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06-05-2019, 06:27 PM
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#61
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by street
Now, NW-Bound I would bet you could splurge just one time, for a Hermès bag for your wife. Now tell us the truth. Lol
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My wife is a low-key, low-maintenance woman. She's just happy as she is, and spends much less on toys than I do.
When we were at the Hermès store window, we saw that they had a wallet for more than 2,000 euros (a bitty wallet, not a bag). She said "I can do a lot more with that money than to spend it on a wallet".
That's my wife!
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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06-05-2019, 06:30 PM
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#62
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Recycles dryer sheets
Join Date: Jun 2019
Posts: 70
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Quote:
Originally Posted by Kook
First, my target was 1M
Then, when I got there it was 1.5M
Then....2M
Ditto 2.5 M
The goalposts keep changing.
Perhaps time to kick the field goal?!
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Just run off the field!
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06-05-2019, 06:59 PM
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#63
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Full time employment: Posting here.
Join Date: Mar 2010
Posts: 889
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For early retirement the way I see it, you need $1,000 a month to live a spartan, but still comfortable, life in most of the world (expat in Latin America, South East Asia, Eastern Europe, etc).
At $1,500 a month a single person can live a very nice standard of living in the places mentioned above or afford a transient lifestyle in the US/Europe, i.e. purchase a used travel trailer, RV, or van and travel the US.
At $2,000 a month you can live a pretty luxurious life as an expat or you can start to afford a stationary lifestyle in the US, if you chose a reasonable location. Purchase a house outright for $100k or so, and $2k a month is plenty to live on. There are small/dying rural places all over the US where this is feasible.
.....
In regards to a 3% withdrawal rate. I kind of look at that as the optimal amount, because I want excess growth above the inflation rate.
My rough plan right now is to use Vanguard's High Dividend Yield Index, and invest enough so that the yearly dividend income is $18k a year (i.e. $1,500 a month). At that point I can go slow travel most of the world, starting out with a standard of living not really any different than what I currently have, and then come back to the US at 60+ to live a stationary retirement.
I have around $417k in VHYAX with guesstimate of $14k div income this year. Last 5 year avg div growth is 8.66%. My guess is dividends will grow around 5%-10% every year. The div yield on VHYAX is usually around 3%.
For age 60+ I currently have around $100k in 401k/Roth IRA and 18 years in a pension by year end. Guesstimate on current value of the pension is around $600k. Pension has a yearly 3% COLA once I can start collecting on it at 60+.
I'm 43, tentative plan for a long time has been to do something different once I hit 45. Leaning towards slow-travel expat.
I'll have 20 years in the pension by 45. Take home expenses, excluding health care insurance and taxes, are currently around $30k. W-2 income is around $73k. I'm saving a lot of money every year and dividends are getting large enough where the internal compounding is significant.
In two years I'll have a descent amount of cash on hand and dividend income will probably be pretty close to $18k. By 52 div income should be pretty close to $30k. By the time I hit 60 and can collect on the pension and 401k, my div income alone will be around $57k. From 60+ I'll have more income than I did while working full time and it'll be growing fast every year.
So basically, I start out at age 45 with $1,500 a month expating in Mexico, Thailand, etc. Every year, I'll have more money to spend and can travel to more expensive locations. By the time I'm 60 I can start going to Europe, Australia, Japan, US, etc.
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06-05-2019, 07:12 PM
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#64
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Thinks s/he gets paid by the post
Join Date: May 2005
Location: Portland
Posts: 1,713
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Quote:
Originally Posted by Kook
First, my target was 1M
Then, when I got there it was 1.5M
Then....2M
Ditto 2.5 M
The goalposts keep changing.
Perhaps time to kick the field goal?!
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Victory formation?
aka....kneel down
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06-05-2019, 07:43 PM
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#65
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,551
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Quote:
Originally Posted by Kook
First, my target was 1M
Then, when I got there it was 1.5M
Then....2M
Ditto 2.5 M
The goalposts keep changing.
Perhaps time to kick the field goal?!
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Kook - that sounds exactly like me.
- When I hit $1M, I knew it wasn't enough.
- When I hit $1.5M, it was enough to be able to do a little travel.
- When I hit $2M, I could double the travel budget.
- Then, my wife said she wants a house with a pool, PV system, and dive compressor. Try that one in Hawaii for under $1M!
- Current goal is FIRE at $3.0M+, 54th birthday.
- I think I'm going to kick, and hope that the ball goes far enough and straght enough that after 4 to 5 years travel, I'll be able to settle down and buy that house for my wife!
Bit of a gamble, but isn't all of life!
__________________
Balance in everything.
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06-05-2019, 08:05 PM
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#66
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,409
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Quote:
Originally Posted by athena53
From some of the posts from my friends on FB, it's clear that "millionaire" and especially "multimillionaire" are pejoratives. Clearly anyone who got to that point lied, cheated, stole and oppressed the masses somehow.
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And I remember when it was something to strive for!
(the money, not the cheating and lying...oppressing the masses is a matter of taste, I suppose)
__________________
Living well is the best revenge!
Retired @ 52 in 2005
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06-05-2019, 08:10 PM
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#67
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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Another reason I will never be on fecesbook
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06-05-2019, 08:16 PM
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#68
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Thinks s/he gets paid by the post
Join Date: Jun 2016
Posts: 4,663
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I feel grateful that we can live the lifestyle we do in a relatively high COL area and not have to work. I’m grateful that we can travel for several months per year also. I suppose relative to many, we are wealthy, but I don’t think of us as wealthy. We drive 2007 cars, buy clothes on sale at Land’s End, Kohl’s, Macy’s and Target, and don’t use valet parking if we don’t have to.
I’m not sure what a “wealthy” NW would be to me, but I think of my former boss as wealthy. He and his wife own multiple large very nice homes in HCOL areas, a 77 ft yacht, and they just bought a huge custom built RV. He drives a Ferrari and she just bought a new BMW. They are quite conservative with finances so I am confident they have loads of cash left after paying for all of these luxury items. That is a level of wealth we will never attain. Even they may not feel wealthy though. No private jet as far as I know. There is always someone else who has more wealth.
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06-05-2019, 08:21 PM
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#69
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,551
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Quote:
Originally Posted by Scuba
I’m not sure what a “wealthy” NW would be to me, but I think of my former boss as wealthy. He and his wife own multiple large very nice homes in HCOL areas, a 77 ft yacht, and they just bought a huge custom built RV. He drives a Ferrari and she just bought a new BMW. They are quite conservative with finances so I am confident they have loads of cash left after paying for all of these luxury items.
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THey appear to be quite wealthy, but with the cost of all that, I find it just as likely that they're up to their eyeballs in debt. Guess I can't fathom the annual cash flow required for that lifestyle. Taking care of the yacht alone must consume a couple mil per year!
__________________
Balance in everything.
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06-05-2019, 08:35 PM
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#70
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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Any old timers on this forum remember when posters went thru a period of bragging how un wealthy er I mean how low our expense budget was or could be?
Dryer sheets, Four Yorkshiremen, etc, etc.
heh heh heh - over 25 years, 1993 till now I don't 'really' consider it being wealthy just a loss of shall we say 'discipline'.
I can - in my heart - get frugal if necessary. Right?
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06-05-2019, 09:02 PM
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#71
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Recycles dryer sheets
Join Date: May 2019
Posts: 79
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At $5M nw, my wife still thinks we're just a step removed from the poverty line :-)
But I'm making progress - by running various retirement calculators, I think I've gotten through to her that we're "ok"
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06-05-2019, 09:44 PM
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#72
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,514
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Quote:
Originally Posted by NW-Bound
My wife is a low-key, low-maintenance woman. She's just happy as she is, and spends much less on toys than I do.
When we were at the Hermès store window, we saw that they had a wallet for more than 2,000 euros (a bitty wallet, not a bag). She said "I can do a lot more with that money than to spend it on a wallet".
That's my wife!
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Yep, I get it. My wife is the same way and would never dream of spending money like that on a bag. Lol We are lucky to have a partner like that.
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06-05-2019, 10:01 PM
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#73
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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It was only 10 years ago, during the Great Recession. I think we will get a chance to go through another one like that before I croak.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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06-06-2019, 01:22 AM
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#74
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Thinks s/he gets paid by the post
Join Date: Sep 2014
Location: The Great Wide Open
Posts: 3,804
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I knew at 55 that things were looking pretty good for DW and I. Working in WY/PA/WV coal mines for 35 years, I knew we were blessed with good fortune and health.
I had several hourly guys that worked for me who owned large family farms, worked in the mines part of the day, then went home to manage small herds of cattle, grow corn and hay to feed them. Great men, hard workers, could always count on them to get a job done, always smiling. Several of them hit it big with the shale gas; one guy worked for a year collecting $60,000 a month in gas royalties; thought it was a big farce and was going to crap out after a few months. Others kept working for a year or two, because they didn't want their co workers to think they were rich. Some waited til 55(and 30 years) to get their union medical card. Always felt pretty happy for them, even though we made it different ways. The one guy still tends to his cattle, cuts hay, grows corn but has a real pretty barn, beautiful fence line and fence, shiny tractor and even a bigger smile.
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06-06-2019, 03:32 AM
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#75
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,139
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Quote:
Originally Posted by ugeauxgirl
It's all a matter of perspective I guess. I feel wealthy when I think about it at all. I'm wealthy because I don't have to work anymore if I don't want to. There isn't much that I want that I don't have. And if I really wanted it I could. My life is very full.
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Same here. We feel wealthy. Fortunate too.
__________________
Retired since summer 1999.
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06-06-2019, 03:46 AM
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#76
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,985
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Quote:
Originally Posted by W2R
That number is way too high!
I guess it's all in how you define "wealthy". To me, it's being able to afford everything you want, and also every experience that you want.
In my world there are plenty of people who are perfectly content despite having far, far less than $2.27 million in their investment portfolio.
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Exactly. As long as I have enough I'm good. I feel very fortunate on the NW side. However the health and happiness side can be fleeting. I know a very wealthy man who has discovered in his late sixties that his health is declining. All that money doesn't mean much.
I've also noticed an inverse relationship between the size and cost of one's boat and their apparent happiness.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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06-06-2019, 04:42 AM
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#77
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Posts: 2,232
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Quote:
Originally Posted by HadEnuff
I don't feel wealthy, but I feel very fortunate. With a 3% WR, and my and DW's SS, I can pretty much do anything I want to do. But there is a lot of expensive stuff I neither want, nor need, so I don't feel "wealthy"... Although I really wanted that Honus Wagner baseball card that just sold for a cool $1.2 Million...I wanted it badly.
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Quote:
Originally Posted by W2R
Here you go! Buy this on Amazon for $12.99, and save $1,199,987.01.
The big advantage of doing this is that you can frame it and put it in your living room to stare at to your heart's content, for hours every day if desired. The expensive one you'd have to keep in a safety deposit box or something and you'd never get to see it. You'd need separate insurance for it too. What a hassle.
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I figured if I was wealthy I could just stick it in the spokes of my bike to make it sound like a motorcycle. That's probably what my granddad did with HIS Honus Wagner card in 1910.
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06-06-2019, 04:46 AM
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#78
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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Quote:
Originally Posted by Mdlerth
Nobody should "feel guilty" except criminals... and CNN, for their relentless blame-mongering.
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Blame-mongering?
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06-06-2019, 05:06 AM
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#79
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,409
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Quote:
Originally Posted by HNL Bill
THey appear to be quite wealthy, but with the cost of all that, I find it just as likely that they're up to their eyeballs in debt. Guess I can't fathom the annual cash flow required for that lifestyle. Taking care of the yacht alone must consume a couple mil per year!
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We winter in Fort Lauderdale, land of the $20M homes and $50M yachts. I always point out to our guests that --by my guess-- a third of what you'll see is true wealth, a third are people scrambling like mad to keep their heads above water and a third are outright thieves with no intention of paying for any of it.
I do visit my old CEO from time to time and he has all those toys. I know that his NW is somewhere in the $200MM range so he is quite capable to handle the cash flow.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
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06-06-2019, 05:10 AM
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#80
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,409
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Quote:
Originally Posted by AnonEMouse
If that family spent a conservative 3% of their assets each year, they would have $68,100 a year to live on. That's more than the median household income in the United States of $61,000 -- without even having to work."
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I'm not sure one should define wealthy by being slightly above the median income unless 'not having to work for it' is your criteria.
Even then, $68,100 a year here just north of Boston isn't bad but doesn't get you much wealthy livin'.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
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