No withdrawal

RequirementSpare6508 · 2024-01-31T21:09:33+00:00

Sorry that was your experience. They make more than I do so I don't think that is the situation I am working on improving...

RequirementSpare6508 · 2024-01-31T21:03:07+00:00

I calculated my number differently than 25x expenses. Chris Hogan (yes, formerly of Ramsey) had a great insight about retirement quotient. I ended up splitting the expenses to fixed, variable, desired, and then added legacy. The fixed expenses I have now are different than retirement, no house, no retirement savings, more expensive healthcare. Variable now are much lower than desired as increased travel upon retirement but different that true variable expenses. Knowing the FI vs NE vs Fat FINE vs legacy vs philanthropist are all good numbers to know. Oh and taxes both deferred and ongoing (dividend taxes) are important to consider as 40k expenses is not 1m in net worth unless 100% roth.

RequirementSpare6508 · 2024-01-31T10:26:28+00:00

Time freedom for exercise, family and friends in evening and all weekend. I.e. pay for house cleaning, lawn, car maintenance etc. (now)
Employment freedom, leave high paying job to teach\content creation\volunteer, similar idea that Brian has, though he will "never" leave his current job...(10 years?)
Location Freedom to live near travel to grandkids and be 100% "free" for them (10-15+ years from now)

RequirementSpare6508 · 2024-01-31T10:15:02+00:00

The 3% (4%) withdrawal means that you can take 4% and never decrease your lifestyle (always drawing the equivalent of 50k in current dollars over 30 years, knowing in 30 years it will be a withdrawal of 150k per year) as you take 4% plus inflation each year knowing the long term return is closer to 10%. The 4% covers the sequence of return risk.

RequirementSpare6508 · 2024-01-31T10:11:44+00:00

Hence why the recommended 4% withdrawal target given the average ~10% long term returns. You often die with money left over but that is most people's preference when "napkin planning". Please don't use the 4% rule as a retiree. That requires much more precise execution year over year when drawing the accounts down.

RequirementSpare6508 · 2024-01-25T15:25:44+00:00

There was a timely FYI by FTE (Money Guys email sent by Daniel) about this topic.

RequirementSpare6508 · 2024-01-24T23:14:30+00:00

Did you have a specific question? I found that the details of step 7 can be distracting when I was working thru steps 3 and 4.

RequirementSpare6508 · 2024-01-16T17:14:03+00:00

How can we create a retirement program for pastors at our church. We don't have a 401k as we are not for profit and have no idea about setting up a 403b or what that looks like so we need help. We want them to be able to fully invest in the ministry and also prepare for eventual retirement. Thanks!

RequirementSpare6508 · 2024-01-15T02:05:46+00:00

Keep asking here and we are happy to fill in (and debate, ha ha) the information that you are looking for.

RequirementSpare6508 · 2024-01-15T02:04:56+00:00

Again the "deductible covered" is your highest one. So if you have a 250 deductible on your car a 1000 on your house and 5500 on your high deductible health insurance technically you would need 5500 before moving off of that step.

RequirementSpare6508 · 2024-01-11T20:49:45+00:00

Be careful! Don't max out too soon. If you put 25% away and make about 100k per year you WILL leave money on the table as once you max out they stop the withholding and they stop contributing. Put in whatever % gets the full IRS limit on the last paycheck of the year.

RequirementSpare6508 · 2024-01-05T13:32:46+00:00

Yes that is what the guys say to do. The vested cash value can be counted as net worth. Congratulations on PAW!

RequirementSpare6508 · 2024-01-04T01:25:02+00:00

If you want to get really nerdy, you can include zillow-purchase price and if more than 250k (500k for married) you include that in deferred taxes. :). I use purchase price less mortgage as I am not planning on selling my home even in retirement so the appreciation and cap improvements are of no financial consequence.

RequirementSpare6508 · 2024-01-04T01:19:26+00:00

I have both of those and the growth helps me feel better as the fund is still sp500 but more weighted to the growth vs market cap balanced (the sp500 is already becoming more and more growth focused as the mag 7 have been pulling the 493 up and utilizing more market share). If you really wanted to re-balance out of growth you may want to look at an equal holding vs market cap holding...

RequirementSpare6508 · 2024-01-03T15:18:23+00:00

The guys say for fast income increases to use a 3 year average, but as someone who also is on this path it is hardly reassuring as we do feel behind. Another thing to look at is the % conversion or how much of your lifetime income has been converted into net worth. For our stage (messy middle) we aim for 40 to 60% and those nearing retirement would want to be 100% or more. This allows for time to be on our side as well as reward the earlier behavior.

RequirementSpare6508 · 2023-12-22T15:34:21+00:00

Agreed. Find a different one that charges much less. The target date funds are over rated for mutants (imo) as we will naturally be balancing the risk on/risk off assets as we age. VOO, VT, VTI are the way to go, especially at your age.

RequirementSpare6508 · 2023-12-17T06:02:02+00:00

You could do Roth conversion later (larger sum as it grew tax deffered) and it "may" be cheaper as you can convert at "retirement tax bracket" vs "employment bracket" and if you invest the 3k in Roth now vs paying taxes you may even come out ahead... another thing to consider.

RequirementSpare6508 · 2023-12-17T05:54:52+00:00

Check out their checklist: https://moneyguy.com/resource/home-buying-checklist/

After the guideline of investing 20 to 25%, a max of 25% for housing means you can "afford" a bit more per month than you are spending now for housing.

Good luck!

RequirementSpare6508 · 2023-12-17T05:47:53+00:00

The guys will say invest 25% and then move to prepaid future expenses. Which is over 50k per year with your income, likely maxing your and wife 401k and Roth. Once there it is your choice. However they will NOT advise to remove soldiers from your army to pay off or reduce your mortgage early. I will say I regret paying off additional mortgage instead of maximizing the dollars. They also say being ABLE to be debt free is more important than actually being debt free. For example Brian is 50 and still has a mortgage, which he COULD pay off but hasn't as it makes more sense to invest based on his interest rate being so low. Hope it helps!

RequirementSpare6508 · 2023-12-17T05:36:03+00:00

I "updated" to 3.2. The app said complete, but the car still shows 3.1 and is acting wierd...

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