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04-21-2018, 06:47 PM #61
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04-21-2018, 06:48 PM #62
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04-21-2018, 06:52 PM #63
I’m not trying to be a smartass but the whole 4% safe withdrawal rate works until it doesn’t. I would never put myself in that position because you’re banking on absolute consistency. Emergencies of all sorts can cost lots of $, rising inflation, rapid increases in COL, or a severe economic downturn you’re over exposed to could put you in a real bind with no other sources of income.
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04-21-2018, 07:00 PM #64
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04-21-2018, 07:00 PM #65
No offense taken. Honestly I didn’t want to get in a pissing match over retirement philosophies. You’re absolutely right that anything could happen to negatively affect my assets, even with the 4SWR. That’s not going to stop me from retiring early or moving on from my w2 job when I reach the number I feel is safe enough for my family. From what I’ve read, the 4SWR is supposed to adjusted from year to year after the first to adjust for inflation and such. An absolute crash where 1M in assets is comprised in just a few years would mean apocalyptic times for this country and at that point worrying about my money will be the least of my concerns.
Last edited by IH8RICE; 04-21-2018 at 07:08 PM.
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04-21-2018, 07:02 PM #66
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04-21-2018, 07:02 PM #67
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04-21-2018, 07:08 PM #68
We are in a sad state in this country where people think these incomes and net worths are in their proper classes. The problem I see is where people in hcol areas decide too late that they can’t afford these explosive housing prices and decide to lay down and rot. We are already seeing it with Californians flocking to Texas, Arizona, and Florida.
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04-21-2018, 07:18 PM #69
What are you talking about? Life is expensive and getting more expensive by the year. You have entry level houses in So Cal going for $700k+, you think those folks are affording that on $80k yr income? With $300k yr income in Cali after taxes that’s $150k take home = middle class as hell. Lots of people break six figures easy with the right skills.
I think it’s sad that $250k yr won’t get you chit these days but a middle class life. Everything keeps getting more expensive.
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04-21-2018, 07:23 PM #70
I’m talking about the national average and you’re bringing up SoCal. We all get that there are HCOL clusters but for most of Americans, the numbers you’re giving out are inflated. I do agree with your premise that the price of everything( housing especially) is far outpacing what people can comfortably afford.
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04-21-2018, 07:31 PM #71
The problem with this current generation is their idea of a millionaire is big houses, a high rise condo, flashy cars, clothes, etc. Thats a celebrity that made a ton of money and would likely go broke if they have a falling off in their career.
Just about every self made millionaire I know drives a mid tier pickup truck, dresses in regular clothes, and most of them rock a G-shock or Casio watch day to day. No jewelry or anything flashy. They all either own one or more businesses, have money in the market and/or rental properties.
Essentially 3-4 income streams and they don't waste money. All work more then 40hr a week even after 'making' it.
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04-21-2018, 07:35 PM #72
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04-21-2018, 07:40 PM #73
Are they really out pacing what people can afford or just returning to the norm still (excluding bubble-like areas such as SF, Seattle, and maybe a few other cities) after bottoming in 2011/2012 or so? The last few years we’ve enjoyed record low interest rates so in all reality homes are still “cheap” when a 30 year fixed is still 4-5%. It’s just that banks have become more stringent about lending.
If anything the problem is probably supply, there’s been a home building slowdown and markets are getting more competitive around the country. I bet if you looked homes on average have been decreasing in the amount of time they stay on the market which would indicate that they’re not necessarily outpacing what people could afford. Rather, we’re just seeing demand outpace supply.
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04-21-2018, 07:48 PM #74
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04-21-2018, 08:01 PM #75
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04-21-2018, 08:02 PM #76
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04-21-2018, 08:05 PM #77
Those thinking they need to get 100-200k a year just to cover expenses need to face punch themselves. Go read Mister Money Mustache and the Bogleheads forum.
What's more "alpha" working until your 60's before retiring or retiring at 30 to go do whatever it is you want?
Red pill: https://www.mrmoneymustache.com/Many of life's failures are men who did not realize how close they were to success when they gave up.
-Thomas Edison
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04-21-2018, 08:07 PM #78
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04-21-2018, 08:09 PM #79
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04-21-2018, 08:10 PM #80
Check out his blog. Dude retired at 30 with 1 million in investments. Lives below his means on the interest it generates, side hustles when he wants, and builds things around the house that increase his happiness.
https://www.mrmoneymustache.com/2018...ic-adaptation/Many of life's failures are men who did not realize how close they were to success when they gave up.
-Thomas Edison
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04-21-2018, 08:12 PM #81
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04-21-2018, 08:14 PM #82
Strong this.
Unless you live in an overpriced chithole like San Francisco, 50k is enough to live off of.
If it isn't, you're doing something very wrong.
Most of my friends that complain about money:
Go to Starcucks every cot dayum day
Buy a new phone every year
Pay $300+/month interest on their credit cards
Have $600+/month in student loans on their online history degree from University of Maryland College University
Have an 84 month term car payment
etc
etcMisc Entrepreneur Crew
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04-21-2018, 08:18 PM #83
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04-21-2018, 08:25 PM #84
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04-21-2018, 08:32 PM #85
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04-21-2018, 08:41 PM #86
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04-21-2018, 08:53 PM #87
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04-21-2018, 08:57 PM #88
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04-21-2018, 08:59 PM #89
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04-21-2018, 09:36 PM #90
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