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Old 03-20-2011, 08:42 AM   #21
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Wow, interesting reactions. The intent of my response was that there are many other examples that could provide usefull information for others. For example I know a drywaller with a 10th grade education who has an over 3m investment portfolio. How did he get there? Or the school teacher and police officer who have put together multiple unit rentals providing an income of over 100k. Articles like this should present some sort of actionable information that people can apply to improve their lot in life. I could be the subject of this article myself but stating my good fortune (and luck) in itself is not impresssive.
I agree. The radiologist is to be congratulated for getting through medical school and earning a good salary. I think the criticisms are of the article rather than the radiologist as "earn big bucks and save $250k to a DB plan" doesn't help the vast majority of people saving for retirement. Also the article failed to highlight his personal circumstances, probably single no kids, as a factor on his ability to save.

An interesting aspect is the big tax break the self employed get on retirement savings. This seems like one of those loop holes that needs to be fixed in tax reform.
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Old 03-20-2011, 09:01 AM   #22
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Are we reading the same comments?
No, we were not.

I think you were speaking of the comments to the Yahoo piece after the article and I was speaking of the comments on this forum. So many of the commenters on Yahoo pieces are flaming idiots that I hardly ever bother to read the comments.

My BIL is a doc and I think you have to give people who chose those professions credit for the sacrifices that they make in getting their training for the bigger payday at the end of residency (the studies during undergrad and med school, commonly huge student loans, long hours and pressures of residency, etc.) No disrespect, but I think many folks with normal full time jobs have trouble appreciating the sacrifices these folks make - and they deserve the big payday at the end.

That said, I think stories of people with average incomes who LBYM, dilligently save and invest and have secured their financial future are a lot more inspiring than this guy's story. I have been luck enough to make good money so FI has been easier for me but I am really impressed on some of the "average Joe" stories of people of more modest means who have built nice nesteggs for themselves by living prudently.

Agree with other posters that I would never open the komono to my finances the way this man did - I just don't see the upside (unless perhaps he's trolling for arm candy).
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Old 03-20-2011, 09:40 AM   #23
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It's hard for people to give him credit for becoming a doctor and saving 7 figures. True that most people can't relate to that much money but why attack him because you are one the " have nots".
I think most people can easily relate to saving 7 figures on this forum. And I don't see anything that indicates jealousy. Most people are just not impressed with his story, including me. He obviously worked hard to get where he is, but that really is no different than a large percentage of Americans. Everybody works hard.

Being a doctor is definitely not the profession I would choose to get rich. That's what's called working for your money, not letting your money work for you.
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Old 03-20-2011, 11:06 AM   #24
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An interesting aspect is the big tax break the self employed get on retirement savings. This seems like one of those loop holes that needs to be fixed in tax reform.
Actually, if you think of deferring taxes as a way to average one's income over the years, particularly for an early retiree, why would that be bad? The progressive tax system penalizes someone who makes $250K one year, then nothing the next four years, vs. someone who makes $50K each of those 5 years.

So, to be fair, this tax deferment should be extended to more people, in my view.

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Being a doctor is definitely not the profession I would choose to get rich. That's what's called working for your money, not letting your money work for you.
How does one get the first batch of money then, other than inheriting it or winning the lottery?
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Old 03-20-2011, 11:16 AM   #25
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that is cute, but consider if he is single, there is nobody for him to bore.
Are you single? then perhaps that could be the reason. If not, ask your spouse.

I think the comments are a bit more pointed than he seems like a boring guy or just got where he is by being single. Derogatory comments about the guy being gay are the same if you were to mention that he is black. What does it have to do with the article, perhaps, makes people feel better about themselves.
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Old 03-20-2011, 11:48 AM   #26
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In my experience with counseling people, I will agree with you. Most of the time people will opine in a certain way, or choose their "friends" in such a way that they feel that they are better than...

Humans do strange things to stoke the ego. Personally, I don't believe you can fool yourself and why bother trying to fool others.
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Old 03-21-2011, 10:10 AM   #27
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A traditional defined benefit plan is a pension plan.
As a small business owner, you can set up a personal defined benefit plan that let's you contribute for more than personal 401k plans or SEPs, but there are more complexities that you need to understand. Schwab will now setup and administer these plans for small businesses, including sole proprietors, I believe. See Personal Defined Benefit

and The Perks of the Solo Defined-Benefit Plan - Personal Finance - Taxes - SmartMoney.com
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Old 03-21-2011, 12:44 PM   #28
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A traditional defined benefit plan is a pension plan.
As a small business owner, you can set up a personal defined benefit plan that let's you contribute for more than personal 401k plans or SEPs, but there are more complexities that you need to understand. Schwab will now setup and administer these plans for small businesses, including sole proprietors, I believe. See Personal Defined Benefit

and The Perks of the Solo Defined-Benefit Plan - Personal Finance - Taxes - SmartMoney.com
Deferring such large amounts to a DB plan as a sole proprietor seems to be completely out of whack with other retirement account options. It sounds like a bit of legislation put in by a special interest
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Old 03-21-2011, 12:45 PM   #29
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It sounds like a bit of legislation put in by a special interest
Really?

Have we read about how 401k accounts came about? The way I understand it, it was not meant for the lowly workers, but for executives. Then, an accountant discovered that the wording of the laws was such that Joe and Jane Blows could also have something that was originally meant for the privileged few.

PS. This link has some more info on the birth of the common 401k, and the man who has been called "the father of 401k accounts".

http://www.sbnonline.com/2002/12/ori...f-401-k-plans/
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Old 03-21-2011, 12:56 PM   #30
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An interesting aspect is the big tax break the self employed get on retirement savings. This seems like one of those loop holes that needs to be fixed in tax reform.
Really, so folks that take risks to start businesses out of the blue should be punished for doing so? I think they are already punished in many ways dealing with OSHA and EPA and others..........
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Old 03-21-2011, 12:57 PM   #31
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Really?

Have we read about how 401k accounts came about? The way I understand it, it was not meant for the lowly workers, but for executives. Then, an accountant discovered that the wording of the laws was such that Joe and Jane Blows could also have something that was originally meant for the privileged few.
My point is the enormous size of the tax deferral possible and the small number of people that it could possibly cover.

401ks became popular as a way of shifting costs off companies and onto the employee.....however, wage stagnation and lack of retirement funding knowledge are major reasons why most Americans are completely unprepared for retirement, let alone ER. For the 401k to be a viable replacement of the DB plan would have required salary increases to replace the value of a DB plan and financial education up the the average level of those on this board.
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Old 03-21-2011, 12:59 PM   #32
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Really, so folks that take risks to start businesses out of the blue should be punished for doing so? I think they are already punished in many ways dealing with OSHA and EPA and others..........
Of course not, the amount they can defer into a DB plan is an anomoly. It's just so much more than anything else. I was just wondering why. How come I can't defer that much or put $46k into my DC plan.
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Old 03-21-2011, 01:09 PM   #33
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But you already know the answer: because you are not part of a special interest.

And speak of special interests, perhaps someone will correct me if I am wrong, but I have read the following.

Our honorable law makers get lots of money donated to them for campaigning. The money could be used only for that purpose, not to do a kitchen remodeling on their home for example.

But what if the money is not all spent? Perhaps it is too much trouble to return it to the donors, so the law allows the fund to be added to their personal retirement accounts. Nice, huh?

Who passed those "nice, nice" laws, I wonder? I am sure it had bipartisan support!
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Old 03-21-2011, 01:11 PM   #34
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But you already know the answer: because you are not part of a special interest.
Yeah, I was being sarcastic and didn't really know it
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Old 03-21-2011, 02:54 PM   #35
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Of course not, the amount they can defer into a DB plan is an anomoly. It's just so much more than anything else. I was just wondering why. How come I can't defer that much or put $46k into my DC plan.
It's easy- Start your own business, invest in the physical plant and infrastructure, hire employees, make payroll, pay FICA, State, Federal and Local taxes,pay licensing fees, insurance, etc. If there is enough left to turn a profit, defer $46K into a DB plan.

Since you don't have your own business, why are you worrying about this "anomoly"?


If anyone could do it, everyone would do it. I'm pretty sure I couldn't, YMMV.
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Old 03-21-2011, 03:00 PM   #36
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Since you don't have your own business, why are you worrying about this "anomoly"?


If anyone could do it, everyone would do it. I'm pretty sure I couldn't, YMMV.
The deficit is why I worry.
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Old 03-21-2011, 03:02 PM   #37
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Vertically!

Oh, I thought it was a question.
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Old 03-21-2011, 03:04 PM   #38
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The deficit is why I worry.
Ah, yes, new taxation opportunities that don't affect you.
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Old 03-21-2011, 10:59 PM   #39
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The deficit is why I worry.
Pay more instead of spend less seems at such odds with LBYT.
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Old 03-22-2011, 01:05 PM   #40
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Pay more instead of spend less seems at such odds with LBYT.
Doing both would be best.....we are doing neither.

I feel that I am not taxed enough. I have enough money to ER at 50 and so I also have enough to stand a bit more of a tax burden.
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