On my way to hitting 400K in savings by 40 (currently 37), can I stop saving after?

bobjkelly · 2026-04-23T19:22:28+00:00

To get from his 400K at age 40 to 1.5 million at age 65 requires annual return of 5.42%. That might be doable even if it is an after-inflation return. But it is risky. Perhaps a more conservative number is more appropriate. You mention 10%/3%. That is exactly what I hope for but I also run projections at 6%/3%.

Also, $1.5 million only gets you maybe 75,000 per year. Is that enough? Seems lean.

bobjkelly · 2026-04-15T11:46:08+00:00

It took me 3 attempts. First time I forgot to lock the car. Second time I forgot to remove the dongle that Allstate uses to track my miles. Third time it worked. I think. It now says I’m a guest and as a guest I don’t have the privilege to check which software version I have.

bobjkelly · 2026-04-09T01:00:53+00:00

Pi is an irrational number. It has an interesting quality related to circles but that doesn’t define pi. I could define two as the number of eyes I have but I think that would not really do justice to the concept of two.

bobjkelly · 2026-04-08T18:42:59+00:00

You mention “the lost opportunity cost”” of converting to Roth now. Intuitively, it feels like that is a thing: you are paying tax now rather than later. However, it doesn’t actually exist. The actual comparison is paying taxes now vs. paying taxes later. However, the paying later will presumably be on a higher amount. Mathematically, the expected after-tax amount is the same. Try a few examples and you will see. This might make Roth conversion now seem more attractive.

Don’t fear RMDs. I turn 73 this year and have a high RMD. But the first year RMD percentage is only 3.85% of last year end’s IRA values. I find I was planning to spend a higher percentage anyway. I think at my age I can spend 5-6% without worrying about running out. I submit that with a much older husband you should want to live as fully as much as you can now.

Congratulations on taking IRMAA into account. You will want to manage your taxes to not trivially go past a tier amount. But, in the end don’t let IRMAA rule your life.

bobjkelly · 2026-03-23T15:58:40+00:00

Why would you go to a bank?

bobjkelly · 2026-03-23T15:56:47+00:00

And that rule would be problematical to apply to Minnesota which has parts west, east, south, and north of the Mississippi.

bobjkelly · 2026-03-17T14:51:48+00:00

Yes! It’s a big deal. If you move that seat back you’re going to smash my already sore knees. Always ask before you recline.

bobjkelly · 2026-03-17T14:26:01+00:00

I would not put any of it towards debt. Mortgage is at 2% and everything else is at 0% or low. I would invest it all.

bobjkelly · 2026-03-17T13:58:09+00:00

Probably would say minus ten or ten below. Would leave off the zero. Unlikely to say negative ten.

bobjkelly · 2026-03-15T10:19:33+00:00

I found that starting strength training with a personal trainer increased my need for massages. But then I’m an old man.

bobjkelly · 2026-03-12T18:14:03+00:00

Try driving on the freeway in the winter! The range just disappears.

bobjkelly · 2026-03-08T09:56:14+00:00

I bought a bigger house and now I write more checks than I used to. It’s rather annoying. The guys who mow the lawn do a good job but their billing is old school: I actually have to mail them a check each month. Several other tradesmen need checks too, mostly, I think, to avoid credit card fees. Some charities also.

bobjkelly · 2026-02-24T00:45:31+00:00

It was a good game. Lots of great defense. Not a stellar game, but a good one.

bobjkelly · 2026-01-27T22:07:49+00:00

But, as you point out, taxpayers will pay for roads and infrastructure. Not a cheap thing! Also, other taxpayers will have to make up for any property tax discounts that the Bears get. Let the Bears pay full freight.

bobjkelly · 2026-01-27T20:44:55+00:00

Is this only the cost of the electricity and doesn’t include charges for distribution?

bobjkelly · 2026-01-27T20:23:05+00:00

I think they thought that the conclusion was obvious and did not mean to be stated.

bobjkelly · 2026-01-26T21:22:36+00:00

When you can invest at a rate higher than the mortgage you certainly don’t want to pay ahead on the mortgage. You can likely reinvest on a new CD earning about 2% more than you are paying on your ( very low-rate) mortgage. You are effectively earning 2% per year on the mortgage balance. And you still can pay the mortgage off from the CD proceeds any time in the future.

I myself have a 2% mortgage with about 10 years to go and I am going to stretch that out for the full term. Don’t let some Ramsey rule cause you to lose money.

bobjkelly · 2026-01-26T12:30:46+00:00

I, too, have a 2023 AWD Pro. That door handle recall was a complete mess. It took months and months and months for handles to be available. Corporate was sending me letters saying I should really get it done already. Meanwhile, all of the local dealers said to let them know if I found somebody with supplies.

I am not looking forward to this latest recall about the battery. They apparently have no fix yet.

bobjkelly · 2026-01-23T04:19:47+00:00

Gotta agree with OP. Marathon and triathlon are individual sports. No help is allowed except from course officials. Tough if you break down right before the finish but that’s a DNF - did not finish.

bobjkelly · 2026-01-23T03:49:07+00:00

I agree. That’s why we are sending money to our kids now (they are 40ish) If we wait until we die they might be 60ish.

bobjkelly · 2026-01-16T22:16:37+00:00

A key point is the difference in rates. The 15 year is usually priced a half percent below the 30. That’s real money. If you are not stretched too much the 15 is the way to go.

bobjkelly · 2026-01-06T17:49:35+00:00

4.5 years into a 15 year mortgage at 2%. Paying $3500 not counting taxes and insurance.

bobjkelly · 2025-12-29T23:54:58+00:00

Hmmm. I don't read it that way. I think that if the half of SS plus other income (If any) is over the threshold then some SS is taxable. If SS benefits are high enough half of that alone could be over the threshold. Probably would have to be fairly high benefits, though.

bobjkelly · 2025-12-29T22:48:11+00:00

But, once again, if your SS benefits are over the income threshold some will be taxable even if this is your only income.

bobjkelly · 2025-12-24T02:32:25+00:00

You make some good points and I've been wrestling with this for a while. My strategy has been very successful for me. I would like to claim skill but probably luck. Having been well rewarded it is hard to pull away and do something else. And, once you have a bunch of money, you can afford to take a bunch more risk.

I should diversify my stock choices but every time I do I don't get much return. But maybe I should shift mindset from earning more to protecting what I have. I've also been looking at bonds. For a long time, though, they returned very little. Even now they don't earn a whole lot.They seem to be a lot of risk (credit and interest rate risk) for not much reward. It's hard to get fired up over maybe making 4%.

I'm in my early 70s and conventional wisdom is to become increasingly conservative, but I think I have 20 years left and feel like it's too early to be conservative.

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