Recent content by AlabaMalaysia

100% agree. As someone in their late 30s I see many of my peers taking time for granted and not appreciating how great a time it is to be alive.

Congrats enjoy your life. This is one of the best times to ever be alive so enjoy it fully!!!

If I remember right the math is even if US market pukes -50% during first 10 years and doesn't even come back to par for another 10 yrs that a 2-2.5% SWR still gets one to a 60 year retirement at almost 100%. Anything worse than that is bad for everyone anyways.

This is basically how we have looked at our setup. Wife and I will retire in 2 yrs at 41 and 38 yo and basically over saved to get to a SWR of 2.5% solves these uncertainties IMO. IF everyone that is in a position to FIRE in 40s has a 2.5% SWR mindset it makes things less complicated I think.

From looking at Fidelity's CDs ladder 5 year building as I think I read it, for $110k I could get around $5-$5,500 per year of interest over the time frame. The way then it seems is that the interest essentially pays 10 months of my mortgage + insurance cost at the present time. Essentially...

Thank you for your comments.

From each study and calculator I have read or used in every 50 year period in the modern economic system a 50 year 2.5% withdraw rate has never failed even with worst timing and various CAPE setups.. Have seen any study that has shown other wise to share? I am always trying to make sure our...

ok thank you for the explanation

Kinda what we are thinking is like the first 5 years buy CDs or some other ladder/instrument and then pocket the rate difference and after 5 years see where rates vs mortgage is to eother just pay off or see what deals are out there since this cash is just for the house nothing to do with FI income.

So I should look into a muni ladder potentially to see if I can get non-callable bonds at good enough rates is what you suggest I investigate? If I buy those all the principal is returned at cost basis as I understand it while pocketing the interest.

Maybe I wasn't clear above. We will have the cash set aside soon = $110k in cash we currently owe around $80k something on the home loan. We can pay off the loan anytime we desire, however since our rate is so low with that $110k that is just for the house would it be better to buy CDs or...

Yes that's the mortgage payment amount basically in total with insurance its around $560/month. The annuity suggestion is interesting thank you for the reply this is what I was hoping to get some different ideas to ponder. I do not know much about annuities. From my quick reading, it does...

So you mean to keep the $110K and put into interest bearing safe asset like CDs versus just paying the house off? We have the home payoff cash regardless it is separate than our retirement withdraw money pot.

O maybe I wasn't clear above. We will have the cash set aside soon = $110k in cash we currently owe around $80k something on the home loan. We can pay off the loan anytime we desire, however since our rate is so low with that $110k that is just for the house would it be better to buy CDs or...

Would a laddered bond portfolio be wiser than using CDs? I am not experienced much yet with bonds in practice as accumulation phase has been pretty much all equities 95%. On the tax side both options interest payments will count toward our MAGI the same I assume via a brokerage account?