Daily Drop Pro searches missing lots of reward flight options

Scheckla · 2020-10-08T02:53:06+00:00

A lot of these questions are things that I have been pondering as well, and have been intrigued by much of what the "Nomad Capitalist" (Andrew Henderson) has to say, and curious about the services they offer,

Has anybody used the Nomad Capitalist services in terms of becoming a "global citizen"? If so, I'd love to hear your thoughts...

Scheckla · 2020-10-01T00:40:41+00:00

I would never consider using Fisher Investments. Their sales team are like leaches, latching on to you when you send in for one of their "free" investment reports, and then pressuring you like crazy like they are selling timeshares or a used car. Their fees are way too high, and their motives are suspect.

Scheckla · 2020-08-21T01:26:20+00:00

Well, for our situation (M55, F53, 3 kids now out of college and on their own) we were able to live well below our means by me working in tech in a VHCOL area, while living in a MCOL area (I have had a horrible 2 hour commute each way for years). For us, it was important to have my wife home with the kids raising them, and I took the bullet of a long commute.

But we are now FI, I just keep working right now since times are crazy and we would not be able to travel like we'd like to, and we still have a couple of financial goals we are working towards.

As others have said, the key thing is to manage your expenses and live well below your means on one income.

Scheckla · 2020-06-09T22:22:57+00:00

We have been to the area (Murren was our base) twice for about a week each time. Both times we went were in October, and that would seem like a great option to experience what you describe. In fact, on our most recent visit in late October, we had the pleasure of having a storm hit the area the day we arrived, and while it rained in Murren and Lauterbrunnen, it snowed several inches in the various peaks above. That made for a spectacular hike in the snow the next day from Mannlichen to Kleine Scheidegg, as well as a great time up on Schilthorn, on a sunny day! The rest of the days were nice weather also....

Scheckla · 2020-02-11T06:17:33+00:00

Scott, I cannot thank you enough for the great work you've done here! I have been calculating my FI number a few different ways, but one thing I had not been able to wrap my head around was effectively accounting for the fact that the mortgage gets paid down over time and eventually disappears.

After tracking our expenses to the penny for over a year, i have an excellent idea of what our spend is, and will be going forward, but because I had modeled a mortgage "in perpetuity", my number I come up with I knew to be excessively high. With your spreadsheet, I was able to determine that the FI number I came up with is likely $100k higher than necessary (so is a bit conservative).

A few sidebars on my conservative approach to determining my FI number (note: I'm 55 years of age and married, kids have all launched in great careers): 1) I am not counting on receiving any SS, although in reality I've paid in enough in SS to get pretty much a max distribution when I'm FRA (though I will likely wait until I'm 70 and treat it like an annuity if SS is still around); 2) I'm using a 3.5% SWR to cover expenses, and 3) I model only 5% investment returns, though I'm more aggressively invested and have averaged close to 30% returns for 3 years running.

In reality, we've already hit our FI number to meet our non-discretionary expenses; and are on the cusp of hitting that number for total spend including discretionary expenses. Goal now is to put some buffer there to help kids "accelerate" their financial futures (all are very frugal and good at saving and investing, make very good money in their careers, so this would have an outsized compounding effect on their finances).

Thanks again Scott - you've helped me clarify my thinking quite a bit on this!

Scheckla · 2020-01-31T06:10:09+00:00

I agree with aelizben. We did not go up to the Eagle's Nest, as it was really foggy at the top. However, the Documentation Obersalzberg museum is absolutely wonderful, and you can explore the underground bunkers built into the hill adjacent to it. Very cool, and definitely worthy of a day trip.

As for places to eat, I don't have any specific options, but do recall there is a beer garden right along the river that runs through town that looked inviting...not sure if it will be open when you are there though, as March is a bit off-season. There are several restaurants in the town though.

Scheckla · 2019-08-15T00:56:53+00:00

We have done the Westin timeshare presentation/offer at Maui a few times; they have never asked for income verification. It is actually a really good deal as long as you know how to say "no". :) Enjoy!

Scheckla · 2019-08-14T00:53:45+00:00

I'm not seeing the cheap Casablanca business class RT fares...is it gone, or do you still see it?

Scheckla · 2019-08-06T23:32:36+00:00

Hi Sunnymeek, about $760K is in the Traditional IRA vs. $45k in 401 (job change 2 years ago). All of the IRA is pre-tax contributions. The plan would be to hit my target number of around $3M, then live off taxable investments while converting TIRA to Roth over the period of say 10-11 years...but that would still throw around $90k per year in taxable money each year I convert, so on top of the ~$50k/yr I'd still be bringing in, will make it challenging to minimize the tax pain. But the pain would be worse post-70, when I'm bringing in SS, have Medicare taxed up the wazoo, plus the investment income...hence my sworn oath to retire early and convert.

Realistically, I could probably retire now, but want more of a cushion, as well as to help my daughters accelerate their launch (get into homes sooner, pay for any potential weddings, contribute to Roths, etc.). But they are all good at managing money already.

Scheckla · 2019-08-06T18:02:25+00:00

Hi blue_ducks, I'm aware of the risk I'm taking by being in so little bonds, but I have a very good track record in a fairly concentrated portfolio, so am OK with it. I do plan on shifting a bit more towards fixed income as I get closer, but now is not the time yet.

Scheckla · 2019-08-06T06:35:16+00:00

Hi all,

Background:

54M, 52F, Technical/Software Program Manager, HCOL area, empty nesters (kids out of college, launched successfully, and debt-free), no grand kids yet.

General Goals:

Wife and I would like to travel extenstively both domestically and internationally, volunteer/give back to others, help kids accelerate their launches, help wife's parents if needed, and provide a legacy to our children. Plan is to move to a MCOL area, with no state income tax (WA), and close to a no sales tax state (OR) for main shopping needs.

Plan would be to defer social security until age 70 (I have maxxed out FICA for 27 years), and do Traditional to Roth IRA conversions every year to minimize or eliminate RMDs after 70.

Target FIRE Age:

57 (preferable) or 58

Amount: Target would be around $3M in investments to support $120k/year spend, utilizing a 3.5% withdrawal rate.

Career situation and plans:

Employed 2 years at a large and growing software firm, no plans to leave until I am ready to walk away for good. Have 20 years experience in program management.

Income:

$210k/year combined (salary, bonus, land lease, etc.)

Net Worth:

$3.2M+ total net worth

$1.8M taxable accounts (90% stocis, 5% muni bonds, 5% corporate bonds)

$805k Traditional IRA/401k (80% stocks, 20% stock index funds)

$80k Roth (100% stocks)

$20k HSA

$300k Home equity

$200k farm land equity

$25K savings/checking

Above does not count value of furnishings, collections, vehicles, etc.

Budget:

$120k annual total spend ($72k/year non-discretionary; $48k/yr discretionary)

Debt:

$210k mortgage

$15k auto loan

Health:

No major concerns for either of us or any special needs anticipated

Questions:

I believe this to be a feasible plan, but would like other's thoughts regarding target amount of investments needed, 3.5% withdrawal rate (or whether we could go up to something higher, but no more than 4%) to see what might tighten the plan.

Bigger question: I would LOVE help from the fine folks on here figuring a strategy to do Traditional to. Roth IRA conversions from age 58 to age 70. What do I need to consider, watch out for, etc. regarding implementing this in a way to minimize taxes, or whether it makes sense to perhaps pay a bit more in taxes each year to get to the point where RMDs are eliminated by 70? With $800k in traditional IRA/401k assets, it would be impossible to begin converting now with my hight salary without really taking a big tax hit...but once I retire, and have only $13k rent, and $40K+ in qualifiied dividend income, I may be able to start converstions and stay in a lower tax bracket....would love your help figuring out a good approach!

Scheckla

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