47yo funded college, paid house, maxed retirement...now what?

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vicferrari
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47yo funded college, paid house, maxed retirement...now what?

Post by vicferrari » Thu Oct 04, 2018 10:48 pm

Not really a problem but still not sure what to do. I’m lucky. I’m 47 yo criminal attorney with 600k in a sep. 600k in nonretirement that I have been investing (almost all total stock market index) with a vanguard financial adviser because I’ve maxed my sep. I have enough college saved for an out of state school for two kids—8 and 10. I just paid off my 600k mortgage and house is worth 1 million. I am a solo practitioner and have a third interest in a building that we paid 1.5 for (owe 1.2 on a 13 year mortgage left) that is now worth 3 million. So now what? Just plow more into retirement and nonretirement? Something more risky you recommend since I can afford a little risk? I have a 200k emergency fund sitting in a money market that I should probably just put in the nonretirement total stock market. Or wait until the market crashes. I like to buy guitars and watches and travel so frugality not really my thing. Any recommendations ?!?

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unclescrooge
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by unclescrooge » Thu Oct 04, 2018 11:10 pm

Maybe some probono work? :mrgreen:

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Tamarind
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by Tamarind » Fri Oct 05, 2018 5:22 am

What percentage of your gross income did you spend last year on things other than mortgagee and retirement/non-retirement savings?

If you have enough to retire, but you like your work, do a little more pro bono work. Or get more selective to tip your work towards the kind of cases you most enjoy working.

If you're don't have quite enough, are there other tax advantaged accounts you could use? Speciality retirement accounts are not in my wheelhouse, but I'm sure someone will be along to say whether you could use a solo 401k to stash more than your SEP.

If the SEP is the best deal, I guess save more in taxable. I wouldn't increase risk because you don't need to.

If you don't enjoy your work, why not scale back?

Jack FFR1846
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by Jack FFR1846 » Fri Oct 05, 2018 6:17 am

When you can't figure out where to put money, pay some of mortgage.

You say your kids' college is funded. Just to understand, so you've got at least $600k saved for that (thinking of 5 years at a private college at today's prices).
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Nissanzx1
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by Nissanzx1 » Fri Oct 05, 2018 6:35 am

Excellent work. Now it's time to enjoy some. Find some rewarding charitable work/cause to give to. Help random people with small kindness gestures; that sort of stuff...

Required watches for a successful attorney:
Rolex President 18K Yellow Gold
18K Solid Yellow Gold Submariner (Two Tone also allowed)
18K Patek Calatrava

If your a real Watch nerd, get something dressy from Jaeger Le Coultre

Grt2bOutdoors
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by Grt2bOutdoors » Fri Oct 05, 2018 6:43 am

Jack FFR1846 wrote:
Fri Oct 05, 2018 6:17 am
When you can't figure out where to put money, pay some of mortgage.

You say your kids' college is funded. Just to understand, so you've got at least $600k saved for that (thinking of 5 years at a private college at today's prices).
No, I think OP is saying college money is in addition to his taxable account.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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TomatoTomahto
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by TomatoTomahto » Fri Oct 05, 2018 7:04 am

Just keep saving/investing in taxable. You never know, it could come me in handy some day. Kids might want to do med/law/MBA/PhD.

What we did is to put a substantial amount into fixed income, mostly in tax deferred accounts. Everything else, including new money, returns on existing assets, etc we put into equities (mix of Total Stock, Total International, and whatever we’re allowed to put in PRIMECAP. It’s probably not technically a Liability Matching Portfolio, but that’s what I call it. I enjoy not figuring out my asset allocation.
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Soul.in.Progress
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by Soul.in.Progress » Fri Oct 05, 2018 7:16 am

You’ve done great. When we got to that stage, we kept investing money into both tax-advantaged as well as taxable, but we let off the pedal instead of being aggressive about it. At the same time, we increased giving to others, the types of vacations, increased work-life balance when possible, and some other relatively small luxuries. And we don’t regret having done all of the above, because the extra saved funds also increased our comfort level with retiring early and accounting for healthcare coverage.

Great job, OP!
Start by doing what is necessary; | then do what is possible; | and suddenly you are doing the impossible. | -- Francis of Assisi

YellowBrickRoad
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by YellowBrickRoad » Fri Oct 05, 2018 7:28 am

Nice work also consider investing even more time, money and effort in your personal health, children and wife.

mortfree
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by mortfree » Fri Oct 05, 2018 7:29 am

I would say that you probably don’t need to take more risk with future dollars.

Keep it simple and plow the money towards that and enjoy.

vicferrari
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by vicferrari » Fri Oct 05, 2018 7:38 am

unclescrooge wrote:
Thu Oct 04, 2018 11:10 pm
Maybe some probono work? :mrgreen:
It’s called clients who don’t pay! Do lots of that :wink:

RobLyons
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by RobLyons » Fri Oct 05, 2018 7:43 am

Donate to those less fortunate. I know of a single-income, fellow BH'er that could use a little help :D


First, congrats!
Second, if I were ever lucky enough to be in that position, not in any order:


-Help my family first, then friends, lastly random strangers
-Buy more real estate (investment or vacation house(s) )
-take more time off
-More vacations
-Retire
-Bigger/better house?
-Donate to charity
-Buy more "toys" - your watches, maybe a boat, luxury cars,
-Hire people for everything; landscaping, cooking, cleaning, personal trainer, massage and physical therapist


Other random thoughts
How about starting a scholarship fund in the name of a loved one that passed ?
Work less, and spend your time teaching others how to achieve the success you have experienced in short time


Lastly, much respect for achieving that level of success by 47!
"Success in investing doesn’t correlate with IQ. Once you have ordinary intelligence, what you need is the temperament to control urges that get other people in trouble investing" - Buffett

vicferrari
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by vicferrari » Fri Oct 05, 2018 7:45 am

Very helpful to all!!!
Last edited by vicferrari on Fri Oct 05, 2018 7:47 am, edited 1 time in total.

vicferrari
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by vicferrari » Fri Oct 05, 2018 7:46 am

Thanks. So I will take very select pro bono (I try to do at least two cases a year pro bono when they merit it), focus on cases I want to handle and charge higher fees, and scale back on the smaller stuff and headaches. I want to travel far more. Eventually I’d like to do almost all pro bono.

I worked my tail off to get to a point where I could be more selective. It’s hard though because I’m in my prime of earning (40-65) and I hate to just let money go. I have an associate and am starting to split cases so maybe that’s an alternative to help achieve work life balance. I just don’t want to get hung up on money for money’s sake.


I read this book Happier from Tel Shahar at Harvard who teaches the most popular undergrad course in happiness. It really opened my eyes. He argues at some point happiness overcomes money (over 50k a year or whatever it is) as the ultimate currency and stats back it up. I highly recommend it.

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watchnerd
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by watchnerd » Fri Oct 05, 2018 8:22 am

Nissanzx1 wrote:
Fri Oct 05, 2018 6:35 am
Excellent work. Now it's time to enjoy some. Find some rewarding charitable work/cause to give to. Help random people with small kindness gestures; that sort of stuff...

Required watches for a successful attorney:
Rolex President 18K Yellow Gold
18K Solid Yellow Gold Submariner (Two Tone also allowed)
18K Patek Calatrava

If your a real Watch nerd, get something dressy from Jaeger Le Coultre
When I see a Rolex submariner, I see someone who thought they should have a nice watch, but didn't actually know what to buy and isn't really into watches. Unless it's a vintage one.

And gold dive watches...no. Tool watches in gold are cheesy.

Gold is for dress watches.
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Nissanzx1
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by Nissanzx1 » Fri Oct 05, 2018 9:01 am

watchnerd wrote:
Fri Oct 05, 2018 8:22 am
Nissanzx1 wrote:
Fri Oct 05, 2018 6:35 am
Excellent work. Now it's time to enjoy some. Find some rewarding charitable work/cause to give to. Help random people with small kindness gestures; that sort of stuff...

Required watches for a successful attorney:
Rolex President 18K Yellow Gold
18K Solid Yellow Gold Submariner (Two Tone also allowed)
18K Patek Calatrava

If your a real Watch nerd, get something dressy from Jaeger Le Coultre
When I see a Rolex submariner, I see someone who thought they should have a nice watch, but didn't actually know what to buy and isn't really into watches. Unless it's a vintage one.

And gold dive watches...no. Tool watches in gold are cheesy.

Gold is for dress watches.
I know your point, you aren't wrong BUT I will say a solid gold Sub is a great power piece for a powerful attorney. I've got a SS and a TT Blue. Love them both but don't wear them very often.

What's your current favorite watch you are wearing, and what's the current grail?

I'll go first. 14K 1501 Date is my current favorite. Grail is probably 5196 :)

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watchnerd
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by watchnerd » Fri Oct 05, 2018 9:21 am

Nissanzx1 wrote:
Fri Oct 05, 2018 9:01 am
watchnerd wrote:
Fri Oct 05, 2018 8:22 am
Nissanzx1 wrote:
Fri Oct 05, 2018 6:35 am
Excellent work. Now it's time to enjoy some. Find some rewarding charitable work/cause to give to. Help random people with small kindness gestures; that sort of stuff...

Required watches for a successful attorney:
Rolex President 18K Yellow Gold
18K Solid Yellow Gold Submariner (Two Tone also allowed)
18K Patek Calatrava

If your a real Watch nerd, get something dressy from Jaeger Le Coultre
When I see a Rolex submariner, I see someone who thought they should have a nice watch, but didn't actually know what to buy and isn't really into watches. Unless it's a vintage one.

And gold dive watches...no. Tool watches in gold are cheesy.

Gold is for dress watches.
I know your point, you aren't wrong BUT I will say a solid gold Sub is a great power piece for a powerful attorney. I've got a SS and a TT Blue. Love them both but don't wear them very often.

What's your current favorite watch you are wearing, and what's the current grail?

I'll go first. 14K 1501 Date is my current favorite. Grail is probably 5196 :)
Right at this moment, I'm wearing a vintage 1977 Seiko 6306, Japan-only hacking model, with kanji date wheel.

My favorite is my vintage 1969 Omega Speedmaster, the "moon watch" from the actual year of the moon landing, or my 1970 Heuer Monaco, same watch / year as worn by Steve McQueen in "Le Mans".

My grail dress watch is a 1914 Calibre 18''' SO PB CHRO, same kind as worn by T.H. Lawrence, aka "Lawrence of Arabia":

Image
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vicferrari
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by vicferrari » Fri Oct 05, 2018 6:43 pm

1936 Rolex prince dual dial doctors watch with larger brancard case. My grail
1967 omega sea master 300 on Bond nato strap
1967 omega speed master moon watch with original movement
Early 80s Rolex sub with mat dual and done acrylic bezel. Looks like the one in Goldfinger. No modern gaudy oversized ceramic garbage for me!

Malinois000
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by Malinois000 » Fri Oct 05, 2018 6:48 pm

Congrats - good for you! How about an IWC Big Pilot. Panerai?

SoAnyway
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by SoAnyway » Fri Oct 05, 2018 7:08 pm

vicferrari wrote:
Thu Oct 04, 2018 10:48 pm
Not really a problem but still not sure what to do. I’m lucky. I’m 47 yo criminal attorney with 600k in a sep. 600k in nonretirement that I have been investing (almost all total stock market index) with a vanguard financial adviser because I’ve maxed my sep. I have enough college saved for an out of state school for two kids—8 and 10. I just paid off my 600k mortgage and house is worth 1 million. I am a solo practitioner and have a third interest in a building that we paid 1.5 for (owe 1.2 on a 13 year mortgage left) that is now worth 3 million. So now what? Just plow more into retirement and nonretirement? Something more risky you recommend since I can afford a little risk? I have a 200k emergency fund sitting in a money market that I should probably just put in the nonretirement total stock market. Or wait until the market crashes. I like to buy guitars and watches and travel so frugality not really my thing. Any recommendations ?!?
Two kids, age 8 and 10? Dude, you are SO not there yet. Anything can happen until they're successfully launched and financially independent of you. Congrats on doing as well as you have so far. Hopefully you're parenting your kids in a way that ensures they're not living in your basement when they're 30 while you're paying their cell phone bills/car and health insurance/whatever. You've not provided enough detail to accurately calculate your NW or your income-expense ratio. Maybe you can afford a "little more risk" (to use your words), maybe not. Maybe you can afford another guitar/watch/trip to add to your collection, maybe not. Provide more facts, counselor, and you'll get better guidance. Just sayin'.

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watchnerd
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by watchnerd » Fri Oct 05, 2018 7:11 pm

Malinois000 wrote:
Fri Oct 05, 2018 6:48 pm
Congrats - good for you! How about an IWC Big Pilot. Panerai?
Panerai moved to my 'don't buy' list after the Brooklyn Bridge edition scandal.
Tax Sheltered: 35% US Stock | 35% ex-US Stock | 30% TTM || Taxable: 35% US Stock | 35% ex-US Stock | 15% TTM | 15% Munis

Malinois000
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by Malinois000 » Fri Oct 05, 2018 7:47 pm

watchnerd wrote:
Fri Oct 05, 2018 7:11 pm
Malinois000 wrote:
Fri Oct 05, 2018 6:48 pm
Congrats - good for you! How about an IWC Big Pilot. Panerai?
Panerai moved to my 'don't buy' list after the Brooklyn Bridge edition scandal.
I'm not familiar with that event - I will google. I have two Panerai's that I purchased several years ago so I'm clearly have a bias. Good luck in your search.

vicferrari
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Re: 47yo funded college, paid house, maxed retirement...now what?

Post by vicferrari » Fri Oct 05, 2018 11:31 pm

SoAnyway wrote:
Fri Oct 05, 2018 7:08 pm
vicferrari wrote:
Thu Oct 04, 2018 10:48 pm
Not really a problem but still not sure what to do. I’m lucky. I’m 47 yo criminal attorney with 600k in a sep. 600k in nonretirement that I have been investing (almost all total stock market index) with a vanguard financial adviser because I’ve maxed my sep. I have enough college saved for an out of state school for two kids—8 and 10. I just paid off my 600k mortgage and house is worth 1 million. I am a solo practitioner and have a third interest in a building that we paid 1.5 for (owe 1.2 on a 13 year mortgage left) that is now worth 3 million. So now what? Just plow more into retirement and nonretirement? Something more risky you recommend since I can afford a little risk? I have a 200k emergency fund sitting in a money market that I should probably just put in the nonretirement total stock market. Or wait until the market crashes. I like to buy guitars and watches and travel so frugality not really my thing. Any recommendations ?!?
Two kids, age 8 and 10? Dude, you are SO not there yet. Anything can happen until they're successfully launched and financially independent of you. Congrats on doing as well as you have so far. Hopefully you're parenting your kids in a way that ensures they're not living in your basement when they're 30 while you're paying their cell phone bills/car and health insurance/whatever. You've not provided enough detail to accurately calculate your NW or your income-expense ratio. Maybe you can afford a "little more risk" (to use your words), maybe not. Maybe you can afford another guitar/watch/trip to add to your collection, maybe not. Provide more facts, counselor, and you'll get better guidance. Just sayin'.
Income is net 700k after expenses. Don’t have any debt now except 400k on a building. Net worth is 1 mil house, 1.3 in retirement and non retirement accounts, 200k in college fund for 8 and 10 yo. Lease my cars. Monthly spending is 25k after taxes

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