Author Topic: $600k in investable assets, paid off house, advisor says she can't retire yet!  (Read 4796 times)


grantmeaname

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Holy god. She saves $35 a month on $2423 of income? I want to say that's shockingly low...

...but then I realized that's 1.5%, more than the US national average.

mechanic baird

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Holy god. She saves $35 a month on $2423 of income? I want to say that's shockingly low...

...but then I realized that's 1.5%, more than the US national average.
What 's the US average now? I thought it was around 4%.. maybe my information is outdated..

SoftwareGoddess

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Holy god. She saves $35 a month on $2423 of income? I want to say that's shockingly low...

...but then I realized that's 1.5%, more than the US national average.

It's not quite that bad. TFSA = Tax Free Savings Account. She's saving CDN$417 there.

iamsoners

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 The bigger flag here is the idiocy of mainstream financial advice that doesn't even consider expenses.  The TFSA is a savings account as well.  So she saves a total of $452.  A non-mustachian 19% but I still think she could make the leap.  Yearly spending, minus the savings, is 23,652.  Firecalc says the portfolio success rate over 50 years is 86%.  She could either cut expenses by $3075 per year or work a few more years.  I'd take the former, which is why I'm here I suppose.

arebelspy

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Holy god. She saves $35 a month on $2423 of income? I want to say that's shockingly low...


Okay, but she only works 1 day/week.

I think many Mustachians who save 60% wouldn't mind dropping to one day/week and dropping their savings rate to 0 for an early semi-retirement.

Especially if one has significant assets which can be left to grow untapped to transition into full FIRE.

I don't have a big problem with someone who goes to semi-ER and ends up, due to that, not saving much - they're trading that savings money for time.
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