Author Topic: Race from $2M to $4M...and Beyond!  (Read 1290553 times)

Bateaux

  • Handlebar Stache
  • *****
  • Posts: 2324
  • Location: Port Vincent
Re: Race from $2M to $4M...and Beyond!
« Reply #7450 on: January 09, 2024, 02:32:29 PM »
Hey guys. I only saw gators at the beginning in a canal by the visitor center in Big Cypress. It was cloudy and rainy a lot of the time. Reptiles hide out in that weather luckily. No snakes that I saw. A 17 foot 198 pound Python was caught there a month or so ago. Made national news. I debated carrying protection and decided it was more liability than what it's worth. Turning the car in I walked through Miami International and will be using churches, fire departments, etc as places to camp. You never know their policy. My protection is a small Swiss Army knife and some dog mace for walking where mean dogs exist. The Eastern Continental Divide Trail starts in Key West and runs into Canada. It's 4400 miles long and I hope to do it all in sections. The Florida Trail including the Everglades is part of it. It was challenging, but after a day of rest I'll be back on tomorrow. I carried a Garmin Mini SOS beacon. There was a hiker in our group that was rescued by swamp buggy and another that turned back after 5 miles. The week before a hiker was hospitalized with a snake bite and another due to extreme dehydration exhaustion. It's not for the weary or first time adventurer. It's definitely possible for any prepared hiker. The Arizona hiker was very strong and quickly made more miles than me. He's very advanced and has hiked all over the world. The trail gets much easier from now and only has short wet sections. I'm waiting out weather at a friends house tonight. There were tornadoes in the panhandle. They will drop me in the morning. I'll update when more interesting things come about.
« Last Edit: January 09, 2024, 02:45:35 PM by Bateaux »

iris lily

  • Walrus Stache
  • *******
  • Posts: 5688
Re: Race from $2M to $4M...and Beyond!
« Reply #7451 on: January 12, 2024, 03:19:37 PM »
We hit $10M shortly before Christmas.  Seemed pretty cool to finally get there after all these years, so we celebrated with a movie and a fancy dinner at Longhorn Steakhouse.  Spent well over $100, partying like rockstars.

Then we hit the library on the way home and borrowed some free books and DVDs. 

Unfortunately, we paid out a lot of EOY charitable contributions last week and are probably around $9.9M now.

We hope to hit $10M this year!

This is when I wish there was a LIKE button. So many things to like in this post.

couponvan

  • Walrus Stache
  • *******
  • Posts: 8816
  • Location: VA
    • My journal
Re: Race from $2M to $4M...and Beyond!
« Reply #7452 on: January 12, 2024, 05:41:27 PM »
We hit $10M shortly before Christmas.  Seemed pretty cool to finally get there after all these years, so we celebrated with a movie and a fancy dinner at Longhorn Steakhouse.  Spent well over $100, partying like rockstars.

Then we hit the library on the way home and borrowed some free books and DVDs. 

Unfortunately, we paid out a lot of EOY charitable contributions last week and are probably around $9.9M now.

We hope to hit $10M this year!

This is when I wish there was a LIKE button. So many things to like in this post.

Like/love!

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 8424
  • Age: 62
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: Race from $2M to $4M...and Beyond!
« Reply #7453 on: January 12, 2024, 06:56:39 PM »
We hit $10M shortly before Christmas.  Seemed pretty cool to finally get there after all these years, so we celebrated with a movie and a fancy dinner at Longhorn Steakhouse.  Spent well over $100, partying like rockstars.

Then we hit the library on the way home and borrowed some free books and DVDs. 

Unfortunately, we paid out a lot of EOY charitable contributions last week and are probably around $9.9M now.

We hope to hit $10M this year!

This is when I wish there was a LIKE button. So many things to like in this post.

Like/love!

Nah, mo money = mo problems. I stress out at how the heck I'm going to spend $3M plus the $100k+ per year in pension/SS income.. With $10M I'd have to be making $1M charitable donations to avoid the Nieces and Nephews living on cocaine and caviar!

Good "problem" to have though right?

pasadenafr

  • Bristles
  • ***
  • Posts: 322
  • Age: 49
  • Location: Upper Left Corner, USA
Re: Race from $2M to $4M...and Beyond!
« Reply #7454 on: January 12, 2024, 07:15:06 PM »
I hope y'all won't mind me intruding in your post. I'm far, far from being eligible (you can find me at the bottom of the previous race!) but I do enjoy reading your thread. I feels a bit like I'm a kid watching the adults from behind the glass. Or like I'm watching one of those sci-fi movies where it's an alternate universe but the people are oddly nice and normal.

Anyway, just ignore me gawking, you inspiring people, I'm just posting to follow.

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 8424
  • Age: 62
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: Race from $2M to $4M...and Beyond!
« Reply #7455 on: January 12, 2024, 07:28:50 PM »
I hope y'all won't mind me intruding in your post. I'm far, far from being eligible (you can find me at the bottom of the previous race!) but I do enjoy reading your thread. I feels a bit like I'm a kid watching the adults from behind the glass. Or like I'm watching one of those sci-fi movies where it's an alternate universe but the people are oddly nice and normal.

Anyway, just ignore me gawking, you inspiring people, I'm just posting to follow.

There comes a time when you suddenly realise you've done almost nothing to get to these rarified Net worth levels.. In fact there is no "almost" about it.. it just happens by itself. In my case we now have three times what we had when I first retired some 10 years ago, and honestly I have not contributed that much in those 10 years.

In other words you ask yourself.. HTF did I end up here? By extension, our friend with $10M is not that many years ahead of most of the forum members in this group.

We are apparently nice and normal because we haven't gotten used to our new found wealth.. Heck I should get new richer friends to replace the existing poor ones, but I just haven't found the time..;)

couponvan

  • Walrus Stache
  • *******
  • Posts: 8816
  • Location: VA
    • My journal
Re: Race from $2M to $4M...and Beyond!
« Reply #7456 on: January 12, 2024, 07:44:39 PM »
The millionaire next door does not wear Gucci in these partsÖ.

pasadenafr

  • Bristles
  • ***
  • Posts: 322
  • Age: 49
  • Location: Upper Left Corner, USA
Re: Race from $2M to $4M...and Beyond!
« Reply #7457 on: January 12, 2024, 09:22:58 PM »
I hope y'all won't mind me intruding in your post. I'm far, far from being eligible (you can find me at the bottom of the previous race!) but I do enjoy reading your thread. I feels a bit like I'm a kid watching the adults from behind the glass. Or like I'm watching one of those sci-fi movies where it's an alternate universe but the people are oddly nice and normal.

Anyway, just ignore me gawking, you inspiring people, I'm just posting to follow.

There comes a time when you suddenly realise you've done almost nothing to get to these rarified Net worth levels.. In fact there is no "almost" about it.. it just happens by itself. In my case we now have three times what we had when I first retired some 10 years ago, and honestly I have not contributed that much in those 10 years.

In other words you ask yourself.. HTF did I end up here? By extension, our friend with $10M is not that many years ahead of most of the forum members in this group.

We are apparently nice and normal because we haven't gotten used to our new found wealth.. Heck I should get new richer friends to replace the existing poor ones, but I just haven't found the time..;)

Indeed, and this is probably one of the reasons why I appreciate this thread so much. It's a nice reprieve from the other ones where all we talk about are numbers (I'm counting myself in this). Nice to see that at some point you can just stop thinking about money, stop living in a spreadsheet and go to the beach. That really is a good end goal.

The millionaire next door does not wear Gucci in these partsÖ.

And then there's that :)

jeroly

  • Pencil Stache
  • ****
  • Posts: 644
Re: Race from $2M to $4M...and Beyond!
« Reply #7458 on: January 13, 2024, 06:18:17 AM »
After managing to avoid it for more than four years, I finally tested positive for Covid a couple of days ago.

I feel so fortunate to have had access to six vaccinations and a course of Paxlovid (which I started twelve hours after testing positive - I first needed to stop my statin (atorvastatin) for twelve hours before beginning).

I'm managing pretty well so far; there's a minor cough and a runny nose and some aches, but big picture it's all good - good blood oxygen levels, no fever.

I am FIREd so I have no job that's looming for me to get back to ASAP, and in fact the only significant thing on my short term calendar is a jury duty assignment starting on the 23rd that I hope to be well enough by then to attend.  (I have travel plans starting February 15th, but barring major health setbacks that should not be at risk.). So I'm just taking it easy, watching junk on tv...now that it's the holiday weekend, I'll swap my CNBC-watching of the last two days for watching the NFL playoffs.

My sweetie has been the best delivery service, dropping off care packages as well as picking up my Paxlovid prescription.  Since she neither needs to go into her office nor to drive her son to school over the MLK Jr holiday, I'll be on my own for the next three days... but I can DoorDash and Instacart it with the best of them if I need to!


BeanCounter

  • Handlebar Stache
  • *****
  • Posts: 1755
Re: Race from $2M to $4M...and Beyond!
« Reply #7459 on: January 13, 2024, 07:32:30 AM »
After managing to avoid it for more than four years, I finally tested positive for Covid a couple of days ago.

I feel so fortunate to have had access to six vaccinations and a course of Paxlovid (which I started twelve hours after testing positive - I first needed to stop my statin (atorvastatin) for twelve hours before beginning).

I'm managing pretty well so far; there's a minor cough and a runny nose and some aches, but big picture it's all good - good blood oxygen levels, no fever.

I am FIREd so I have no job that's looming for me to get back to ASAP, and in fact the only significant thing on my short term calendar is a jury duty assignment starting on the 23rd that I hope to be well enough by then to attend.  (I have travel plans starting February 15th, but barring major health setbacks that should not be at risk.). So I'm just taking it easy, watching junk on tv...now that it's the holiday weekend, I'll swap my CNBC-watching of the last two days for watching the NFL playoffs.

My sweetie has been the best delivery service, dropping off care packages as well as picking up my Paxlovid prescription.  Since she neither needs to go into her office nor to drive her son to school over the MLK Jr holiday, I'll be on my own for the next three days... but I can DoorDash and Instacart it with the best of them if I need to!

Get well soon! I hope COVID is just a mild inconvenience for you.
Money really does make everything easier. When I worked full time I didnít have time to be sick or take care of myself. I remember Jan of 2019 taking 20 minutes to go downstairs from my office and visit our clinic. Then finding out I had bronchitis. Getting my scripts filled and walking right back upstairs to my desk to keep working. I was sick as could be but the fiscal year had to be closed!
So stupid.

BeanCounter

  • Handlebar Stache
  • *****
  • Posts: 1755
Re: Race from $2M to $4M...and Beyond!
« Reply #7460 on: January 13, 2024, 07:39:07 AM »
I hope y'all won't mind me intruding in your post. I'm far, far from being eligible (you can find me at the bottom of the previous race!) but I do enjoy reading your thread. I feels a bit like I'm a kid watching the adults from behind the glass. Or like I'm watching one of those sci-fi movies where it's an alternate universe but the people are oddly nice and normal.

Anyway, just ignore me gawking, you inspiring people, I'm just posting to follow.

There comes a time when you suddenly realise you've done almost nothing to get to these rarified Net worth levels.. In fact there is no "almost" about it.. it just happens by itself. In my case we now have three times what we had when I first retired some 10 years ago, and honestly I have not contributed that much in those 10 years.

In other words you ask yourself.. HTF did I end up here? By extension, our friend with $10M is not that many years ahead of most of the forum members in this group.

We are apparently nice and normal because we haven't gotten used to our new found wealth.. Heck I should get new richer friends to replace the existing poor ones, but I just haven't found the time..;)
I donít feel comfortable at all when thinking about having a $10M balance.
Iíve always been against having a trust but if our balance got that big I might think about setting up some kind of perpetual family trust that would provide income to heirs. Anybody done this?

ixtap

  • Magnum Stache
  • ******
  • Posts: 4583
  • Age: 51
  • Location: SoCal
    • Our Sea Story
Re: Race from $2M to $4M...and Beyond!
« Reply #7461 on: January 13, 2024, 08:56:42 AM »
We hit $10M shortly before Christmas.  Seemed pretty cool to finally get there after all these years, so we celebrated with a movie and a fancy dinner at Longhorn Steakhouse.  Spent well over $100, partying like rockstars.

Then we hit the library on the way home and borrowed some free books and DVDs. 

Unfortunately, we paid out a lot of EOY charitable contributions last week and are probably around $9.9M now.

We hope to hit $10M this year!

This is when I wish there was a LIKE button. So many things to like in this post.

Like/love!

Nah, mo money = mo problems. I stress out at how the heck I'm going to spend $3M plus the $100k+ per year in pension/SS income.. With $10M I'd have to be making $1M charitable donations to avoid the Nieces and Nephews living on cocaine and caviar!

Good "problem" to have though right?

I figure if we ever get to beyond, philanthropy will increase significantly. We simply won't get to $10M in today's dollars.

Dicey

  • Senior Mustachian
  • ********
  • Posts: 22421
  • Age: 66
  • Location: NorCal
Re: Race from $2M to $4M...and Beyond!
« Reply #7462 on: January 13, 2024, 02:48:27 PM »
We hit $10M shortly before Christmas.  Seemed pretty cool to finally get there after all these years, so we celebrated with a movie and a fancy dinner at Longhorn Steakhouse.  Spent well over $100, partying like rockstars.

Then we hit the library on the way home and borrowed some free books and DVDs. 

Unfortunately, we paid out a lot of EOY charitable contributions last week and are probably around $9.9M now.

We hope to hit $10M this year!

This is when I wish there was a LIKE button. So many things to like in this post.

Like/love!

Nah, mo money = mo problems. I stress out at how the heck I'm going to spend $3M plus the $100k+ per year in pension/SS income.. With $10M I'd have to be making $1M charitable donations to avoid the Nieces and Nephews living on cocaine and caviar!

Good "problem" to have though right?
You could spend a little on campsites...[Dicey ducks and runs for cover.]

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 8424
  • Age: 62
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: Race from $2M to $4M...and Beyond!
« Reply #7463 on: January 13, 2024, 03:15:02 PM »

You could spend a little on campsites...[Dicey ducks and runs for cover.]

You just DON'T GET IT do you?...:)

Thanks for that "Gas Buddy" App.. It works great..

Dicey

  • Senior Mustachian
  • ********
  • Posts: 22421
  • Age: 66
  • Location: NorCal
Re: Race from $2M to $4M...and Beyond!
« Reply #7464 on: January 13, 2024, 06:28:03 PM »

You could spend a little on campsites...[Dicey ducks and runs for cover.]

You just DON'T GET IT do you?...:)

Thanks for that "Gas Buddy" App.. It works great..
Don't think I can take credit for that. So many helpful 0eople at the Magnificent Moab Meetups...

secondcor521

  • Walrus Stache
  • *******
  • Posts: 5528
  • Age: 54
  • Location: Boise, Idaho
  • Big cattle, no hat.
    • Age of Eon - Overwatch player videos
Re: Race from $2M to $4M...and Beyond!
« Reply #7465 on: January 13, 2024, 07:57:49 PM »
I hope y'all won't mind me intruding in your post. I'm far, far from being eligible (you can find me at the bottom of the previous race!) but I do enjoy reading your thread. I feels a bit like I'm a kid watching the adults from behind the glass. Or like I'm watching one of those sci-fi movies where it's an alternate universe but the people are oddly nice and normal.

Anyway, just ignore me gawking, you inspiring people, I'm just posting to follow.

There comes a time when you suddenly realise you've done almost nothing to get to these rarified Net worth levels.. In fact there is no "almost" about it.. it just happens by itself. In my case we now have three times what we had when I first retired some 10 years ago, and honestly I have not contributed that much in those 10 years.

In other words you ask yourself.. HTF did I end up here? By extension, our friend with $10M is not that many years ahead of most of the forum members in this group.

We are apparently nice and normal because we haven't gotten used to our new found wealth.. Heck I should get new richer friends to replace the existing poor ones, but I just haven't found the time..;)
I donít feel comfortable at all when thinking about having a $10M balance.
Iíve always been against having a trust but if our balance got that big I might think about setting up some kind of perpetual family trust that would provide income to heirs. Anybody done this?

Not personally.  Seems the people at the Bogleheads forums know quite a lot about trusts; you might try there:

https://www.bogleheads.org/forum/viewforum.php?f=2

Trusts can be complicated, and there's a bunch of different kinds of trusts.  They can also cost a decent amount to set up, operate, maintain, and file taxes for.  I'd probably try to find a Nolo Press book on trust basics and read that first so you know the lay of the land.

Allie

  • Handlebar Stache
  • *****
  • Posts: 1747
Re: Race from $2M to $4M...and Beyond!
« Reply #7466 on: January 14, 2024, 02:47:01 PM »
I hope y'all won't mind me intruding in your post. I'm far, far from being eligible (you can find me at the bottom of the previous race!) but I do enjoy reading your thread. I feels a bit like I'm a kid watching the adults from behind the glass. Or like I'm watching one of those sci-fi movies where it's an alternate universe but the people are oddly nice and normal.

Anyway, just ignore me gawking, you inspiring people, I'm just posting to follow.

Weíre solidly in this thread right now and I still feel like Iím watching the grown ups!  If you made it to the last race and you donít change how youíre living, youíll end up here in a blink wondering what happened.  I love this thread because it is about mindset and living now, not future goals.  I think you should stop by any time and see whatís happening because someone is always doing or planning or finishing up something really awesome.

Exflyboy

  • Walrus Stache
  • *******
  • Posts: 8424
  • Age: 62
  • Location: Corvallis, Oregon
  • Expat Brit living in the New World..:)
Re: Race from $2M to $4M...and Beyond!
« Reply #7467 on: January 14, 2024, 04:09:57 PM »
Yes, something really awesome like, freaking out at the menu prices or trying t get a campsite for free.

The trouble is, when you do this at a MMM meetup EVERYBODY then finds out how cheap you are.. Isn't that right @Dicey ..:

BeanCounter

  • Handlebar Stache
  • *****
  • Posts: 1755
Re: Race from $2M to $4M...and Beyond!
« Reply #7468 on: January 14, 2024, 06:14:28 PM »
I hope y'all won't mind me intruding in your post. I'm far, far from being eligible (you can find me at the bottom of the previous race!) but I do enjoy reading your thread. I feels a bit like I'm a kid watching the adults from behind the glass. Or like I'm watching one of those sci-fi movies where it's an alternate universe but the people are oddly nice and normal.

Anyway, just ignore me gawking, you inspiring people, I'm just posting to follow.

There comes a time when you suddenly realise you've done almost nothing to get to these rarified Net worth levels.. In fact there is no "almost" about it.. it just happens by itself. In my case we now have three times what we had when I first retired some 10 years ago, and honestly I have not contributed that much in those 10 years.

In other words you ask yourself.. HTF did I end up here? By extension, our friend with $10M is not that many years ahead of most of the forum members in this group.

We are apparently nice and normal because we haven't gotten used to our new found wealth.. Heck I should get new richer friends to replace the existing poor ones, but I just haven't found the time..;)
I donít feel comfortable at all when thinking about having a $10M balance.
Iíve always been against having a trust but if our balance got that big I might think about setting up some kind of perpetual family trust that would provide income to heirs. Anybody done this?

Not personally.  Seems the people at the Bogleheads forums know quite a lot about trusts; you might try there:

https://www.bogleheads.org/forum/viewforum.php?f=2

Trusts can be complicated, and there's a bunch of different kinds of trusts.  They can also cost a decent amount to set up, operate, maintain, and file taxes for.  I'd probably try to find a Nolo Press book on trust basics and read that first so you know the lay of the land.
Iím a CPA so I know enough about trusts to be dangerous. Creating a taxable entity and all the associated fees is why I had never considered it. I was more just wondering if there was a tipping point where it no longer made since for heirs to inherit everything. Used to be that the estate tax law helped answer this but since the Trump tax cuts thatís not really true. If it reverts back to $6M in 2026 then that might push some of this group to consider a trust.

I spent much of this morning planning a very expensive family spring break so maybe I just need to not worry about it and work on spending MORE.

secondcor521

  • Walrus Stache
  • *******
  • Posts: 5528
  • Age: 54
  • Location: Boise, Idaho
  • Big cattle, no hat.
    • Age of Eon - Overwatch player videos
Re: Race from $2M to $4M...and Beyond!
« Reply #7469 on: January 14, 2024, 08:15:18 PM »
Not personally.  Seems the people at the Bogleheads forums know quite a lot about trusts; you might try there:

https://www.bogleheads.org/forum/viewforum.php?f=2

Trusts can be complicated, and there's a bunch of different kinds of trusts.  They can also cost a decent amount to set up, operate, maintain, and file taxes for.  I'd probably try to find a Nolo Press book on trust basics and read that first so you know the lay of the land.
Iím a CPA so I know enough about trusts to be dangerous. Creating a taxable entity and all the associated fees is why I had never considered it. I was more just wondering if there was a tipping point where it no longer made since for heirs to inherit everything. Used to be that the estate tax law helped answer this but since the Trump tax cuts thatís not really true. If it reverts back to $6M in 2026 then that might push some of this group to consider a trust.

I spent much of this morning planning a very expensive family spring break so maybe I just need to not worry about it and work on spending MORE.

I've only been around one, and have thus read up on them a bit, but only as it applies to our situation.

@bsteiner over at BH will say that a trust keeps the assets out of the heir's estates and provides some protection against divorce/ex-spouses and Medicaid.  I think @bsteiner is a trust and estate attorney.

If the estate tax portion of the TCJA expires and stays expired, then anyone here under about 60 with $3M or so - which is quite a few, see the $2M to $4M and beyond thread - would be smart to start paying attention.

Even the simple one I know about is sufficiently complicated that I'd rather avoid them if I can.  Plain old spending, annual gifting to kids and grandkids, the college tuition/medical expense exemption, and continued Roth conversions are probably what I will do.  For married folks, DSUEA/portability is something to know about too.

(As an aside, the 2026 sunset will just remove a (temporary TCJA) doubling; the inflation adjustments from 2017(?) to now will still apply.  I think the 2026 BEA will be about $7.2 million.)

Dancin'Dog

  • Handlebar Stache
  • *****
  • Posts: 1765
  • Location: Here & There
Re: Race from $2M to $4M...and Beyond!
« Reply #7470 on: January 14, 2024, 09:08:57 PM »
A couple of things that I'm aware of about Trusts, unlike Wills, are private and avoid probate.  Trusts receive an EIN, which is similar to a SSN.  By being a separate legal entity, Trusts are protected from liabilities against the Trustee.  When you set up a Trust you can choose whether your heirs will become the Trustees of their Trusts, or not.  If you trust an heir to freely control their share, they become a Trustee.  However, if you do not want to give an heir full control of their portion you can name someone else as the Trustee for their Trust.  Brokerage companies, such as Vanguard, offer Trust management services. 


Trust tax rates are quite steep.  To avoid that rate the gains are transferred to the beneficiary and then taxed at their personal rate. 


I'm not a professional, but the info above is what I understand about Trusts.  You obviously need to consult with an estate attorney about your specific situation.


Also, you can protect real estate and other assets by placing them in the Trust.  I found that when I researched real estate deeds in high-end areas nearby a significant number were held in Trusts.  It was much more common than I would have expected.  In NC personal real estate sales require the signature of your mate, while real estate held in a Trust does not. 

Car Jack

  • Handlebar Stache
  • *****
  • Posts: 2145
Re: Race from $2M to $4M...and Beyond!
« Reply #7471 on: January 16, 2024, 08:04:00 AM »

I donít feel comfortable at all when thinking about having a $10M balance.
Iíve always been against having a trust but if our balance got that big I might think about setting up some kind of perpetual family trust that would provide income to heirs. Anybody done this?

DW and I had our wills done and the lawyer recommended revokable trusts.  This is in Massachusetts which at that time had a tax cliff over a $1M estate.  Have a $1M estate and there's zero state tax.  $1,000,001 and it's $33,000.  That's since changed to $2M without the cliff.  But anyways, the trust would be funded when the first of us passed with $1M.  When the second of us passed, $1M more.  The rest would be in the estate that would be probated and taxed.  In addition, neither of our kids would be responsible with a big windfall so we'd do the % at 30, % at 40 and so on.  THEN we were hit with the problem.  Trustee.  Seems like not a big deal but people we feel are responsible are our ages, so they likely will die the same time we do.  Those younger aren't responsible as far as we're concerned.  A professional trustee costs between 1 and 3% a year, so with $1M in it, that's $10k to $30k a year and after both of us are gone, $20k to $60k.  So we canned the whole thing.  They'll inherit plenty of money to be able to pay estate taxes.  We should probably just spend it ourselves.  That's sorta hard though because we're so good at living below our means.

farmecologist

  • Pencil Stache
  • ****
  • Posts: 610
Re: Race from $2M to $4M...and Beyond!
« Reply #7472 on: January 16, 2024, 10:04:08 AM »
We hit $10M shortly before Christmas.  Seemed pretty cool to finally get there after all these years, so we celebrated with a movie and a fancy dinner at Longhorn Steakhouse.  Spent well over $100, partying like rockstars.

Then we hit the library on the way home and borrowed some free books and DVDs. 

Unfortunately, we paid out a lot of EOY charitable contributions last week and are probably around $9.9M now.

We hope to hit $10M this year!

This is when I wish there was a LIKE button. So many things to like in this post.

Like/love!

Nah, mo money = mo problems. I stress out at how the heck I'm going to spend $3M plus the $100k+ per year in pension/SS income.. With $10M I'd have to be making $1M charitable donations to avoid the Nieces and Nephews living on cocaine and caviar!

Good "problem" to have though right?


Well said.  We have a few years until SS kicks in ( we are only in our very early 50s ).   Once that kicks in, we will be in the same boat as you.

If I have learned anything during this journey, I now understand how the wealthy stay wealthy.  They basically do nothing and let the money do the work! 

Contributions are making very little difference at this point, but we are still maxing out our 401k's due to tax implications of not doing so.  Likely will be "retiring" ( or laid off ) soon though!

ATtiny85

  • Pencil Stache
  • ****
  • Posts: 960
  • Location: Midwest
Re: Race from $2M to $4M...and Beyond!
« Reply #7473 on: January 16, 2024, 10:42:50 AM »

Well said.  We have a few years until SS kicks in ( we are only in our very early 50s ).   Once that kicks in, we will be in the same boat as you.

If I have learned anything during this journey, I now understand how the wealthy stay wealthy.  They basically do nothing and let the money do the work! 

Contributions are making very little difference at this point, but we are still maxing out our 401k's due to tax implications of not doing so.  Likely will be "retiring" ( or laid off ) soon though!

I don't pay much attention to the impact of our contributions, but now that I think about 2023, having just crunched the numbers, our contributions were about 25% or so of the overall increase. Still significant for us, but really, to your point, if we stopped (or decreased, esp the taxable) we would still progress rapidly towards our goal.

Fomerly known as something

  • Handlebar Stache
  • *****
  • Posts: 1642
  • Location: CA
Re: Race from $2M to $4M...and Beyond!
« Reply #7474 on: January 18, 2024, 08:26:58 AM »
18 months until Iím Pension eligible.  With a combination of Sick Leave, Annual Leave and Leave Without pay, I donít have to work another day if I have a major medical issue.

Iím on the ďtraditional early retiree trackĒ (first responder with a pension).  With most of my contemporaries who are approaching eligibility, itís all about what ďretirement jobĒ they can get, some are very lucrative.  (My favorite boss is getting 2x his current salary).  It makes me wonder why am ďIĒ a financial mutant in that while Iím happy for them, I have no interest of doing anything like that myself.

I think at the end of the day it might just be those college economic classes, the ones where we studied, trade offs and marginal gains. 

Yup, I could figure out how to spend more money, but why?  My environmental hippie tendencies wonít let me replace my 10 year old TV because it isnít broken.  I guess Iíd switch my condo for a similarly sized house with a small yard.  (My favorite SFH was on a 40x110 ft lot).  Iíve stayed at higher end hotels for work, and the value isnít there for me, plus I find having ďtoo much serviceĒ is kind of personally annoying.  But none of these things would make me ďsignificantlyĒ happier.

On the other hand, it would mean I would not have as much time excess Iím looking forward to.  Who know when if ever Iíd be able to walk the Camino with the idea of starting somewhere in Germany/Switzerland, or to have weeks of visiting with family competing with weeks of traditional vacation, to be able to be consistent again in my long distance running and qualify once more for the Boston Marathon.  To developing new hobbies, or making commitments to groups Iíd love to volunteer with but I donít because I know ďIím unreliableĒ due to work.  To simple things like cooking more in smaller amounts instead of cooking one meal I heat up for the rest of the week. 

I guess the time abundance is just way more important to me to being able to sleep at the Ritz that doesnít honestly excite me.  Especially since I ďcouldĒ sleep at the ritz, it would mean I would be using that money Iím saving for a cruise to Antarctica though.

ixtap

  • Magnum Stache
  • ******
  • Posts: 4583
  • Age: 51
  • Location: SoCal
    • Our Sea Story
Re: Race from $2M to $4M...and Beyond!
« Reply #7475 on: January 18, 2024, 10:14:28 AM »

Well said.  We have a few years until SS kicks in ( we are only in our very early 50s ).   Once that kicks in, we will be in the same boat as you.

If I have learned anything during this journey, I now understand how the wealthy stay wealthy.  They basically do nothing and let the money do the work! 

Contributions are making very little difference at this point, but we are still maxing out our 401k's due to tax implications of not doing so.  Likely will be "retiring" ( or laid off ) soon though!

I don't pay much attention to the impact of our contributions, but now that I think about 2023, having just crunched the numbers, our contributions were about 25% or so of the overall increase. Still significant for us, but really, to your point, if we stopped (or decreased, esp the taxable) we would still progress rapidly towards our goal.

When we did our last snapshot, we were still a tiny fraction short of our 2021 high despite contributions. And that is why I don't understand how anyone can look at a good year and say "oh, well, my portfolio made more than my salary, what is even the point of adding?" The point is until we reached our goals, everything made a difference. Even now that we have exceeded our goals and I make sure DH knows I support him in leaving at any time, we both realize that  even his downshifted his income and health benefits make a huge difference to what options we will have in the long term.

Ron Scott

  • Handlebar Stache
  • *****
  • Posts: 1156
Re: Race from $2M to $4M...and Beyond!
« Reply #7476 on: January 19, 2024, 07:17:51 AM »
So to explain tax loss harvesting a bit more, it's not buy high, sell low.  It's "I bought high" and now the market has dropped.  So as long as it's been over 30 days, I sell the one that was bought high.  But at the same time, I buy an equal amount of something that's nearly identical.  The result is that the loss from selling at a lower price gives me a loss for my taxes but buying the near identical keeps me invested, but at the new, low basis.

For example, sell VTI at a loss and buy SCHB.  If you look at their charts over time, they're nearly identical.  It's like if someone looked at my investments and said, "hey Jack.  You paid way too much for VTI and I see you're also in SCHB.  What would you think if I could get you a tax loss and keep you fully invested in this total US stock type ETF?".  My answer would be "Sure.  I could use the tax loss to reduce my taxes and then I reduce my total basis and overall, I take no actual loss as the market corrects back up".  Sure, I'm assuming the market is going to go back up.  But don't we all assume this?  If not, we'd all be 100% in CDs.

I think what leaves some people unimpressed with the strategy is theyíre long-term KISS index investors with just a few funds and none are in the red. If theyíre set up to reinvest dividends there may a loss on a few shares but itís small potatoes.

I agree with you in principle and Iíve done some of this. But itís not always a big dealÖfor some.

Louise

  • Stubble
  • **
  • Posts: 150
Re: Race from $2M to $4M...and Beyond!
« Reply #7477 on: January 19, 2024, 08:38:45 AM »

Yup, I could figure out how to spend more money, but why?  My environmental hippie tendencies wonít let me replace my 10 year old TV because it isnít broken.  I guess Iíd switch my condo for a similarly sized house with a small yard.  (My favorite SFH was on a 40x110 ft lot).  Iíve stayed at higher end hotels for work, and the value isnít there for me, plus I find having ďtoo much serviceĒ is kind of personally annoying.  But none of these things would make me ďsignificantlyĒ happier.

I can see paying for more leg room on a plane for international trips (haven't yet though!), but I totally agree about having too much service. I don't know how to maneuver the tipping/expectations, so I'd rather opt out.

Fomerly known as something

  • Handlebar Stache
  • *****
  • Posts: 1642
  • Location: CA
Re: Race from $2M to $4M...and Beyond!
« Reply #7478 on: January 19, 2024, 09:12:40 AM »

Yup, I could figure out how to spend more money, but why?  My environmental hippie tendencies wonít let me replace my 10 year old TV because it isnít broken.  I guess Iíd switch my condo for a similarly sized house with a small yard.  (My favorite SFH was on a 40x110 ft lot).  Iíve stayed at higher end hotels for work, and the value isnít there for me, plus I find having ďtoo much serviceĒ is kind of personally annoying.  But none of these things would make me ďsignificantlyĒ happier.

I can see paying for more leg room on a plane for international trips (haven't yet though!), but I totally agree about having too much service. I don't know how to maneuver the tipping/expectations, so I'd rather opt out.

Paying for extra legroom is already in the plan which is why it didnít make my list.

farmecologist

  • Pencil Stache
  • ****
  • Posts: 610
Re: Race from $2M to $4M...and Beyond!
« Reply #7479 on: January 19, 2024, 09:51:58 AM »

Yup, I could figure out how to spend more money, but why?  My environmental hippie tendencies wonít let me replace my 10 year old TV because it isnít broken.  I guess Iíd switch my condo for a similarly sized house with a small yard.  (My favorite SFH was on a 40x110 ft lot).  Iíve stayed at higher end hotels for work, and the value isnít there for me, plus I find having ďtoo much serviceĒ is kind of personally annoying.  But none of these things would make me ďsignificantlyĒ happier.

I can see paying for more leg room on a plane for international trips (haven't yet though!), but I totally agree about having too much service. I don't know how to maneuver the tipping/expectations, so I'd rather opt out.

Paying for extra legroom is already in the plan which is why it didnít make my list.

I'm fine on coach, even on international trips, IF I get the aisle seat.  Luckily, my spouse is fine with this.  Another bonus on the international flights we have been on lately is that the seats closest to the windows only have two seats.  Works out perfectly for us.  We do have an upcoming international flight in April where there are three seats.  Not quite sure what to do there as we will likely have to sit with a stranger in the window seat, which kind of sucks on long flights.

EscapeVelocity2020

  • Magnum Stache
  • ******
  • Posts: 4828
  • Age: 50
  • Location: Houston
    • EscapeVelocity2020
Re: Race from $2M to $4M...and Beyond!
« Reply #7480 on: January 19, 2024, 10:25:45 AM »
Discretionary spending is pretty much inconsequential these days compared to the money I 'lose' by being lazy not chasing percentages as well as the taxes at my marginal rate...  When I have more time and income 'flexibility', I'll put more effort in to optimizing.  My spending has drifted up significantly these recent years, but it all comes out in the wash while I'm still working.  A little piece of me justifies this by patting myself on the back for spending more prior to the inflationary / pandemic spike (new cars, home improvements), and my 50 year old self is also fine with all that wasteful travel my 30 and 40 year old self / family enjoyed.  All about having balance, and I feel like I've done pretty well, maybe being a bit too miserly in my 20's.  DW certainly likes the 'no money stress' marriage dynamic we have achieved.

farmecologist

  • Pencil Stache
  • ****
  • Posts: 610
Re: Race from $2M to $4M...and Beyond!
« Reply #7481 on: January 19, 2024, 04:45:22 PM »
Discretionary spending is pretty much inconsequential these days compared to the money I 'lose' by being lazy not chasing percentages as well as the taxes at my marginal rate...  When I have more time and income 'flexibility', I'll put more effort in to optimizing.  My spending has drifted up significantly these recent years, but it all comes out in the wash while I'm still working.  A little piece of me justifies this by patting myself on the back for spending more prior to the inflationary / pandemic spike (new cars, home improvements), and my 50 year old self is also fine with all that wasteful travel my 30 and 40 year old self / family enjoyed.  All about having balance, and I feel like I've done pretty well, maybe being a bit too miserly in my 20's.  DW certainly likes the 'no money stress' marriage dynamic we have achieved.

Speaking of 'no money stress', we used to be 'cash poor' in the early days because we were saving so much.  Now...no worries about cash flow whatsoever.  In fact, I had a very large stock trading win at the end of 2023 and substantially beefed up our cash position ( cash is in a HYSA paying what I consider a very good rate ).  We will reassess once rates start to drop, but I wanted to reduce stock market exposure a bit and a HYSA is an adequate option to park cash these days.

I also hope to retire in 2025...IF I can struggle through this year at work.   I want to have the 'rule of 55' option to tap my 401k early without penalty if needed.   Shouldn't need to...but it will be nice to have the option!


EscapeVelocity2020

  • Magnum Stache
  • ******
  • Posts: 4828
  • Age: 50
  • Location: Houston
    • EscapeVelocity2020
Re: Race from $2M to $4M...and Beyond!
« Reply #7482 on: January 19, 2024, 05:45:09 PM »
...
I also hope to retire in 2025...IF I can struggle through this year at work.   I want to have the 'rule of 55' option to tap my 401k early without penalty if needed.   Shouldn't need to...but it will be nice to have the option!

Me too.  A few significant milestones hit right around the time I turn 55 - both kids should be out of college and nearing the 25 yo cutoff to stay on my family health insurance, the rule of 55, and both Biden and Trump will be out of the picture!  I don't *have to* work until I'm 55 but a lot of incentive should disappear in 2029 / 2030...  I'd also be willing to take a severance package in the meantime.

Taran Wanderer

  • Handlebar Stache
  • *****
  • Posts: 1423
Re: Race from $2M to $4M...and Beyond!
« Reply #7483 on: January 19, 2024, 10:40:22 PM »
I just lost two high school classmates this past week.  Both were from medical issues, one sudden, one a longer ordeal for them but sudden for us that didn’t know until the end.  Both leave behind spouses, and one of them two adult children.  One of them was a daily presence in my life for most of high school.  I’ve been thinking about it a lot.  How has the loss of friends or family impacted your thoughts on FIRE or life in general?
« Last Edit: January 19, 2024, 10:42:40 PM by Taran Wanderer »

Dicey

  • Senior Mustachian
  • ********
  • Posts: 22421
  • Age: 66
  • Location: NorCal
Re: Race from $2M to $4M...and Beyond!
« Reply #7484 on: January 19, 2024, 11:33:31 PM »
I just lost two high school classmates this past week.  Both were from medical issues, one sudden, one a longer ordeal for them but sudden for us that didnít know until the end.  Both leave behind spouses, and one of them two adult children.  One of them was a daily presence in my life for most of high school.  Iíve been thinking about it a lot.  How has the loss of friends or family impacted your thoughts on FIRE or life in general?
I was treated for a rare cancer when I was 21-22. It has impacted my thoughts on FIRE every day since. Losing loved ones, or even people you just knew at a certain point in your life, is hard. I read something here that helped profoundly, which makes it a strong possibility that it came from @Metalcat, though I may be misremembering: "Death is not a surprise, it is the expected outcome." I find that oddly comforting. I repeat it to myself as a reminder that now is all that's guaranteed.  Hug your peeps, tell them you like/love/adore them, and hope for the best.

Sorry for your loss, TW.

Metalcat

  • Senior Mustachian
  • ********
  • Posts: 17613
Re: Race from $2M to $4M...and Beyond!
« Reply #7485 on: January 20, 2024, 04:23:11 AM »
I just lost two high school classmates this past week.  Both were from medical issues, one sudden, one a longer ordeal for them but sudden for us that didnít know until the end.  Both leave behind spouses, and one of them two adult children.  One of them was a daily presence in my life for most of high school.  Iíve been thinking about it a lot.  How has the loss of friends or family impacted your thoughts on FIRE or life in general?
I was treated for a rare cancer when I was 21-22. It has impacted my thoughts on FIRE every day since. Losing loved ones, or even people you just knew at a certain point in your life, is hard. I read something here that helped profoundly, which makes it a strong possibility that it came from @Metalcat, though I may be misremembering: "Death is not a surprise, it is the expected outcome." I find that oddly comforting. I repeat it to myself as a reminder that now is all that's guaranteed.  Hug your peeps, tell them you like/love/adore them, and hope for the best.

Sorry for your loss, TW.

That definitely sounds like me.

But it also brings up something I wrote about recently. I've been citing the book Being Mortal frequently recently, because it's a REALLY good book, and often highly relevant here because it's all about quality of life.

And one of the points I've brought up a few times is that the research shows pretty solidly that people's values and priorities change pretty intensely over the course of their lives, moving away from accomplishments and drastically more towards connections and relationships.

However, if you experience a major health issue or a major loss younger, you can drastically accelerate that transition. So having cancer young, or me having serious health issues young has very likely been a major driving force of the change in values that drives our mustachianism and our heavy focus on relationships and savouring life rather than on proving our value in society through making and spending as much money as possible, which is the general consensus of demonstrating "accomplishment" in our culture.

So yes, getting sick or having loved ones die younger can absolutely, fundamentally alter the way someone lives their life.

2sk22

  • Handlebar Stache
  • *****
  • Posts: 1508
Re: Race from $2M to $4M...and Beyond!
« Reply #7486 on: January 20, 2024, 06:46:38 AM »
I just lost two high school classmates this past week.  Both were from medical issues, one sudden, one a longer ordeal for them but sudden for us that didnít know until the end.  Both leave behind spouses, and one of them two adult children.  One of them was a daily presence in my life for most of high school.  Iíve been thinking about it a lot.  How has the loss of friends or family impacted your thoughts on FIRE or life in general?

My dad started to seriously decline from Alzheimer's by the time he turned 82. This made me realize how limited a window we have to enjoy retirement and was one of the contributing factors for me to retire sooner.

weebs

  • Stubble
  • **
  • Posts: 154
  • Age: 50
  • Location: The Sticks
Re: Race from $2M to $4M...and Beyond!
« Reply #7487 on: January 20, 2024, 07:21:57 AM »
So yes, getting sick or having loved ones die younger can absolutely, fundamentally alter the way someone lives their life.

This is absolutely true.  One of our friends from college lost her battle with cancer at age 30. At the time, I was a hard driving type A overachiever who spent a ludicrous amount of time at work.  Her death completely scrambled my values (in a good way).  It was at that point that I realized what an asshole I'd been and began focusing more on the relationships in my life and less on my job.

Ten years later a good friend committed suicide.  It wasn't the paradigm shift of prior loss, but it reinforced the importance of maintaining relationships and staying in touch.  He moved ~100 miles away a couple years prior and I saw and spoke with him less than I'd like. I truly miss him and regret not spending more time with him before he was gone.

Fast forward to the present.  Last summer, while waiting to board a plane in Europe to fly back home to the states, I found out that a family member died suddenly.  He was only 12 years older than me.  Weeks later, a close fried from our college crew contracted west nile and almost died.  He's still in a care facility and my never walk again.  Yet another person in that same group of college friends was just diagnosed with cancer.

Life is short, folks.

Metalcat

  • Senior Mustachian
  • ********
  • Posts: 17613
Re: Race from $2M to $4M...and Beyond!
« Reply #7488 on: January 20, 2024, 07:50:01 AM »
So yes, getting sick or having loved ones die younger can absolutely, fundamentally alter the way someone lives their life.

This is absolutely true.  One of our friends from college lost her battle with cancer at age 30. At the time, I was a hard driving type A overachiever who spent a ludicrous amount of time at work.  Her death completely scrambled my values (in a good way).  It was at that point that I realized what an asshole I'd been and began focusing more on the relationships in my life and less on my job.

Ten years later a good friend committed suicide.  It wasn't the paradigm shift of prior loss, but it reinforced the importance of maintaining relationships and staying in touch.  He moved ~100 miles away a couple years prior and I saw and spoke with him less than I'd like. I truly miss him and regret not spending more time with him before he was gone.

Fast forward to the present.  Last summer, while waiting to board a plane in Europe to fly back home to the states, I found out that a family member died suddenly.  He was only 12 years older than me.  Weeks later, a close fried from our college crew contracted west nile and almost died.  He's still in a care facility and my never walk again.  Yet another person in that same group of college friends was just diagnosed with cancer.

Life is short, folks.

I wrote about this in another thread, but I was highly driven to achieve in school, but not for some vague sense of accomplishment but to be able to do meaningful work connecting with people.

I've been sick my whole life, so my perspective on what matters has always been skewed.

But while I was doing my doctorate and working 80-100hrs/wk, problem kept praising me for the "sacrifices" I was making, and treating me like I was somehow a "good" person for working so hard.

I was so offended by this societal praise and often clapped back that that was a fucking stupid interpretation of what I was doing.

I was spending no time with family, I missed weddings of my closest friends, I was doing absolutely nothing except putting all of my energy into my own success. And it wasn't necessary, the world didn't need me to do that. I competed ferociously with other, perfectly qualified students for my position in that program. If I hadn't gotten in, someone equally driven and capable would have filled that role.

The work I did to get in and the work I did to succeed and graduate benefitted absolutely no one but me. It was the most selfish, self-absorbed, and neglectful of my loved ones I have ever been in my whole life. I even neglected my own health, which is just embarrassing, really.

But I did it because I knew what I wanted to do career-wise to be really happy, and I was right. I was exceptionally happy and satisfied with my career. A few miserable years did end up feeling worth it, but had it been even a handful more years, I can't say that would have been true.

It was acceptable because it was very temporary and gave me the kind of career where I could afford to refocus on what mattered to me, while other career options would have indefinitely required "sacrifices" that weren't worth it.

These aren't "sacrifices" though. These are investments. And like any investment, they are either really smart, or really fucking stupid. The payoff is either worthwhile or it really isn't.

I temporarily pulled all of my investments out of health and relationships and made a play that was intended to payoff big time in terms of both.

But at no point was it a "sacrifice" on my part to take ALLLL of my resources and focus them on my own material gains and away from the things that truly make life worth living. I tolerated a brief stint of toxic self-obsession only because in the end, it was meant to *help* bolster those things that actually matter, and the timeline felt tolerable.

But in my career I was surrounded by folks indoctrinated to believe that that that kind of self-focus is what makes them good, valuable people in this world.

So they end up lonely, isolated, miserable, unhealthy, and disconnected from themselves and others. All the while believing they were doing everything "right," and that they have been piously "sacrificing" all along to do it.

Absolutely poppycock.


farmecologist

  • Pencil Stache
  • ****
  • Posts: 610
Re: Race from $2M to $4M...and Beyond!
« Reply #7489 on: January 20, 2024, 10:17:54 AM »
...
I also hope to retire in 2025...IF I can struggle through this year at work.   I want to have the 'rule of 55' option to tap my 401k early without penalty if needed.   Shouldn't need to...but it will be nice to have the option!

Me too.  A few significant milestones hit right around the time I turn 55 - both kids should be out of college and nearing the 25 yo cutoff to stay on my family health insurance, the rule of 55, and both Biden and Trump will be out of the picture!  I don't *have to* work until I'm 55 but a lot of incentive should disappear in 2029 / 2030...  I'd also be willing to take a severance package in the meantime.

We are nearing those milestones right now.  Both kids graduate from college this spring ( daughter getting her masters degree and son getting his bachelors degree ).   Son is applying to grad schools and hopefully will land a fully paid + stipend gig in space science ( his bachelors degree is in physics and astrophysics ).  He just heard back from the first school and they are interested and he has an informal interview soon!  Fingers crossed!  Daughter will get a job doing therapy when she graduates.   

So a lot of moving parts this year.  IF everything works out with the kids, that will be a huge load lifted.  We will be able to get them out of school with no student loans as well, so that is a big win right there.  However, it is what happens after school that matters even more.

If all goes to plan, decisions will be made in 2025...the year I turn 55.  I'm so past done with my job though...we will see if I can coast along until then!

arcturus

  • Stubble
  • **
  • Posts: 172
  • Age: 54
  • Location: Midwest
Re: Race from $2M to $4M...and Beyond!
« Reply #7490 on: January 20, 2024, 07:48:07 PM »
...
I also hope to retire in 2025...IF I can struggle through this year at work.   I want to have the 'rule of 55' option to tap my 401k early without penalty if needed.   Shouldn't need to...but it will be nice to have the option!

Me too.  A few significant milestones hit right around the time I turn 55 - both kids should be out of college and nearing the 25 yo cutoff to stay on my family health insurance, the rule of 55, and both Biden and Trump will be out of the picture!  I don't *have to* work until I'm 55 but a lot of incentive should disappear in 2029 / 2030...  I'd also be willing to take a severance package in the meantime.

We are nearing those milestones right now.  Both kids graduate from college this spring ( daughter getting her masters degree and son getting his bachelors degree ).   Son is applying to grad schools and hopefully will land a fully paid + stipend gig in space science ( his bachelors degree is in physics and astrophysics ).  He just heard back from the first school and they are interested and he has an informal interview soon!  Fingers crossed!  Daughter will get a job doing therapy when she graduates.   

So a lot of moving parts this year.  IF everything works out with the kids, that will be a huge load lifted.  We will be able to get them out of school with no student loans as well, so that is a big win right there.  However, it is what happens after school that matters even more.

If all goes to plan, decisions will be made in 2025...the year I turn 55.  I'm so past done with my job though...we will see if I can coast along until then!

So true that what happens after school matters even more.  I have all three kids through college (one just graduated) at this point, but only one that has truly attained independence at this point.  It is a significant factor that goes into the calculus of whether I should pull the trigger in 2025 or 2026.  I'll be 55 this year and definitely agree with the posts about life being short and being more connected, and yet, my sense of responsibility to my family kicks in and I'm not sure I could exit a reasonably successful career with a clean conscience without knowing that the kids were in the clear and independent.

Hoping things work our well for you and your kids.....its been a mixed experience for me for sure.   I'm hopeful that later this year I can have a breakthrough on this front, but right now it looks murky (for one of mine, in particular).

2sk22

  • Handlebar Stache
  • *****
  • Posts: 1508
Re: Race from $2M to $4M...and Beyond!
« Reply #7491 on: January 23, 2024, 02:58:26 AM »
A landmark for us - I finally canceled the automatic monthly purchase of the S&P index fund in our brokerage account which had been running continuously since the 1990s. We started this because we had maxed out our 401Ks and still had a lot of money left. Started this at $500 per month and gradually increased the amount over the years as our salaries grew. One of my goals for this year is to transition to the decumulation mindset!

Ron Scott

  • Handlebar Stache
  • *****
  • Posts: 1156
Re: Race from $2M to $4M...and Beyond!
« Reply #7492 on: January 23, 2024, 05:00:47 AM »
Over the years Iíve known quite a few wealthy people. My experience is similar to what most of this thread reveals:

1. Very few of the wealthy show it off through big lifestyles. Thatís a TV thing. But they also do not judge others who look-the-part.

2. What do the wealthy do with their money? Investments and generosity. Theyíre not planning to spend their last dollar on an undertaker LOL.

3. Most of the wealthy have a deep sense for value and HATE to overspend. Some can be evangelical about this.

4. Is it surprising how many wealthy men dress to the 20-20-10 rule: The weekend uniform is a $20 T shirt, $20 jeans, and 10-year-old sneakers.


Finally, I find little correlation between wealth and early retirement. Long hours? Whatever. And where others find stress, they play hardball. A big-money gig is a no-bullshit way of life and they donít let others get in their way.




Fomerly known as something

  • Handlebar Stache
  • *****
  • Posts: 1642
  • Location: CA
Re: Race from $2M to $4M...and Beyond!
« Reply #7493 on: January 23, 2024, 01:32:10 PM »
A landmark for us - I finally canceled the automatic monthly purchase of the S&P index fund in our brokerage account which had been running continuously since the 1990s. We started this because we had maxed out our 401Ks and still had a lot of money left. Started this at $500 per month and gradually increased the amount over the years as our salaries grew. One of my goals for this year is to transition to the decumulation mindset!

My automatic investments the last few years have been in support of ďpassing them throughĒ to my DAF.  In other words itís letting me mentally be able to make those large contributions that I know I can do, but it still feels uncomfy.  Plus itís letting me sort of tax gain harvest on my most appreciated shares.  They will end at the end of the year in anticipation of my July 2025 FIRE.  Itís getting real now, 18 months.

Much Fishing to Do

  • Handlebar Stache
  • *****
  • Posts: 1141
Re: Race from $2M to $4M...and Beyond!
« Reply #7494 on: January 24, 2024, 04:57:37 AM »
...
I also hope to retire in 2025...IF I can struggle through this year at work.   I want to have the 'rule of 55' option to tap my 401k early without penalty if needed.   Shouldn't need to...but it will be nice to have the option!

Me too.  A few significant milestones hit right around the time I turn 55 - both kids should be out of college and nearing the 25 yo cutoff to stay on my family health insurance, the rule of 55, and both Biden and Trump will be out of the picture!  I don't *have to* work until I'm 55 but a lot of incentive should disappear in 2029 / 2030...  I'd also be willing to take a severance package in the meantime.

We are nearing those milestones right now.  Both kids graduate from college this spring ( daughter getting her masters degree and son getting his bachelors degree ).   Son is applying to grad schools and hopefully will land a fully paid + stipend gig in space science ( his bachelors degree is in physics and astrophysics ).  He just heard back from the first school and they are interested and he has an informal interview soon!  Fingers crossed!  Daughter will get a job doing therapy when she graduates.   

So a lot of moving parts this year.  IF everything works out with the kids, that will be a huge load lifted.  We will be able to get them out of school with no student loans as well, so that is a big win right there.  However, it is what happens after school that matters even more.

If all goes to plan, decisions will be made in 2025...the year I turn 55.  I'm so past done with my job though...we will see if I can coast along until then!

So true that what happens after school matters even more.  I have all three kids through college (one just graduated) at this point, but only one that has truly attained independence at this point.  It is a significant factor that goes into the calculus of whether I should pull the trigger in 2025 or 2026.  I'll be 55 this year and definitely agree with the posts about life being short and being more connected, and yet, my sense of responsibility to my family kicks in and I'm not sure I could exit a reasonably successful career with a clean conscience without knowing that the kids were in the clear and independent.

Hoping things work our well for you and your kids.....its been a mixed experience for me for sure.   I'm hopeful that later this year I can have a breakthrough on this front, but right now it looks murky (for one of mine, in particular).

I have the first of 3 kids finishing college this year.  Part of my preparation for FIRE was to try to separate these after 18 costs from my stache and making them fixed by fully funding 529s for each of them (that would cover 4 years at our very expensive flagship university).  THey get to keep whatever is in the 529 after graduation.   I then buy them a new car for college graduation.  With no student loans and no car payment for at least 10 years, they should be able to stay out of debt, and then they are own their own so they can figure out how to live off of their salaries and budget going forward without my "interference".  I suspect in good market years I'll cut them a nice check for a christmas present and in bad market years not.  THe first kid is finishing with what looks to be a decent house downpayment left in his 529, so he did well keeping his school costs down with some scholarships and working, and his career prospects look pretty good, so I think this may all be working out..I think...

ATtiny85

  • Pencil Stache
  • ****
  • Posts: 960
  • Location: Midwest
Re: Race from $2M to $4M...and Beyond!
« Reply #7495 on: January 24, 2024, 07:23:02 AM »
A landmark for us - I finally canceled the automatic monthly purchase of the S&P index fund in our brokerage account which had been running continuously since the 1990s. We started this because we had maxed out our 401Ks and still had a lot of money left. Started this at $500 per month and gradually increased the amount over the years as our salaries grew. One of my goals for this year is to transition to the decumulation mindset!

I suspect this will be the hardest thing for me to do. Also started in the 1990s. I think it was $50 a month, but maybe $75. All into the Berger Small Company Growth fund. Moved and changed and added other funds, got up to maybe $250 a month for a decade, then really started increasing about 15 years ago and settled into all VTSAX. We have not reached the levels that you have, but still are at a second comma and have a few more years yet that contributions will continue, and we are fortunate to be able to put a full year of expenses (and more) into the account each year now.

Having a large taxable account just brings so much flexibility. I have considered my taxable monthly contribution as an expense. Even during grad school. I always recommend to get something started as early as possible.

Fomerly known as something

  • Handlebar Stache
  • *****
  • Posts: 1642
  • Location: CA
Re: Race from $2M to $4M...and Beyond!
« Reply #7496 on: January 24, 2024, 09:44:24 AM »
A landmark for us - I finally canceled the automatic monthly purchase of the S&P index fund in our brokerage account which had been running continuously since the 1990s. We started this because we had maxed out our 401Ks and still had a lot of money left. Started this at $500 per month and gradually increased the amount over the years as our salaries grew. One of my goals for this year is to transition to the decumulation mindset!

I suspect this will be the hardest thing for me to do. Also started in the 1990s. I think it was $50 a month, but maybe $75. All into the Berger Small Company Growth fund. Moved and changed and added other funds, got up to maybe $250 a month for a decade, then really started increasing about 15 years ago and settled into all VTSAX. We have not reached the levels that you have, but still are at a second comma and have a few more years yet that contributions will continue, and we are fortunate to be able to put a full year of expenses (and more) into the account each year now.

Having a large taxable account just brings so much flexibility. I have considered my taxable monthly contribution as an expense. Even during grad school. I always recommend to get something started as early as possible.

Iím hoping, monthly setting aside cash from my spend budget for more expensive items like bigger trips or housing fixes will help me ďscratchĒ the itch.  Iím also going to set aside $100 a month to my play stock account which I view as entertainment/help me to feel like Iím still doing something.

ixtap

  • Magnum Stache
  • ******
  • Posts: 4583
  • Age: 51
  • Location: SoCal
    • Our Sea Story
Re: Race from $2M to $4M...and Beyond!
« Reply #7497 on: January 24, 2024, 10:16:35 AM »
A landmark for us - I finally canceled the automatic monthly purchase of the S&P index fund in our brokerage account which had been running continuously since the 1990s. We started this because we had maxed out our 401Ks and still had a lot of money left. Started this at $500 per month and gradually increased the amount over the years as our salaries grew. One of my goals for this year is to transition to the decumulation mindset!

I suspect this will be the hardest thing for me to do. Also started in the 1990s. I think it was $50 a month, but maybe $75. All into the Berger Small Company Growth fund. Moved and changed and added other funds, got up to maybe $250 a month for a decade, then really started increasing about 15 years ago and settled into all VTSAX. We have not reached the levels that you have, but still are at a second comma and have a few more years yet that contributions will continue, and we are fortunate to be able to put a full year of expenses (and more) into the account each year now.

Having a large taxable account just brings so much flexibility. I have considered my taxable monthly contribution as an expense. Even during grad school. I always recommend to get something started as early as possible.

Not sure if this is a blessing or an MPP: we never automated investments in taxable. We have a sizeable taxable account, but it is the result of saving the vast majority of ESPP and RSU proceeds over the years. Now that we have downshifted, those are our living expenses because the paycheck goes to taxes, ESPP and 401k.

jeroly

  • Pencil Stache
  • ****
  • Posts: 644
Re: Race from $2M to $4M...and Beyond!
« Reply #7498 on: January 26, 2024, 07:30:08 AM »
I just started my annual $10k I-bond purchase. 

In other news, I've decided to un-retire / put out my FIRE and get a j*b!
I'm now employed as a hedge fund manager.
I'm one of those 'elite' hedge fund managers, though - '2 and 20' isn't good enough for me.
Apparently there are some (like D.E. Shaw - https://www.institutionalinvestor.com/article/2bswhgrmp6rwew5bkgxz4/portfolio/3-and-30-is-back-for-d-e-shaw that actually charge their clients '3 and 30' : 3% annual fee plus 30% of all generated returns.

As hedge fund manager of my own portfolio, I will 'pay' myself 3 and 30.  So if the market is flat or down this year I will withdraw 3%, if it's up 8% I will withdraw 5.4%, etc.
(well not really... but I do plan to pull out about 3% this year, and I will treat myself to a new cheap sports car (well, cheap for a new sports car - a Mazda Miata) if the market goes up 8% this year, which would correspond to about '3 and 15.' Am I undercharging myself?)
« Last Edit: January 26, 2024, 07:32:42 AM by jeroly »

farmecologist

  • Pencil Stache
  • ****
  • Posts: 610
Re: Race from $2M to $4M...and Beyond!
« Reply #7499 on: January 26, 2024, 07:41:53 AM »
I just started my annual $10k I-bond purchase. 

In other news, I've decided to un-retire / put out my FIRE and get a j*b!
I'm now employed as a hedge fund manager.
I'm one of those 'elite' hedge fund managers, though - '2 and 20' isn't good enough for me.
Apparently there are some (like D.E. Shaw - https://www.institutionalinvestor.com/article/2bswhgrmp6rwew5bkgxz4/portfolio/3-and-30-is-back-for-d-e-shaw that actually charge their clients '3 and 30' : 3% annual fee plus 30% of all generated returns.

As hedge fund manager of my own portfolio, I will 'pay' myself 3 and 30.  So if the market is flat or down this year I will withdraw 3%, if it's up 8% I will withdraw 5.4%, etc.
(well not really... but I do plan to pull out about 3% this year, and I will treat myself to a new cheap sports car (well, cheap for a new sports car - a Mazda Miata) if the market goes up 8% this year, which would correspond to about '3 and 15.' Am I undercharging myself?)

Haha...yep, when I FIRE in a year or so, my "job" title will be "financial planner" ( when people ask ).   

It fits well too as managing our portfolio, stock trading, etc... has actually become a "side gig" of mine, and I enjoy it.  And the brokerage account is proof that it has been successful as well!