Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 02-28-2013, 08:27 PM   #21
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 406
Laurence, 75K savings for 270K income is low. What about funding your Children's college education, any 529?
__________________

__________________
retire2020 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-01-2013, 11:38 AM   #22
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
I did buy the bmw certified used...does that count as LBYM?

This is exactly why I came back to this board. My circle of friends include many with higher incomes, we find ourselves falling into a lifestyle, and when you are living that lifestyle and still have put money away each month, there is no obvious wake up call.

I go back and forth on the 529 plans due to the restrictions. I'll investigate some threads here on it and learn more. Right now we do the legal limit on 401k and the companies do some match, but some IRA options are phased out. My wife's company gives a 15% discount on stock purchase to employees up to some percentage (15% of salary?) so we max that out now as well, sell and take the short term capital gains tax hit on the difference.

Between health care costs for a family of five, nanny salary, federal income taxes, california income taxes, self employment taxes (I have a side business)nanny taxes, and property taxes that 270k number goes down real quick. After this and the 401k deductions, what's left to budget is really a little less than half that (I know, boo-hoo). Not complaining, just full disclosure of where we are at.

So while I won't be trading in the car, I will be paying it off this year and keeping it as long as I can (100k warranty, reliability really has come up). Same with the wife's car. We have a five year plan to hit the first million in NW, and the 75k is just the 2013 goal with each year after expected to increase. I welcome all tips, tricks, darts, critiques etc!
__________________

__________________
laurence is offline   Reply With Quote
Old 03-01-2013, 01:35 PM   #23
Recycles dryer sheets
 
Join Date: Feb 2008
Posts: 452
Laurence, welcome back to the frugal ways. I'm curious how your better half took the news to switch to different lifestyle. How did the kids react?

Also, you mentioned that you're phased out from the IRA's. I have no knowledge but you might be interested in exploring backdoor investing in Roth IRA's. I've seen people discussing this on Bogleheads. Since we're not affected (yet), I don't know how complicated the process is.
__________________
aida2003 is offline   Reply With Quote
Old 03-01-2013, 02:02 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Laurence, welcome back. Thanks for the update, I wondered where you went. Sounds like you have done a lot of spending, but maybe can do less in the future?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 03-01-2013, 02:19 PM   #25
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
My better half is fine with it, I'm the spendthrift, she's just glad I'm ready to get back on the wagon.

We definitely feel we are good for a good, long time. This is the final house, we love it. We have all of our debt at a 3% or less after tax deductions rate, we are set on capital purchases for a while. We are ready for some serious LBYM for the next five years.

I will look into that back door thing, thank you, aida!
__________________
laurence is offline   Reply With Quote
Old 03-01-2013, 02:25 PM   #26
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
Three irrestible little girls? It is amazing you and Mrs. Laurence are able to save any money with those sweet little ones to indulge. So glad to see your update.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 03-01-2013, 02:41 PM   #27
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 269
How did your kids react to the cable drop? Its something I'd like to do but my wife stays home and while it isn't the electronic babysitter per se, I know there are days when it is a help.
__________________
Sesq is offline   Reply With Quote
Old 03-01-2013, 03:07 PM   #28
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 89
Quote:
Originally Posted by Sesq View Post
How did your kids react to the cable drop? Its something I'd like to do but my wife stays home and while it isn't the electronic babysitter per se, I know there are days when it is a help.
Good question. I bet the $140 a month savings is not worth it compared to the $16,000 spent elsewhere each month! (Although it would be amazing to be able to save $75k per year! I'd be retired in 4 years, lol.)
__________________
YoungSaver is offline   Reply With Quote
Old 03-01-2013, 04:29 PM   #29
Recycles dryer sheets
Backpacker's Avatar
 
Join Date: Feb 2011
Location: On a dirt road
Posts: 189
Wow - reading about all the CA lifestyle and expenses sure make me glad to be living in the midwest! I have crunched the numbers and am pretty confident that my "number" is $500k +/-. We are blessed though in that my wife will get a COLA'd pension of 30k a year +/-. And we've been debt free for just over a year.

I've been to San Diego and it is an amazing place but way above my pay grade LOL
__________________
"Up sluggard and waste not the day, in the grave will be sleeping enough." Benjamin Franklin
Backpacker is offline   Reply With Quote
Old 03-01-2013, 04:57 PM   #30
Full time employment: Posting here.
 
Join Date: Aug 2007
Posts: 892
Quote:
Originally Posted by Sesq
How did your kids react to the cable drop? Its something I'd like to do but my wife stays home and while it isn't the electronic babysitter per se, I know there are days when it is a help.
Get Netflix. It's great for our kids. They always have something to watch.

And the added bonus: no ads.
__________________
Eat, Drink and Be Merry.
tulak is offline   Reply With Quote
Old 03-01-2013, 06:45 PM   #31
Recycles dryer sheets
chasesfish's Avatar
 
Join Date: Feb 2013
Location: Marietta, GA
Posts: 124
I understand the expense pressures Lawrence, my wife and I have a similar after tax/housing take-home (Atlanta isn't nearly as bad as San Diego), but the expense pressure of a high income professional are pretty intense. Cars, house locations, golf clubs, "charity galas", and that's before you get to the kids stuff.

It's not as easy saving a high income as people think, but I will take it over not having it
__________________
chasesfish is offline   Reply With Quote
Old 03-01-2013, 11:50 PM   #32
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Charity Galas! Yes! A buddy stood up at the last one we went to and bid 10k for a visit from Santa on Christmas day!

We live on a championship golf course, we chose to live well now, definitely. The peer pressure is only so much cover.

Netflix, yes, that completely solves the issue for the kids. There have been no complaints so far. I will admit they are exceptionally easy kids, though. YMMV.
__________________
laurence is offline   Reply With Quote
Old 03-02-2013, 06:33 AM   #33
Recycles dryer sheets
chasesfish's Avatar
 
Join Date: Feb 2013
Location: Marietta, GA
Posts: 124
That's pretty bad, The worst I've seen recently is either 9k for a catered dinner for 100. Who has 100 people they really want to have dinner at their house The other good one was I saw a private school auction off naming a road on campus after a family for a year.
__________________

__________________
chasesfish is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 08:01 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.