Super confused... feeling DEVASTATED & hopeless... need advice on my plan?

[COcheesehead]

One of the most confusing/interesting/sad/funny threads in awhile.
I wonder what the 100% for sure opportunity that went bust was.

 

[Act2]

and my income is very random (not solid).

This seems to be adding stress. Whatever your online business is, can you also work a regular full or part-time job and do your current business as a side gig? You seem to have plenty of energy. I’m not suggesting you give up your business completely but if the income from it is only random at this point, perhaps a job for now could help smooth out the random income.

 

[athena53]

Really ?? I was self-employed for 31 years. When self-employed, I always had a CPA do my taxes. Had a payroll company do the misc unemp/SS/etc filings. I thought I paid SS/medicare through the payroll company, but maybe that was part of the unemp payment? I'll have to dig up my papers and see if I can figure it out.

Unemployment and SS are two different taxes. Unemployment is administered by the state and paid to them. When my Ex had his consulting business we hired a CPA to do the taxes for his business. He never filed an Unemployment Tax return. We had no idea till he got audited and we had to pay up.

Back to the OT.

 

[Aerides]

What are the DOWNSIDES if I were to sell my house and invest the 300k into a money market account rather than into a 3 fund portfolio of VTSAX, VTIAX and Bonds? I am not sure of the asset allocation to use in this example question... what am I "missing out on" if I went with this route?

The downside is no one here can say as we don't know your whole financial picture, your goals, your income needs, your assets and liabilities, etc. We can say in the abstract that sort of investment portfolio works well, and no doubt many here have it, in addition to other things.

But this is why you don't make decisions off a thread made in a state of despair, after consulting a few strangers online. You go find a fee-based fiduciary and spend the time and the hours to do it right.

 

[donheff]

I don't really understand the OP. Why would anyone reaching 44 years old with zero savings say he always planned to retire at 40 and is devasted at the situation he has found himself in. Did some crisis intervene that wasn't mentioned?

Compared to the average Joe, at 44, you (the OP) are in pretty good shape. You have sensibly downsized and come up with $300K to invest. Take your time and look at the advice people are giving here. It is good. You need to set a reasonable time frame to reach your goals and continue to work for quite a while.

 

[ERD50]

Robert Kiyosaki is a quack. Don't pay attention to anything that he says or writes.

Since your house is such a liability, I'll do you a huge favor assume said liability for free. Let me know where and when to meet and bring the title to sign it over to me.

If you're not interested in doing that then perhaps it isn't really a liability. Think that through.

+1

....I wonder what the 100% for sure opportunity that went bust was.

Curious as well. I suspect it would give a lot of insight as to OP's need to calm down and take stock of the situation and not chase the 'next great thing'.

-ERD50

 

[ERD50]

I don't really understand the OP. Why would anyone reaching 44 years old with zero savings say he always planned to retire at 40 and is devasted at the situation he has found himself in. Did some crisis intervene that wasn't mentioned? ....

From OP's post #22:

I agree with what you say 100%. I have left out a TON of details. I had opportunity, one which most people will never have in their lifetime.. and it didn't work out the way it was supposed to. I have left out a ton of details... but this opportunity would have had me easily retire by age 40.

Because of this opportunity which was 100% supposed to work out but didn't) I did NOTHING to protect myself just incase it did not work out.

I am here today 100% because of my own doing. When the you know what hit the fan... it has left me in devastation. ALWAYS have a plan B. I did not. I feel physically ill.

OP had a plan:

A) Collect Underwear

B) ??

C) Profits!

-ERD50

 

[dknighd]

I am very confused. And you might be as well. Tax laws in the USA are confusing. I assume they are also confusing in other countries.
I'm also confused about your housing situation. Are you living in the $600k house, or, did you already move into a cheaper place?
I'm guessing you have not been in the USA for long. That is only a guess. What is your immigration status? Permanent resident (aka green card), a citizen, or other.
You also mention running one business that is profitable. Maybe not a profitable as you would like, but still profitable. Then you mention buying another business. Where does the the money to buy the other business come from, and are you really willing to try and run two business?
Apparently you have not filed 2022 tax returns yet. And are paying a CPA to help you with that. I would pick their brain. Likely they know about retirement savings accounts for small business. They should also help you figure out where you stand. Since you have to file taxes soon, and already have an appointment with a CPA. I'd start there.
Do not panic. You own a house - which is both an asset and a liability.


Do not discount potential future SS income. The biggest bang from you buck might be getting 40 qualifying quarters.

 

[ivinsfan]

This is the second poster in a week coming here saying they have huge tax write offs but no money and quote "panicking" This entire thread makes zero sense.



All the words spelled out in caps are a little sus IMO...plus the missed magic opportunities that would have let them rich.. I'm not going to play.

 

[pacergal]

OP--take a deep breath. Make an appt with a fee only financial planner, come up with a plan and stick to it.
You have an IRA opened, so start putting money into it--5,10,15% or whatever you can afford every month. Get in the habit of saving for yourself now.
No, you are not able to "retire early" now, but you have the ability to start preparing for when you can.
You have a good asset in your house, but you need to have a plan, not do something out of panic.
Surely you saw this coming? What happened recently to cause such angst?
Keep posting questions here, folks are willing to answer and try to help.
If you are open to it--post you yearly income, your budget, etc. to get feedback.
Best of luck to you.

 

[Jerry1]

Really ?? I was self-employed for 31 years. When self-employed, I always had a CPA do my taxes. Had a payroll company do the misc unemp/SS/etc filings. I thought I paid SS/medicare through the payroll company, but maybe that was part of the unemp payment? I'll have to dig up my papers and see if I can figure it out.

Self employed people pay their SS through their tax return. I’m assuming you never got a W-2 if you were self employed.

 

[freedom2022]

I think OP is panic mainly due his medical conditions.

Tropical,
You received many good advice here.
There is no certainty in life. You just make the best you can.

Take care.

 

[Kings over Queens]

I need whatever money I invest to GROW into something large within the next 15 or 20 years. That is imperative.

If you want shade tomorrow you plant a tree yesterday. Or something like that.

Building wealth isn't a sprint, it's a marathon.

Slow and steady wins the race.

 

[dknighd]

I have a huge tree growing in my front yard. I consider it to be a good thing.

 

[RunningBum]

This is the second poster in a week coming here saying they have huge tax write offs but no money and quote "panicking" This entire thread makes zero sense.

All the words spelled out in caps are a little sus IMO...plus the missed magic opportunities that would have let them rich.. I'm not going to play.

+1.
And why would someone need $3M to live off the grid?

 

[Tropical]

+1.
And why would someone need $3M to live off the grid?

3M is my FI number. It does not matter where I live. That is my FI number that I am comfortable with. I am working to see if I would be OK with 2M as my FI number but the money needs to last at least 40 years once I start living off the portfolio and/or withdrawing partial amounts (not enough to fully support me yet). I would NEVER be comfortable withdrawing 4% (the "4% rule" thing does not make me comfortable.. I fear that just depletes the "principal" too much). I would prefer to be able to survive with taking 2% or 3% at the most. I need at least 60k/year to be ok in retirement. I would not plan to use that but I need a BUFFER.

A 2M portfolio would enable me with withdraw 3% (60k/year)... so it seems 2M FI could work... I am trying to figure all this out now... HOW LONG would a 2M portfolio last with a "3% rule" rather than 4% withdrawals? All the calculators I used so far always default to 4% withdrawal which I do not ever want to do.

If the portfolio funds last only 30 years I am not comfortable that at all.

I only grossed about 100k for one year.... prior years I was at only 30k or less!! Not sure what exactly "makes no sense" in this thread. The opportunity I had which would have allowed me to retire in my 40s is private and personal family matter and those details will not be discussed.

If I have trouble finding a flat fee financial advisor... do you guys recommend I must meet the advisor in person? Some advisors I see have virtual meeting on zoom for example. It seems meeting face to face would be best.

 

[pb4uski]

+1.

And why would someone need $3M to live off the grid?

+2 $1m should be plenty...$40k a year using the 4% rule plus SS you could live like a king off-grid.

 

[Tropical]

+2 $1m should be plenty...$40k a year using the 4% rule plus SS you could live like a king off-grid.

I have 5 citizenships. I haven't been in the US all the time so I have ONLY 8 credits for social security so far.

I am trying to see what I need to be able to retire on WITHOUT social security being included in the picture.

1M with 4% withdrawals is not going to last very long! It will be gone in 30 years time or less... or am I wrong?? For peace of mind etc I need the money to last at LEAST 40 years.

 

[skyking1]

1) any plan going forward has you working a few more years. I am going to use 55 as your goal now.
2) If you do this in the US, you will have 40 credits, so I would quit discounting SS from your plan.
3) If you have $6500 available, make your 2023 Roth IRA contribution in your new Roth account. Plan on doing that every year. This will increase to 7500 after age 50.
4) Pb4Ski spoke about self employed 401k . Max that out for the next 10 years of earning.

Now go look at your projections. Make enough money to be comfortable, and max the self employed 401 and the Roth.
It is a reasonable goal. Now look at things from age 55.
Unless you have really good history of living to the 90's in your family, you can use 30 years for your calculations.
You can start drawing from the Roth at 59.5, but virtually nobody suggests that and it is usually the last money to get touched.

 

[OldShooter]

I have 5 citizenships. ...

Troll?

 

[Tropical]

1) any plan going forward has you working a few more years. I am going to use 55 as your goal now.
2) If you do this in the US, you will have 40 credits, so I would quit discounting SS from your plan.
3) If you have $6500 available, make your 2023 Roth IRA contribution in your new Roth account. Plan on doing that every year. This will increase to 7500 after age 50.
4) Pb4Ski spoke about self employed 401k . Max that out for the next 10 years of earning.

Now go look at your projections. Make enough money to be comfortable, and max the self employed 401 and the Roth.
It is a reasonable goal. Now look at things from age 55.
Unless you have really good history of living to the 90's in your family, you can use 30 years for your calculations.
You can start drawing from the Roth at 59.5, but virtually nobody suggests that and it is usually the last money to get touched.

Thanks for your advice. I have to educate myself on the "self employed 401k". I was going to contribute to roth IRA, traditional IRA and taxable IRA... and/or money market account.... I need to brush on the the "self employed 401k".... now...

 

[Tropical]

Troll?

If you're going to be rude please refrain from replying to my posts. I fail to see how me stating that I have 5 citizenships make me a "troll". You are quite rude.

 

[MichaelB]

I have 5 citizenships. I haven't been in the US all the time so I have ONLY 8 credits for social security so far.

I am trying to see what I need to be able to retire on WITHOUT social security being included in the picture.

1M with 4% withdrawals is not going to last very long! It will be gone in 30 years time or less... or am I wrong?? For peace of mind etc I need the money to last at LEAST 40 years.

Social Security isn’t just about the pension. Social Security eligibility is required to be eligible for Medicare. If you plan on living in the US after age 65 you really need Medicare, otherwise health care may prove to be unaffordable.

 

[Tropical]

Social Security isn’t just about the pension. Social Security eligibility is required to be eligible for Medicare. If you plan on living in the US after age 65 you really need Medicare, otherwise health care may prove to be unaffordable.

Yes thanks I see that... this statement I found on google is scary! It's one of the reasons I will most likely not be able to stay in the US during retirement...

According to Fidelity Investments' 2022 Retiree Healthcare Cost Estimate, the average American couple estimates the total cost of healthcare in retirement to be $41,000; however, in actuality, the average 65-year-old couple retiring this year can expect to spend an average of $315,000 on healthcare expenses throughout ...Mar 15, 2023

 

[Sunset]

I have 5 citizenships. I haven't been in the US all the time so I have ONLY 8 credits for social security so far.

....

Just have working income for 2 more years ~$25K or more, per year and you will have BOTH Social Security & Medicare.

You are so close it's a no-brainer decision.

Not sure why you collected 5 citizenships, other's here have a few as well, but 5 is pretty high. But it doesn't matter in the end. What matters is your earnings and not jumping into any more 100% guaranteed money makers.
There is no such thing..