Search found 50 matches

by nwa-non
Sat Nov 30, 2019 10:56 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

https://www.portfoliovisualizer.com/financial-goals Save $500k at 75/25 allocation, for 25 years then spend $80k per year for next 30 years. 9977 portfolios out of 10000 simulated portfolios (99.77%) survived all withdrawals. It's not a crazy idea, assuming the future is not radically different fro...
by nwa-non
Fri Nov 15, 2019 5:03 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

For years I maintained a spreadsheet with multiple scenarios for growth of my investments based on amount invested each year and assumed growth. Each year I checked to see if actuals were keeping up with the numbers on the spreadsheet. When things started getting iffy at work, and I was looking at ...
by nwa-non
Fri Nov 15, 2019 5:00 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

This is a tactic some people use called CoastFI. They'll save/invest enough money to ensure their minimum desired level of retirement income. Then they typically switch to a job that they find more rewarding but pays less, and either partially or completely stop saving for retirement. Warning: if y...
by nwa-non
Fri Nov 15, 2019 2:40 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

Don’t give up that Roth IRA space. All of the tax free growth you will get if you keep contributing, don’t pass that up. Also, if you’re getting a 401K match, don’t skip the free money. That’s just my two cents. Here’s my third cent - you don’t want to look back and have regrets. Any spending you d...
by nwa-non
Fri Nov 15, 2019 2:17 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

What is your estimate for inflation over the remainder of your lifetime? Do you imagine that $48k will stay constant for the next 50 years or so? Or would it increase with inflation? And would it increase based on healthcare cost increases? Remainder of my lifetime is reaaally broad. Let's just say...
by nwa-non
Fri Nov 15, 2019 2:06 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

Ok, thought exercise: What are you going to do with your 401k contribution amount (without the tax shield), that is worth more to you than greater spending in retirement, or an earlier retirement, or one with less risk? Fantastic question! Any one of the following scenarios: 1. That source of incom...
by nwa-non
Fri Nov 15, 2019 2:01 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

What's your reason for funding the taxable brokerage account and not the 401k? Will those also be buy-and-hold assets untouched until retirement? Short term expenses/needs. Though there are ways to access the assets in 401(K) early and penalty free, they are not the most straight forward. Roth, I c...
by nwa-non
Fri Nov 15, 2019 1:58 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

<<Second, when I said "without further contribution", I meant only to the 401(k). The plan would be to still fund Roth, and taxable brokerage account.>> 1) 401K is not a retirement account. It is a tax-advantaged account. You can withdraw the money from 401K penalty-free before 59 1/2 years old. 2)...
by nwa-non
Fri Nov 15, 2019 1:53 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

What if you can't work until you are 65? You should look up the stats on how many people cannot work at age 50, 55, 60, 65, ... There are a lot of people who cannot work as long as they desire due to medical issues. Also, depending on your industry, age descrimination can come into play with stayin...
by nwa-non
Fri Nov 15, 2019 1:48 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

You should be congratulated on the half a million you have in retirement funds. The best argument for continuing to contribute, ate least to a ROTH, is that this is tax advantaged investing. You want to reach Financial Independence as soon as reasonably possible. Then you are the master of your own...
by nwa-non
Fri Nov 15, 2019 1:45 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Re: Letting retirement funds grow, without further contribution

Thanks to everyone who has responded! I should have perhaps rephrased my original post better. Let me try to clarify. First, by "retirement funds", I meant only asset in 401(k). By this (wrong) constraint, it does not encompass t-IRA, Roth IRA, cash, property, taxable brokerage. Second, when I said ...
by nwa-non
Fri Nov 15, 2019 12:53 pm
Forum: Investing - Theory, News & General
Topic: Letting retirement funds grow, without further contribution
Replies: 40
Views: 3027

Letting retirement funds grow, without further contribution

Let's assume the following. - I'm 40. - I have $500k in retirement savings. If I stop funding my retirement right now and don't put in a single cent for the next 25 years, I should (theoretically) end up with over $1.5M in retirement funds with a conservative 4.5% CAGR. Let's also assume I've calcul...
by nwa-non
Mon Apr 22, 2019 3:52 pm
Forum: Personal Consumer Issues
Topic: Part-Time or seasonal jobs - Feed The ROTH
Replies: 14
Views: 2050

Re: Part-Time or seasonal jobs - Feed The ROTH

duuuuuude wrote:
Sat Mar 03, 2018 1:19 am
substitute teaching....take a job only when you feel like going in!

And the teachers should already have the day planned for you!
+1
by nwa-non
Wed Mar 27, 2019 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

In case anyone was wondering, I didn't resign last Monday :D It is 7:57 pm Eastern and I'm currently about to leave the client office, go to the hotel and work for another hour or so. A thousand miles away from home. I fly back home tomorrow. Not currently working for the boss I alluded to earlier. ...
by nwa-non
Wed Mar 27, 2019 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

just sem-retire and spend more time with the kids. If you can successfully do this, congrats! It doesn't matter what other people think. This is huge and will set you free. I'm in this camp. Retire Early, retire often (You can go back to work later (if you must). Kids are home for a very short time...
by nwa-non
Wed Mar 27, 2019 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

lostdog wrote:
Wed Mar 27, 2019 1:34 pm
just sem-retire and spend more time with the kids. If you can successfully do this, congrats!

It doesn't matter what other people think. This is huge and will set you free.
Thanks!
by nwa-non
Wed Mar 27, 2019 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

This is all mindset. Honestly I think you'd be better off reading the MMM forums to get a new perspective, most of the advice you will get here is to avoid risk and work until your 60's which may work for some but not others. It seems like you realize that time isn't something you can get back no m...
by nwa-non
Tue Mar 26, 2019 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

My intention is not to "scapegoat" my retirement. There have been studies done to show a 4% withdrawal rate would *last forever*. The simple logic is, your investments would earn around 6% per year, on averag e, and you're drawing less than your return, your principal would, in theory, last forever...
by nwa-non
Mon Mar 25, 2019 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

Too many people get caught up in the rat race and often mix up what they truly need vs. what they want. While this isn't true for everyone, it is true for too many. I hear things like "we need a 4 bedroom, 3 bathroom house" but they don't need it, they want it. And there are consequences for buying...
by nwa-non
Mon Mar 25, 2019 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

I own a small business and am always "working," in terms of thinking about my clients and employees. It's not stressful...but I'm always "on." I remember I once had an employee whose boyfriend worked for a large bank in the city. We live near Charlotte,NC. She said he worked 70-80 hours per week an...
by nwa-non
Mon Mar 25, 2019 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

People get real weird one way or another when you use the word "retirement," like you're getting out from under the yoke they're still tethered to, or you're not meeting their personal definition of it. Well, I'd just use a different word and try to shape your life as you want it to be. We're all s...
by nwa-non
Mon Mar 25, 2019 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

Is your spouse on board? You could certainly go to one income, lower expenses and save less if everyone is on board. It is nuance if you are retired or not. I think you are more a stay at home parent with a working spouse. Doesn't matter which is which. I wouldn't do the 72t. You need that money fo...
by nwa-non
Mon Mar 25, 2019 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

Read this blog: https://retireby40.org/ Joe retired around your age, which was several years ago. His wife still works full time, but he has some side gigs that bring in money. He is a very honest and down to earth writer who has posted his life experiences for all to see. Maybe you will get some i...
by nwa-non
Mon Mar 25, 2019 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

Interesting perspective, sounds like you're quitting or going part-time to be a stay at home parent, not sure that's retiring and certainly not out of the ordinary. In any case, you have ~700k b/w the two of you, your expenses will be 55k or less. With your spouses salary of 105k you should be more...
by nwa-non
Mon Mar 25, 2019 5:11 am
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

THIS! Interesting idea. As a dad who stayed home with 3 kids while wife worked full time, I will tell you I was really psyched to go to drop off the kids at childcare for 2 hours a day and go to work p.t. ( I worked for a private practice from about 3-7pm 4 days / week). Wife would pick them up on h...
by nwa-non
Sun Mar 24, 2019 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

Instead of using the 72(t) SEPP rule, consider Roth conversions. After 5 years, the conversion amount can be withdrawn without penalty. You control the timing of the Roth conversions. You may not need to make withdrawals, and you have not locked yourself into restrictive withdrawal plan. But you pa...
by nwa-non
Sun Mar 24, 2019 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

What are your annual expenses? I would recast this idea as "working part-time" or "taking care of the kids" or something like that rather than early retirement. From what you've said it sounds like you could make it work if your spouse is onboard. I'd also leave your 401k/IRA alone for the time bei...
by nwa-non
Sun Mar 24, 2019 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

This all sounds like an emotional response to a stressful job. I wouldn't make life-altering decisions based on that. .. .. This probably requires some planning, reducing of expenses, reshuffling of household responsibilities, and a lot of discussions. You sound like you need a vacation, tbh. I too...
by nwa-non
Sun Mar 24, 2019 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

As a stay at home spouse, I have never claimed to be retired. Looking at your finances as a couple, what would be the point of drawing down your 401k now? Does it make the best option given your current tax bracket? How stressful would it be to find a job that paid that amount, instead? That's a gr...
by nwa-non
Sun Mar 24, 2019 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Re: Early retirement - hypothetical

Thegame14 wrote:
Sun Mar 24, 2019 9:20 pm
how can you "fund" a 401K when you have no earned income????
My spouse, who works and will continue to work, will fund the 401(k). [Not fund my 401(k)]
by nwa-non
Sun Mar 24, 2019 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement - hypothetical
Replies: 58
Views: 6049

Early retirement - hypothetical

Let's say this the following scenario. I have $300k in my current 401(k). I'm 40 years old. I'm thinking about retiring tomorrow. Convert the 401(k) into a t-IRA. Then use the 72(t) SEPP rule to draw about $12,500 per year, using the Single Life Expectancy table. That would be a 4.16% withdrawal rat...
by nwa-non
Thu Jan 17, 2019 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Paying extra on mortgage - what am I missing?
Replies: 70
Views: 7501

Re: Paying extra on mortgage - what am I missing?

lvrpl wrote:
Thu Jan 17, 2019 2:51 pm
I do itemize my deductions every year and my mortgage interest is deductible.
With the standard deductions in place from 2019 (for tax year 2018) you might not have to itemize your tax deductions. Standard deductions is $12K for individuals and $24K for married couples.
by nwa-non
Mon Jan 14, 2019 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

Re: To buy new home or not

Your boss already knows your salary so that is a lot different than dealing with customers. It can vary a lot by industry and what part of the country you are in but if you are frugal in some situations that could actually be a plus if part of your job involves purchasing or negotiating contracts. ...
by nwa-non
Mon Jan 14, 2019 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 58
Views: 5057

Re: Mortgage: 15 vs 30 year

IMHO, if a borrower cannot afford to the payments of a 15 year mortgage and first build up an adequate EF based on a 15 year mortgage, then they should not buy the property. Now if they meet both of these requirements, they could still go with a 30 year mortgage if they do so for the explicit and p...
by nwa-non
Mon Jan 14, 2019 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

Re: To buy new home or not

Main QUESTION: Should we get this place? Or should we wait for another 4-5 years and see what happens? I would stay a while if it were me, but if you value the additional space highly and you think this is your forever home than I guess go for it. Secondary question: Anyone has experience on negoti...
by nwa-non
Mon Jan 14, 2019 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 58
Views: 5057

Re: Mortgage: 15 vs 30 year

It completely depends on the financed amount and the rates. Check this Google sheet out: https://docs.google.com/spreadsheets/d/1biVc--8f9wvClwGKQNc0U9izD9cuYmBLHdoQjzddRf0/edit?usp=sharing Here I have given you 3 amortization tables to play with. There's a 30-year table, a 15-year table, and the fi...
by nwa-non
Mon Jan 14, 2019 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Money Market Account - tell me about your experience
Replies: 25
Views: 2719

Re: Ally Money Market Account - tell me about your experience

The Ally MM account is pointless. Just open a checking account and 2 savings accounts. Transfer money to the checking account as needed via Ally app. Takes 30 seconds. The checking account has unlimited transactions and free ATMs. The second savings account is so you can do 11 transfers a month ins...
by nwa-non
Mon Jan 14, 2019 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

Re: To buy new home or not

It is not a need at the moment, but you are in a position to sort between a current "want" and what will quite possibly be a future "need." Forgive me if being overly psychological on what is primarily a financially based site, but the two do interact. Tim Thank you, @Nowizard Tim, thank you! In my...
by nwa-non
Mon Jan 14, 2019 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

Re: To buy new home or not

My neighborhood is littered with people who I work with. My office is a 7-minute walk from my front-door and we are the largest employer in the area (one of the largest in the state). Of our 10 closest neighbors, I work with 4 of them and 2 houses down from me, is a recently married couple; he work...
by nwa-non
Mon Jan 14, 2019 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

Re: To buy new home or not

House shopping frequently leads to house buying. :| The transaction costs are high, especially if your current house was recently purchased. I would be patient. Activities will increase as the kid gets older. Moving closer to school but farther from work (how I read it) doesn't seem like a good tra...
by nwa-non
Mon Jan 14, 2019 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

Re: To buy new home or not

One more thought. One the point about about having the set of parents move in some day. If that is not a cultural thing for you or a financial necessity for them you might want to discount that possibility. A big problem is the typical suburban home can be very socially isolating for older people e...
by nwa-non
Mon Jan 14, 2019 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

Re: To buy new home or not

My answer is NO. It isn't about needing a new house. The only need will be when you need to take care of your parent, but A LOT can happen before that, i.e. they can die, need to be put in nursing home, their needs will influence the layout of the house you will need, etc... So right now it is only...
by nwa-non
Mon Jan 14, 2019 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

Re: To buy new home or not

You can afford it so it is a lifestyle choice so there is no way to judge that. A few comments; 1) One advantage of a new subdivision is that there is often a "first owners" effect where the original owners tend to bond since they tend to be the same stage in life and tend to be looking for new fri...
by nwa-non
Mon Jan 14, 2019 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: To buy new home or not
Replies: 17
Views: 1207

To buy new home or not

I want some brutally honest and impartial opinions on what people think about the following situation we're facing. A lot of details are presented here and I'd appreciate anyone who reads through and posts their thoughts! Background: Family of 3: Wife, husband, and elementary-school going child Curr...
by nwa-non
Mon Aug 20, 2018 10:03 am
Forum: Investing - Theory, News & General
Topic: Question regarding roll-over of 401(k) and pension into IRA
Replies: 8
Views: 653

Re: Question regarding roll-over of 401(k) and pension into IRA

Is there any chance that you will want to roll your 401k back into your current or future employer's plan? Employers are not required to permit this, but when they do, I believe they can put restrictions on the transfer and may require that it be a "clean" rollover of 401k funds. If you think there...
by nwa-non
Mon Aug 20, 2018 6:22 am
Forum: Investing - Theory, News & General
Topic: Question regarding roll-over of 401(k) and pension into IRA
Replies: 8
Views: 653

Question regarding roll-over of 401(k) and pension into IRA

I got a very specific question. I will lay out the situation below and then ask the question. At my old job, I had a pension component and a 401(k). I have initiated a direct rollover of the pension account into a rollover IRA account at Vanguard. My question is this: Can I rollover the 401(k) into ...
by nwa-non
Fri Jul 20, 2018 11:11 am
Forum: Personal Investments
Topic: 401(k) rollover question
Replies: 11
Views: 610

Re: 401(k) rollover question

You say the existing traditional IRA was funded with after-tax money. I’m curious why you would do that. You got no tax break for the contributions and growth will be taxed as ordinary income when withdrawn. I opened a tIRA last week just so I could start the rollover process and funded it with $50...
by nwa-non
Fri Jul 20, 2018 10:40 am
Forum: Personal Investments
Topic: 401(k) rollover question
Replies: 11
Views: 610

Re: 401(k) rollover question

sport wrote:
Fri Jul 20, 2018 10:24 am
When you do the rollover, be sure to do a direct rollover.
Yep, have that one down.
by nwa-non
Fri Jul 20, 2018 10:12 am
Forum: Personal Investments
Topic: 401(k) rollover question
Replies: 11
Views: 610

Re: 401(k) rollover question

The benefits guy at work is right. Open a new, rollover IRA for those funds. You could also just leave the money where it is or roll it into your new employer's plan. If you think you might ever need to do a backdoor Roth IRA, it's better not to have any tIRAs at all. @Rupert: Could you please expa...
by nwa-non
Fri Jul 20, 2018 9:41 am
Forum: Personal Investments
Topic: 401(k) rollover question
Replies: 11
Views: 610

401(k) rollover question

I'm switching jobs and have a sizable 401(k) with my current employer ~$200k. I know I will be moving it to a traditional IRA at Vanguard after I leave my current job. I already have a traditional IRA at Vanguard, funded by post-tax money. I was assuming that I will move the funds from the 401(k) to...