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Old 05-24-2017, 09:51 AM   #61
Confused about dryer sheets
 
Join Date: May 2017
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Hey guys, joining the club

Im officially targetting 2022 but between possible bumps in the road and the OMY syndrom i would say 2024 is much more likely to be when FIRE kicks in for my wife and I.

Targeting $3m of investment (excluding home, aiming for value there obviously not McMansion style) too as i wont benefit from any corp pensions etc besides what will be left of SS by the time i hit 62...currently at 41.6% of target, looking forward to the journey ahead!

Cheers to all!
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Old 05-25-2017, 06:35 PM   #62
Confused about dryer sheets
 
Join Date: Sep 2012
Location: APO
Posts: 6
I'm targeting 2024 as that's when I'll have 20yrs of military service with approximately 3 mill. But I'll probably try to get on with an airline, for a few years to see how it goes. Why such pessimism in the market returns, I expect to see 8-9% on average with a an S&P index fund. Look at the market average for the last 100, 50, 20, 10 years. Why would you expect less, not saying there won't be down years but 2024 is 7 years away let's see what happens....
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Old 05-31-2017, 11:02 AM   #63
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eyeing 2021 or 2022 for myself Goal is to have $1m of net worth 30y old and would LOVE to be done by 35.

My numbers:

$100k 401k
$200k brokerage
$10k - Roth IRA (make too much to contribute any more)
~$300k of equity on my manhattan apt (put $200k down, and has increased about $100k since).

Between my extreme saving habits and bonuses, hoping to add $100k a year to the pot (pre and post tax money) so should feasibly be able to hit 1m by the time I am 35 baring no extreme market collapse.
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Old 05-31-2017, 11:19 AM   #64
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Originally Posted by jcnyc View Post
eyeing 2021 or 2022 for myself Goal is to have $1m of net worth 30y old and would LOVE to be done by 35.

My numbers:

$100k 401k
$200k brokerage
$10k - Roth IRA (make too much to contribute any more)
~$300k of equity on my manhattan apt (put $200k down, and has increased about $100k since).

Between my extreme saving habits and bonuses, hoping to add $100k a year to the pot (pre and post tax money) so should feasibly be able to hit 1m by the time I am 35 baring no extreme market collapse.
That's a pretty good amount of money saved at your age, nice work! However, have you run your numbers through FireCalc? $1M to last 45 yrs is likely too low.
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Old 05-31-2017, 11:23 AM   #65
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That's a pretty good amount of money saved at your age, nice work! However, have you run your numbers through FireCalc? $1M to last 45 yrs is likely too low.
Thanks! Don't woryr, I have no plans to retire in manhattan haha. I am realistic after all. Plans are to move abroad and travel for awhile. I will take up a job as a dive professional (am a PADI instructor already) if/when I find a place that I like. I'm budgeting about 35k a year, but feasibly will probably need much less from my pot.
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Don't know how I missed this post.
Old 05-31-2017, 11:29 AM   #66
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Don't know how I missed this post.

Joining today.
The plan is the end of 2024. I'll be a few months 55yo. May stay a couple months in 2025 to max 401k then get out.

55 is the target age, we'll adjust our budget based on where we are then.
$3M is the target $. We'll adjust our timeline if we get there firstly.
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Old 05-31-2017, 12:41 PM   #67
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Let me join the class!

Current age: 42
Target investable assets: $3.5M
Curent progress: about 40% of the target.
Target FIRE: Summer 2024
Target FIRE age: 49
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Old 05-31-2017, 05:47 PM   #68
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So many new racers !!! Welcome all
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Old 05-31-2017, 05:53 PM   #69
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2k6_TX_Dad, looks like we are about same age - will be 55 in 2024, and we have the same $3M target - although ours for total net worth including real estate. Will be interested to see you progress Our plan is to cross 40% this year.
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Old 06-01-2017, 12:09 AM   #70
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Quote:
Originally Posted by jcnyc View Post
eyeing 2021 or 2022 for myself Goal is to have $1m of net worth 30y old and would LOVE to be done by 35.

My numbers:

$100k 401k
$200k brokerage
$10k - Roth IRA (make too much to contribute any more)
~$300k of equity on my manhattan apt (put $200k down, and has increased about $100k since).

Between my extreme saving habits and bonuses, hoping to add $100k a year to the pot (pre and post tax money) so should feasibly be able to hit 1m by the time I am 35 baring no extreme market collapse.

emphasis mine

I am surprised at how many financially resourceful people on this board who make too much for a direct Roth IRA contribution aren't aware of the backdoor Roth IRA steps Since this has been available since 2010, it could have allowed over $70k in contributions for a married couple so far

Here is a good guide: Backdoor Roth IRA: A How-To Guide - The Biglaw Investor
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Old 06-01-2017, 05:47 AM   #71
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Lot of 401K plans also allows non-deductible after-tax contributions. All of the after-tax contributions can be transferred to Roth IRA when you leave the company or 59.5 whichever is sooner. You can contribute up to $54,000 (minus pre-tax and employer match) per year. So I call this jumbo backdoor IRA contribution!

PS: IRA clarified the rules in 2015 or 2016 so this route is very recent and most people are not aware of it.
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Old 06-01-2017, 08:43 AM   #72
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emphasis mine

I am surprised at how many financially resourceful people on this board who make too much for a direct Roth IRA contribution aren't aware of the backdoor Roth IRA steps Since this has been available since 2010, it could have allowed over $70k in contributions for a married couple so far

Here is a good guide: Backdoor Roth IRA: A How-To Guide - The Biglaw Investor
My thought has always been a roth ira is not as useful to me since I have no plans of waiting until 59.5 to access it. I just feel like tax wise, it works out the same. Could be wrong though so please correct me if so.

I max out my 401k because I know my post retirement "income" will be significantly lower than my income now, to the point where I'll be shooting to stay in the 15% tax bracket. So even if I withdraw early and pay the 10%, my tax rate would still be lower than what I pay now.
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Old 06-01-2017, 08:50 AM   #73
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Roth IRA contributions can be withdrawn after 5 year tax and penalty free. So there is a case for Roth IRA even for young retirees. Lot of people do Roth IRA "ladders" after they retire i.e. transfer money from 401K to Roth IRA keeping the transfer amount in 10%/15% bracket. Then withdraw those contributions after 5 years and every year after that!
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Old 06-01-2017, 11:54 AM   #74
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My thought has always been a roth ira is not as useful to me since I have no plans of waiting until 59.5 to access it. I just feel like tax wise, it works out the same. Could be wrong though so please correct me if so.
The advantage is that rather than the 5.5k staying in your 'savings account' for example, where it's earnings are taxable. It's somewhere where the earnings are not. You can pull the contributions before 59.5 (after 5yrs) and any earnings from that investment after (tax free).

Please correct me if I'm wrong.
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Old 06-01-2017, 03:48 PM   #75
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These guys are completely right. It is also a very useful wait for you to build a Roth ladder. If you already have five years of expenses in contributions, you don't have to live off of taxable investments.
Read more about Roth ladders. Madfientist has some good articles about it.
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Old 06-01-2017, 11:07 PM   #76
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Originally Posted by pjigar View Post
Lot of 401K plans also allows non-deductible after-tax contributions. All of the after-tax contributions can be transferred to Roth IRA when you leave the company or 59.5 whichever is sooner. You can contribute up to $54,000 (minus pre-tax and employer match) per year. So I call this jumbo backdoor IRA contribution!

PS: IRA clarified the rules in 2015 or 2016 so this route is very recent and most people are not aware of it.
Yes. I would love to do this, but so far, my current 401k administrator with my employer does not allow non deductible after tax contributions
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Old 06-01-2017, 11:20 PM   #77
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Originally Posted by pjigar View Post
Roth IRA contributions can be withdrawn after 5 year tax and penalty free. So there is a case for Roth IRA even for young retirees. Lot of people do Roth IRA "ladders" after they retire i.e. transfer money from 401K to Roth IRA keeping the transfer amount in 10%/15% bracket. Then withdraw those contributions after 5 years and every year after that!
This is my plan, but I believe you can actually take out contributions at any time without penalties under 59.5. It is earnings that have to have the 5 year waiting period.

Now is it considered a 'contribution' if you convert $XXXXX amount from a 401k to Roth IRA (since you have to pay taxes on it)? I realize that the answer is in the word 'convert'
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Old 06-02-2017, 04:24 AM   #78
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This is my plan, but I believe you can actually take out contributions at any time without penalties under 59.5. It is earnings that have to have the 5 year waiting period.
Yes, I stand corrected: The 5-year rule for Roth IRA distributions stipulates that 5 years must have passed since the tax year of your first Roth IRA contribution before you can withdraw the earnings in the account tax-free.
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Old 06-09-2017, 07:05 PM   #79
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I thought I was aiming for 2024, when I reach age 48 and investable assets of 2.8M. Then I got another condescending email from a jerk manager at work, and am now wondering if I can go out next year...😡
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Old 06-09-2017, 07:24 PM   #80
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Yes, I stand corrected: The 5-year rule for Roth IRA distributions stipulates that 5 years must have passed since the tax year of your first Roth IRA contribution before you can withdraw the earnings in the account tax-free.
Conversions also have their own separate timelines I believe.
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