Author Topic: Race from $2M to $3M.....and beyond!  (Read 87425 times)

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #550 on: November 22, 2018, 11:54:18 AM »
Congrats! Good luck on your journey.

Thanks Ysette9.  Sometimes I think it's easier to make money than to lose weight and be fitter.  Both are lifestyle choices based on a lifetime of micro-decisions. 

I see you have a husband, which generally means you're female.  I am also.  I'm curious...Are there other females on this thread?





There are many! Not sure what the ratio is but seems 50/50 maybe more on the Females side

pecunia

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Re: Race from $2M to $3M.....and beyond!
« Reply #551 on: November 22, 2018, 05:37:23 PM »
Isn't 2.5 million enough?

https://www.youtube.com/watch?v=eikbQPldhPY

Is this still valid advice?

ysette9

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Re: Race from $2M to $3M.....and beyond!
« Reply #552 on: November 22, 2018, 09:41:15 PM »
Congrats! Good luck on your journey.

Thanks Ysette9.  Sometimes I think it's easier to make money than to lose weight and be fitter.  Both are lifestyle choices based on a lifetime of micro-decisions. 

I see you have a husband, which generally means you're female.  I am also.  I'm curious...Are there other females on this thread?





There are many! Not sure what the ratio is but seems 50/50 maybe more on the Females side
Oh really? I had always thought that the forums were more heavily skewed to male, though I’m not sure where I picked up that impression.

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #553 on: November 24, 2018, 05:19:56 AM »
Isn't 2.5 million enough?

https://www.youtube.com/watch?v=eikbQPldhPY

Is this still valid advice?



I'd say so , pretty much what I went by. Always love that video!

itchyfeet

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Re: Race from $2M to $3M.....and beyond!
« Reply #554 on: November 24, 2018, 07:32:50 AM »
Isn't 2.5 million enough?

https://www.youtube.com/watch?v=eikbQPldhPY

Is this still valid advice?



I'd say so , pretty much what I went by. Always love that video!

I hadnít seen that video before. 😆

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #555 on: November 24, 2018, 09:53:26 AM »
That video has become my go to when I have to tell myself to stop fretting over market pullbacks..

$2.5M.. Yes it really is a fortress of f,,,g solitude!!!..:)

Dicey

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Re: Race from $2M to $3M.....and beyond!
« Reply #556 on: November 24, 2018, 10:46:39 AM »
Isn't 2.5 million enough?

https://www.youtube.com/watch?v=eikbQPldhPY

Is this still valid advice?



I'd say so , pretty much what I went by. Always love that video!

I hadnít seen that video before. 😆
Me neither. Love, love, love it!

2Birds1Stone

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Re: Race from $2M to $3M.....and beyond!
« Reply #557 on: November 24, 2018, 11:00:53 AM »
Wow! It's better than the original.

ysette9

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Re: Race from $2M to $3M.....and beyond!
« Reply #558 on: November 24, 2018, 11:14:36 AM »
So good

Bateaux

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Re: Race from $2M to $3M.....and beyond!
« Reply #559 on: November 24, 2018, 03:38:31 PM »
I watch both both versions at least once a month.  2.5 million is the goal.

EscapeVelocity2020

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Re: Race from $2M to $3M.....and beyond!
« Reply #560 on: November 25, 2018, 03:54:34 AM »
Sadly though, as the video ends, it reminds me that America is going deeper into debt and even hitting the accelerator...  the majority will never learn.

pecunia

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Re: Race from $2M to $3M.....and beyond!
« Reply #561 on: November 25, 2018, 06:42:50 AM »
Sadly though, as the video ends, it reminds me that America is going deeper into debt and even hitting the accelerator...  the majority will never learn.

I had this scary thought as I read your comment.  Government is going crazy about borrowing money as they protect the very rich people and corporations from paying taxes. (among other reasons)  They are spending a lot of money they don't have.  This is increasing the money in circulation.  I've been taught a higher money supply is inflationary.

Right now 2-3 million dollars is plenty.  Can the excessive deficit spending reduce that amount and wipe out some of the hard work all the folks have done here to earn it?  As the video said we are f*&king it up.

DavidAnnArbor

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Re: Race from $2M to $3M.....and beyond!
« Reply #562 on: November 26, 2018, 06:37:07 PM »
 Government deficit spending it is not necessarily a bad thing. When interest rates are extraordinarily low government deficit spending is actually what will help pick an economy up from the ground.
When there is deficit spending during peak economic growth then the deficit spending can crowd out private borrowing which can cause inflation and drive up interest rates. When interest rates go up thatís when businesses endure higher interest payments. Mortgages And borrowing gets too expensive, and housing and construction can suffer which can lead to a recession.

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #563 on: November 27, 2018, 03:19:25 AM »
Government deficit spending it is not necessarily a bad thing. When interest rates are extraordinarily low government deficit spending is actually what will help pick an economy up from the ground.
When there is deficit spending during peak economic growth then the deficit spending can crowd out private borrowing which can cause inflation and drive up interest rates. When interest rates go up thatís when businesses endure higher interest payments. Mortgages And borrowing gets too expensive, and housing and construction can suffer which can lead to a recession.




^+1

DavidAnnArbor

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Re: Race from $2M to $3M.....and beyond!
« Reply #564 on: November 27, 2018, 08:05:53 AM »
The national debt can grow at a rate that is sustainable, it's the debt to GDP ratio that's a better metric. If the nominal GDP grows 6% a year, the national debt can grow to that level as well.

EscapeVelocity2020

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Re: Race from $2M to $3M.....and beyond!
« Reply #565 on: November 28, 2018, 06:06:30 AM »
The national debt can grow at a rate that is sustainable, it's the debt to GDP ratio that's a better metric. If the nominal GDP grows 6% a year, the national debt can grow to that level as well.

Good points in theory, but when the economy is humming along, it's typically a good time to start to balance the budget or at least stay below the historic average.  We are going in to the 10th year of GDP expansion (last contracted in 2009) and are voluntarily accelerating the spending deficit (by cutting taxes, increasing government spending, etc) since 2015.
 
https://en.wikipedia.org/wiki/United_States_federal_budget#/media/File:CBO_Deficits_pct_GDP_1968-2028.png

It doesn't take a genius to think about what will happen when GDP shrinks during a recession, government spending needs to increase to stimulate the economy, tax revenue is already low, and the heavy hitters like Medicare are increasing...  I guess Boomers should be thanking the next generations in advance for being willing to take cuts to our Medicare and Social Security benefits!

DavidAnnArbor

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Re: Race from $2M to $3M.....and beyond!
« Reply #566 on: November 30, 2018, 08:37:49 PM »
The expanding deficit primarily occurred because of the business tax cuts, not because of increased government spending.

pecunia

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Re: Race from $2M to $3M.....and beyond!
« Reply #567 on: December 01, 2018, 07:39:28 AM »
The expanding deficit primarily occurred because of the business tax cuts, not because of increased government spending.

Were these tax cuts good or were they bad?  The government has to borrow more and so we end up paying the original cost + interest.  However, a couple days ago I talked to a small business owner and learned what an enormous tax small businessmen have to pay.

I don't believe in the Laffer curve.  I also don't believe in crippling business.

Too much tax will stop the 2-3 million dollar race.

DavidAnnArbor

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Re: Race from $2M to $3M.....and beyond!
« Reply #568 on: December 01, 2018, 11:46:42 AM »
The expanding deficit primarily occurred because of the business tax cuts, not because of increased government spending.

Were these tax cuts good or were they bad?  The government has to borrow more and so we end up paying the original cost + interest.  However, a couple days ago I talked to a small business owner and learned what an enormous tax small businessmen have to pay.

I don't believe in the Laffer curve.  I also don't believe in crippling business.

Too much tax will stop the 2-3 million dollar race.

I really doubt the taxes are so enormous - sounded like a complainypants.

When you have a small business you get to deduct for just about everything you can think of, which lowers the business income.
If this person is making so much money that he's complaining that he doesn't have enough to buy a 3rd house and a 4th Mercedes then no I don't feel sorry for him.

pecunia

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Re: Race from $2M to $3M.....and beyond!
« Reply #569 on: December 01, 2018, 12:00:50 PM »
The expanding deficit primarily occurred because of the business tax cuts, not because of increased government spending.

Were these tax cuts good or were they bad?  The government has to borrow more and so we end up paying the original cost + interest.  However, a couple days ago I talked to a small business owner and learned what an enormous tax small businessmen have to pay.

I don't believe in the Laffer curve.  I also don't believe in crippling business.

Too much tax will stop the 2-3 million dollar race.

- SNIP -

When you have a small business you get to deduct for just about everything you can think of, which lowers the business income.
If this person is making so much money that he's complaining that he doesn't have enough to buy a 3rd house and a 4th Mercedes then no I don't feel sorry for him.


He's a Mississippi boy.  It would have been another pickup and not a Mercedes.

Car Jack

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Re: Race from $2M to $3M.....and beyond!
« Reply #570 on: December 02, 2018, 12:31:21 PM »
Mercedes pickup.....


EscapeVelocity2020

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Re: Race from $2M to $3M.....and beyond!
« Reply #571 on: December 21, 2018, 02:41:26 PM »
Time to rename the thread Race from $3M to $2M :)

Threshkin

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Re: Race from $2M to $3M.....and beyond!
« Reply #572 on: December 21, 2018, 02:57:02 PM »
Time to rename the thread Race from $3M to $2M :)

LOL, I was just thinking that same thing when I saw this thread in my updated topics list.  I am down well over 10% since the peak.

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #573 on: December 21, 2018, 03:28:48 PM »
I used to be in this club.... Are we allowed to count pensions?..:)

itchyfeet

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Re: Race from $2M to $3M.....and beyond!
« Reply #574 on: December 22, 2018, 02:29:28 AM »
I used to be in this club.... Are we allowed to count pensions?..:)

I was always counting everything and am still gamely hanging in just above entry level, with all my chips on the table... even had to throw in the loose coins that fell down the back of the sofa.

DavidAnnArbor

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Re: Race from $2M to $3M.....and beyond!
« Reply #575 on: December 22, 2018, 05:29:52 AM »
Iím pretty sure my net worth has now dropped below $2 million. Thanks Trump

Dicey

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Re: Race from $2M to $3M.....and beyond!
« Reply #576 on: December 22, 2018, 08:23:19 AM »
I used to be in this club.... Are we allowed to count pensions?..:)
I didn't before, but I did count my paid for house and other RE equity. Now, I think I'll have to include DH's Defined Benefit Pension. Thank Dog there is one and that includes a decent amount of healthcare coverage.

I can't say for sure, because I'M NOT CHECKING BALANCES RIGHT NOW!!!!!

Mr Griz

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Re: Race from $2M to $3M.....and beyond!
« Reply #577 on: December 22, 2018, 08:34:24 AM »
I retired at the end of October and havenít looked at the market since. Iím vaguely aware that itís down a bit lately.  The main reason I can do this is a combination of a pension & some deferred compensation that will pay out over the next 3-5 years. Still, itís nice to be able to ride out this dip without fretting about it.

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #578 on: December 22, 2018, 11:43:31 AM »
Oh yeah, realistically at these levels the market could be cut in half and really would make zero difference to us.

It just doesn't FEEL that way..:)

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Re: Race from $2M to $3M.....and beyond!
« Reply #579 on: December 23, 2018, 05:52:20 AM »
Hard not to notice drop as was closing in on fatfire SWR of 4% but have moved from a 4.2% at the high to a 4.8% now.

Doesn't really matter I guess, more importantly the new half-time gig which covers our expenses is going well.  A move from 70hrs/wk to zero would have left me floundering I think, this is easing me into the what do I do with my free time so I think is the right balance for now

pecunia

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Re: Race from $2M to $3M.....and beyond!
« Reply #580 on: December 23, 2018, 12:33:01 PM »
Iím pretty sure my net worth has now dropped below $2 million. Thanks Trump

Is he really to blame?  Was the dip in stocks just due since we've had a long business cycle?


Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #581 on: December 23, 2018, 01:36:57 PM »
Iím pretty sure my net worth has now dropped below $2 million. Thanks Trump

Is he really to blame?  Was the dip in stocks just due since we've had a long business cycle?

Probably not to blame long term, but he's doing some thing now which are certainly not helping in the short term.

Dicey

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Re: Race from $2M to $3M.....and beyond!
« Reply #582 on: December 23, 2018, 01:52:08 PM »
Iím pretty sure my net worth has now dropped below $2 million. Thanks Trump

Is he really to blame?  Was the dip in stocks just due since we've had a long business cycle?

Probably not to blame long term, but he's doing some thing now which are certainly not helping in the short term.
I'd say he deserves the same amount of credit no matter which way the market goes.

mjr

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Re: Race from $2M to $3M.....and beyond!
« Reply #583 on: December 23, 2018, 03:13:53 PM »
Aren't there enough Trump-attacking/hysteria threads even in this forum without introducing him into another one ?

You yanks need another hobby....

pecunia

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Re: Race from $2M to $3M.....and beyond!
« Reply #584 on: December 23, 2018, 10:09:08 PM »
Aren't there enough Trump-attacking/hysteria threads even in this forum without introducing him into another one ?

You yanks need another hobby....

I like it.   And,......I agree.

Dicey

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Re: Race from $2M to $3M.....and beyond!
« Reply #585 on: December 24, 2018, 02:03:08 PM »
I commented to DH that we should dump this year's and next year's Roth money into the market while it's a trash can fire. He said he thought we did it early in 2018. Damn! I couldn't bear to look at our account balances, so I had him look for me, but only after he promised not to tell. Yup, it seems we did. Double damn!

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #586 on: December 24, 2018, 02:21:21 PM »
I commented to DH that we should dump this year's and next year's Roth money into the market while it's a trash can fire. He said he thought we did it early in 2018. Damn! I couldn't bear to look at our account balances, so I had him look for me, but only after he promised not to tell. Yup, it seems we did. Double damn!

Double damn indeed.. But in the grand scheme of things this will also be insignificant in a few short years.

Bateaux

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Re: Race from $2M to $3M.....and beyond!
« Reply #587 on: December 25, 2018, 12:02:38 AM »
Down 250K thusfar.  Sure makes having to work Christmas Eve and Christmas Day  a lot easier for me. 
A few years ago my FIRE goal was 1.5 million.   Well that'd be more than another 250K drop from here.  Unfortunately the current 2.5 million goal may not be reachable by my August 2020 goal date.  FIRE isn't even up for discussion for me sub 2 million.  It's OMY,OMY,  indefinitely till that returns for sure.

2Birds1Stone

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Re: Race from $2M to $3M.....and beyond!
« Reply #588 on: December 25, 2018, 04:27:11 AM »
It's OMY,OMY,  indefinitely till that returns for sure.

Or you drop dead.

soccerluvof4

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Re: Race from $2M to $3M.....and beyond!
« Reply #589 on: December 25, 2018, 07:00:36 AM »
While we would need to drop what we recently have plus maybe a little more to fall out of this category I am not one that overly worries about it everyday or am going to change things BUT i do look and it stings a bit.

ysette9

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Re: Race from $2M to $3M.....and beyond!
« Reply #590 on: December 25, 2018, 08:24:36 AM »
I have heard vague headlines of the market dropping around me but haven’t actually logged into anything to look. Everything is on auto pilot and I set my 401(k) contribution last week to put 100% of my bonus into it. I’m also going to front-load the $19k by having 0 take-home until I reach that limit. The plan is to also do 50% after-tax contribution until I reach the $55k limit, if our cash flow works out. I wouldn’t really have thought of front loading contributions but I got on some financial forums at work and the people there are SO savvy, and I am feeling the peer pressure to front load. ;)

XC1984

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Re: Race from $2M to $3M.....and beyond!
« Reply #591 on: December 28, 2018, 12:35:24 PM »
I'm new here (at least new at posting), and $2-$3M group seems to be where I am. I was on that traditional retire at 65 path, and really course corrected about 3 years ago after googling "How much is enough" and discovering the FIRE movement on the internet. I'm 52, working as a mid-level corporate manager, and my wife works in the service industry in Southern CA. I started transforming my life toward Mustachianism without knowing it about three years ago - renting out our suburban house, moving to a 2 bedroom near work, and eliminating a 3-hour round-trip commute. Now I save about 1/3 of my annual income and have liquid investments of about $2.4M. I'm targeting quitting my job in about four years at 56 when our youngest is through college and that large variable is behind us. Though I know I could go FIRE today, we would like to move back to our home community in the suburbs to stay long term, and that isn't exactly inexpensive.

I can't say I can closely relate to the 30-somethings retiring on $40k a year, but I believe these principles can be applied by anyone's situation wherever they are at. It has certainly changed my perspective and direction, and I appreciate reading all of these stories!

Threshkin

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Re: Race from $2M to $3M.....and beyond!
« Reply #592 on: December 28, 2018, 02:39:09 PM »
For those of us in this group, what are your budgeted and actual annual expenses? (Intentional selection bias here)

Are you budgeting around 4% WR or are you planning a lower WR

We budget $60K but our actual this year will be about $45K

Edited to add Trad to Roth conversion tax payment.
« Last Edit: December 28, 2018, 02:41:26 PM by Threshkin »

mjr

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Re: Race from $2M to $3M.....and beyond!
« Reply #593 on: December 28, 2018, 03:19:40 PM »
I've been retired and without the cash firehose for 5 months.  My WR for the 1st year looks like it'll be nearly 1% (low twenty thousands..)

After I get used to it and after the recent share market carnage has passed, maybe I'll up my spending to 2% !

Exflyboy

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Re: Race from $2M to $3M.....and beyond!
« Reply #594 on: December 28, 2018, 04:14:51 PM »
Oh boy.. flame suit on.

When I retired in 2014 (to limit the shame of too many OMY's) I planned 2.8%.... Assuming we got out of the rental business.

Coming up on 5 years post fire (ignore my profitable part time gigs) and the actual was 1.5%.. I stayed in the rental business and the portfolio has grown a lot.

Our expenditure went up by 43% last year... Planned $35,000 Actual $50,000.

We have future pensions too.. I assume we are very much outliers as on paper we have chronically over saved.

ysette9

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Re: Race from $2M to $3M.....and beyond!
« Reply #595 on: December 28, 2018, 07:48:06 PM »
Well on the opposite end of the spending spectrum, we are planning on around $100k a year, u too the mortgage is paid off, unless we move elsewhere, which is probably only a low probability at this point.

Dicey

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Re: Race from $2M to $3M.....and beyond!
« Reply #596 on: December 28, 2018, 11:21:21 PM »
I'm new here (at least new at posting), and $2-$3M group seems to be where I am. I was on that traditional retire at 65 path, and really course corrected about 3 years ago after googling "How much is enough" and discovering the FIRE movement on the internet. I'm 52, working as a mid-level corporate manager, and my wife works in the service industry in Southern CA. I started transforming my life toward Mustachianism without knowing it about three years ago - renting out our suburban house, moving to a 2 bedroom near work, and eliminating a 3-hour round-trip commute. Now I save about 1/3 of my annual income and have liquid investments of about $2.4M. I'm targeting quitting my job in about four years at 56 when our youngest is through college and that large variable is behind us. Though I know I could go FIRE today, we would like to move back to our home community in the suburbs to stay long term, and that isn't exactly inexpensive.

I can't say I can closely relate to the 30-somethings retiring on $40k a year, but I believe these principles can be applied by anyone's situation wherever they are at. It has certainly changed my perspective and direction, and I appreciate reading all of these stories!
Welcome, @XC1984!

Fomerly known as something

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Re: Race from $2M to $3M.....and beyond!
« Reply #597 on: December 29, 2018, 10:48:21 AM »
Update on picking up a financial advisor.  Well he did just help me TLH about $800.  Long story short, I'm a Federal Employee so I'm not funding my IRA for 2019 in the manner I normally do (new cash money) as all cash is being horded until the shutdown is over.  Instead I'm just transferring money from my taxable account.  I didn't really think about which fund to take the money from.  He pointed me to getting the money ready this year by selling the lot from my international fund that had the highest loss for taxes.

As far as my future WR, from my personal investments it could be less than 1%, I have a pension that complicates my planned RE date in a good way. 

itchyfeet

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Re: Race from $2M to $3M.....and beyond!
« Reply #598 on: December 29, 2018, 02:24:21 PM »
We were aiming to FIRE with a 70K USD annual budget plus a paid off house worth around $700K USD.

2018 wasnít a good year financially for us, so now considering options to either
 1. Delay FIRE (beyond 6/19)
 2. Reduce spending and FIRE as planned
 3. Just roll with a higher than planned draw down rate (something like 4.5% or there abouts).

DavidAnnArbor

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Re: Race from $2M to $3M.....and beyond!
« Reply #599 on: January 01, 2019, 09:13:43 AM »
I can't imagine I need more than $30-$35k a year to live including taxes. That would be about a 2.3% withdrawal rate for me.
If I were to spend $40k I would feel like I was living a life of ridiculous luxury.

But my plan is to continue to work part-time now that I'm officially retired. I enjoy my work a lot. I'm just reducing all the commuting I used to do.