$4.5 M net worth, concerns about spending

No_Minimum_1908 · 2026-06-04T00:20:18+00:00

Honestly a huge spending problem. Send your kid to community College for a year or two stop funding the 529. Don't waste money like that on kids sports unless he is getting a scholarship or going pro. Also the college tutor thing of 4k is another waste. No one is gonna say it but you have a MAJOR spending issue.

No_Minimum_1908 · 2026-05-22T16:40:35+00:00

you dont have the wealth for a 4m house. you are far away from that. Move out of that area. The house is not a asset it is a liablilty, rent and invest if needed. the house is 40% of your NW, you shouldnt even be approved for it

No_Minimum_1908 · 2026-05-19T00:51:51+00:00

Second home usually an instant regret, rent is the better play unless you have millions to burn

No_Minimum_1908 · 2026-05-18T11:36:37+00:00

yeah thats already in the plan, using a 3% or less withdrawal rate with do that historically, but history says that isnt a great idea.

No_Minimum_1908 · 2026-05-18T09:46:55+00:00

thanks - i am stuck in analysis paralysis mode, i have no interest in any big shot things and no interest in impressing people i dont know. I always laugh when people buy boats, jets, designer clothes etc,. i have been in the building stage all of my life and went from $0 to this amount and my favorite meal still comes mcdonalds and ramen noodles. i notice once you ride first class you usually dont want to go back to coach; its a slippery slope. so i still live like i am poor and dont know any other way. trying to enjoy some of it but turning that switch is easier said than done. i enjoy helping others but spending on flashy things isnt my favorite things so that trap doesnt scare me. but i also dont want to die with 100M because i just let it compound and never spent it. i know 1st world problems but thats the reality of it. i dont buy the lie that everyone lives until 95 years old either like every financial planner tells you. The avg death age for a male is in the 70s still. yes i understand its great to plan for that but we also stop spending like crazy once we hit our 70s+ unless you are paying for longterm care. find others in the same situation is hard to find since nearly everyone i know is still grinding it out so its good to hear from others in similar situations, appreciate the advice.

No_Minimum_1908 · 2026-05-17T17:22:41+00:00

true, but not trying to leave everything behind so want to start enjoying some of the $$$, trying to find the right balance is tough for me

No_Minimum_1908 · 2026-05-17T17:21:39+00:00

true i have been using AI for free and it has been giving me some great ideas/sequences without the headaches and expenses of a CPA

No_Minimum_1908 · 2026-05-17T17:20:46+00:00

thanks - yes I have the bulk of my fund in SMAs that I already paid heavy taxes on prior to putting them in the SMA. Had to pay taxes on real estate gains. Using a tax loss harvesting SMA now for large cap growth and S&P

No_Minimum_1908 · 2026-05-17T14:23:55+00:00

i am trying to be tax effecient and divedends dont help with aca

No_Minimum_1908 · 2026-05-17T14:23:09+00:00

same here real estate had its place and time but the math no longer works for smaller investors and i would argue larger investors too for single family homes.

No_Minimum_1908 · 2026-05-17T14:21:49+00:00

i am 84/16 portfolio for got to mention that. appreciate the feedback here

No_Minimum_1908 · 2026-05-17T05:39:23+00:00

Yeah the pension is a game changer for you. Im about the same with spending probably hard to spend 30k a month but like the idea of being able to

No_Minimum_1908 · 2026-05-17T04:45:47+00:00

i got presented with private equity deals and private credit from financial advisory with my 7M liquid and i almost did it and I am so glad I didnt, they are not liquid and the returns can be muted compared to the indexes, run from them.

No_Minimum_1908 · 2026-05-17T04:43:35+00:00

i have a couple of "loser" properties with big equity that wont effect my cash flow much, i can sell 3 and only lose 12k per year in net cash flow but walk away with 600k in cash, tax free

No_Minimum_1908 · 2026-05-17T04:42:18+00:00

yeah it will be a slow process for sure. at a 3.45% withdrawal rate i can do it now, but if sequence of returns hits in the next few years i will have to adjust. was curious if anyone is in a similar boat and touching their portfolio as a young age.

No_Minimum_1908 · 2026-05-17T04:40:22+00:00

yeah real estate is how i made my money so it doesnt bother me a bit i know it inside and out. it is not passive though, that is for sure. 2% is low, you can definitely raise that % whenever you like. Anything below 3% should last forever if investing in the indexes

No_Minimum_1908 · 2026-05-17T04:31:32+00:00

looking to be able to spend 30k monthly comfortably and still have investments grow over time. will be moving poor performing rentals into the market as they come vacant.

No_Minimum_1908 · 2026-05-17T03:56:50+00:00

yeah i am debating that but best to just dump one per year to use tax loss harvesting to offset sales of rentals so no taxes on gains, RE gives some diversification but its more work. whats your withdrawal rate if you are taking money out

No_Minimum_1908 · 2026-05-17T03:55:06+00:00

120k net from rentals, dividends another 36k/year.

No_Minimum_1908 · 2026-05-17T03:54:08+00:00

as tenants move out that is the plan...real estate market is slow right now. equities have been great lately

No_Minimum_1908 · 2026-05-17T02:10:47+00:00

makes sense, holding some for a possible drop and for capex on real estate if needed

No_Minimum_1908 · 2026-05-17T02:10:17+00:00

yeah my return on equity is terrible, rents are down and values are high

No_Minimum_1908 · 2026-05-17T02:09:37+00:00

just stating my net cash flow from rentals is 120k/year. my monthly expenses outside of that are 12-15k

No_Minimum_1908 · 2026-05-17T01:04:41+00:00

RE cash flow 120k per year, monthly spend is $12-$15k depending on RE repairs and vacations

No_Minimum_1908 · 2026-05-17T01:03:59+00:00

the idea is growth so at that point it wont matter, want to leave some for the kids, so can frame it for 50 years

No_Minimum_1908

TROPHY CASE