51–60 of 70 posts
Earlier quoted context omitted.
Wouldn't it be more like $60K?
If you believe in the 2% inflation figure put forth by the government, yes. So let's say it's $60k, before taxes. Seems like a bummer, do you think?
If you live in a place like the Bay Area, the best retirement plan involves these 4 steps: 1. Owning a home in the Bay Area by the time you retire. No mortgage, no rent. Just bills. 2. Sell that place when you retire in order to move to a cheaper location. Use whatever's left from the sale of your home as an income for the rest of your life. Let's take a $800K home for example, if you make $150K per year, you may qua…
> " Real estate in a place like the Bay Area is the best investment because of the location " How do you know this? What you're saying sounds just like all the bankers and mortgage salesmen in 2007 promising that real estate prices will never fall. If you want to bet on SV real estate being the best investment, go ahead. But call it what it is: a speculative bet. For those who would prefer not to speculate on their r…
If you live in a place like the Bay Area, the best retirement plan involves these 4 steps: 1. Owning a home in the Bay Area by the time you retire. No mortgage, no rent. Just bills. 2. Sell that place when you retire in order to move to a cheaper location. Use whatever's left from the sale of your home as an income for the rest of your life. Let's take a $800K home for example, if you make $150K per year, you may qua…
It's a bit depressing, and a damning indictment of the system, that most people's only hope for a comfortable retirement is basically a massively leveraged bet on the housing market.
That's a bit of an odd analysis. The biggest chunk of my income is eaten up by taxes and rent. Once you've retired and your only income is from long term capital gains, taxes are much less of an issue and hopefully you've purchased a home so you don't need to rent. It also ignores social security, which based on the quick calculator at ssa.gov seems to be not an insubstantial amount, though I get that people don't wa…
You'll also likely be drawing down a 401K, and the government wants their deferred taxes back. So capital gains taxes aren't the only tax consideration. Granted, you most likely will in a lower tax bracket come retirement time.
I'm 23. I have a goal of $2.4 million dollars by age 60. I currently have $4.3k saved. I'm having trouble meeting my goals because I am having trouble finding work. I live in the third largest city in my state, but it's not a city positively affected by globalization, so unemployment is high and wages are low. I can't move because my wife has a career started here. Such is life.
Not much, paying loans first. Should be finished with that in two years (age 25).
if you are working for a large co, consider putting money in 401k first, and get (up to?) 50% match.
$0. I'm focused on building a six-month emergency fund first. I don't need anything approaching 100% income replacement, as it would make no sense to pay exorbitant rent for proximity to jobs as a retiree. I doubt I'll save enough over my lifetime (outside of 401k) to scratch a down payment on a Bay Area 1-bedroom condo, but it'll be more than sufficient to buy a palace for cash anywhere else the moment I don't need…
$0. I'm focused on building a six-month emergency fund first. I don't need anything approaching 100% income replacement, as it would make no sense to pay exorbitant rent for proximity to jobs as a retiree. I doubt I'll save enough over my lifetime (outside of 401k) to scratch a down payment on a Bay Area 1-bedroom condo, but it'll be more than sufficient to buy a palace for cash anywhere else the moment I don't need…
Make it one year fund. Even better, have make one-year fund using peak expense month as a reference. The probability of not needing to use it fully is high, but not 1.
$0. I'm focused on building a six-month emergency fund first. I don't need anything approaching 100% income replacement, as it would make no sense to pay exorbitant rent for proximity to jobs as a retiree. I doubt I'll save enough over my lifetime (outside of 401k) to scratch a down payment on a Bay Area 1-bedroom condo, but it'll be more than sufficient to buy a palace for cash anywhere else the moment I don't need…
Make it one year fund. Even better, have make one-year fund using peak expense month as a reference. The probability of not needing to use it fully is high, but not 1.
Moving costs something, but would pay for itself very quickly. If I leave my furniture to the Craigslist scavengers, just the lease-break fee of 1 month's rent and a plane ticket with a couple of checked bags.
At some point it becomes important to start the ball rolling on that sweet compound interest, pick up the preferential tax treatment (saving the max of $18k to a 401k would only cost me about $10k), pay down student debt early for a guaranteed 4.5% return, and (yes) travel and enjoy being young.
Effectively, the fund I'm working on will be worth even more than a year, as long as I relocate.
In the UK the (usual) limit you can have in your pension fund is now £1m. I would expect to have about 20 times whatever I wanted to live on per year, and that yearly amount would high enough above what I know is enough to be comfortable. The state pension should kick in something too. However, I don't expect to completely retire at any point though legally I currently could in only 5 years' time (then another 10 yea…
This is my thinking as well. I like to think I would be working in some capacity much beyond the current retirement age. One of the reasons I like to keep a healthy lifestyle is that I want to be physically and mentally capable of continuing to make useful contributions until the very end... and that last part really scares me, but that's another conversation.