Announcement

Collapse
No announcement yet.

What is your number ? What are your plans to achieve the #

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #31




    I have put the number on ice until the kids launch. Until then, it seems like infinity.
    Click to expand...


    I am with Vagabond on this one.  Since my youngest is just about to turn 2, I am far from FI.  I am happy with what we have accomplished now and I trust we will do well as long as we stick to our plan on saving and investing well.

    Comment


    • #32


      I have put the number on ice until the kids launch. Until then, it seems like infinity. I am with Vagabond on this one.  Since my youngest is just about to turn 2, I am far from FI.  I am happy with what we have accomplished now and I trust we will do well as long as we stick to our plan on saving and investing well.
      Click to expand...


      I third that motion.

      My youngest is ~15 months old.  I'll be 52 when he is old enough to head to college, and barring a dramatic change in my income (to supersize my savings) or massive slashing of expenses (daycare will go away though) I will not be hitting the FIRE thresholds while the kids are young enough to be at home and want to hang out with me.

      By the time all 3 are done w/college we hopefully will have achieved FI (would be earlier if I wasn't helping pay for some higher ed, and excluding healthcare costs), but picking a hard target that far in advance seems meaningless.

      So I'm more focused on hitting savings percentages and not net worth the next several years, and using disposable income on the things we care about.
      An alt-brown look at medicine, money, faith, & family
      www.RogueDadMD.com

      Comment


      • #33













        My net worth has gone up nearly a half million this year, which is pretty amazing.  I am trying to stay at my full time job for another three years to get all the benefits before punching out, and if this keeps up I might have 2.5-3 million at that point.  It makes sense to slow down and go part time after that, but part time positions with health insurance are extremely hard to find, and I’m scared to death of buying health insurance out of pocket when marketplace rates are rising ~30% a year.

        One idea I have is to move to one of the two states that offers the ACA basic health plan and see if I can keep my income to <200% of the FPL in order to qualify.  I don’t know what I’ll do if I quit working, but just sitting around, reading, volunteering, and relaxing sounds a lot better than working.
        Click to expand…


        I think we all need to be careful about having “a number”, especially nine years into a bull market.

        Yes, your net worth may have gone up by half a million this year, but it isn’t always going to go up smoothly. On paper, my net worth dropped by over a million in 2008.

        I read many posters on this forum with 90%+ allocations to equities. I worry that the long bull market has lulled many into a false sense of financial security. I have always had a 60/40 equity allocation. Clearly, in retrospect, my opportunity cost has been high since 2008, but at least I know I have the fortitude to ride out another market downturn, and will have fixed income assets to rebalance to equities if the market tanks.
        Click to expand…


        I’m at 86/14, and go up on bonds 1% a year.  Won’t really know how I can weather a bear market till we have one, but I’ve done fine in late 2011 and early 2016.

        regardless, if you can get your savings up to 35x your annual expenses, all the research suggests you should be all right even if the SOR is terrible.
        Click to expand…


        I don’t remember late 2011 or early 2016 at all. In contrast, I have very clear memories of 2000-02, and 2007-09. In other words, I don’t think 2011 or 2016, whatever happened then, have any bearing whatever on what a real financial crisis or market crash feels like. Based on those experiences, I am happy at 60/40 as well. I didn’t sell during those catastrophes, in fact I largely market timed my way around them, but I am not sanguine about watching an 80+% equity allocation crater by 60%. There is no question the level of anxiety, even existential angst, was very, very high.
        Click to expand...


        No doubt ordinary corrections are less noteworthy when you've already survived two major crashes.  I don't remember 2011 either because I wasn't really paying attention.

        the aspect of a bear market that worries me most is if it occurs when im in the asset withdrawal phase, because knowing myself I might start eating Ramen and alpo just so I don't touch anything till prices recover.

        Comment


        • #34
          $5 Million is our FI.  We calculate $12,500/month x 12 months = $150,000/year x 33 = $4,950,000 (~$5M). We are planning on a 3.5% safe withdrawal rate.

          We are at $3.3M (Nearly all in broad diversified index funds with 75% equities and 25% bonds).  I will invest $6,375/month [$24,500 (403b) + $24,500 (457b) + $27,500 (employer match) per year divided by 12].  According to Bankrate.com savings (compound annually) calculator, we will reach $5M in 5-6 years (I'll be in my late 50s) assuming 6% per year growth.  No way this bull market continues. We got hammered in 2000 (dot.com bubble bust), after 9/11/2001 and after the mortgage crisis (2007/2008).  It is likely that our portfolio will take a dive in the next 12 months and then gradually recover over the course of 3-6 years.  We know this song and dance very well. A few caveats: a) If the senate version of tax reform prevails, then I may not be able to maximize both my 403b and 457b in 2018 (though I'm not sure how much this matters with such a large capital base to start 2018); b) Only 15% of our portfolio is in a Roth vehicle so we will be paying taxes on the majority of the portfolio down the road and c) I have $2.5M in a term life insurance policy that has 6 more years on it so my wife will be protected if the Lord calls me home before then.

          We still have a $135K (at 3.375% APY) left on our mortgage.  We are planning to pay an extra mortgage payment each quarter.  This will get us down very close to a balance of $100K near the end of the year.  I have done several calculations and scenarios.  There is simply no realistic way to payoff the mortgage in 2018. There are no other debts.

          We keep $75K in emergency funds in a money market account ($12,500/month x 6 months = $75,000).  My wife and I have decided together that we will not touch our reserves to payoff the mortgage unless we are very close to the end and everything seems to be going well at work.

          The university I work at is under severe financial stress.  Thus, there will be no pay increases in the near future.  We will need to continue to have an active and flexible financial defensive strategy. We have decided not to take any big trips. We look forward to biking/walking at the local park, going to the gym, having breakfast at home together (especially on Saturday mornings) and frequenting the local coffee shop.  I have managed to cut my cable bill by stopping everything, but the basic plan and discontinuing a few receivers. We have also switched to Ooma for our local landline.  I will stop taking my vehicle to the dealership for service and use the local repair shop instead.  I get a good discount for my cellular service through the university. Will keep grinding away...

          Comment


          • #35
            On track for $6-7M at age 60. I've downwardly adjusted my expected overall returns based on extreme valuations in the equity market. But, only 50% of my assets are in equities now.  I'm sure we will get by nicely in retirement. The challenge ahead of me for the next few years is reversing lifestyle inflation, it took years to slowly insinuate itself into our lives now it takes a conscious effort to begin to reverse it.

            Comment


            • #36







              My net worth has gone up nearly a half million this year, which is pretty amazing.  I am trying to stay at my full time job for another three years to get all the benefits before punching out, and if this keeps up I might have 2.5-3 million at that point.  It makes sense to slow down and go part time after that, but part time positions with health insurance are extremely hard to find, and I’m scared to death of buying health insurance out of pocket when marketplace rates are rising ~30% a year.

              One idea I have is to move to one of the two states that offers the ACA basic health plan and see if I can keep my income to <200% of the FPL in order to qualify.  I don’t know what I’ll do if I quit working, but just sitting around, reading, volunteering, and relaxing sounds a lot better than working.
              Click to expand…


              I think we all need to be careful about having “a number”, especially nine years into a bull market.

              Yes, your net worth may have gone up by half a million this year, but it isn’t always going to go up smoothly. On paper, my net worth dropped by over a million in 2008.

              I read many posters on this forum with 90%+ allocations to equities. I worry that the long bull market has lulled many into a false sense of financial security. I have always had a 60/40 equity allocation. Clearly, in retrospect, my opportunity cost has been high since 2008, but at least I know I have the fortitude to ride out another market downturn, and will have fixed income assets to rebalance to equities if the market tanks.
              Click to expand...


              I wonder about this as well, however I imagine most folks with this aggressive allocation are younger, like myself. I've got 30 years to recover. Plus I only check investments 1-2 times year and view my net worth as Monopoly money (ie fake). I'm just so far away from even considering retirement ( 12 month old at home) that it's hard to even picture that stage of life. I imagine a lot will change and while 3M seems fine now, the number will probably be different down the road. I'm also just focusing on building a good savings habit at this point while enjoying the kids while they are young.

               

              Congrats OP! Sounds like you have good times ahead. I wish you much happiness in this new chapter, it sounds like you've worked hard to get here.

              Comment


              • #37




                On track for $6-7M at age 60. I’ve downwardly adjusted my expected overall returns based on extreme valuations in the equity market. But, only 50% of my assets are in equities now.  I’m sure we will get by nicely in retirement. The challenge ahead of me for the next few years is reversing lifestyle inflation, it took years to slowly insinuate itself into our lives now it takes a conscious effort to begin to reverse it.
                Click to expand...


                You sound like me!  I am at 60 with a net worth a little above your numbers.  I started deflating my lifestyle some about 5 years ago.  I started expense tracking and made it a game to see what I could cut out.

                Comment


                • #38




                  $5 Million is our FI.  We calculate $12,500/month x 12 months = $150,000/year x 33 = $4,950,000 (~$5M). We are planning on a 3.5% safe withdrawal rate.

                  We are at $3.3M (Nearly all in broad diversified index funds with 75% equities and 25% bonds).  I will invest $6,375/month [$24,500 (403b) + $24,500 (457b) + $27,500 (employer match) per year divided by 12].  According to Bankrate.com savings (compound annually) calculator, we will reach $5M in 5-6 years (I’ll be in my late 50s) assuming 6% per year growth.  No way this bull market continues. We got hammered in 2000 (dot.com bubble bust), after 9/11/2001 and after the mortgage crisis (2007/2008).  It is likely that our portfolio will take a dive in the next 12 months and then gradually recover over the course of 3-6 years.  We know this song and dance very well. A few caveats: a) If the senate version of tax reform prevails, then I may not be able to maximize both my 403b and 457b in 2018 (though I’m not sure how much this matters with such a large capital base to start 2018); b) Only 15% of our portfolio is in a Roth vehicle so we will be paying taxes on the majority of the portfolio down the road and c) I have $2.5M in a term life insurance policy that has 6 more years on it so my wife will be protected if the Lord calls me home before then.

                  We still have a $135K (at 3.375% APY) left on our mortgage.  We are planning to pay an extra mortgage payment each quarter.  This will get us down very close to a balance of $100K near the end of the year.  I have done several calculations and scenarios.  There is simply no realistic way to payoff the mortgage in 2018. There are no other debts.

                  We keep $75K in emergency funds in a money market account ($12,500/month x 6 months = $75,000).  My wife and I have decided together that we will not touch our reserves to payoff the mortgage unless we are very close to the end and everything seems to be going well at work.

                  The university I work at is under severe financial stress.  Thus, there will be no pay increases in the near future.  We will need to continue to have an active and flexible financial defensive strategy. We have decided not to take any big trips. We look forward to biking/walking at the local park, going to the gym, having breakfast at home together (especially on Saturday mornings) and frequenting the local coffee shop.  I have managed to cut my cable bill by stopping everything, but the basic plan and discontinuing a few receivers. We have also switched to Ooma for our local landline.  I will stop taking my vehicle to the dealership for service and use the local repair shop instead.  I get a good discount for my cellular service through the university. Will keep grinding away…
                  Click to expand...


                  If your university is under severe financial stress, is it wise to be contributing to your 457b at such a high click?  I'd be somewhat worried about that, unless I've assumed too much.

                  Comment


                  • #39
















                    My net worth has gone up nearly a half million this year, which is pretty amazing.  I am trying to stay at my full time job for another three years to get all the benefits before punching out, and if this keeps up I might have 2.5-3 million at that point.  It makes sense to slow down and go part time after that, but part time positions with health insurance are extremely hard to find, and I’m scared to death of buying health insurance out of pocket when marketplace rates are rising ~30% a year.

                    One idea I have is to move to one of the two states that offers the ACA basic health plan and see if I can keep my income to <200% of the FPL in order to qualify.  I don’t know what I’ll do if I quit working, but just sitting around, reading, volunteering, and relaxing sounds a lot better than working.
                    Click to expand…


                    I think we all need to be careful about having “a number”, especially nine years into a bull market.

                    Yes, your net worth may have gone up by half a million this year, but it isn’t always going to go up smoothly. On paper, my net worth dropped by over a million in 2008.

                    I read many posters on this forum with 90%+ allocations to equities. I worry that the long bull market has lulled many into a false sense of financial security. I have always had a 60/40 equity allocation. Clearly, in retrospect, my opportunity cost has been high since 2008, but at least I know I have the fortitude to ride out another market downturn, and will have fixed income assets to rebalance to equities if the market tanks.
                    Click to expand…


                    I’m at 86/14, and go up on bonds 1% a year.  Won’t really know how I can weather a bear market till we have one, but I’ve done fine in late 2011 and early 2016.

                    regardless, if you can get your savings up to 35x your annual expenses, all the research suggests you should be all right even if the SOR is terrible.
                    Click to expand…


                    I don’t remember late 2011 or early 2016 at all. In contrast, I have very clear memories of 2000-02, and 2007-09. In other words, I don’t think 2011 or 2016, whatever happened then, have any bearing whatever on what a real financial crisis or market crash feels like. Based on those experiences, I am happy at 60/40 as well. I didn’t sell during those catastrophes, in fact I largely market timed my way around them, but I am not sanguine about watching an 80+% equity allocation crater by 60%. There is no question the level of anxiety, even existential angst, was very, very high.
                    Click to expand…


                    No doubt ordinary corrections are less noteworthy when you’ve already survived two major crashes.  I don’t remember 2011 either because I wasn’t really paying attention.

                    the aspect of a bear market that worries me most is if it occurs when im in the asset withdrawal phase, because knowing myself I might start eating Ramen and alpo just so I don’t touch anything till prices recover.
                    Click to expand...


                    haha

                    i didn't even remember there was any problem in 2011.  i'm still remembering 2008 however.

                     

                    Comment


                    • #40
                      Number:  Unknown at this point, mostly due to changing jobs in the coming years and young kids.

                      Most important focus:  Savings.  If something doesn't have a significant marginal impact on our quality of life I am opposed to spending money on it.  Don't aim for a savings rate, per se - just expense reduction.  The (high) savings rate follows from there, but there is no fixed % I aim for - it is a derivative of expense reduction and constant examination at the margins with monthly budgets and expense examinations with my spouse.

                      Comment


                      • #41
                        I find it interesting that those of us in mid/late career, having experienced the 2000-2 and 2008 bear markets, have naturally drifted to a larger cash position and a 60/40ish allocation. It’s almost like there is an inner signal that has sounded.

                         

                        Comment


                        • #42







                          On track for $6-7M at age 60. I’ve downwardly adjusted my expected overall returns based on extreme valuations in the equity market. But, only 50% of my assets are in equities now.  I’m sure we will get by nicely in retirement. The challenge ahead of me for the next few years is reversing lifestyle inflation, it took years to slowly insinuate itself into our lives now it takes a conscious effort to begin to reverse it.
                          Click to expand…


                          You sound like me!  I am at 60 with a net worth a little above your numbers.  I started deflating my lifestyle some about 5 years ago.  I started expense tracking and made it a game to see what I could cut out.
                          Click to expand...


                          Awesome! Congrats! It's not easy to reduce the burn rate, but I just dropped the land line and a term policy that was set to balloon anyways. Little by little I guess and we will get there.

                          Comment


                          • #43






                             
                            Click to expand…


                            I think we all need to be careful about having “a number”, especially nine years into a bull market.

                            Yes, your net worth may have gone up by half a million this year, but it isn’t always going to go up smoothly. On paper, my net worth dropped by over a million in 2008.

                            I read many posters on this forum with 90%+ allocations to equities. I worry that the long bull market has lulled many into a false sense of financial security. I have always had a 60/40 equity allocation. Clearly, in retrospect, my opportunity cost has been high since 2008, but at least I know I have the fortitude to ride out another market downturn, and will have fixed income assets to rebalance to equities if the market tanks.
                            Click to expand...


                            Exactly right Neuro-Doc.  To add to that, I think the entire FIRE community is going to be singing a slightly different tune when the market is down again.  Not saying that they are all going to "chicken out" or anything like that, but I don't think they'll be able to resist the opportunity to invest in cheap stocks and I bet a bunch will either keep working a bit longer or even go back to work to further pad their retirement accounts.  I know I'll be hopefully saving like crazy throughout the entire next market downturn.  I'll be working as much as I can stand and putting it all towards buying shares.  I actually hope it happens sooner than later.  I need some discounted shares!

                            Comment


                            • #44
                              Early 30s doc spending <$60k/yr without mortgage this year. My FI number is $2mil with no debt including mortgage. My kid(s) don't affect my number but will keep working in some capacity while I have kids at home even if I reach the number. If I just fill my i401k, bdRothx2, famHSA = $72k/yr at a conservative 4% return I'd have the $2mil in 18 years. I did that the last 2 years even though only 1.5yr into attendinghood. Plus this year I spent about the same amount on tackling the student loans and only have 1 more year of the same amount until they are done. Then that extra cash flow can tackle the mortgage and build a taxable account.

                              Comment


                              • #45
                                ENT Doc, that is a good point.  I work for a state university with a governmental 457b which I'm betting (may be a wrong bet) will not be loss to a creditor.  My private practice friends (who work as employees at hospitals) largely do not contribute to their 457b plans because of their unique risks.  We have had several non-university hospitals close down in the state.  I got into some intense discussions with them regarding their "mistake" for not participating in the tax-advantaged 457b plans.  Turns out that I was the one who got taken to school when I learned that not all 457b plans are created equal (governmental vs nongovernmental) and the stories that have emerged of physicians losing their 457b savings.

                                What the university has done due to financial pressure is let a significant number of staff go and not replace folks as they leave.  Kind of crazy. Some sections have one office assistant for 10-12 physicians.  We are constantly pressured to increase the number of wRVUs, but our payor mix is something like 85-90% Medicaid.  The CHIP legislation is on shaky ground (I'm a pediatrician) and my patients can't vote so we are simply going to have to make the best of it.

                                I believe my biggest achilles heal is that I continue to invest in a 403b Roth despite being in my early 50s and with $250K+ income. It's clear that this is not wise from a tax perspective, but I'm fearful that the US will raise taxes 10-15 years down the road or the RMD will force me into a higher tax bracket anyway.  I also ditched a comprehensive health care insurance (which I pay no premium on) for a HSA ($2,700 individual; $5,400 family deductibles) despite having a chronic medical condition in order to create an account for health care costs in the future. This certainly could be interpreted as a bad decision.  We'll see...

                                Comment

                                Working...
                                X