Personal Finance Milestone: 20 Times Annual Expense

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 12:03 pm

Hi,

As of this Friday, my investment had reached 20 times my current annual expense. There is a light at the end of the tunnel. And, it is not a train. It had been a long and hard struggle over the last 10+ years but it looks like I will make it.

10+ years ago, Telecom bust wiped out 50% of my investment. And, it took away my job security. My wage had stayed stagnant. I went through multiple rounds of quarterly and annual laid off. I was unemployed for more than 1-year multiple times. But, I survived on many jobs long enough to grow my investment.

Now, my Financial Independence is fully funded. I am coasting on asset grow to get to my number. My annual savings is going toward paying my kids' college education.

I survived!!

KlangFool

PFInterest
Posts: 266
Joined: Sun Jan 08, 2017 12:25 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by PFInterest » Sat Jul 15, 2017 12:06 pm

congrats! :sharebeer

User avatar
ruralavalon
Posts: 11110
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by ruralavalon » Sat Jul 15, 2017 12:09 pm

Congratulations :) :) .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

dbltrbl
Posts: 831
Joined: Thu Mar 01, 2007 11:52 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by dbltrbl » Sat Jul 15, 2017 12:15 pm

Congratulations! :happy Your hard work paid off despite setbacks along the way. Enjoy the rest of way :sharebeer

User avatar
xystici
Posts: 304
Joined: Thu Nov 19, 2009 4:40 pm
Location: Boston & Barcelona

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by xystici » Sat Jul 15, 2017 1:02 pm

Klangfool,
I am not surprised you survived. You know a lot on personal finance so this makes you very resilient.
Congratulations! I enjoy your posts!
Xystici
Trust yourself, Break the rules, Don't be afraid to fail, Don't listen to naysayers, Work your butt off. "It is in your moments of decision that your destiny is shaped. Choose now and well"

paper200
Posts: 254
Joined: Sat Feb 02, 2008 11:40 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by paper200 » Sat Jul 15, 2017 1:06 pm

Congrats klang! Your words of wisdom in the board is always helpful.
Having freedom, food and roof is being 90% lucky in life and so is index investing. So, don't let the remaining 10% bother you.

tomd37
Posts: 2591
Joined: Thu Mar 01, 2007 10:39 pm
Location: Middle Tennessee

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by tomd37 » Sat Jul 15, 2017 1:18 pm

Congratulations on your success! Was the telecom bust you refer to Nortel? :annoyed
Tom D.

honduranhurricane
Posts: 40
Joined: Tue Oct 18, 2016 10:18 pm
Location: boston, ma

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by honduranhurricane » Sat Jul 15, 2017 1:20 pm

Congrats and I agree with prior posters,,,thank you for you contributions to this board. I do not post much, but I lurk,,and I always pay attention to your posts, along with others. Congrats and thanks again.

User avatar
BolderBoy
Posts: 3190
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by BolderBoy » Sat Jul 15, 2017 1:44 pm

KlangFool wrote:I survived!!
Wow. What a ride. Outstanding and congratulations!
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

VAslim16
Posts: 93
Joined: Sat May 24, 2008 6:47 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by VAslim16 » Sat Jul 15, 2017 1:52 pm

Awesome Klang. Very pumped for you. Looking forward also to reading more of your thoughts on here...

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 2:18 pm

Folks,

Thank you.

I made many mistakes. But, in spite of my incompetence, I did one thing right. I lived on a very simple but hard to live rule.

Save 1/3, spend 1/3, and pay 1/3 in tax.

I saved 30+% of my gross income and live on 1/3 of my gross income. That helps me to recover from my big mistake of gambling on Telecom stocks. Plus, I was lucky enough to survive on many jobs long enough. Many of my peers in the 40s and 50s are permanently under-employed and unemployed. Now, I could only hope that I survive on my current job for a few more years. Then, I am done.

KlangFool

aristotelian
Posts: 2614
Joined: Wed Jan 11, 2017 8:05 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by aristotelian » Sat Jul 15, 2017 2:22 pm

Awesome, man. Glad you are sharing the wisdom that has worked for you. Always appreciate your perspective on these threads.

User avatar
bligh
Posts: 495
Joined: Wed Jul 27, 2016 9:13 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by bligh » Sat Jul 15, 2017 2:29 pm

KlangFool wrote:Folks,
Save 1/3, spend 1/3, and pay 1/3 in tax.
I agree.. I think this is the key to your success. Living a simple, low expense life has the double impact of increasing your savings while decreasing the expenses you will need to support from those savings. To a huge extent, the very act of saving more reduces the final size of the savings goal you need to reach!

Anyway, congratulations KlangFool, 20x expenses is indeed an amazing milestone. You are now so close, you can see the finish line. Time for the final sprint! :)

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 2:33 pm

aristotelian wrote:Awesome, man. Glad you are sharing the wisdom that has worked for you. Always appreciate your perspective on these threads.
aristotelian,

Thank you. But, I would not use the word, "wisdom" for myself. I am just a guy that made a lot of mistakes. I just hope that my lessons from my failures could help some folks. I am just trying to succeed in spite of my own many limitations. For example, I would not be able to "Sleep Well at Night" (SWAN) without knowing that I could survive unemployment lasting 5 years.

KlangFool

lostdog
Posts: 546
Joined: Thu Feb 04, 2016 2:15 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by lostdog » Sat Jul 15, 2017 2:35 pm

Congratulations! :sharebeer

Are you comfortable sharing your numbers?
"Our life is frittered away by detail. Simplify, simplify." -Thoreau | Vanguard Total World Index

Thesaints
Posts: 748
Joined: Tue Jun 20, 2017 12:25 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Thesaints » Sat Jul 15, 2017 2:36 pm

"1/3" is a lot of tax !

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 2:39 pm

lostdog wrote:Congratulations! :sharebeer

Are you comfortable sharing your numbers?
lostdog,

1) For those that want to know my number, they could do a simple search on some of my threads. Then, they will know my current annual expense. After that, it is a simple multiplication to get the number.

2) My FI number is 25 times my current annual expense.

KlangFool

rojas65
Posts: 11
Joined: Wed Jan 07, 2015 10:25 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by rojas65 » Sat Jul 15, 2017 2:40 pm

That reminds me of the question, "What is the difference between experience and wisdom?" Experience is learning from your own mistakes. Wisdom is learning from other peoples' mistakes.
Congratulations on the milestone, your efforts will continue to pay off for the rest of your life, and your legacy will continue through your family's lifetimes! :happy

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 2:43 pm

Thesaints wrote:"1/3" is a lot of tax !
Thesaints,

On the average, it is about right if you add up Federal, State, Social Security, Medicare and so on.

KlangFool

Thesaints
Posts: 748
Joined: Tue Jun 20, 2017 12:25 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Thesaints » Sat Jul 15, 2017 2:51 pm

KlangFool wrote:
Thesaints wrote:"1/3" is a lot of tax !
Thesaints,

On the average, it is about right if you add up Federal, State, Social Security, Medicare and so on.

KlangFool
Medicare yes, but it is only a couple % at most. Social security is paid back to you, so I don't consider it a "tax", but a mandatory retirement/insurance program.
I live in Cali (and of course don't know how much you make), but an effective rate of 33% sounds large. I don't know, maybe adding real estate taxes... I mean, AMD rate is 28%, but it comes with an exemption.

MrNewEngland
Posts: 612
Joined: Sun Sep 28, 2014 11:38 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by MrNewEngland » Sat Jul 15, 2017 2:55 pm

Why did I think you were poor?

coupleofcents
Posts: 88
Joined: Wed May 24, 2017 7:55 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by coupleofcents » Sat Jul 15, 2017 2:57 pm

This is inspirational. 20x is awesome. I actually just realized we're at 5x, never really thought about where I'm at until now, just that we need to save, save, save. Congrats again.

Dottie57
Posts: 1981
Joined: Thu May 19, 2016 5:43 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Dottie57 » Sat Jul 15, 2017 3:00 pm

KlangFool wrote:Hi,

As of this Friday, my investment had reached 20 times my current annual expense. There is a light at the end of the tunnel. And, it is not a train. It had been a long and hard struggle over the last 10+ years but it looks like I will make it.

10+ years ago, Telecom bust wiped out 50% of my investment. And, it took away my job security. My wage had stayed stagnant. I went through multiple rounds of quarterly and annual laid off. I was unemployed for more than 1-year multiple times. But, I survived on many jobs long enough to grow my investment.

Now, my Financial Independence is fully funded. I am coasting on asset grow to get to my number. My annual savings is going toward paying my kids' college education.

I survived!!

KlangFool
Applause!

Dottie57
Posts: 1981
Joined: Thu May 19, 2016 5:43 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Dottie57 » Sat Jul 15, 2017 3:02 pm

KlangFool wrote:
aristotelian wrote:Awesome, man. Glad you are sharing the wisdom that has worked for you. Always appreciate your perspective on these threads.
aristotelian,

Thank you. But, I would not use the word, "wisdom" for myself. I am just a guy that made a lot of mistakes. I just hope that my lessons from my failures could help some folks. I am just trying to succeed in spite of my own many limitations. For example, I would not be able to "Sleep Well at Night" (SWAN) without knowing that I could survive unemployment lasting 5 years.

KlangFool
The key is you learn from your mistakes. That is wisdom.

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 3:06 pm

MrNewEngland wrote:Why did I think you were poor?
MrNewEngland,

I always live on 1/3 of my gross income. So, I was never poor.

KlangFool

User avatar
Tyrobi
Posts: 657
Joined: Thu Jun 04, 2009 12:29 pm
Location: Florida
Contact:

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Tyrobi » Sat Jul 15, 2017 3:07 pm

Congrats! Keep up the good work on your way to FI.
Three-fund portfolio | "Simplicity is the master key to financial success." John C. Bogle

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 3:11 pm

Thesaints wrote:
KlangFool wrote:
Thesaints wrote:"1/3" is a lot of tax !
Thesaints,

On the average, it is about right if you add up Federal, State, Social Security, Medicare and so on.

KlangFool
Medicare yes, but it is only a couple % at most. Social security is paid back to you, so I don't consider it a "tax", but a mandatory retirement/insurance program.
I live in Cali (and of course don't know how much you make), but an effective rate of 33% sounds large. I don't know, maybe adding real estate taxes... I mean, AMD rate is 28%, but it comes with an exemption.
Thesaints,

That is my general philosophy of living over 30+ years of working. At this moment, my effective Federal Income Tax rate is less than 5%. I do not count real estate tax.

KlangFool

runner540
Posts: 286
Joined: Sun Feb 26, 2017 5:43 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by runner540 » Sat Jul 15, 2017 3:12 pm

Congratulations, what a milestone. I appreciate your notes of caution when folks want to commit to an expensive home.

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 3:19 pm

Folks,

By any objective measure,

1) I earned above average income.

2) I saved above average portion of my income.

3) I am a lousy investor.

On the average, I saved one year of my annual expense every year. I did this over 25 to 30 years. Now, I am at 20 times my annual expense. I have a negative real return on my investment. So, it is kind of embarrassing to say that I am any good at finance. It is more accurate to say that I learned that I am lousy at investing. Hence, I stop myself from losing more money.

I am just glad that I make it so far in spite of my own incompetence at finance.

KlangFool

FedGuy
Posts: 1144
Joined: Sun Jul 25, 2010 3:36 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by FedGuy » Sat Jul 15, 2017 4:08 pm

Thesaints wrote:"1/3" is a lot of tax !
That's funny: having lived so much of my life in New York City, I use 50% as my rough approximation of total taxes.

Congrats, Klang!

User avatar
Phineas J. Whoopee
Posts: 6510
Joined: Sun Dec 18, 2011 6:18 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Phineas J. Whoopee » Sat Jul 15, 2017 4:48 pm

Congratulations.

As I've repeatedly posted I think an age-based asset allocation approach, and you didn't mention asset allocation in your OP so I'm the one bringing it up, will be far more practical for most investors.

Here's what I did, and a couple of years later I answered some questions about it.

20x annual expenses certainly is a milestone. Congratulations once again.

PJW

dharrythomas
Posts: 786
Joined: Tue Jun 19, 2007 4:46 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by dharrythomas » Sat Jul 15, 2017 7:20 pm

Congratulations! Saving 1/3 is quite impressive.

I've also made multiple errors and continue to do so, don't feel alone. I've have been amazed at how well it turned out in spite of me. We've been blessed.

Good luck.

Harry

Grt2bOutdoors
Posts: 16778
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Grt2bOutdoors » Sat Jul 15, 2017 7:23 pm

Congratulations! :sharebeer
I never had any doubt that you would not reach your goal, I've read all of your posts. :)
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

MutualEdge
Posts: 43
Joined: Sun May 28, 2017 6:46 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by MutualEdge » Sat Jul 15, 2017 8:56 pm

Congrats! Your story is full of hope for us younger folks who will without a doubt undergo more bumps along the way. As someone relatively new to the board, I've learned a lot from your contributions so thank you for sharing your wisdom. Cheers! :beer

teddykgb55
Posts: 38
Joined: Fri Feb 20, 2015 11:50 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by teddykgb55 » Sat Jul 15, 2017 9:21 pm

Congratulations!

Let me add to other posters who are grateful for the advice you share in threads. It's great to have a reminder to be conservative with what you've earned so that you can handle life when finances take a turn for the worse.

You might be a touch too conservative for my tastes but your POV is very valuable. Well done!

mindboggling
Posts: 176
Joined: Sat Sep 06, 2014 6:35 pm
Location: Upstate NY

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by mindboggling » Sat Jul 15, 2017 9:24 pm

Congratulations!

Your posts provide a welcome counterpoint to the equity cowboys who seem to crowd this forum.
In broken mathematics We estimate our prize, --Emily Dickinson

Lynette
Posts: 1322
Joined: Sun Jul 27, 2014 9:47 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Lynette » Sat Jul 15, 2017 9:30 pm

runner540 wrote:Congratulations, what a milestone. I appreciate your notes of caution when folks want to commit to an expensive home.
+1

Congratulation Klang and thanks for your posts.

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sat Jul 15, 2017 9:39 pm

runner540 wrote:Congratulations, what a milestone. I appreciate your notes of caution when folks want to commit to an expensive home.
runner540,

Too many of my peers were financially destroyed by their 500K to 600K houses.

KlangFool

Tamales
Posts: 1145
Joined: Sat Jul 05, 2014 10:47 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Tamales » Sat Jul 15, 2017 9:47 pm

Congrats on being within range of your 25x target.

Would you mind providing a little detail on what factors and analysis tools you considered in persuading yourself that 25x expenses was the right number for you? What age are you using as your age at death, and what age do you plan to begin collecting SS benefits?

Why not 30x, or more?

I wish I could convince myself to be comfortable with 25x, but I'm at 40x as my target. Or at least that's what it works out to when I back out from terminal portfolio value simulations using the assumptions I'm comfortable with.

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sun Jul 16, 2017 7:11 am

Tamales wrote:Congrats on being within range of your 25x target.

Would you mind providing a little detail on what factors and analysis tools you considered in persuading yourself that 25x expenses was the right number for you? What age are you using as your age at death, and what age do you plan to begin collecting SS benefits?

Why not 30x, or more?

I wish I could convince myself to be comfortable with 25x, but I'm at 40x as my target. Or at least that's what it works out to when I back out from terminal portfolio value simulations using the assumptions I'm comfortable with.
Tamales,

Social security income could cover 50% of my expense. So, 25X my current annual expense is the same as 50X my annual expense after I start withdrawing social security.

Complete and detailed discussion at the following thread.

viewtopic.php?f=2&t=220234

KlangFool

hmw
Posts: 360
Joined: Sun Mar 02, 2014 11:44 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by hmw » Sun Jul 16, 2017 9:09 am

Klang,

Congrats!

It is interesting that you noted that you were a lousy investor and you have made many mistakes along the way. Do you mind sharing when you started investing in a BH approach?

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sun Jul 16, 2017 9:28 am

hmw wrote:Klang,

Congrats!

It is interesting that you noted that you were a lousy investor and you have made many mistakes along the way. Do you mind sharing when you started investing in a BH approach?
hmw,

About 10 years. It took Telecom bust and 50% lost to wake me up that

1) 100% stock is a bad idea.

I do not have the

A) Need

With 30+% gross saving rate, I can get there with 0% real return.

B) Ability

I have no job security. I could be permanently unemployed or under-employed any year.

C) Willingness

Why bother taking the risk when I do not need the return?

2) I do not know how to invest. I stick with Wellington fund and Lifestrategy Moderate Growth Fund for many years until I switch the Life Strategy Moderate Growth portion to 3 funds.

KlangFool

bayview
Posts: 1267
Joined: Thu Aug 02, 2012 7:05 pm
Location: WNC

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by bayview » Sun Jul 16, 2017 10:19 am

Congratulations KlangFool!
Thesaints wrote:
KlangFool wrote:
Thesaints wrote:"1/3" is a lot of tax !
Thesaints,

On the average, it is about right if you add up Federal, State, Social Security, Medicare and so on.

KlangFool
Medicare yes, but it is only a couple % at most. Social security is paid back to you, so I don't consider it a "tax", but a mandatory retirement/insurance program.
I live in Cali (and of course don't know how much you make), but an effective rate of 33% sounds large. I don't know, maybe adding real estate taxes... I mean, AMD rate is 28%, but it comes with an exemption.
Sure, but in a discussion of what you live on, rather than an effective tax rate, it's 1/3 vacuumed out of gross pay. I find it a very useful measure.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

yellowgirl
Posts: 177
Joined: Sun Feb 08, 2015 10:12 pm
Location: Texas

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by yellowgirl » Sun Jul 16, 2017 10:33 am

Thesaints wrote:
KlangFool wrote:
Thesaints wrote:"1/3" is a lot of tax !
Thesaints,

On the average, it is about right if you add up Federal, State, Social Security, Medicare and so on.

KlangFool
Medicare yes, but it is only a couple % at most. Social security is paid back to you, so I don't consider it a "tax", but a mandatory retirement/insurance program.
I live in Cali (and of course don't know how much you make), but an effective rate of 33% sounds large. I don't know, maybe adding real estate taxes... I mean, AMD rate is 28%, but it comes with an exemption.

It is a tax because you won't be able to count on it until you are at least 62. For younger person like myself, it may not be there when it is my turn to retire but still have to pay in the mean time.

User avatar
Kenkat
Posts: 3711
Joined: Thu Mar 01, 2007 11:18 am
Location: Cincinnati, OH

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Kenkat » Sun Jul 16, 2017 11:04 am

Congrats KlangFool! I've read a lot of your posts here and you deserve this as much as anyone. You always give solid advice from a "regular guy" perspective and it is much appreciated.

Boglegrappler
Posts: 903
Joined: Wed Aug 01, 2012 9:24 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by Boglegrappler » Sun Jul 16, 2017 11:11 am

Not happy about uttering a discouraging word here, but........

Being able to save half of your after-tax pay requires either stunning austerity, or a rather high income. It does, however, put you in a position to be independent and also to live from your assets income rather than consuming it and worrying about running out. Nice job.

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sun Jul 16, 2017 11:21 am

Boglegrappler wrote:Not happy about uttering a discouraging word here, but........

Being able to save half of your after-tax pay requires either stunning austerity, or a rather high income. It does, however, put you in a position to be independent and also to live from your assets income rather than consuming it and worrying about running out. Nice job.
Boglegrappler,

<<Being able to save half of your after-tax pay requires either stunning austerity, or a rather high income.>>

Or, none of the above. I came from a country/culture where the average gross rate for the whole country is 30+%. It is how we live. It is part of our culture. And, that is not the only country in the world with that level of gross saving rate.

KlangFool

dellfanboy
Posts: 36
Joined: Wed Sep 11, 2013 11:38 am

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by dellfanboy » Sun Jul 16, 2017 11:25 am

Klang,

I don't know you but I love you. You are like my personal financial guru grandpa (no offense!). Your post are so sound and Challange the spend spend spend type of mentality. For some of us younger (or young at heart) folks in the board, I can't thank you enough.

Thank you for sharing your experiences. Thank you for being the voice of reason. Thank you for taking the time to weigh in on so many posts. Thanks for being you.

User avatar
celia
Posts: 6760
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by celia » Sun Jul 16, 2017 11:38 am

KlangFool wrote:My annual savings is going toward paying my kids' college education.
I'm sure your struggles have been an education in itself for your whole family. I hope they were paying attention and noticed they couldn't have eveything they wanted. Our kids also learned from us what it is like for BOTH parents to be unemployed for a long time. It made them more willing to start saving from their first job. May yours also benefit from your lessons. I'm sure you will make sure they contribute to an IRA as soon as they work full time. :sharebeer

KlangFool
Posts: 6481
Joined: Sat Oct 11, 2008 12:35 pm

Re: Personal Finance Milestone: 20 Times Annual Expense

Post by KlangFool » Sun Jul 16, 2017 11:45 am

celia wrote:
KlangFool wrote:My annual savings is going toward paying my kids' college education.
I'm sure your struggles have been an education in itself for your whole family. I hope they were paying attention and noticed they couldn't have eveything they wanted. Our kids also learned from us what it is like for BOTH parents to be unemployed for a long time. It made them more willing to start saving from their first job. May yours also benefit from your lessons. I'm sure you will make sure they contribute to an IRA as soon as they work full time. :sharebeer
celia,

1) I am contributing to their Roth IRA accounts for their summer jobs since high school. I plan to do this again if I am employed next year.

2) They had saved about 10K each from childhood. Their investment is worth about 10K to 20K each. Their rich uncles and aunties gave them a few hundred each every year.

KlangFool

Post Reply