The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: DrF on January 28, 2015, 03:40:09 PM
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Thought this was funny. Saw it when I was logging into Fidelity.
https://www.fidelity.com/insights/retirement/can-you-afford-to-retire-early-2015
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Jesus. Joe was done a decade ago...
-W
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The worst part is that the question-asker proposes 3% as the SWR, and there is absolutely no pushback on that number or even a single mention of a 4% SWR.
Sure, usually the pessimistic (profit-seeking) adviser will, in their spiel about where SWRs come from, suggest that maybe 4% is NO LONGER SAFE, but they'll at least mention the 4% standard.
This is the first time I've ever seen 3% mentioned without it being positioned merely as an alternative to 4%. Kinda sad.
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Great article of bullshit!
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At least the author said yes (with caveats). I've seen much worse, where the author says no when it's ridiculously obvious to everyone else that they should have been done long before.
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Most people's lifestyle is not anywhere close to MMM, so yes $2.7 million doesn't seem like that much. When you have a $500k house, private school, college tuition, ski trips, beach trips, and a brand new Tahoe to pay for, you're talking about well over $100k/yr in expenses.
It's hard to cut back when all your friends are spending money like water.
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"After all, if you're really able to cover your annual living expenses by drawing roughly 3% ($81,000 in your case) from your nest egg ....
And let's not forget you've still got those two daughters to raise. Children can wreak havoc on a budget, especially when they move into their teen years. No wonder the U.S. Department of Agriculture recently estimated the average cost of raising a child at $245,000."
Wouldn't those daughters be considered under his current living expenses? Don't forget about those!!!
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It's hard to cut back when all your friends are spending money like water.
On an aside, we really need to stop spending water like water.
An why is everyone afraid of 2 teen girls? They aren't going to spend 10's of thousands of your dollars unless you let them. They aren't going to force you at gunpoint (at least hope not)
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You will need to provide them with a generous dowry when they reach marriageable age of 14 or so, certainly if they are the homely sort.
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You will need to provide them with a generous dowry when they reach marriageable age of 14 or so, certainly if they are the homely sort.
lol
That's the cheap option!!
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"After all, if you're really able to cover your annual living expenses by drawing roughly 3% ($81,000 in your case) from your nest egg ....
And let's not forget you've still got those two daughters to raise. Children can wreak havoc on a budget, especially when they move into their teen years. No wonder the U.S. Department of Agriculture recently estimated the average cost of raising a child at $245,000."
Wouldn't those daughters be considered under his current living expenses? Don't forget about those!!!
Yes that's pretty silly reasoning. It's not like you get a bill for $245,000 the day they turn 18. I remember looking at the USDA study (btw, why the USDA? Are kids a form of livestock now?). It mention things like having a larger house and car to have room for the kids, and increased food spending. Expenses that would certainly be included in current spending.