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    #16
    Originally posted by JBarwick View Post
    [MENTION=17354]mebejoseph[/MENTION] - $10M in a 401k would be ungodly rare due to the structure. Maybe they are like Mitt Romney with IRA thing but what he did is now closed. Also, since we are mixing threads here in the Other area, I'd worry mostly about your healthcare costs as you had heart issues in the past. Those are usually the biggest expense for anyone. Lastly, 10x income is pretty easy to live off of...that is 25x expenses. You really have to watch what is going out the door.

    ***
    Yes, it would be rare--BUT--I forgot to mention that it's 401k/profit sharing account started years ago by the partners at our firm (it's not a true partnership, but APC, so they count as employees, I guess, as well as shareholders). They've been dumping 10 to 12% of their earnings as profit sharing (mine too and all the employees) into the account PLUS the maximum contribution rate for a 401k, plus the maximum employer match. After 30 years, that adds up. I guesstimated $10 million because one of them told me he had about $5 million in his about ten years ago.

    And yeah--the heart thing--not sure how to plan for that. I supposedly have a clean bill of health, but who knows. Again, my wife is a health insurance executive and will probably work at least five years after I retire. I can get health insurance through her, I think.

    From what I've read, it's wise to plan to have about $200,000 extra stashed away for uncovered medical expenses.

    I'm just going to work until I die and leave my unspent savings to my wife and kids. All that hard work to save up that small fortune and I won't get to spend it. I won't even be able to by bespoke shoes.
    WHY ARE THE GUYS IN SUITS HERE? HAS SOMETHING GONE WRONG?

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      #17
      Originally posted by JBarwick View Post
      [MENTION=17354]mebejoseph[/MENTION]
      This weekend my wife and I were talking about her sister who just moved into a house 3x the size of ours. Their burn rate is huge because they thought they needed a house that large and they regularly mention working past 65 for whatever reason. Here is a quote from one of Jack Bogle's books that fits this situation and I told my wife:

      "At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds,“Yes, but I have something he will never have . . . enough.”

      Enough. I was stunned by the simple eloquence of that word—stunned for two reasons: first, because I have been given so much in my own life and, second, because Joseph Heller couldn’t have been more accurate. For a critical element of our society, including many of the wealthiest and most powerful among us, there seems to be no limit today on what enough entails …

      We chase the false rabbits of success; we too often bow down at the altar of the transitory and finally meaningless and fail to cherish what is beyond calculation, indeed eternal. That message, I think, is what Joseph Heller captured in that powerful single word, enough."
      And yes--I agree with this. So funny, I had this conversation with a fellow law student years ago. She was married to a very wealthy surgeon much older than she was. I told her that I had struggled for my whole life and all I really wanted us "enough."

      And now that I have it, I'm happy. I don't really long for more.

      I've lived in the same modest 1,600 square foot townhouse I purchased as a single father 15 years ago, even though my income has doubled AND even though we also have my wife's income as part of the household budget. We updated it a few years back with a modest remodel (It's over 40 years old), but nothing extravagant. Because it's enough.

      We make what most people consider a shit load of money, but I drive an entry-level Infiniti with $350 a month lease payment (I drive less than 6,000 miles a year, so I don't pay mileage overage fees) and she drives a Ford Fusion. Her favorite place to shop is TJMax (to my consternation).

      When I was a kid, our family had times of poverty when my mother went through a couple of divorces. I was even homeless as an adult for a bit. All I ever wanted was ENOUGH. And this is enough. Except for SHOES! I never have enough.
      WHY ARE THE GUYS IN SUITS HERE? HAS SOMETHING GONE WRONG?

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        #18
        [MENTION=17354]mebejoseph[/MENTION] - My wife and I are about half your age but we have "enough" in terms of lifestyle. Once we got over the "savings" aspect of our lives, we spend whatever else we have living life. Our house is 2,700sq ft but 60+ years old so it needs love here and there. Our neighborhood is desirable so the land alone is worth more than what we paid for it. That gives us peace of mind we can take our time if we decide to remodel...which we have quite a bit.

        Cars are interesting. While I love cars, I drive a Subaru Outback. I like not worrying about door dings, rock chips, and everything else with a daily driver. My wife drives a MB E350 but it was a hand-me-down from her parents and the value is roughly $10K but looks nicer. When people joke I say "for $10K it's yours". It was a hand-me-down as when we were expecting our first child she had a BMW 1-series which was only 2 doors. Swapped her parents who had an older MB E350 they were trading in of similar value. Then we swapped them again for a newer E350 they were getting rid of and sold the old one giving them the cash.

        Growing up we did not have a ton though my parents made a little over the median household income. I always remember my mom borrowing $100 from my grandma and I never wanted to be in that place growing up. Now I would say I am comfortable but those thoughts are in my mind.

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          #19
          Originally posted by JBarwick View Post
          [MENTION=17354]mebejoseph[/MENTION] - My wife and I are about half your age but we have "enough" in terms of lifestyle. Once we got over the "savings" aspect of our lives, we spend whatever else we have living life. Our house is 2,700sq ft but 60+ years old so it needs love here and there. Our neighborhood is desirable so the land alone is worth more than what we paid for it. That gives us peace of mind we can take our time if we decide to remodel...which we have quite a bit.

          Cars are interesting. While I love cars, I drive a Subaru Outback. I like not worrying about door dings, rock chips, and everything else with a daily driver. My wife drives a MB E350 but it was a hand-me-down from her parents and the value is roughly $10K but looks nicer. When people joke I say "for $10K it's yours". It was a hand-me-down as when we were expecting our first child she had a BMW 1-series which was only 2 doors. Swapped her parents who had an older MB E350 they were trading in of similar value. Then we swapped them again for a newer E350 they were getting rid of and sold the old one giving them the cash.

          Growing up we did not have a ton though my parents made a little over the median household income. I always remember my mom borrowing $100 from my grandma and I never wanted to be in that place growing up. Now I would say I am comfortable but those thoughts are in my mind.
          Sounds like you have the right attitude, good discipline, and a great perspective. Thanks for sharing.
          WHY ARE THE GUYS IN SUITS HERE? HAS SOMETHING GONE WRONG?

          Comment


            #20
            I think you are good...
            This said, one key thing that I always do with my paid off equipment, land, homes, is to treat them as mini-business that needs to at least pay me what it would cost to rent. For example, on a car, once I pay it off, I look at what it would cost me for a lease on that vehicle and then sock that money away. Same goes for a home or land (what would it cost you to rent) and then save that much in it's own account for upkeep etc. I am in the Ag business and know quite a few folks that buy land, equipment, trucks and once they pay it off they immediately increase their consumption spending upwards. By they time they need to invest in home, the land, or buy new equipment, they end up feeling a serious pinch. This is what causes the unfortunate demise of family dynasty in the ag industry.
            Once that kitty you are saving the "rental" income on accumulates to a sizable amount, use that to purchase another income generating item, and start the cycle anew. Even if you live in the city you can do this, don't need to be a farmer. Just buy an REIT and figure out how much of that divivedend should go toward reinvestment (growth) vs new income.
            Another thing, consult with your investment adviser before you sock money away in a 529 Plan. While the benefit (tax free growth) seems exciting, the amounts are also taken into acount at colleges when it comes to scholarship grants. If you have a sizable chunk in a 529 plan the school will be less likely to open it's coffers for scholarship aid. Just something to consider.
            Lastly, think about where you want to be with your wife & kids 30 years from now when your younging'(s) is/are grown up. Do you want to live close, have destination, live in a high or low upkeep location. If you plan this out you could plan out your perfect retierment space and wait for a great deal. When not living there use it as a cash generation property (rent out the land, AirB&B, etc) location to (hopefully) have paid for itself by the time you are ready to move. I have 4 kids (8,6,3,&1) that I don't expect to stay close to home as adults. The wifey and I are planning on a winter place in Gulf Shores, AL (don't knock it till you've been there... most underrated vacation destination in the US & the BEST beaches) and summer place in Oregon for dirt bikes, fishing, and all things fun outdoors. Hopefully I haven't alienated my kids or their future spouses, and they can't wait to vacation with grandma & grandpa!
            Cheers!

            P.S. Bogelheads unite!

            I have 4 kids,

            Comment


              #21
              I’m 42 and my wife is 39 with two children aged 7 and 9. We paid off our house (purchased in 2014) and my car (purchased 2016) last year and her car several years ago. With those major expenses behind us we are currently putting roughly 70% of our post tax income into savings. We have the advantage of living in an area where we were able to purchase our home (2,800 sq ft on 3 acres of land) for $140k on foreclosure and with roughly $30k invested in it its worth about $350k now, the side effect of cheap (nationally but high regionally) housing is relatively low income. I’m at a stage in my career where I’m finally almost six figure and my wife makes about half that where doing what we do in large chunks of the country would easily pay twice what we make here.

              I have a goal of retiring by mid 50s but education of our children and future unexpected healthcare expenses are the great unknown. My wife and I are exceedingly frugal so a budget isn’t something we actually have ever enacted, we both very rarely splurge but also face the reality that putting even our current income percentage into savings makes very early retirement an unlikely future short of the return of 1980s era interest rates and ROi.

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                #22
                Work harder than the other guy, be nice to people, don't be afraid to have fun/spend money while you're young, own nice things but live well within your means, consistently build wealth over time, if you're going to get married, once is plenty, if the kids stay too long, make them pay rent, if you enjoy working, there's nothing wrong with doing it until you're 80, yes cars aren't worth it but I like nice cars, good health is way more valuable than cash, and constantly worrying about needing to have more money is a buzzkill and makes for a poor, pun intended, mindframe.

                Is my financial advice.

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                  #23
                  Great advice [MENTION=13026]Evenflow[/MENTION]

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                    #24
                    Not exactly a saving tip but I can suggest you to check European property markets. Especially greek market looks a lot more favorable than the other markets with these conditions. Buying property in Greece in a touristic destination and renting it out can provide a nice passive income. Of course buying a property when you expect a baby is not a very bright idea but you can consider this later on.

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