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I’m 36 and have never been able to put any money towards retirement till last year or so. Now I have paid everything I owe off except a credit card that I just use to keep some credit outstanding. I currently work part time and I’m still saving money every paycheck. Debt free is the only way I was able to save. Most people are too busy keeping up with the jones’s to save. But I still have no retirement funds. I plan to either just quit and hope for the best with side hustles or be killed in a motorcycle crash or something.
 

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I'm an electrician, and people will always want power

That said, I'm working on my own company now. Helped my buddy get his started up. It's a hell of a lot of bullshit but someday will pay off. I'll never be rich, but ideally one of my boys will carry it or it I'll find a dumbass kids to actually buy me out one day.

Wife does daycare out of our house and a rental down the block. We're looking at buying another house for her second operation, hopefully use the daycares to pay for 2-3 houses for rentals in the next 20 years. Her waiting list is long, her business sense is short so it's painful.

My biggest problem was having kids at 20, 22. I'm counting on being able to bank some savings when they leave the house. As it is, with tooling up for a startup and medical, kids, etc. I'm barely making it.

However, I'll only be 42 when the youngest is out of the house. Without relying on any SS or Medicare benefits I'll be working those last 20 years to stockpile.


Then again both my parents got cancer in their early 50's. So I'm seeing their regrets and trying not to let money keep me from having fun. My Dad is seriously depressed about never making a southern bass fishing spring with my Mom before she died. He bought a boat and a truck and they sat for over a year while she did treatment and then passed.
Hard to think about savings when you're looking regret in the face
 

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P.B.A.
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Early in life your usually not making the $$ to save an extra 10%. Until I was in my early 30's I didn't have enough extra to buy a new lawn mower. I'm at 52, have a decent amount saved but I wonder if it's enough. The SS and US debt is going to blow up about the time I should be getting medicare/SS. So you have to plan for that, plus healthcare cost is going to eat my generation up.

My - I'm pretty well fugged math

If I retire early, we need $2500 month healthcare minimum (insurance, meds, co-pays, etc).

Property tax/ insurance/house maintenance $1000
transportation $600 (tires, new car, oil, etc)
Food misc - 1000.
Beer, blow, and a can of alpo prime cuts $1000

So - early retirement is expensive - like ~$6k a month minimum net after taxes. That's having your house and stuff paid for. So it's a good thought but you really need 6-8k a month gross income to do it. And that's a number that needs adjusted for inflation.

SS starts to run dry in 2034, or 15 years. So the real answer is you won't really know if an extra 10% will be enough. Especially with the rise of socialism and communism in this country, they will try and raise taxes to 50%-70% because giving your money to someone else is what they do.


The US federal debt is at $223k per person and rising. We have hit the point of no return. So assuming things will stay as they are now is probably a bad bet.
I know you wouldn’t dare take SS or Medicare for your disdain for socialism. I’m just glad ol’ orange game show host is on track to add to the national debt more than any one else before him. But since most of the tax breaks went to the rich we don’t call it socialism We call it trickle down economics.

https://www.thebalance.com/us-debt-by-president-by-dollar-and-percent-3306296

Ops question is once my kids are out of the house. My plan is to only work part time 4-6 months at a time 2-3 months in between. I won’t have a house payment I sock away 20ish % now. It maybe less when I do it. But I saw my parents work and save and as soon as they retire between health problems and raising grand children. They can’t do much.
 

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Below is a breakdown of $100,000 income in Kalifornia. That is not a huge number here. In fact it is very close to poverty in several counties. I was amazed that you cannot find what an average person pays in taxes and fees per year. I bet those that itemize would know, and what the governance doesn't want you to know. Seems pretty easy to get to 50% taxes and fees.

Income taxes 29%
Sales taxes. Avg 8%
home taxes Avg 0.8% After deductions. Avg home is $380,000
fees and bonds home 0.5%
gas taxes $ 0.47 per gallon.
personal property tax 1%
fees passed on by business
Disability, city taxes, water, power, phone, etc. etc.

Now consider the average wage at Google is $120k/yr, but $250k/yr in the Sillycone Valley. Facebook is $225k/yr in the valley. How are they really doing??? Actually, those people might want to defer taxes as they should responsibly minimize their footprint in retirement. Everyone has different situations....But life isn't generally free.
 

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My workplace hires seasonal guys during the busy season, 2-3 months in the fall and 2-3 months in the spring. My goal is to have enough ROI by mid-40's to basically cover all living expenses and go from full-time to seasonal and fawk off for a couple months per year. Basically live semi-retired while I still have some energy and ideas for life.

At least that's the current plan and one of least drastic changes. Allowing yourself extended time off is something I've thought about regularly since probably my first real full-time job.
 

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Instead of saving 10% a year for 10 years save for 2-3, buy a rental property with 20% down that generates enough to cover the mortgage, sell property in 10 years to fund year off work?

It's crossed my mind. I've also considered going and doing short term contracts, the girlfriend is a nurse and can travel nurse but this would be much harder with school aged kids.


There's plenty of people on expedition portal who have either hit the road full time or done a year on the road and I'm guessing some good reading on how they did it.
 

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Discussion Starter #51
One of the basic stratedgy's of a traditional IRA or 401k is that it presumes you are in a higher tax bracket when you are contributing, and a lower one when you are withdrawing. A Roth has it's place, but if the above example is correct for you, a Roth is not what you should be doing.
i dont care what tax bracket your are in ... im paying taxes as i go on 227k not the 1.7mil of growth. that $541 is the current ROTH max of 6500 for the year.

can you get fancy and start moving money around and being cute to save a few bucks on taxes, yes. but simple repeated over and over will do just fine.
 

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Care to explain that with some numbers?
Below is a breakdown of $100,000 income in Kalifornia. That is not a huge number here. In fact it is very close to poverty in several counties. I was amazed that you cannot find what an average person pays in taxes and fees per year. I bet those that itemize would know, and what the governance doesn't want you to know. Seems pretty easy to get to 50% taxes and fees.

Income taxes 29%
Sales taxes. Avg 8%
home taxes Avg 0.8% After deductions. Avg home is $380,000
fees and bonds home 0.5%
gas taxes $ 0.47 per gallon.
personal property tax 1%
fees passed on by business
Disability, city taxes, water, power, phone, etc. etc.
.
OK, I see where your going, but most of that stuff is spending the money. You don't lose half of it before you get it. You get to choose what you spend money on. If I retired from CA, the first thing I would do is GTFO.
 

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Discussion Starter #53
OK, I see where your going, but most of that stuff is spending the money. You don't lose half of it before you get it. You get to choose what you spend money on. If I retired from CA, the first thing I would do is GTFO.
see my post above, depending on when you pay the taxes, it drastically changes what your tax liability is when you withdraw.
 

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i dont care what tax bracket your are in ... im paying taxes as i go on 227k not the 1.7mil of growth. that $541 is the current ROTH max of 6500 for the year.

can you get fancy and start moving money around and being cute to save a few bucks on taxes, yes. but simple repeated over and over will do just fine.
where can I find that calculator? I like the looks of that one.
 

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IMA BUM
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I retired at 51. I could've gone 5 more years for a better retirement, but I chose to take a hit in my retirement, as opposed to taking a hit in my health after another 5 years.

I ain't rich, but I'm comfortable. :smokin:
 

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I basically retired back in Mar this year...
Only 1 observation, while the idea of doing the "every 10 yr" sabbatical sounds neat, there's only 1 issue, finding work when older (over 55), BTDT. Im 67 BTW...

Don't believe for a minute that finding work is easy as an older employee. To stay out from underfoot I've been doing a bit of searching and had numerous face to face interviews over the past couple months. More often than not its a "look" on the face of supervisors concerned I might replace them or HR reviewing a job I'm obviously overqualified for...

Just sayin' ;)
 

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I know you wouldn’t dare take SS or Medicare for your disdain for socialism. I’m just glad ol’ orange game show host is on track to add to the national debt more than any one else before him. But since most of the tax breaks went to the rich we don’t call it socialism We call it trickle down economics.

https://www.thebalance.com/us-debt-by-president-by-dollar-and-percent-3306296

Ops question is once my kids are out of the house. My plan is to only work part time 4-6 months at a time 2-3 months in between. I won’t have a house payment I sock away 20ish % now. It maybe less when I do it. But I saw my parents work and save and as soon as they retire between health problems and raising grand children. They can’t do much.
you are saying trump is going to double the national debt ? even more than obama did? i know you saw it on the internet and it must be true.
 

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P.B.A.
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you are saying trump is going to double the national debt ? even more than obama did? i know you saw it on the internet and it must be true.
No his contribution to the debt under his presidency is on track to be more than Barak Obama or anyone else.

I’ve read this several places that had trump not pushed his tax cut through it’s plausible he would have contributed the lowest to the national debt since Regan. But the rich need that socialism. Granted I did receive a temporary tax cut under trump.

Edit: if trump would have cut military spending to offset the tax cuts I would have been for it. Bombing poor brown people doesn’t seem like a very economical viable operation.

Sorry to derail this thread.
 
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