Search found 39 matches

by chrisj
Tue Dec 23, 2014 11:13 pm
Forum: Investing - Theory, News & General
Topic: Dividend Growth Investing Vs. 3F portfolio
Replies: 25
Views: 4853

Re: Dividend Growth Investing Vs. 3F portfolio

Hey okazaki, I think it's great you are asking about this as it's a really important question. Let me try to help you further and make a good decision. The key here is to understand that just because the dividend stock is paying 3.5% per year does NOT make 3.5% the correct withdrawal rate. As you seem to understand (but no worries if it's still confusing), NOT reinvesting the 3.5% dividend is equivalent to selling and spending 3.5% of your stocks per year. Additionally, with dividend stocks paying 3.5% per year, I think you are assuming that a 3.5% withdrawal rate is somehow safe with dividend stocks in a way that does not hold true. That conclusion absolutely does not follow just because investment ABC pays dividend XYZ. The (main) questio...
by chrisj
Thu Dec 18, 2014 2:57 pm
Forum: Personal Investments
Topic: VWINX declining, any ideas why?
Replies: 42
Views: 9625

Re: VWINX declining, any ideas why?

Looks fine to me! What other funds are you comparing it to?

Image
by chrisj
Fri Dec 12, 2014 12:21 am
Forum: Personal Consumer Issues
Topic: Starting a Start up finally- Need help with banking
Replies: 10
Views: 2548

Re: Starting a Start up finally- Need help with banking

From experience, do not mix your personal / business accounts. It may seem easier now, but I guarantee you will waste 10x more time dealing with it later.

I recommend Capital One for banking and credit card (Spark Cash For Business, 2% cash back on everything).

This is a small decision, just pick something and move on! Best of luck with your venutre.
by chrisj
Fri Dec 05, 2014 2:12 am
Forum: Personal Investments
Topic: Suddenly Retired, do I have enough?
Replies: 42
Views: 9380

Re: Suddenly Retired, do I have enough?

Hey rgs92, I put together a rough spreadsheet that may be easier to digest. Here it is: https://docs.google.com/spreadsheets/d/1Lctv7RHyt8lt9jtKzCLQ9eoZzutlEvJITNQfAIqcd98 Your solvency hinges on the 401k balance. Therefore, the key is figuring out by how much you are depleting your 401k each year. If you wish to edit any of the "Inputs", click on the tab that says "Editable" in the bottom left. Keep in mind anyone can edit the "Editable" sheet at the same time, so make a personal copy if you want your changes to stick around. Please note this is VERY rough and completely ignores variance in annual return on your 401k. This is a huge factor not accounted for and can completely change the outcome. For example, i...
by chrisj
Mon Nov 04, 2013 12:11 am
Forum: Personal Investments
Topic: Help with my dad's retirement assets
Replies: 9
Views: 1460

Re: Help with my dad's retirement assets

Edit: I noticed Watty made a similar point before me, but keeping this here because it has a few more details. Just want to point out that his goal of matching existing salary may be misguided if you are using pre-tax numbers. With your father's $130,000 salary, he is most likely currently paying the following, which will vanish upon retirement: 6.2% FICA 1.45% Wages (x%?) Pension contribution (maybe) (x%?) After Tax contributions (probably, considering he's built up $800,000) ---- 7.65% - 15% Conservatively, he will immediately recognize a $10,000+ increase in take home income starting when he retires. Additionally, 15% of his SS will not be taxed at the federal level. Finally, NJ State tax may decrease because the first $20,000 of pension...
by chrisj
Mon Oct 28, 2013 12:10 pm
Forum: Personal Investments
Topic: Investing land sale proceeds
Replies: 3
Views: 478

Re: Investing land sale proceeds

Based on their age and known income requirements, an SPIA (Single Premium Immediate Annuity) seems appropriate.

For roughly $300,000, your parents can receive about $2,100 per month GUARANTEED for the rest of their lives, regardless of market conditions.

Get quotes on annuities here: http://www.immediateannuities.com/

They would still have $200,000 for you to invest appropriately (perhaps 50 / 50) for other expenses, gifts to children, etc.

Read more here:

http://www.bogleheads.org/wiki/Immediate_fixed_annuity
http://wpfau.blogspot.com/2013/01/annui ... later.html

* Keep in mind that if your parents are in particularly bad health, an SPIA is probably a bad deal for them.
by chrisj
Fri Jul 26, 2013 2:57 pm
Forum: Personal Consumer Issues
Topic: Honda CRV
Replies: 10
Views: 1664

Re: Honda CRV

A few months ago, I helped my mom buy a 2013 CR-V from Coast Honda in Sea Girt, NJ.

I got prices from 10+ dealers around the state. Coast Honda gave the best price with no shenanigans.

Our specific sales consultant was Mike Campbell. Funny guy, and pleasant to spend a few hours with signing paperwork. I would recommend working with him. We considered trading in an older car and he told us outright "Don't trade it in here, you'll get a better deal on Craigslist". So we did, and he was right.

Coast Honda: http://coasthonda.com/
Mike Campbell http://www.dealerrater.com/sales/Michae ... iew-88051/

If you want to know the prices I got from different dealesr, or any other details, send me a private message.
by chrisj
Thu Jul 11, 2013 12:21 am
Forum: Investing - Theory, News & General
Topic: Inflation estimate, treasury yield, SEC yield correlations?
Replies: 7
Views: 1262

Re: Inflation estimate, treasury yield, SEC yield correlatio

#Cruncher - thanks for more insight.

Here is a 2009 article about how Cleveland Fed models interest rates http://www.clevelandfed.org/research/co ... 9/0809.cfm

Also, I put together the data from Cleveland and the CPI-U link you sent and graphed it. It appears to me that their model is fairly accurate, at least in terms of directional change.

Image
by chrisj
Wed Jul 10, 2013 8:53 pm
Forum: Investing - Theory, News & General
Topic: Inflation estimate, treasury yield, SEC yield correlations?
Replies: 7
Views: 1262

Re: Inflation estimate, treasury yield, SEC yield correlatio

Thank you Jack! Your explanation was exactly what I was looking for. The following is the part I was missing and your clear writing made it click in my head:
Jack wrote:Expected inflation is inferred from a change in bond yields, not the other way around ...

The yield of a bond is determined by supply and demand for borrowed money. A low demand means low rates and a high demand means high rates. This is called the real interest rate. On top that is added the expected inflation rate. On top of that is added a term premium meaning that longer bonds typically have higher yields because of higher uncertainty of future real and inflation rates over the long term.
Thanks again

Chris
by chrisj
Wed Jul 10, 2013 4:36 pm
Forum: Investing - Theory, News & General
Topic: Inflation estimate, treasury yield, SEC yield correlations?
Replies: 7
Views: 1262

Inflation estimate, treasury yield, SEC yield correlations?

I am trying to get a high level understanding of how inflation estimates, treasury yield, and bond fund SEC yield interact, if at all. First, some current numbers: 10 year estimates of inflation are 1.55% ( http://www.clevelandfed.org/research/data/inflation_expectations/ ) 10 year treasury yield is 2.70% ( http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield ) 10 year treasury ETF (effective duration 10.02) has SEC yield of 2.79% (http://etfs.morningstar.com/quote?t=tlh) What accounts for the difference between 10 year estimates of inflation and treasury yield? Is it a risk premium? Or something else? Or not related? If inflation estimates were to increase overnight from 1.55% to 2.55%... ...
by chrisj
Fri Jun 07, 2013 2:39 pm
Forum: Personal Consumer Issues
Topic: Building a Deck this Summer
Replies: 48
Views: 6277

Re: Building a Deck this Summer

A lot of good commentary in Reddit's DIY section.

Here are all threads related to decks over there:
http://www.reddit.com/r/DIY/search?q=de ... rict_sr=on
by chrisj
Wed May 22, 2013 4:56 pm
Forum: Personal Consumer Issues
Topic: Deleted
Replies: 109
Views: 23498

Re: sunglasses

Here are awesome polarized sunglasses on Amazon Prime for around $7 shipped:

http://www.amazon.com/QLook-Polarized-W ... B004N1SDOC
by chrisj
Tue Apr 30, 2013 12:13 am
Forum: Personal Investments
Topic: Employers: How do I choose a 401k plan provider?
Replies: 2
Views: 1392

Employers: How do I choose a 401k plan provider?

This is the first time I have to choose a 401k plan provider for my C Corp and I don't know where to start.

My business currently has 2 full time employees, with plans & funding to add 6-8 more by end of 2013. Anything past that is anyone's guess.

What are the criteria I should use for selecting a provider?

What providers do you currently use?

Any info is appreciated. Thanks!

Chris
by chrisj
Mon Apr 22, 2013 12:20 am
Forum: Personal Investments
Topic: Help fixing my parents portfolio
Replies: 12
Views: 1618

Re: Help fixing my parents portfolio

BL wrote: As for your parents, unless they have asked for your help I would suggest caution in pushing your advice on them.
Seconded. Did they ask for help?

Also, important question: do they have pensions?
by chrisj
Mon Apr 15, 2013 10:15 am
Forum: Investing - Theory, News & General
Topic: Rebalance more frequently in tax deferred account?
Replies: 5
Views: 985

Re: Rebalance more frequently in tax deferred account?

This is a dense study, but really helpful: http://www.tdainstitutional.com/pdf/Opportunistic_Rebalancing_JFP2007_Daryanani.pdf "Our study strongly favors 20 percent bands, as can be seen from the plot of the results in Figure 3. A revelation from our study is that one does not need to go to the extreme of daily looking to capture these marked improvements; weekly and biweekly looking provides just as much in rebalancing benefits." (Note, see Figure 3, titled "Average Rebalance Benefit Versus Interval in Days for Looking"). My interpretation is to check all asset classes once every 5-10 market days. If an asset class drifts more than 20% away from target, rebalance it enough to get it back to 10%. You should expect 2 - 3 ...
by chrisj
Fri Apr 12, 2013 11:40 am
Forum: Personal Consumer Issues
Topic: 8 days in NYC -- need hotel advice.
Replies: 27
Views: 3317

Re: 8 days in NYC -- need hotel advice.

Try using Airbnb's neighborhoods feature to find the right neighborhood for you what you want.
For example, here are 30 neighborhoods in NYC that are tagged with "Great Transit":

https://www.airbnb.com/locations/new-york?tags%5B%5D=12

I've stayed on Airbnb about 20 times and it's always been great. I've also hosted over 150 guests in 2 cities with nothing but success. Airbnb's reviews are real and their customer support is amazing.
by chrisj
Mon Apr 01, 2013 9:26 pm
Forum: Personal Consumer Issues
Topic: Buying a car for my daughter
Replies: 70
Views: 6835

Re: Buying a car for my daughter

BMW, no question :)

Just be prepared for $2,000 - $3,000 per year to maintain it properly. My 3 series got expensive around year 12.
by chrisj
Thu Feb 07, 2013 12:04 pm
Forum: Personal Investments
Topic: my mom retirement
Replies: 8
Views: 845

Re: my mom retirement

It looks like $250,000 could buy a roughly $1,400 monthly annuity (see http://www.immediateannuities.com/)

Alternatively, if you invest in a balanced portfolio of stocks and bonds, a 4% (aggressive) annual withdrawal rate works out to $833 per month (or $10,000 per year).

Based on what you've told us, it looks like your mom is going to have a shortfall of $600 - $1000 per month ($7,200 - $12,000 per year) depending on what option you choose.

So, she either needs more income or fewer expenses.

Does your mom own a home? or still pay a mortgage?

Happy to help!

Chris
by chrisj
Mon Jan 28, 2013 11:17 pm
Forum: Personal Investments
Topic: Should Roth be 100% in stock?
Replies: 33
Views: 4064

Re: Should Roth be 100% in stock?

Karl - don't let the character attacks get you down. I'm in a similar position as you (widowed mom, I manage her finances, she's not interested in money at all, she's frugal despite having plenty, etc.). It seems clear to me that you are acting in your mom's best interests while being rationally forward thinking. As long as you ask her what she wants and continue managing her money in good faith, I see no reason you should feel any guilt. To your question, as WHL noted, you might want to have bonds and REITs in your Roth instead of stocks. Reason being, bonds & REITs generate a lot of dividends that would be more efficient in a tax sheltered account. Of course, the optimal answer depends on your mom's and your current asset allocations ...
by chrisj
Mon Jan 28, 2013 9:26 am
Forum: Investing - Theory, News & General
Topic: Do you Rebalance ?
Replies: 81
Views: 6198

Re: Do you REBALANCE?

Here is an academic view of rebalancing with specific advice of how to implement a rebalancing strategy. I had to read it a couple of times for it to sink in.

http://www.tdainstitutional.com/pdf/Opp ... yanani.pdf
by chrisj
Sun Dec 09, 2012 2:00 pm
Forum: Personal Consumer Issues
Topic: Do tenants want a garbage disposal?
Replies: 42
Views: 7661

Re: Do tenants want a garbage disposal?

WendyW wrote:The reason that most U.S. homes don't have an insinkerator, is that most people don't want one.
Wendy, this appears to be incorrect! According to the US Census:
Garbage disposals, which are available in two-thirds or fewer of the homes built prior to the 2000s, are increasingly gaining in
popularity with more than seven in 10 of the homes built in the 2000s having one.
See Page 4 of "How American Homes Vary By the Year They Were Built":
http://www.census.gov/hhes/www/housing/ ... 0Built.pdf
by chrisj
Fri Dec 07, 2012 7:31 pm
Forum: Personal Consumer Issues
Topic: Do tenants want a garbage disposal?
Replies: 42
Views: 7661

Re: Do tenants want a garbage disposal?

I am 26 years old and it wasn't until my 3rd apartment as an adult that I experienced the joys of having a Garbage Disposal. I'm in a new apartment now that does not have one and OH how I miss it.

I highly recommend installing the disposal!

For any tenant that cooks regularly, it is a huge huge benefit. Much easier cleanup when preparing food and not as many foul odors in your garbage bags.

In fact, I recommend you install one in home as well!

You're looking at $100 - $150 for a good one.

Chris
by chrisj
Wed Dec 05, 2012 12:06 am
Forum: Personal Investments
Topic: Large portfolio -- Grateful for your advice
Replies: 33
Views: 4106

Re: Large portfolio -- Grateful for your advice

Oh another quick thought - Make sure you are considering what role bonds are playing in your portfolio. Don't add risk (for example by buying High Yield bonds) if the bonds are meant to provide stability.

In other words, decide what type of bond you want in your portfolio, and THEN choose the most tax efficient type. Not necessarily the other way around.
by chrisj
Tue Dec 04, 2012 11:58 pm
Forum: Personal Investments
Topic: Large portfolio -- Grateful for your advice
Replies: 33
Views: 4106

Re: Large portfolio -- Grateful for your advice

Given your high tax rate, it seems unlikely taxable bonds will provide more income. Here's how I would look at it. Obviously these funds are not equal and each carries different risk, but looking at the after tax income is relevant for this discussion. Tax Free Federal & CA Vanguard California Intermediate-Term Tax-Exempt Fund Admiral Shares (VCADX): 1.53% SEC ( 1.53% after tax ) Vanguard California Long-Term Tax-Exempt Fund Admiral Shares (VCLAX): 2.15% SEC ( 2.15% after tax ) Tax Free Federal, Taxable CA @ 13.3% Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX): 1.51% SEC ( 1.31% after tax ) Vanguard Long-Term Tax-Exempt Fund Admiral Shares (VWLUX): 2.05% SEC ( 1.78% after tax ) Taxable Federal @ 35%, Taxable CA @ 13.3...
by chrisj
Thu Nov 29, 2012 4:54 pm
Forum: Personal Investments
Topic: Potential windfall in 2013. Anything to prepare for now?
Replies: 7
Views: 1169

Re: Potential windfall in 2013. Anything to prepare for now?

Depending on where you live now, moving to a state with no income tax could save you real money!

Has anyone here done that successfully?
by chrisj
Fri Nov 23, 2012 10:54 am
Forum: Investing - Theory, News & General
Topic: SWR? MCS? Common sense? -- None of the above.
Replies: 40
Views: 3322

Re: SWR? MCS? Common sense? -- None of the above.

Hello BruceA,

I am very interested in this topic but your stated intentions make it difficult to discuss anything in concrete terms.
BruceA wrote:I do not intend to submit my personal spreadsheet to this forum.
If you were to post a version of your spreadsheet I think you would find a much greater response.

Also, everyone is still digesting Thanksgiving dinner!

Have a great day!

Chris
by chrisj
Tue Nov 20, 2012 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Strategies for replacing lost COLA
Replies: 6
Views: 1191

Re: Strategies for replacing lost COLA

Look at it this way. A Joint Life SPIA for a couple both age 65 pays out 5.84%. An inflation adjusted SPIA pays out 3.875%. Your pension with the COLA was worth $50K/0.03875 = $1.29MM. Without the COLA, it is worth $856K, or 66% of what it was worth. If you and your wife live as long as the actuaries assume, you can start out by spending 2/3 of your pension, investing the rest, and increasing your pension related spend by the inflation rate each year. Certainly good advice to run FIREcalc (Or Fidelity Retirement Income Planner, which is far superior IMHO). But for a first approximation, your retirement standard of living will be 4% of your assets + 2/3 of your pension + your SS. This is exactly what I was looking for! It is very helpful to...
by chrisj
Fri Nov 16, 2012 11:47 am
Forum: Investing - Theory, News & General
Topic: Gold to go to $2,000 per ounce? Any gold bugs out there?
Replies: 38
Views: 5908

Re: Gold to go to $2,000 per ounce? Any gold bugs out there

This thread is from 3+ years ago and there was a lot of negative sentiment. Many people predicted that Gold had peaked.

Gold was $956.60 per ounce on Mar 19, 2009.
Today, Gold is around $1715 per ounce

This is just a friendly reminder (to myself) that market timing does not work. Well thought-out asset allocation is tantamount.
by chrisj
Fri Nov 16, 2012 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Strategies for replacing lost COLA
Replies: 6
Views: 1191

Strategies for replacing lost COLA

Chapter 78, P.L. 2011, the Pension and Health Benefit Reform Law, suspended future Cost-of-Living Adjustments (COLA) for all retirees of all retirement systems . This suspension is effective for benefit payments made as of August 1, 2011. It is important to note that the law does not reduce any COLA increases made to retiree benefits prior to the effective date of the law . The amount of money a retiree or benefit recipient currently receives each month will not be reduced by this law. Chapter 78 also provides for the establishment of Pension Committees which may consider reinstating the COLA when the retirement systems reach “target funded ratios” established by the law. At that time, the Pension Committees are to give the reactivation of...
by chrisj
Wed Nov 14, 2012 1:36 pm
Forum: Personal Investments
Topic: Early Retire "hopeful"
Replies: 13
Views: 1442

Re: Early Retire "hopeful"

The absolute biggest question:

At age 40, how much annual income (in today's dollars) will you need?

We can work backwards from there :D
by chrisj
Tue Nov 13, 2012 10:34 am
Forum: Personal Investments
Topic: A good problem to have
Replies: 25
Views: 3171

Re: A good problem to have

I'm in a roughly similar position to OP and have thought a lot about this. Rationally you have to ask yourself: "If I had $X,000,000 in cash, should I invest all of it in this one specific company?" No, you should not. With that said, there is a small chance for huge regret. Minimizing that regret could reduce your stress levels significantly. If you can afford the risk and want to avoid missing out on potentially significant stock appreciation, perhaps keep 10% of your portfolio in company stock and sell it off at fixed intervals over the next 4 years. To account for increased risk and volatility of your overall portfolio, you could hold a larger portion of cash or bonds. Just a thought. While this is almost certainly not the fin...
by chrisj
Mon Nov 05, 2012 9:03 pm
Forum: Personal Consumer Issues
Topic: Cookware: Quality; Essential Pieces
Replies: 60
Views: 6163

Re: Cookware: Quality; Essential Pieces

Also OP, I suggest you look at the cookbook 'How to Cook Everything' by Mark Bittman. It has an introductory section with how / what to buy for your kitchen. It's broken down by section (Crucial pots and pans, essential pans for the oven, differences between materials, must have kitchen tools, tools you'll probably want, tools that are nice to have, knives, etc.)

Amazing book to get started with!
by chrisj
Mon Nov 05, 2012 8:57 pm
Forum: Personal Consumer Issues
Topic: Cookware: Quality; Essential Pieces
Replies: 60
Views: 6163

Re: Cookware: Quality; Essential Pieces

I am a cooking enthusiast.

In other words, cooking is one area of my life where I choose to not be frugal!

These are the current objects of my desire:
http://www.williams-sonoma.com/m/produc ... ohn-pawson

If out of your price range (i.e. you are sane), I echo Bengineer's advice 100% :)
by chrisj
Sun Nov 04, 2012 12:45 am
Forum: Personal Consumer Issues
Topic: Need a Pay as you go smart phone, unlocked for use in Asia..
Replies: 22
Views: 2979

Re: Need a Pay as you go smart phone, unlocked for use in As

I highly recommend an unlocked phone from Google.

They recently released the fully unlocked Nexus 4 smart phone that accepts SIM cards and runs on any GSM network for $299.

http://www.google.com/nexus/4/
by chrisj
Sat Nov 03, 2012 12:48 am
Forum: Personal Investments
Topic: 18 years old. Opening up a RothIRA.
Replies: 40
Views: 3174

Re: 18 years old. Opening up a RothIRA.

jerdev! Your enthusiasm is awesome! I'm 26 now and can totally relate to what you are going through. This was me: "Oh wow! I timed that one stock perfectly and made 30% in 2 days. All I have to do is repeat that a few times a year and I WILL BE SET!" "All these older people giving boring advice JUST DON'T GET IT. They do not have enough appetite for risk. They're not smart enough." "If I keep trying, I WILL be able to beat the market. All this money I'm losing is a learning experience that will soon pay off 1000x." "Things are different now." As a 15 year old, I learned about options and margins and day trading and penny stocks. This was exciting ! At the same time, I learned about asset allocation, p...
by chrisj
Thu Oct 25, 2012 1:39 pm
Forum: Personal Investments
Topic: 29 y/o hopeful entreprenuer portfolio review
Replies: 4
Views: 675

Re: 29 y/o hopeful entreprenuer portfolio review

rokuk wrote:Attain financial independence ASAP. My definition of this is: to save enough to be financially secure (sustenance level out to age 90 at about ~90% confidence rate as noted by firecalc),
What do you consider "sustenance level"? In other words, how much money per year in today's dollars do you intend to withdraw?

$550,000 would give you about $15,000 per year with a fairly aggressive 2.8% 61 year withdrawal rate.
by chrisj
Thu Oct 18, 2012 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Mid-20s w/ $2M - please review my plan
Replies: 56
Views: 6694

Re: Mid-20s w/ $2M - please review my plan

At your age, I just can't understand why you would even want to or even feel the need to pull money from your investments. You really need to think twice before taking this step. If you really are frugal, you should be able to pick up basic jobs to cover your living expenses while letting your investments grow. As others have said, you also need to think defensively. Yes, but it's obvious he wants to take another business venture risk. We don't even know if he has/wants a college education, etc. You really can't expect him to wait tables or go to Walmart to work just so he doesn't pull from his $2MM stash. I agree with your most recent post chrisj and I would take the 2-2.5%/year and from that make yourself a career, either by going to sch...
by chrisj
Thu Oct 18, 2012 12:59 am
Forum: Personal Finance (Not Investing)
Topic: Mid-20s w/ $2M - please review my plan
Replies: 56
Views: 6694

Re: Mid-20s w/ $2M - please review my plan

First of all, THANK YOU FOR SO MANY REPLIES. What an amazing response to my first post. Great to be here! Some reactions & thoughts: My Safe Withdrawal Rate should be around 2% max... DRAW 1.5-2% I would probably plan on limiting withdrawals to around 2% per year It looks like a 1.85% withdrawal rate may be closer to the mark. Seems like 2% provides a near guarantee of inflation indexed capital appreciation, with a fair chance of huge appreciation. See this for more: http://www.bogleheads.org/forum/viewtopic.php?t=75598 And this http://retirementoptimizer.com/Whitepapers/PerpDist.pdf I need umbrella insurance... You are the poster child for a large umbrella insurance policy. Buy yourself an umbrella policy with a $2MM coverage limit Get...
by chrisj
Tue Oct 16, 2012 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Mid-20s w/ $2M - please review my plan
Replies: 56
Views: 6694

Mid-20s w/ $2M - please review my plan

Hello! Huge Bogleheads nerd here. My situation is relatively non-standard, so your thoughts are very much appreciated. As fortune may have it, I will soon have around $2,000,000 after tax sitting in my bank account. I consider myself extremely lucky. I am in my 20s, frugal, data-driven, and an unemotional investor. According to the Vanguard Retirement nest egg calculator, I can withdraw $55,000 per year (2.75% withdrawal rate) with a 3% chance of failure over a 50 year period (40% Stock / 60% Bond). In other words, I can pay myself a $50,000 - $60,000 pre-tax salary each year for the rest of my life with a very low chance of failure. I will use this as a base to live off of while pursuing other business opportunities / taking on regular job...