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Old 05-31-2016, 04:10 PM   #141
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For those that are interested, here's a recent article regarding basic income from fivethirtyeight: http://fivethirtyeight.com/features/...-basic-income/

They also did a follow-up video on the article: http://fivethirtyeight.com/features/...-a-video-chat/

Work is so yesterday...
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Old 05-31-2016, 04:14 PM   #142
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Originally Posted by purplesky View Post
I am really getting sick of these "millennial saved big money and retired early stories."

So 2 middle class income earners supposedly stashed 1 million away and are now retired. Yes sure. Happens every day in America.

Seriously. The math does not work. Sorry, just not buying another early 30's millennial retired early story on the internet.

So they spent $270k on a house. WOW! And its near cool craft breweries and awesome art galleries. How neat!

Also, they are going to rent out their new house on AirBnB and travel in the summer.

Do not buy into this early retirement fantasy that is being sold to the millennial generation. This is fake crap.
well I don't think its fake crap if your software engineers.. I have tons of friends that by their late 30s they were easily in the $3M+ category. They had their kids late which means they could accumulate early and stay home after they had their money banked. One of the keys.. bonuses and stock options. I have friends making $700k in a given year on those 2 items.. it really is a whole other world. I cashed in $200k by the time I was 30 and had to because they expired (very bad tax year).

Other friends kids are now fresh out of college, starting 6 figures the day they walk out (even in Boulder, CO.. ie so we are not talking New York or San Fran costs)...if they make even modestly smart choices it would not be that difficult. They have zero student loans because their parents did the prepay college plan Illinois offered.

Its certainly not for everyone, but there is still ways to accumulate wealth in specific industries.
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Old 05-31-2016, 04:42 PM   #143
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The Universal Basic Income idea is a very interesting one. All sorts of possible benefits and drawbacks come to mind. One of the first concerns that came into my head, which is mentioned in the article that tulak linked, was that if UBI replaces all other benefits, there could be many people (SSDI recipients in the US, for example) who would be faced with the prospect of a drastically lower benefit under the UBI program. How does a disabled person living on his/her own go from an income of, say $1800/month to $1000/month?

I would love to see the debates, general hoopla, and political grandstanding that would accompany a proposal of this idea. Can you imagine?
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Old 05-31-2016, 05:44 PM   #144
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Well now we know. Purplesky is envious. And he's still working with millennials which really pisses him off because he thinks they'll be retiring before he does.

Who cares?
+1

Purplesky....This is early retirement forum with no minimum age requirement. I am happy for BrunoFamily that they figured out and living the dream...even if it turns out that they may need to find work someday...who cares? They then had long sabbatical...and enjoyed it.

If I were a Milenial, I would be inspired by their story and would save aggressively to be FI asap
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Old 05-31-2016, 10:12 PM   #145
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I don't think taxes are going to be as high as you suggest ($10k).

Between qualified dividends, capital gains, and personal exemptions it's possible to pay nothing at the couple's hypothetical income level. This past year, turbo tax actually reported a negative federal rate for me.

We don't know how much of their assets are in taxable vs tax-deferred (accessible by roth conversions). But if you put $40k in income in taxcaster, you get $2k of federal taxes. This is worst case (i.e. they have no taxable divs/cg that qualify for the 0% tax rate). While $2k isn't nothing, I don't think it's material for the discussion.

https://turbotax.intuit.com/tax-tool...ors/taxcaster/



This is already accounted for in the 3% withdrawal rate assuming a FireCalc like approach (i.e. spending is increased by inflation every year and portfolio is subject to variable returns). See also the trinity / bengen studies which are the basis for FIREcalc's approach.

Turbotax caster is a Great link.

Yes my presumption is that they are also netting 40-50k per year on their blog. Removing that and you're right the dividend income and the BnB income likely are closer to 4K in federal and state taxes ..
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Old 05-31-2016, 10:19 PM   #146
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Really? You can make forty five grand a year blogging?

That's more than half of what I was making before I retired.

I've been doing this all wrong. Millennials Rock!

Mr. Money Mustache must really be stacking it up!
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Old 05-31-2016, 10:36 PM   #147
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Really? You can make forty five grand a year blogging?

That's more than half of what I was making before I retired.

I've been doing this all wrong. Millennials Rock!

Mr. Money Mustache must really be stacking it up!
I believe it was reported that MMM is pulling in 7 figures.
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Old 05-31-2016, 10:47 PM   #148
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Amazing. I give up. Well I did give up -

A million a year blogging. Cool. Whass uppp?

Go figure. Social media. The new machine.
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Old 06-01-2016, 04:07 AM   #149
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well I don't think its fake crap if your software engineers.. I have tons of friends that by their late 30s they were easily in the $3M+ category. They had their kids late which means they could accumulate early and stay home after they had their money banked. One of the keys.. bonuses and stock options. I have friends making $700k in a given year on those 2 items.. it really is a whole other world. I cashed in $200k by the time I was 30 and had to because they expired (very bad tax year).

Other friends kids are now fresh out of college, starting 6 figures the day they walk out (even in Boulder, CO.. ie so we are not talking New York or San Fran costs)...if they make even modestly smart choices it would not be that difficult. They have zero student loans because their parents did the prepay college plan Illinois offered.

Its certainly not for everyone, but there is still ways to accumulate wealth in specific industries.
The stock options are different. My neighbor got $5 million in their 30s, but they are still working in their 50s. And very frugal still. The most expensive care they have is a low end Lexus.
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Old 06-01-2016, 04:10 AM   #150
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+1

Purplesky....This is early retirement forum with no minimum age requirement. I am happy for BrunoFamily that they figured out and living the dream...even if it turns out that they may need to find work someday...who cares? They then had long sabbatical...and enjoyed it.

If I were a Milenial, I would be inspired by their story and would save aggressively to be FI asap
Let's called that a sabbatical and not retirement. Same with taking a gap year, let's not called everything retirement.
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Old 06-01-2016, 04:43 AM   #151
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Let's called that a sabbatical and not retirement. Same with taking a gap year, let's not called everything retirement.
For me, as long as they describe what they are doing, and how it's working out, then I am not going to become too preoccupied with what they call it, as I have the information at my disposal to decide how I would refer to it. I consider an accurate and authentic description to be more important than the label attached to it, and I believe they have provided that.
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Old 06-01-2016, 04:51 AM   #152
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For me, as long as they describe what they are doing, and how it's working out, then I am not going to become too preoccupied with what they call it, as I have the information at my disposal to decide how I would refer to it. I consider an accurate and authentic description to be more important than the label attached to it, and I believe they have provided that.
I'm all for honesty and not being manipulative by anyone. Of course everybody is different and we get to voice our opinion.
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Old 06-01-2016, 05:08 AM   #153
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I believe it was reported that MMM is pulling in 7 figures.
It is hard to make a blog about retiring at 55 with 6 Million but easy about retiring at 38 with 1.5 million.

Either case is very easily doable for married couple of Software Engineers. Such couple should be making 350-450k a year. You do the math.
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Old 06-01-2016, 05:18 AM   #154
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well I don't think its fake crap if your software engineers.. I have tons of friends that by their late 30s they were easily in the $3M+ category. They had their kids late which means they could accumulate early and stay home after they had their money banked. One of the keys.. bonuses and stock options. I have friends making $700k in a given year on those 2 items.. it really is a whole other world. I cashed in $200k by the time I was 30 and had to because they expired (very bad tax year).

Other friends kids are now fresh out of college, starting 6 figures the day they walk out (even in Boulder, CO.. ie so we are not talking New York or San Fran costs)...if they make even modestly smart choices it would not be that difficult. They have zero student loans because their parents did the prepay college plan Illinois offered.

Its certainly not for everyone, but there is still ways to accumulate wealth in specific industries.
In this MSN article and other millennial unicorn articles about retiring at 30 I have seen lately I didn't see enough math that showed their real income and the magic of their portfolio to believe they really saved 1 million free and clear in just 10 years.

Maybe they did. I mean they used Mint so it must have happened.

Saving 1 million dollars in 10 years at their income level is extremely difficult.

This latest trend is just like the high flying 90s .com bubble where so many people thought the stock market would take care of them for life like a lottery ticket.
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Old 06-01-2016, 05:22 AM   #155
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In this MSN article and other millennial unicorn articles about retiring at 30 I have seen lately I didn't see enough math that showed their real income and the magic of their portfolio to believe they really saved 1 million free and clear in just 10 years.

Maybe they did. I mean they used Mint so it must have happened.

Saving 1 million dollars in 10 years at their income level is extremely difficult.

This latest trend is just like the high flying 90s .com bubble where so many people thought the stock market would take care of them for life like a lottery ticket.
Simple Savings Calculator - Savings Interest & Investment Growth Calculator

If they save 10k a month at 6.5% growth they have 1 million in 7 years and 1.7 Million in 10 years.

How difficult is that if you do not waste money on Housing and cars? You seem to not understand that even 2 college grads can make 250k within 2-3 years out of school.
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Old 06-01-2016, 05:22 AM   #156
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In spite of your evidence to the contrary, I will stick to my initial assertion (unsupported by any facts) that four weeks is the most that anyone receives for vacation time and purplesky doesn't really get 7 weeks because it's impossible.
Fuego; Start up tech no longer specifies how much paid leave its employees are entitled to. They can take whatever they want, the assumption being that if they abuse the privilege they will be fired. DS who is a thirty one year old SE plans his time off by insuring that he has met all deadlines and is otherwise extremely productive, and a highly valued employee.
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Old 06-01-2016, 07:19 AM   #157
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Really? You can make forty five grand a year blogging?

That's more than half of what I was making before I retired.

I've been doing this all wrong. Millennials Rock!

Mr. Money Mustache must really be stacking it up!

Yep. Several bloggers are forthcoming with their blog income and after 2 or 3 years it's pretty normal to net between 3 and 4 K monthly.

Joe over at retireby40.org is a good example - he writes well and provides lots of analytic data on his blog site income. Nice person he is too.
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Old 06-01-2016, 07:22 AM   #158
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Let's called that a sabbatical and not retirement. Same with taking a gap year, let's not called everything retirement.

+1. Exactly. Just a "time out".
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Old 06-01-2016, 08:07 AM   #159
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Let's called that a sabbatical and not retirement. Same with taking a gap year, let's not called everything retirement.
+1

That's my main issue with this. The term is being co-opted. Some think it sounds like a greater achievement to say they've "retired" at a young age: "Hey, look at me, I retired 30+ years before most people, and my career was the shortest ever!"

To say they are pursuing a flexible career alternative with high saving/frugality doesn't sound as impressive, but actually, it is. Call it what it is.
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Old 06-01-2016, 08:40 AM   #160
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Words do matter, maybe more to some of us. I will just describe the couple in the OP as "They call themselves retired" and leave it at that.
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