Can you share some of your financial goals?

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2Birds1Stone
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Re: Can you share some of your financial goals?

Post by 2Birds1Stone » Wed Jun 28, 2017 2:00 pm

Probably in a fairly small camp here within the Boglehead community but I am saving toward very early retirement/semi retirement.

2010 - 10% net savings rate Entered Megacorp World @ age 23
2011 - 25% net savings rate
2012 - 20% net savings rate
2013 - 25% net savings rate
2014 - 25% net savings rate
2015 - 75% net savings rate (income more doubled thanks to career change)
2016 - 80% net savings rate
2017 - 70% net savings rate (estimated)

While lifestyle inflation has definitely happened since 2014, my income has outpaced my increased spending. At this rate, I will be able to pull the plug on a traditional 9-5 career in 2022 and as long as I can figure out the health care elephant in the room, work will be part time, seasonal, and largely optional.

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Earl Lemongrab
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Re: Can you share some of your financial goals?

Post by Earl Lemongrab » Wed Jun 28, 2017 2:04 pm

rgs92 wrote:Does anyone want to die broke?
Or at least with annuities that expire with you (or other income streams that do the same)?
I can't imagine why that would be a goal. I like my family and I like having contingency money. So extra money that I might need for unexpected things is there if I need it, and I don't then it goes to the family.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Alchemist
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Re: Can you share some of your financial goals?

Post by Alchemist » Wed Jun 28, 2017 9:27 pm

1. Have a net worth of $1 million by the time I retire from the military at age 42 (I'm currently 30 with 8 years of active duty service as an officer)

It will allow me and my husband to have the flexibility to do whatever we want for the next phase of our life. We have no interest in actual early retirement, but having the freedom to start a business or enter new rewarding careers without stressing about money is the goal. Also want to adopt children between now and then, being millionaire parents (plus a military pension) will ensure we have the resources to make sure they get anything they need without stressing about how to pay for it.

That's our financial goals. Keeping in mind that money is a means to ones life goals, and not an end in and of itself.

IMADreamer
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Re: Can you share some of your financial goals?

Post by IMADreamer » Wed Jun 28, 2017 9:44 pm

My goals are probably silly compared to most of your guys as they are a bit more materialistic and you big earners are going to laugh.

I'd like my business to gross 200k this year, almost there last year.
I'd like my side business to gross 12k this year.

I want to have my commercial mortgage paid off in 7 years ( going to be tough at the current rate, probably more like ten years)

I want to have a 70 Cuda to tinker with and go on car cruises with my friends.

rgs92
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Re: Can you share some of your financial goals?

Post by rgs92 » Wed Jun 28, 2017 9:54 pm

Earl Lemongrab wrote:
rgs92 wrote:Does anyone want to die broke?
Or at least with annuities that expire with you (or other income streams that do the same)?
I can't imagine why that would be a goal. I like my family and I like having contingency money. So extra money that I might need for unexpected things is there if I need it, and I don't then it goes to the family.
What if you don't have a family?

Bacchus01
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Re: Can you share some of your financial goals?

Post by Bacchus01 » Wed Jun 28, 2017 9:58 pm

Alchemist wrote:1. Have a net worth of $1 million by the time I retire from the military at age 42 (I'm currently 30 with 8 years of active duty service as an officer)

It will allow me and my husband to have the flexibility to do whatever we want for the next phase of our life. We have no interest in actual early retirement, but having the freedom to start a business or enter new rewarding careers without stressing about money is the goal. Also want to adopt children between now and then, being millionaire parents (plus a military pension) will ensure we have the resources to make sure they get anything they need without stressing about how to pay for it.

That's our financial goals. Keeping in mind that money is a means to ones life goals, and not an end in and of itself.
That seems light on net worth in 12 years from now given the goals you've listed.

sawhorse
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Re: Can you share some of your financial goals?

Post by sawhorse » Wed Jun 28, 2017 10:22 pm

So much is out of my hands now that I'm not sure I'd call them goals. More like dreams.

My financial dreams are to 1) regain my health enough to work again; and b) not have to spend thousands of dollars on medical related expenses each month.

If those two things could come true, I think the rest will work itself out like it did before I developed this disease in my early 30s. :(

I think that if I'm ever healthy enough again, I'll never voluntarily retire because being able to work is a luxury that I never appreciated until it was gone. (Although when I'm 65 and in a job I hate I'll probably feel differently! :wink:)
Last edited by sawhorse on Wed Jun 28, 2017 10:43 pm, edited 1 time in total.

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Hawaiishrimp
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Re: Can you share some of your financial goals?

Post by Hawaiishrimp » Wed Jun 28, 2017 10:31 pm

My goal is to grow my portfolio to 3 millions in 10 years (or less). By then, both my wife and I will be FIRED. :beer :beer
I save and invest my money, so money can make money for me, so I don't have to make money eventually.

Alchemist
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Re: Can you share some of your financial goals?

Post by Alchemist » Thu Jun 29, 2017 8:52 am

Bacchus01 wrote:
Alchemist wrote:1. Have a net worth of $1 million by the time I retire from the military at age 42 (I'm currently 30 with 8 years of active duty service as an officer)

It will allow me and my husband to have the flexibility to do whatever we want for the next phase of our life. We have no interest in actual early retirement, but having the freedom to start a business or enter new rewarding careers without stressing about money is the goal. Also want to adopt children between now and then, being millionaire parents (plus a military pension) will ensure we have the resources to make sure they get anything they need without stressing about how to pay for it.

That's our financial goals. Keeping in mind that money is a means to ones life goals, and not an end in and of itself.
That seems light on net worth in 12 years from now given the goals you've listed.
In that case please let me clarify the goal, and if you still think it is light on a net worth goal I would genuinely appreciate that input to see if I need to adjust either the NW goal or the other goals.

So, for clarification I do not intend to stop working in 12 years. I will just reach 20 years of active duty service so I can retire from my current career as a military office and immediately begin drawing the pension. If I reach my professional goal of retiring as an O-5, then my pension will be around $45-$50k per year for the rest of my life starting immediately when I retire from active duty. This, combined with a portfolio of $1 million, means that I can say spend $!00k and open a business or go back to school to get my Ph D and accept a lower paying job as a professor. The pension/savings combo would make that transition possible well within my risk comfort zone. I haven't actually decided what I want to do when I 'grow up' and retire from the military but you get the idea that the flexibility to accept little or no pay for a couple years while transitioning to a new career will be fairly painless if I reach my financial goals. Also, lots of parents raised children on only what will be my pension income. If I have that, and a two comma portfolio, AND my husbands income we will be able to comfortably weather almost any storm while still putting away additional savings and providing for the kid(s) (haven't decided on adopting one or two yet). Plus I could buy that Nissan GTR (used of course) I always wanted as a retirement gift 8-)

With the added details, do you still think that is a low NW target?

Bacchus01
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Re: Can you share some of your financial goals?

Post by Bacchus01 » Thu Jun 29, 2017 9:38 pm

Maybe not low when taking into account all those other things. I guess you are keeping your finances separate from your husband in this scenario?

As for opening a business on $100k. Not sure what business that would be, but I guess you have time to decide. Your retirement pension is substantial. With the normal 4% rule, it's worth $1M or so.

I think that's great. But as a reference, at age 43, married with 3 kids and a net worth of more than the ~$2M you will have combined in investments and pension value, we could not retire today. On an inflation adjust d basis, your investments and pension value will be about $1.5M. Not insubstantial, but not enough to stop working I think (which you said you won't)

Do you get healthcare as well?

Alchemist
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Re: Can you share some of your financial goals?

Post by Alchemist » Fri Jun 30, 2017 12:30 am

Bacchus01 wrote:Maybe not low when taking into account all those other things. I guess you are keeping your finances separate from your husband in this scenario?
Oh no not at all. But we just got married a month ago so we are still intertwining our financial lives (he is a Japanese citizen with most his assets in Yen so its more complex than it may sound at first). The $1 million at 42 was a goal I had for myself before we got married, and has become part of our shared goals. Though much more realistic, if I'm honest, with dual incomes.
As for opening a business on $100k. Not sure what business that would be, but I guess you have time to decide. Your retirement pension is substantial. With the normal 4% rule, it's worth $1M or so.
Business was just a possibility thrown out there. Though I had not thought of thinking about the pension in a NW worth sense.
I think that's great. But as a reference, at age 43, married with 3 kids and a net worth of more than the ~$2M you will have combined in investments and pension value, we could not retire today. On an inflation adjust d basis, your investments and pension value will be about $1.5M. Not insubstantial, but not enough to stop working I think (which you said you won't)
I think the military retirement discussion may be adding some confusion since I did not delineate military retirement from my 'not working' retirement. When I retire from the military it will be more of an inflection point in our lives to move onto whatever is next. Having a $1 million portfolio makes the list of whatever comes next a long and varied one thanks to the financial flexibility it provides. Our true 'not work anymore' retirement number is a several times that and around age 60 or so.
Do you get healthcare as well?
Yes for me individually, but for my spouse and potential future children there will be an added cost though far less than what is charged on the open market.

Bacchus01
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Re: Can you share some of your financial goals?

Post by Bacchus01 » Fri Jun 30, 2017 6:00 am

I thought you'd get healthcare. Good for you. That is HUGE with regards to the options it provides you. Many people have to keep working for that one reason alone.

annielouise
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Re: Can you share some of your financial goals?

Post by annielouise » Fri Jun 30, 2017 7:07 am

-1. Get through my son's wedding. (Done!)
1. Pay off mortgage (Dec 2017).
2. Save as much as possible for retirement.
3. Get my financial info and estate planning into formats that will (a) try to protect me from age related financial mistakes (b) be easier for my husband or son to manage if I can't and (3) make it as easy as possible for handling our deaths.
4. Take one nice vacation each year while I can still walk and see (both of which are not looking good going forward).

mptfan
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Re: Can you share some of your financial goals?

Post by mptfan » Fri Jun 30, 2017 7:56 am

WoodSpinner wrote: Here are mine from my Retirement Policy Statement
  • Goals (priority order):
    1. Retire while the two of us are still young and healthy enough to travel, enjoy life, volunteer, and experience the joy of being active grandparents.
May I ask what age that is?

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jose
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Re: Can you share some of your financial goals?

Post by jose » Fri Jun 30, 2017 9:16 am

+1 sleep at night, peace of mind.

One important thing, in order to be in peace, I don't have a financial goal, but a life philosophy. If you have a financial goal such as money or objects, you are increasing your stress, not decreasing it. Life is not a goal.

So, I just live below my means, simplify, save, reduce needs, enjoy every day thinking that I have more than I need, not how much I have, because then I would always want more. Enough! I started this whole journey attracted by voluntary simplicity as a way of life that is sustainable too.

I am not retired yet, and I am far from wealthy but that is OK, I am financially independent at age 51, and that allows me to not worry and could retire anytime I wanted, so I focus on living and not on money.

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Hub
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Re: Can you share some of your financial goals?

Post by Hub » Fri Jun 30, 2017 11:15 am

CppCoder wrote:In my best William Wallace (OK, Mel Gibson) voice: FREEDOM!

Most days, I don't dislike my job, but if I didn't need the paycheck for financial security, I would do something else. I like to think I'd be productive, maybe start a company, write open source software, write books, or teach. Who knows, maybe I'd just make more Boglehead posts :happy . As it is, due to an inability to pursue my passions (really, a risk aversion to not having a steady paycheck), I work for a mega corp. I could very early retire (40s), but I'd rather work long enough to generate enough inter-generational wealth so my kids don't have to make the same decision. Otherwise, I'm not improving their lives over my own. You've got to break that cycle of upper middle class/working affluent somewhere, right? :D I figure, oh well, in for a penny, in for a pound...I'll work until I'm 55 or 60 so my kids don't have to (yes, still early retirement by most people's definition).
I love your post and can fully relate. Step 1 for me is to be able to extremely early retire asap. Step 2 will probably be to not do that and go for generational wealth instead knowing I can always fall back on step 1 if my circumstances ever dictate it.

johnra
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Re: Can you share some of your financial goals?

Post by johnra » Sat Jul 01, 2017 12:00 am

My goals:

(1) I like having our net worth growing, that gives me comfort, so I'd like to have investments large enough to generate enough income which when added to security security and pension maintain our current life style or even more...and keep growing;
(2) We need to have enough at the end to fund our daughter's special needs trust--she is disabled and we need her protected;
(3) I'd like to have enough at the end to give a bunch to our other three kids, who are high functioning adults who I'd like to not have to worry too much;
(4) I'd like an antique car;
(5) I'd like to buy some valuable coins, like a 1909S VDB penny in fine shape

My wife just got her inheritance and bought a horse!

Qwertykid18
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Re: Can you share some of your financial goals?

Post by Qwertykid18 » Sat Jul 01, 2017 12:47 am

indexonlyplease wrote:
I would state the best thing I ever did was paying off my first house in 10 years and then living debt free. It makes what ever comes along that much easier.
Trying to reach the same goal!

523HRR
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Re: Can you share some of your financial goals?

Post by 523HRR » Mon Jul 03, 2017 4:25 pm

These are the financial goals my wife and I set during our accumulation years (now retired):

• Maximize wealth building, within an appropriate risk tolerance, so that we will not be poor in retirement.
→ Target = household net worth of $10 million and full retirement before age 55.
• Maintain financial independence by always living well below our means, while maintaining sufficient liquidity to meet unexpected expenses.
→ Target = pre-tax net worth equal to 40 x annual household expenses and taxes, limiting portfolio withdrawal rate to < 2.5% annually.
• Provide for the remainder of our son’s secondary education plus a quality 4-year college education. Optimize assets as appropriate to maximize financial aid eligibility.
→ Target = funding sufficient to allow completion of bachelors degree with no student loans.
• Minimize taxes by avoiding cash flow from realizable / taxable income whenever possible.
→ Target = total annual tax expense < 5% of household net worth (less than 1% in retirement).

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scubadiver
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Re: Can you share some of your financial goals?

Post by scubadiver » Mon Jul 03, 2017 7:09 pm

To have the winning combination in Tuesday night's MegaMillions jackpot.

That and maintain current savings plan so as to be able to fully fund children's college education and retire no later than age 62.

Scubadiver

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