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  • #46
    At these high income levels the amount you spend shouldn’t necessarily increase in direct proportion to your income.

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    • #47
      Originally posted by holeinone View Post
      First time poster. This thread is fascinating to watch. My wife and I are both in psychiatry and expecting individual incomes around 250k once we leave training next year. I hope we'll be in a similar position in about five years after student loans, getting into a house, and some gaps in earning to having 1-2 more kids. My question is - how does everyone calculate savings rate when there is a mix of pre-tax and post-tax contributions? We plan to max out 401k with 4% employer match then will be saving in backdoor Roth + post tax brokerages. For example, would we value ~50k of 401k+match contributions as equivalent to 50k saved into post tax accounts? Thanks
      See entry Main Forum Post tax. Just the amount deposited.
      BD Roth and taxable are both post tax.

      Regarding 20% retirement. Disagree to an extent with FLP. Mostly semantics. Most docs need a taxable, my take is this is should be a separate account.
      On top of that you will need to accumulate or spend money for all types of things and a prudent person will also accumulate wealth. I have no problem using a taxable for non-essentials. Cars, vacations, 2nd house, kids lumpy expenses, new roof, etc. You can even keep EFund invested once it’s big enough. Student loans and house down payment keep the balance down at the start, it is still wealth accumulation. There is room for additional savings in the 10% range.

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      • #48
        Originally posted by GIMD View Post

        I'm not sure where you get the 3% added profit from since if that was true, there would not be any discussion. The website you cited showed that a 100% equity portfolio compared to a 80/20% portfolio would give you an additional 0.5% gain per year over the past 50 years while in the worse 5-year period you may risk losing an additional 10%. 0.5% compounded annually is still significant over a long period of time so it's up to you to decide if it's worth the potential downside risk. I mentioned I-bonds because it makes alot of sense in this high inflation environment, but more importantly, I want to point out that you are almost completely tilted in equity and diversification may be beneficial for your portfolio whether it'd be in I-bonds, real estate, or other investments.
        Thanks for clarifying! i must have interpreted it incorrectly. Do you or anyone else here use firecalc.com ? i don't plan on retiring very early, but thinking around 55, and this definitely seems possible based on this calculator. If anyone has any thoughts on this calculator would be much appreciated. Thanks.

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