optionally spend.  I suspect it will vary considerably in different years and will by itself be more than all of my bare bones expenses combined.

Finntastic

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Re: Race from $2M to $4M...and Beyond!
« Reply #5480 on: October 31, 2021, 09:51:39 PM »
Jan 2021 - 1.19m$
Feb 2021 - 1.23m$
Mar 2021 - 1.28m$
Apr 2021 - 1.35m$
May 2021 - 2.65m$
June 2021 - 2.61m$
July 2021 - 2.62m$
August 2021 - 2.82m$
September 2021 - 2.79m$
October 2021 - 2.87m$*

Good month for crypto's also invested some money to real estate renovation which will show in the assets later after the building is ready and rented.

61 days to fire

Personally I think your cash allocation is too high and stock is too low.  I have no idea how to evaluate your private equity, if it is functionally equivalent to stock, but you need a good AA and long term plan if you ER.  Close to $3M is great if you're living on less than 100k/yr, otherwise you need to tighten up your plan.  It is very possible that the easy times from 2009 onward will not continue.

I also think that crypto will ultimately be worthless, and this comes from someone that has a small allocation.  Unlike gold, when governments outlaw holding it, bitcoins will have no residual value.

I agree with the cash balance as well as the stock, but there's reason for it. I'm currently renovating one big house and that is eating a lot of cash. That project should be finished by the end of the year and then it will be rented out (and I will add that as real estate asset to my allocation). We are also moving from Thailand to Finland in February next year and we are going to need some cash for the move and purchasing things like car in our new home country. Also when moving to Finland we will most likely open private banking account were the minimum investment is 500k EUR so that would then increase the stock allocation.

Regarding crypto and gold, here's were I have a bit different view. I have bought both for the same reason and that is the possible crash of FIAT currencies or the future CBDC and regulations and limits coming with it. Now I'm actually more scared about government confiscating/banning gold and as it's currently stored in the bank tresor here in Thailand I could see a day when it's either gone or I will not be allowed/able to access it. Where as with crypto's if banned I could still access them and spend among those who still accepts them. It might be that I would have to spend them in El Salvador or Panama, but I can't see situation where nobody would accept crypto's anymore, value is a different thing..

EscapeVelocity2020

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Re: Race from $2M to $4M...and Beyond!
« Reply #5481 on: November 01, 2021, 10:05:39 AM »
Jan 2021 - 1.19m$
Feb 2021 - 1.23m$
Mar 2021 - 1.28m$
Apr 2021 - 1.35m$
May 2021 - 2.65m$
June 2021 - 2.61m$
July 2021 - 2.62m$
August 2021 - 2.82m$
September 2021 - 2.79m$
October 2021 - 2.87m$*

Good month for crypto's also invested some money to real estate renovation which will show in the assets later after the building is ready and rented.

61 days to fire

Personally I think your cash allocation is too high and stock is too low.  I have no idea how to evaluate your private equity, if it is functionally equivalent to stock, but you need a good AA and long term plan if you ER.  Close to $3M is great if you're living on less than 100k/yr, otherwise you need to tighten up your plan.  It is very possible that the easy times from 2009 onward will not continue.

I also think that crypto will ultimately be worthless, and this comes from someone that has a small allocation.  Unlike gold, when governments outlaw holding it, bitcoins will have no residual value.

I agree with the cash balance as well as the stock, but there's reason for it. I'm currently renovating one big house and that is eating a lot of cash. That project should be finished by the end of the year and then it will be rented out (and I will add that as real estate asset to my allocation). We are also moving from Thailand to Finland in February next year and we are going to need some cash for the move and purchasing things like car in our new home country. Also when moving to Finland we will most likely open private banking account were the minimum investment is 500k EUR so that would then increase the stock allocation.

Regarding crypto and gold, here's were I have a bit different view. I have bought both for the same reason and that is the possible crash of FIAT currencies or the future CBDC and regulations and limits coming with it. Now I'm actually more scared about government confiscating/banning gold and as it's currently stored in the bank tresor here in Thailand I could see a day when it's either gone or I will not be allowed/able to access it. Where as with crypto's if banned I could still access them and spend among those who still accepts them. It might be that I would have to spend them in El Salvador or Panama, but I can't see situation where nobody would accept crypto's anymore, value is a different thing..

Thanks for the reply, it's always fun to understand why folks have their AA a certain way, and I'm always interested in what folks who hold crypto think about the long term. 

lhamo

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Re: Race from $2M to $4M...and Beyond!
« Reply #5482 on: November 01, 2021, 10:31:53 AM »
Not joking at all.  I'm thinking about and reading up on this stuff quite a bit.  Bare bones just means paying my necessary bills, and I include required long term costs like required home maintenance and auto ownership, just averaging out those costs over the long term.  What bare bones doesn't include is any discretionary spending, such as dining out, entertainment, travel, elective home improvements, and unnecessary purchases.  Also, I'm basing bare bones on early FIRE expenses, and I can definitely see those bare bones expenses increasing faster than inflation as I get older, mostly due to health care costs.  At any rate, I certainly wouldn't want to be limited to a bare bones budget!

So why base your decision/discussion of your plans on the bare bones number if that is not the one you will really use?  I can understand having that as an initial target when you are starting out, because getting to a more robust real FIRE number is much further away.  But once you are as far along in the journey as you are the bare bones number becomes a milepost you can wave to in your rear view mirror.

I mean, you do you -- if you want to keep working keep working.  If you want to spend more spend more.  But it seems a bit disingenuous to me to boast about a 90x spending stash when your real life spending is pretty much NEVER going to be x. 

Also, relative size of the stash matters a lot.  Speaking from experience, it has been no big deal for us to absorb 10-20k/year in unplanned expenses post FIRE for things like sewer and water main replacement and car purchase after original vehicle was totaled.  Even with those things our spending has been roughly 50-60k/year for a family of four since 2015.  There simply is not that much more we want to be spending on. YMMV.

jeroly

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Re: Race from $2M to $4M...and Beyond!
« Reply #5483 on: November 01, 2021, 03:09:17 PM »
It doesn’t affect my financial planning, and I make no buy or sell decisions based on what I see, but most days I’ll take a gander at the Yahoo portfolio I’ve set up that more or less matches the equity portion of my portfolio.

Like most of you, I see variations that can be huge - for example, from early Wednesday to the close, the portfolio dropped about $21,000…the next day it was up about 2/3 of that.

When I looked at it at one point this afternoon, it was up exactly $12.00… precisely the cost of the sandwich I had just finished.  It was it its own way an even more enjoyable data-check than seeing it jump by thousands - it meant that I had gotten a free lunch!

That may become my favorite measure of gains and losses.  By the close, my funds had risen by about 330 sandwiches for the day.  I’m currently forecasting my equities to rise about another 6,000 sandwiches by the end of the year… just a hunch, really, and only time will tell.

——————————————————-

On a completely unrelated note, when setting up access to my gf’s new corporate pension information website this weekend, we saw that we had completely forgotten about a cash value pension account worth around $300k - recently, we had been more focused on her soon-to-be-even-more-valuable supplemental pension that vests next year, along with all our other wads of cash, equities, bonds, home equity, etc. 

So how will that change our financial planning and/or spending? Not a whit.  Like everyone else who’s qualified for this thread, we already have way more than we need and, like many others here, are already spending way more than we can really justify.  Milestones are largely irrelevant at this point - adding it in takes us from “…and Beyond!” to “…and Beyonder!”

Its greatest real value would be if i can somehow eventually use its existence, in combination with all the other sums, to convince my “I NEED $xxx million to retire” gf that she has ‘enough’ to quit; if not now, then perhaps sometime this decade.

GreenEggs

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Re: Race from $2M to $4M...and Beyond!
« Reply #5484 on: November 01, 2021, 07:33:15 PM »
It seems that I'm up 6024 sandwiches today.   Shoot!  I forgot to use my coupon...


 

EscapeVelocity2020

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Re: Race from $2M to $4M...and Beyond!
« Reply #5485 on: November 02, 2021, 06:22:45 AM »
I guess the 'sandwich calculation' is how the UN figures Elon Musk could solve world hunger with a mere 2% of his net worth ($6B of his $311B 'stache)...  Maybe the UN should have been more specific that it would solve world hunger, but only for a week...

alienbogey

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Re: Race from $2M to $4M...and Beyond!
« Reply #5486 on: November 02, 2021, 09:42:45 AM »
We'll buy a new car in the next 18 months....It needs to haul 4 bicycles on a hitch, tow 3500 pounds, be long enough for seat down sleeping inside and carry 6 passengers when needed.  I'd love an EV but don't think we'll see that in 18 months.

That sounds to me exactly like a Tesla Model Y. 

Bateaux

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Re: Race from $2M to $4M...and Beyond!
« Reply #5487 on: November 02, 2021, 10:35:22 AM »
We'll buy a new car in the next 18 months....It needs to haul 4 bicycles on a hitch, tow 3500 pounds, be long enough for seat down sleeping inside and carry 6 passengers when needed.  I'd love an EV but don't think we'll see that in 18 months.

That sounds to me exactly like a Tesla Model Y.

Cyber Truck SUV model maybe.  I'd always planned on the next vehicle purchased be an EV. 

arcturus

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Re: Race from $2M to $4M...and Beyond!
« Reply #5488 on: November 02, 2021, 02:07:37 PM »
We'll buy a new car in the next 18 months.  It's probably the Acura MDX, Lexus 350 or Honda Pilot.  I want a real transmission and non turbo V-6.  It needs to haul 4 bicycles on a hitch, tow 3500 pounds, be long enough for seat down sleeping inside and carry 6 passengers when needed.  I'd love an EV but don't think we'll see that in 18 months.

I'm a huge Toyota fan -- why not consider the 4Runner?  I've owned one for 11 years and still feel like its one of the most reliable vehicles on the road.  Granted, I'm not driving much these days -- but when I do, I always feel confidence that it could last another 6-10 years.  The downside is gas mileage on it for sure.  Since I don't drive much anymore, I don't feel that pain (financially and mentally) of burning through gas. 

In any event, since Lexus is a Toyota product, they get my vote from your list.   Not that you asked and not that my opinion matters in the end  :-).

arcturus

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Re: Race from $2M to $4M...and Beyond!
« Reply #5489 on: November 02, 2021, 02:11:25 PM »
Jan 2021 - 1.19m$
Feb 2021 - 1.23m$
Mar 2021 - 1.28m$
Apr 2021 - 1.35m$
May 2021 - 2.65m$
June 2021 - 2.61m$
July 2021 - 2.62m$
August 2021 - 2.82m$
September 2021 - 2.79m$
October 2021 - 2.87m$*

Good month for crypto's also invested some money to real estate renovation which will show in the assets later after the building is ready and rented.

61 days to fire

Personally I think your cash allocation is too high and stock is too low.  I have no idea how to evaluate your private equity, if it is functionally equivalent to stock, but you need a good AA and long term plan if you ER.  Close to $3M is great if you're living on less than 100k/yr, otherwise you need to tighten up your plan.  It is very possible that the easy times from 2009 onward will not continue.

I also think that crypto will ultimately be worthless, and this comes from someone that has a small allocation.  Unlike gold, when governments outlaw holding it, bitcoins will have no residual value.

I agree with the cash balance as well as the stock, but there's reason for it. I'm currently renovating one big house and that is eating a lot of cash. That project should be finished by the end of the year and then it will be rented out (and I will add that as real estate asset to my allocation). We are also moving from Thailand to Finland in February next year and we are going to need some cash for the move and purchasing things like car in our new home country. Also when moving to Finland we will most likely open private banking account were the minimum investment is 500k EUR so that would then increase the stock allocation.

Regarding crypto and gold, here's were I have a bit different view. I have bought both for the same reason and that is the possible crash of FIAT currencies or the future CBDC and regulations and limits coming with it. Now I'm actually more scared about government confiscating/banning gold and as it's currently stored in the bank tresor here in Thailand I could see a day when it's either gone or I will not be allowed/able to access it. Where as with crypto's if banned I could still access them and spend among those who still accepts them. It might be that I would have to spend them in El Salvador or Panama, but I can't see situation where nobody would accept crypto's anymore, value is a different thing..

I would love to get a lesson on Crypto because I have never been able to figure it out and I've been doing battle with FOMO over the past year or so when I hear about others investing and using it.  I just have been unable to pull the trigger on anything related to it, including the new crypto ETFs.   

But your cash position certainly served you well in September @Finntastic !   I took it on the chin in September, off to a better start in 4Q, but I'm sticking to my new rule of tracking quarterly, although I freely admit I still check much more frequently than that!

arcturus

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Re: Race from $2M to $4M...and Beyond!
« Reply #5490 on: November 02, 2021, 02:48:37 PM »
I logged into my 401k today to download a statement. Its retirement calculator says I’m at 107% of needed funds for my planned fat FIRE. I had plugged 50 into the calculator, and I don’t think it would accept anything younger. It seems like we just hit $1M NW, and now we just passed $3M. While I know I could FIRE or downshift at any time, there are things I still want to accomplish.  And seeing mid 6-figures roll in each year to add to the stash is reassuring. So we’re carrying on… for now.

Congrats @Taran Wanderer !  Way to go!!

American GenX

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Re: Race from $2M to $4M...and Beyond!
« Reply #5491 on: November 02, 2021, 07:19:44 PM »
Not joking at all.  I'm thinking about and reading up on this stuff quite a bit.  Bare bones just means paying my necessary bills, and I include required long term costs like required home maintenance and auto ownership, just averaging out those costs over the long term.  What bare bones doesn't include is any discretionary spending, such as dining out, entertainment, travel, elective home improvements, and unnecessary purchases.  Also, I'm basing bare bones on early FIRE expenses, and I can definitely see those bare bones expenses increasing faster than inflation as I get older, mostly due to health care costs.  At any rate, I certainly wouldn't want to be limited to a bare bones budget!

So why base your decision/discussion of your plans on the bare bones number if that is not the one you will really use?
I can understand having that as an initial target when you are starting out, because getting to a more robust real FIRE number is much further away.  But once you are as far along in the journey as you are the bare bones number becomes a milepost you can wave to in your rear view mirror.
My budget only includes required expenses, not discretionary spending, so that's the only number I have.  Discretionary spending will be all over the place.  And my existing budget is even lower than my expected FIRE bare bones.  And BB spending it's NOT a target - I'm already past what I should need for that, but there are a variety of factors in the mix for when I FIRE.

Quote
I mean, you do you -- if you want to keep working keep working.  If you want to spend more spend more.  But it seems a bit disingenuous to me to boast about a 90x spending stash when your real life spending is pretty much NEVER going to be x. 
I have mixed feelings about continuing to work, as mentioned in a previous post.  The quick statistic I gave was just to put my stash in perspective against my base expenses, and I was very clear in that post that it was a multiple of bare bones, wasn't accounting for the high inflation I've experienced, and didn't include taxes.

Quote
Also, relative size of the stash matters a lot.  Speaking from experience, it has been no big deal for us to absorb 10-20k/year in unplanned expenses post FIRE for things like sewer and water main replacement and car purchase after original vehicle was totaled.  Even with those things our spending has been roughly 50-60k/year for a family of four since 2015.  There simply is not that much more we want to be spending on. YMMV.
I always add up all of the various long term expenses like car replacements, home repairs (like new HVAC, roof), etc. and average out over many years to include in my bare bones because those are required expenses at some point.

Finntastic

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Re: Race from $2M to $4M...and Beyond!
« Reply #5492 on: November 03, 2021, 12:40:24 AM »
Jan 2021 - 1.19m$
Feb 2021 - 1.23m$
Mar 2021 - 1.28m$
Apr 2021 - 1.35m$
May 2021 - 2.65m$
June 2021 - 2.61m$
July 2021 - 2.62m$
August 2021 - 2.82m$
September 2021 - 2.79m$
October 2021 - 2.87m$*

Good month for crypto's also invested some money to real estate renovation which will show in the assets later after the building is ready and rented.

61 days to fire

Personally I think your cash allocation is too high and stock is too low.  I have no idea how to evaluate your private equity, if it is functionally equivalent to stock, but you need a good AA and long term plan if you ER.  Close to $3M is great if you're living on less than 100k/yr, otherwise you need to tighten up your plan.  It is very possible that the easy times from 2009 onward will not continue.

I also think that crypto will ultimately be worthless, and this comes from someone that has a small allocation.  Unlike gold, when governments outlaw holding it, bitcoins will have no residual value.

I agree with the cash balance as well as the stock, but there's reason for it. I'm currently renovating one big house and that is eating a lot of cash. That project should be finished by the end of the year and then it will be rented out (and I will add that as real estate asset to my allocation). We are also moving from Thailand to Finland in February next year and we are going to need some cash for the move and purchasing things like car in our new home country. Also when moving to Finland we will most likely open private banking account were the minimum investment is 500k EUR so that would then increase the stock allocation.

Regarding crypto and gold, here's were I have a bit different view. I have bought both for the same reason and that is the possible crash of FIAT currencies or the future CBDC and regulations and limits coming with it. Now I'm actually more scared about government confiscating/banning gold and as it's currently stored in the bank tresor here in Thailand I could see a day when it's either gone or I will not be allowed/able to access it. Where as with crypto's if banned I could still access them and spend among those who still accepts them. It might be that I would have to spend them in El Salvador or Panama, but I can't see situation where nobody would accept crypto's anymore, value is a different thing..

Thanks for the reply, it's always fun to understand why folks have their AA a certain way, and I'm always interested in what folks who hold crypto think about the long term.
oh and the private equity evaluation is based on latest share purchases in the two companies in question which have both happened this year so it's a pretty recent valuation.

Finntastic

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Re: Race from $2M to $4M...and Beyond!
« Reply #5493 on: November 03, 2021, 12:55:30 AM »
Jan 2021 - 1.19m$
Feb 2021 - 1.23m$
Mar 2021 - 1.28m$
Apr 2021 - 1.35m$
May 2021 - 2.65m$
June 2021 - 2.61m$
July 2021 - 2.62m$
August 2021 - 2.82m$
September 2021 - 2.79m$
October 2021 - 2.87m$*

Good month for crypto's also invested some money to real estate renovation which will show in the assets later after the building is ready and rented.

61 days to fire

Personally I think your cash allocation is too high and stock is too low.  I have no idea how to evaluate your private equity, if it is functionally equivalent to stock, but you need a good AA and long term plan if you ER.  Close to $3M is great if you're living on less than 100k/yr, otherwise you need to tighten up your plan.  It is very possible that the easy times from 2009 onward will not continue.

I also think that crypto will ultimately be worthless, and this comes from someone that has a small allocation.  Unlike gold, when governments outlaw holding it, bitcoins will have no residual value.

I agree with the cash balance as well as the stock, but there's reason for it. I'm currently renovating one big house and that is eating a lot of cash. That project should be finished by the end of the year and then it will be rented out (and I will add that as real estate asset to my allocation). We are also moving from Thailand to Finland in February next year and we are going to need some cash for the move and purchasing things like car in our new home country. Also when moving to Finland we will most likely open private banking account were the minimum investment is 500k EUR so that would then increase the stock allocation.

Regarding crypto and gold, here's were I have a bit different view. I have bought both for the same reason and that is the possible crash of FIAT currencies or the future CBDC and regulations and limits coming with it. Now I'm actually more scared about government confiscating/banning gold and as it's currently stored in the bank tresor here in Thailand I could see a day when it's either gone or I will not be allowed/able to access it. Where as with crypto's if banned I could still access them and spend among those who still accepts them. It might be that I would have to spend them in El Salvador or Panama, but I can't see situation where nobody would accept crypto's anymore, value is a different thing..

I would love to get a lesson on Crypto because I have never been able to figure it out and I've been doing battle with FOMO over the past year or so when I hear about others investing and using it.  I just have been unable to pull the trigger on anything related to it, including the new crypto ETFs.   

But your cash position certainly served you well in September @Finntastic !   I took it on the chin in September, off to a better start in 4Q, but I'm sticking to my new rule of tracking quarterly, although I freely admit I still check much more frequently than that!

Regarding crypto's I'm not an expert but one of my companies has been dealing with crypto's and blockchain's for about 8-9 years now.

I give you example of why I like Bitcoin as much as I do. FIAT kind of works as long as you have bank account in the same country where you've born or hold passport, live and work. When it comes to international transactions specially SWIFT things get broken. I hold passport from Finland, live in Thailand and had bank account in Hong Kong. When I tried to transfer money from HK to Vietnam to pay for my apartment there it took total of four weeks and then the money bounced back (- massive fees). When we tried to send money from Thailand to Finland, we did 6 visits to bank, total of 100+ documents and 10+ hrs in the end we got money transferred and paid about 3,000 USD in fees (note we had EUR account so there was no currency conversion involved) and finally thanks to EU money laundry laws and my current residency being Thailand about half of my transfer in europe get blocked by the banks. Bank's can decide if I'm allowed to transfer money to my brother for examle or how much. So when it comes to FIAT and banks, I don't really have control over my money, banks and governments can decide who I can send money to or who I can receive money from. With Bitcoin there is none of that + the transfers are pretty much instant so I can pay to anyone on the planet almost instantly without needing any permission from anyone.

When it comes to blockchain there isn't a short answer, however I do want to say this. If I would to be starting company now, I would fully run it with blockchain. Tokens would replace shares, salaries would be paid in tokens and clients would pay in cryptos. Smart contracts would allow payment automation, when certain work is done and enough of token holders will verify it payment will be automatically sent out, also any disputes could be handled with tokens, where random token holders would be called as a "jury" to decide a disputes. A very good example of a platform that would allow to do this kind of stuff is this one: https://aragon.org/ I did recently wrote my master thesis about it.

Bateaux

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Re: Race from $2M to $4M...and Beyond!
« Reply #5494 on: November 03, 2021, 09:56:26 AM »
We'll buy a new car in the next 18 months.  It's probably the Acura MDX, Lexus 350 or Honda Pilot.  I want a real transmission and non turbo V-6.  It needs to haul 4 bicycles on a hitch, tow 3500 pounds, be long enough for seat down sleeping inside and carry 6 passengers when needed.  I'd love an EV but don't think we'll see that in 18 months.

I'm a huge Toyota fan -- why not consider the 4Runner?  I've owned one for 11 years and still feel like its one of the most reliable vehicles on the road.  Granted, I'm not driving much these days -- but when I do, I always feel confidence that it could last another 6-10 years.  The downside is gas mileage on it for sure.  Since I don't drive much anymore, I don't feel that pain (financially and mentally) of burning through gas. 

In any event, since Lexus is a Toyota product, they get my vote from your list.   Not that you asked and not that my opinion matters in the end  :-).
I'll beg for a 4-Runner when the time comes.  She wants something softer.  The 4-Runner is about as good a vehicle as can be possibly purchased.

ca-rn

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Re: Race from $2M to $4M...and Beyond!
« Reply #5495 on: November 03, 2021, 02:35:46 PM »
Officially crossed over to the $2M mark!   And of course, can't share this with anyone IRL :)
 
Shocked since I never imagined I'd ever even have $1M in my life!  All thanks to LBYM, 20 years of 401K investing, 10 years of taxable and the huge run up for a long while. 

My mind doesn't see the money there (401K/taxable) as the same money that's in my checking and saving accounts.... But to celebrate, I recently upgraded some small kitchen appliances ($200-300 each) and they weren't even on sale (!) (by habit, I did look for coupon codes- none to be found) and still hit-BUY.

Otherwise, feeling about the same, working my PT job, cooking/packing healthy meals and diy'ing when I can.   

Growing up poor, I still have lingering money anxiety but now more than ever, I know I am financially secure and feel SECURE. 

Exflyboy

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Re: Race from $2M to $4M...and Beyond!
« Reply #5496 on: November 03, 2021, 02:58:18 PM »
Officially crossed over to the $2M mark!   And of course, can't share this with anyone IRL :)
 
Shocked since I never imagined I'd ever even have $1M in my life!  All thanks to LBYM, 20 years of 401K investing, 10 years of taxable and the huge run up for a long while. 

My mind doesn't see the money there (401K/taxable) as the same money that's in my checking and saving accounts.... But to celebrate, I recently upgraded some small kitchen appliances ($200-300 each) and they weren't even on sale (!) (by habit, I did look for coupon codes- none to be found) and still hit-BUY.

Otherwise, feeling about the same, working my PT job, cooking/packing healthy meals and diy'ing when I can.   

Growing up poor, I still have lingering money anxiety but now more than ever, I know I am financially secure and feel SECURE.

Congrats.. Not sure if my money anxiety will ever go away. We crossed $3M invested 2 weeks ago.. I still seem to worry the same as I always have..:)

G-dog

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Re: Race from $2M to $4M...and Beyond!
« Reply #5497 on: November 03, 2021, 04:45:34 PM »
Officially crossed over to the $2M mark!   And of course, can't share this with anyone IRL :)
 
Shocked since I never imagined I'd ever even have $1M in my life!  All thanks to LBYM, 20 years of 401K investing, 10 years of taxable and the huge run up for a long while. 

My mind doesn't see the money there (401K/taxable) as the same money that's in my checking and saving accounts.... But to celebrate, I recently upgraded some small kitchen appliances ($200-300 each) and they weren't even on sale (!) (by habit, I did look for coupon codes- none to be found) and still hit-BUY.

Otherwise, feeling about the same, working my PT job, cooking/packing healthy meals and diy'ing when I can.   

Growing up poor, I still have lingering money anxiety but now more than ever, I know I am financially secure and feel SECURE.

Congrats.. Not sure if my money anxiety will ever go away. We crossed $3M invested 2 weeks ago.. I still seem to worry the same as I always have..:)

I had about $1MM when I retired, and crossed over $2MM this year, 6 years later.  Crazy.  I am trying to figure out if somehow inflation will somehow kill my stash, or if that’s just paranoia. I don’t worry day-to-day.

pecunia

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Re: Race from $2M to $4M...and Beyond!
« Reply #5498 on: November 03, 2021, 05:16:33 PM »
Officially crossed over to the $2M mark!   And of course, can't share this with anyone IRL :)
 
Shocked since I never imagined I'd ever even have $1M in my life!  All thanks to LBYM, 20 years of 401K investing, 10 years of taxable and the huge run up for a long while. 

My mind doesn't see the money there (401K/taxable) as the same money that's in my checking and saving accounts.... But to celebrate, I recently upgraded some small kitchen appliances ($200-300 each) and they weren't even on sale (!) (by habit, I did look for coupon codes- none to be found) and still hit-BUY.

Otherwise, feeling about the same, working my PT job, cooking/packing healthy meals and diy'ing when I can.   

Growing up poor, I still have lingering money anxiety but now more than ever, I know I am financially secure and feel SECURE.

Congrats.. Not sure if my money anxiety will ever go away. We crossed $3M invested 2 weeks ago.. I still seem to worry the same as I always have..:)

I had about $1MM when I retired, and crossed over $2MM this year, 6 years later.  Crazy.  I am trying to figure out if somehow inflation will somehow kill my stash, or if that’s just paranoia. I don’t worry day-to-day.

I've had this odd idea that maybe, just maybe we won't have bad inflation.  You get inflation if costs go up, for example, to a manufacturer then the price of the manufactured product goes up.  This can occur if the cost of materials, labor or energy go up.  To a lesser extent increases in taxes may have that affect.  People have told me that a bigger effect is that businesses want to "make up" for the losses they've had during the pandemic so they will raise prices.

Now here's the odd idea.  There may be a lot of stuff which they can't jump the prices much.  Why is that?

Because lots of people have no money.  If they raise prices, people won't pay the higher prices because they have no money.

Look at the average per capita income in 2019 and 2021.

This article says the average income in 2021 is  $51,480.

The same article says that the average yearly income in 2019 was $65,836.

https://policyadvice.net/insurance/insights/average-american-income/

I'm just thinking it can't get too bad.  There's a lot of people up to their ears in debt.  There are pockets of prosperity, but there seem to be a lot of pockets of non prosperity, sometimes really bad non prosperity. 

I'm just thinking that the market cannot bear large inflation and will limit it.

Of course there are material and labor shortages which may cause demand for some things to outstrip supply, but this is spotty and I think most stuff people need is still available.

As usual whenever I write something semi-dumb herein, I give the disclaimer that you folks have a far better understanding of this material than I ever will.  If it's really dumb, you are all polite and just ignore it,........Thanks.  If not I usually get some smart responses setting me straight.

Stocks had a record today maybe I can ignore inflation.

arcturus

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Re: Race from $2M to $4M...and Beyond!
« Reply #5499 on: November 03, 2021, 05:49:59 PM »
Jan 2021 - 1.19m$
Feb 2021 - 1.23m$
Mar 2021 - 1.28m$
Apr 2021 - 1.35m$
May 2021 - 2.65m$
June 2021 - 2.61m$
July 2021 - 2.62m$
August 2021 - 2.82m$
September 2021 - 2.79m$
October 2021 - 2.87m$*

Good month for crypto's also invested some money to real estate renovation which will show in the assets later after the building is ready and rented.

61 days to fire

Personally I think your cash allocation is too high and stock is too low.  I have no idea how to evaluate your private equity, if it is functionally equivalent to stock, but you need a good AA and long term plan if you ER.  Close to $3M is great if you're living on less than 100k/yr, otherwise you need to tighten up your plan.  It is very possible that the easy times from 2009 onward will not continue.

I also think that crypto will ultimately be worthless, and this comes from someone that has a small allocation.  Unlike gold, when governments outlaw holding it, bitcoins will have no residual value.

I agree with the cash balance as well as the stock, but there's reason for it. I'm currently renovating one big house and that is eating a lot of cash. That project should be finished by the end of the year and then it will be rented out (and I will add that as real estate asset to my allocation). We are also moving from Thailand to Finland in February next year and we are going to need some cash for the move and purchasing things like car in our new home country. Also when moving to Finland we will most likely open private banking account were the minimum investment is 500k EUR so that would then increase the stock allocation.

Regarding crypto and gold, here's were I have a bit different view. I have bought both for the same reason and that is the possible crash of FIAT currencies or the future CBDC and regulations and limits coming with it. Now I'm actually more scared about government confiscating/banning gold and as it's currently stored in the bank tresor here in Thailand I could see a day when it's either gone or I will not be allowed/able to access it. Where as with crypto's if banned I could still access them and spend among those who still accepts them. It might be that I would have to spend them in El Salvador or Panama, but I can't see situation where nobody would accept crypto's anymore, value is a different thing..

I would love to get a lesson on Crypto because I have never been able to figure it out and I've been doing battle with FOMO over the past year or so when I hear about others investing and using it.  I just have been unable to pull the trigger on anything related to it, including the new crypto ETFs.   

But your cash position certainly served you well in September @Finntastic !   I took it on the chin in September, off to a better start in 4Q, but I'm sticking to my new rule of tracking quarterly, although I freely admit I still check much more frequently than that!

Regarding crypto's I'm not an expert but one of my companies has been dealing with crypto's and blockchain's for about 8-9 years now.

I give you example of why I like Bitcoin as much as I do. FIAT kind of works as long as you have bank account in the same country where you've born or hold passport, live and work. When it comes to international transactions specially SWIFT things get broken. I hold passport from Finland, live in Thailand and had bank account in Hong Kong. When I tried to transfer money from HK to Vietnam to pay for my apartment there it took total of four weeks and then the money bounced back (- massive fees). When we tried to send money from Thailand to Finland, we did 6 visits to bank, total of 100+ documents and 10+ hrs in the end we got money transferred and paid about 3,000 USD in fees (note we had EUR account so there was no currency conversion involved) and finally thanks to EU money laundry laws and my current residency being Thailand about half of my transfer in europe get blocked by the banks. Bank's can decide if I'm allowed to transfer money to my brother for examle or how much. So when it comes to FIAT and banks, I don't really have control over my money, banks and governments can decide who I can send money to or who I can receive money from. With Bitcoin there is none of that + the transfers are pretty much instant so I can pay to anyone on the planet almost instantly without needing any permission from anyone.

When it comes to blockchain there isn't a short answer, however I do want to say this. If I would to be starting company now, I would fully run it with blockchain. Tokens would replace shares, salaries would be paid in tokens and clients would pay in cryptos. Smart contracts would allow payment automation, when certain work is done and enough of token holders will verify it payment will be automatically sent out, also any disputes could be handled with tokens, where random token holders would be called as a "jury" to decide a disputes. A very good example of a platform that would allow to do this kind of stuff is this one: https://aragon.org/ I did recently wrote my master thesis about it.

Thanks @Finntastic .  That aspect of it makes total sense to me -- the bank limitations (hours, dollar amounts, forms, etc) and fees do seem quite arbitrary.  And if I had to live through your experiences, I would be anti-bank for sure.  What baffles me is how you assess whether a bitcoin is worth $62,969 or $85,000 or $5.  And then if one gets too expensive, why don't I just create another one.....questions abound for me.   I've determined to spend a couple evenings watching a crypto documentary -- so, rather than drag all on this forum through my education, maybe I'll just try to learn a bit through that.