F.I.R.E User
Thinks s/he gets paid by the post
If I sell now I will have to pay a penalty on my 401k and taxes. What is my benefit of selling now?
Share Your FIRE Milestones - 2021
- Thread starter Gumby
- Start date
If I sell now I will have to pay a penalty on my 401k and taxes. What is my benefit of selling now?
Been a long time since I was active here, joined in 2005 as a young pup with a dream, now 47 years old and recently calculated we have a 2.5 million NW now, made me think of the board!
Our single biggest good move was buying a ~1500 sq foot townhouse as a rental back in 2013 down the street from us (San Diego area). We've worked hard to pay it down so it will be mortgage free by retirement, and it should throw off about $3,000 net income at that point greatly benefiting the withdrawal rate necessary from our retirement accounts. Looking to quit at 55 (actually 54 and change).
Our single biggest good move was buying a ~1500 sq foot townhouse as a rental back in 2013 down the street from us (San Diego area). We've worked hard to pay it down so it will be mortgage free by retirement, and it should throw off about $3,000 net income at that point greatly benefiting the withdrawal rate necessary from our retirement accounts. Looking to quit at 55 (actually 54 and change).
REWahoo
Give me a museum and I'll fill it. (Picasso) Give
pdsmith505
Confused about dryer sheets
- Joined
- Feb 7, 2021
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Noticed I was over $100k in my investment accounts (TSP, Roth IRA, and Taxable brokerage) yesterday. Not bad for getting serious about the idea late last year.
That's supposed to be the hard part, right?
Last year's milestone was eliminating all debt except the mortgage, and I've kept that one too.
Small milestones, but milestones none the less.
That's supposed to be the hard part, right?
Last year's milestone was eliminating all debt except the mortgage, and I've kept that one too.
Small milestones, but milestones none the less.
Lawrencewendall
Full time employment: Posting here.
Congrats! I said I would have a party when I hit 100k. Before I knew it, it was 500k. How did that happen? Keep plugging away and trust the power of compounding!
anothercog
Recycles dryer sheets
What a difference a year makes. Last year I clocked in at $4.4MM in investable assets today I’m over $5.8MM.
If we have another good year I could hit my FI goal of $6.4MM within a year.
Another milestone is that my AAPL holdings have crossed $1MM. That was from a 2005 investment of I believe $15k which has helped offset a lot of my laggards.
If we have another good year I could hit my FI goal of $6.4MM within a year.
Another milestone is that my AAPL holdings have crossed $1MM. That was from a 2005 investment of I believe $15k which has helped offset a lot of my laggards.
street
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 30, 2016
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- 9,539
That is a lot of dough you have and with SS tacked on you should be golden. Now, with saying that it still depends on your expenses.
Like the experts here will tell you. Run your numbers on FIRECalc. On the bottom of this page is the link to run your numbers to see what percent of success you have to sustain with the dough you have.
You should start your own thread on your question and a lot of your questions can be answered and more.
Good Luck!
Like the experts here will tell you. Run your numbers on FIRECalc. On the bottom of this page is the link to run your numbers to see what percent of success you have to sustain with the dough you have.
You should start your own thread on your question and a lot of your questions can be answered and more.
Good Luck!
skyking1
Thinks s/he gets paid by the post
Those are similar numbers to ours, in about 18 months. Do as street said and get all the info into firecalc.
Lawrencewendall
Full time employment: Posting here.
Annual investment dividends now exceed my military retirement and DWs SSDI! Most of the dividends are in tIRAs and reinvested so I can't touch it for another 2 years without a penalty but it is still a milestone for me.
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On Firecalc, when I choose the option of "A portfolio with random performance, with a mean total portfolio return of 5% and variability (standard deviation) of 10% (default). Assume an inflation rate of 3% (default)", it shows that even if I start with a portfolio of 1.5M and a withdrawal of 85K (5.6% withdrawal rate), with no pension and assuming $0 SS, I get this:
FIRECalc looked at the 221 possible 30 year periods in the available data, starting with a portfolio of $1,500,000 and spending your specified amounts each year thereafter.
Here is how your portfolio would have fared in each of the 221 cycles. The lowest and highest portfolio balance at the end of your retirement was $-2,744,487 to $1,500,000, with an average at the end of $-1,009,720. (Note: this is looking at all the possible periods; values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 30 years. FIRECalc found that 216 cycles failed, for a success rate of 2.3%.
_____________________________________________________________
Repeating this for a 4% withdrawal rate of 60K annually, I get this:
Your spending in every year after the first year will be adjusted for inflation, so the spending power is preserved.
FIRECalc looked at the 221 possible 30 year periods in the available data, starting with a portfolio of $1,500,000 and spending your specified amounts each year thereafter.
Here is how your portfolio would have fared in each of the 221 cycles. The lowest and highest portfolio balance at the end of your retirement was $-943,512 to $2,503,336, with an average at the end of $204,473. (Note: this is looking at all the possible periods; values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 30 years. FIRECalc found that 99 cycles failed, for a success rate of 55.2%.
_____________________________________________________________
This puts the fear of God in me because our success rate is so low in both scenarios and we'd have NOTHING left for our disabled son to live off of. How are other people able to make this work in retirement? Does everyone get a pension and is assuming that SS will always be around, or do they just have a larger nest egg or lower withdrawal rates?
FIRECalc looked at the 221 possible 30 year periods in the available data, starting with a portfolio of $1,500,000 and spending your specified amounts each year thereafter.
Here is how your portfolio would have fared in each of the 221 cycles. The lowest and highest portfolio balance at the end of your retirement was $-2,744,487 to $1,500,000, with an average at the end of $-1,009,720. (Note: this is looking at all the possible periods; values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 30 years. FIRECalc found that 216 cycles failed, for a success rate of 2.3%.
_____________________________________________________________
Repeating this for a 4% withdrawal rate of 60K annually, I get this:
Your spending in every year after the first year will be adjusted for inflation, so the spending power is preserved.
FIRECalc looked at the 221 possible 30 year periods in the available data, starting with a portfolio of $1,500,000 and spending your specified amounts each year thereafter.
Here is how your portfolio would have fared in each of the 221 cycles. The lowest and highest portfolio balance at the end of your retirement was $-943,512 to $2,503,336, with an average at the end of $204,473. (Note: this is looking at all the possible periods; values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 30 years. FIRECalc found that 99 cycles failed, for a success rate of 55.2%.
_____________________________________________________________
This puts the fear of God in me because our success rate is so low in both scenarios and we'd have NOTHING left for our disabled son to live off of. How are other people able to make this work in retirement? Does everyone get a pension and is assuming that SS will always be around, or do they just have a larger nest egg or lower withdrawal rates?
anothercog
Recycles dryer sheets
My previous largest single holding was my employer stock. That outperformed for my first 14 years at the company but has underperformed for the past 6. So while AAPL popped, my largest holding slumped. Sort of evened out. I have had some good luck with smaller positions in QQQ and GOOG but I likely would have already reached my goal if I had just put everything in an S&P index fund instead of trying to be a stock/fund picker.
A bit more than half my investments are in equity index funds.
Out-to-Lunch
Thinks s/he gets paid by the post
No.
I cannot speak to the rest of your post, but I think I am safe in saying that most here beleive that SS will always be around, albeit many are planning for the scheduled ~24% "haircut" that, under current law, will occur in the early 2030s.
retired1
Recycles dryer sheets
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- Jun 10, 2011
- Messages
- 297
Congrats on 100K mark. Once you get a knack of savings & frugal lifestyle, it's so much fun to see your balance grow and reach the dream of "Financial Freedom". Most of established members on this forum have reached FIRE goals because of Saving and living within means. But don't forget you can still have lot of fun and mini-vacations along the way. Good Luck !!
retired1
Recycles dryer sheets
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I don't include SS in my calculation even though I believe it'll be around. But SS is so shaky and G*vt can change SS rules any time. Sad
skyking1
Thinks s/he gets paid by the post
Yesterday my pay stub bumped over 100K for the year, for the first time. We signed our last union contract in the summer, and I will get one more raise before retiring in 2023. It is just a number but a clear example of leaving money on the table, rather than years of good health. I am getting itchy to go
F.I.R.E User
Thinks s/he gets paid by the post
Yesterday my pay stub bumped over 100K for the year, for the first time. We signed our last union contract in the summer, and I will get one more raise before retiring in 2023. It is just a number but a clear example of leaving money on the table, rather than years of good health. I am getting itchy to go
Congrats. How many hours a week do you work?
skyking1
Thinks s/he gets paid by the post
something slightly less than 40, on average. I get a little OT now and then and the rest of the time it's 40, less personal days that I take now and then too. It's a gravy gig with a company truck, and a short commute. All these things compel me to stay, and all my new friends here talk the sense back into me.
Surewhitey
Thinks s/he gets paid by the post
2 mil net worth to start 2022 (second took 6 years)...grew 5.5 years of spending in 2021...2 grandkids to start 2022 (2nd just happened this week).
Been a good year.
Been a good year.
I'm getting paid for 40. Actual work maybe 10. Work from home. Have to go in maybe once every 2 weeks for about 2 hours. When I go in it is 15 miles. Making 6 fig's plus. Can't hink of a reason to stop. DW just turned 50 and loves her job. My gig interferes with nothing. Oh well. I'll stop someday.
skyking1
Thinks s/he gets paid by the post
Most significant is the aviation aspect, which if you'll note my avatar would not be work at all.
I get dirty and wet from time to time, and actually do physical works. OTOH, anything aviation would be play.
Alex The Great
Recycles dryer sheets
I'm in pretty similar situation but work from home all the time. Employer really want everyone back to office some day. But the return time is a moving target. Last time, they said early Feb is the last call. I see a good reason to stop when return actually happens. I have a hard time to adjust myself back to office, although spent pretty much all 25 years of my corporate career there. But the last two years made a big difference.
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