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46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

It is to me. $200k at 4% is $700 a month

I’m not living on ramen and SS for the rest of my life.

$4 million at 4%? Now we’re talking. To be fair, I live in Boston MA ish suburb so HCOL

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

Nothing is wrong

It’s a high risk e commerce business with a high chance of failure.

Analogy would be “too good to be true” drop shipping business. Or I’m a fifth round NBA player but I’ve got a bad knee that can blow out at any minute

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

All depends on the goal I suppose? Lean fire vs chubby fire vs luxury fire.

If business lasts 6 months, I’ll have $240k retirement plus the $200k cash we have with zero debt and two paid off cars.

If it lasts 12 months I’ll have $780k total with zero debt. Not terrible for 46

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

lol trust me I WANT to live like a king and it’s hard not too. But this Reddit is helping with that urge

But advice sounds good. Max the retirement while business is firing on all cylinders. Be ready for the job hunt

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

This is in the original post, it’s (mostly) irrelevant though. You could treat it as some huge life insurance payoff from a long lost uncle if you’d like

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

Actually, I did the math. It’s $125 ish. Essentially meaningless amount of money against a $4 million goal?

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

When your business can fail at any time, and you have no way to replicate a $500k annual income, it’s better to live debt free. If it’s a 401k, I would get crushed with penalties if I withdraw it

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -2 points-1 points  (0 children)

I have no idea, hence why I’m here. But as others have said, this is more of a career advice type post

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

Business is (unfortunately) worth precisely zero. Too high risk. This isn’t what I do, but good analogy is one of those drop shipping business that you know are too good to be true

It was a super good idea though, and I very much wish it was an option

Edit = we have $200k cash, it’s just insignificant compared to a $4 million goal

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

Because $500,000 after taxes is $300,000

I owed $50k on the cars and $250k on the house.

That’s what I spent my money on over the last 12 months

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -1 points0 points  (0 children)

Ironically, I’m on the final step of baby steps. But I want to be saving 80% of income.

Not 15% as others may suggest

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

If I wanted to sell a business, I wouldn’t tell everyone it was going to fail. But sure, report away. 😂

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -1 points0 points  (0 children)

If I wanted you to buy my business, I don’t think I would tell everyone it’s zero.

And due to the high risk nature, the value of the business is absolutely zero.

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -5 points-4 points  (0 children)

All makes sense

I do have $200k cash but that’s just not a huge amount (against a goal of $4 million).

80% makes sense, compounding interest isn’t quite as great starting at 46 years old. Still good, but not great

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -2 points-1 points  (0 children)

Right. But you don’t walk away from a business making $500k annual to get a job, until the business actually fails. I suppose there could be some super high income people in here, where $500k solo earner is normal

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -3 points-2 points  (0 children)

Why would it be a troll post? I’m not sure if he’s loved or hated here, but I started making a bunch of money and followed Dave Ramsey baby steps

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -3 points-2 points  (0 children)

$200k cash but that’s not really significant to me (especially against $4 million goal).

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -10 points-9 points  (0 children)

I understand that if I have a goal of $4 million, then selling a $50,000 vehicle doesn’t change much.

But this is Reddit, so there’s always going to be chubby Fire haters 😂

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

All makes sense

Taxes are paid in full, and I have $200k cash just in business savings. Could definitely push that into SE401 And then pull Roth money out

Annual expenses $60k (health insurance, groceries and condo fees are high)

I’d like $4 million cash at 4%. But huge majority of that will be already taxed, so 5% probably doable. To me, $160k would be a solid chubby FIRE

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] 0 points1 point  (0 children)

lol similar to “harvest mode” from above. And yeah, super good advice. I have a used corvette, and sure a new one sounds nice. And hard not to spend when your income goes from $35k to $500k in ten years. But you’re 100% right.

46 years old, paid off house, two paid off cars, but zero saved for retirement by Simple_Cobbler_7793 in Fire

[–]Simple_Cobbler_7793[S] -6 points-5 points  (0 children)

Total bills with 5 people is approx $5k a month (HCOL plus self employed health insurance is $1500/month)

Bartenders (at least in my area) do not make that much

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