$13 Million Goal for Early Retirement (am I crazy?)

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
cmublitz
Posts: 76
Joined: Sat Jan 24, 2015 9:18 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by cmublitz » Mon Jul 31, 2017 11:56 am

I agree, that is an impressive increase!

Also, I didn't see if anyone else mentioned this, but you're holding VTSAX in both taxable and your IRA. Doesn't this make it more difficult to tax loss harvest without running into a wash sale?

MaxSave
Posts: 21
Joined: Tue May 06, 2014 10:02 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by MaxSave » Mon Jul 31, 2017 12:31 pm

All contributions are listed under the "Contributions" heading, which appear to total ~50K. As a result ~127K of the gain from last year is market return/re-investing dividends.

As far as holding VTSAX in both taxable and my IRA interfering with tax loss harvesting, I will be the first to admit that I am guilty of not watching my portfolio carefully enough to be aware of when tax loss harvesting opportunities arise. Even if I was aware, inertia might prevent me from taking action if the amount of the harvest was to be small.

Thanks!
MaxSave :sharebeer

chuppi
Posts: 138
Joined: Sat Jun 16, 2012 9:47 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by chuppi » Mon Jul 31, 2017 1:05 pm

Suppose you amass 12million and you retire at age 50. Lets say you stick to around 120K annual expense or a little more. If your portfolio grows 3% over the next 20years, you will end up with 17million at age 70.
Even if you retire with 5million, you will be with almost 6million in assets after 20years of spending 120K annually.

It is very important to get to a realistic number and add some buffer to avoid accumulating more than required. Lot of things can change and you may have to keep adjusting until you have clarity.

WhiteMaxima
Posts: 1306
Joined: Thu May 19, 2016 5:04 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by WhiteMaxima » Mon Jul 31, 2017 1:28 pm

if you live in venezuela, you could turn 1k to 13 mil in weeks. norminal money is just a number. Actually any paper money or stock is just a number. A good measure of wealth is long can your saving can support your lifestyle in a happy, satisfation and healthy way. If you believe this, you can live happier than Bill G and Warren B.

User avatar
David Jay
Posts: 5468
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by David Jay » Mon Jul 31, 2017 2:23 pm

For a simple rule-of-thumb, consider 2.5% withdrawal rate to be a "perpetual" portfolio, i.e. you can retire at 29 and live to 100. So for early retirement at any age you can use that multiplier. The withdrawal percentage gets higher as you retire later, 4% at age 65.

Work it back. You don't need anywhere as much as your title suggests.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

SimplicityNow
Posts: 472
Joined: Fri Aug 05, 2016 10:31 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by SimplicityNow » Mon Jul 31, 2017 2:24 pm

Congrats on your accomplishment.

I see nothing wrong with your goal of finding joy in the simple, low cost but gratifying activities that living a frugal lifestyle brings to the fore.

If it gives you pleasure to save more then spend and accumulate past the point that others feel is unnecessary, then go for it.

Good luck in your quest.

elbryn1000
Posts: 52
Joined: Fri Apr 27, 2007 7:56 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by elbryn1000 » Mon Jul 31, 2017 3:40 pm

MaxSave wrote: His 401k (Fidelity as new administrator):
Target Date Fund (55% US Equities, 30% International, 15% Real Estate) (0.12%) - $300K

His Roth IRA at Vanguard:
Vanguard 500 (VFIAX) - $22K
Total Stock Market (VTSAX) - $49K
Target Date 2050 (VFIFX) - $10K
Target Date 2055 (VFFVX) - $18K
Target Date 2060 (VTTSX) - $29K

Her Roth IRA at Vanguard:
Windsor II (VWNAX) - $108K

Her 403b at Vanguard:
Vanguard 500 (VFINX) - $176K

Her 401a at Fidelity:
Fidelity Freedom K 2055 Fund (FDENX) (0.64%) - $70K

Her 457 (deferred compensation):
Target Date Fund (50% US Equities, 30% International, 20% Real Estate/Other) (0.09%) - $97K
just something i've noticed with helping my parents out who have fidelity in that the freedom funds seem to have a high expense ratio versus the individual total funds themselves.

the wife's 401a in FDENX with .64% expense could be cut down if you look at FTBFX for bonds, FSTVX for us total stock and FTIPX for total international. fidelity's total bond is also more expensive than vanguard's. you can fill your bonds in the vanguard side at .15% expense, and fill us based total market in fidelity at .045%. granted its not a huge change but .3% over 200k is still $600 yearly for a few hours of spreadsheet work and re-balancing yearly.

alternatively, there's also stacked windsor, sp500, and varying vanguard lifecycle date funds. if you were to decide on a core asset allocation, you could reduce the different funds and complexity by using the funds that dont have active contributions as static fund holders.

sambb
Posts: 2130
Joined: Sun Mar 10, 2013 3:31 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by sambb » Mon Jul 31, 2017 7:29 pm

SimplicityNow wrote:Congrats on your accomplishment.

I see nothing wrong with your goal of finding joy in the simple, low cost but gratifying activities that living a frugal lifestyle brings to the fore.

If it gives you pleasure to save more then spend and accumulate past the point that others feel is unnecessary, then go for it.

Good luck in your quest.

+1 - if you want or need 13M, then go for it. Let us know how it turns out. Warren buffet couldve stopped a long time ago also.

tim1999
Posts: 3473
Joined: Tue Dec 16, 2008 7:16 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by tim1999 » Mon Jul 31, 2017 8:43 pm

For someone in their mid 30s I think I've done pretty decently financially in life. I read threads on here with people my age posting numbers well above mine, but then get to the part where they are IT-type workers in California, and I breathe a sigh of relief because I work in an old economy industry in a LCOL/MCOL area, and it is not a fair comparison. Then I read this thread and felt like I was way behind! :shock: Congratulations to the OP though.

MaxSave
Posts: 21
Joined: Tue May 06, 2014 10:02 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by MaxSave » Tue Aug 01, 2017 7:51 am

I appreciate all the well-wishes and encouragement. My goal with the continued update of this thread is to share my journey towards FI and create a record of how my perceptions of money/retirement/etc, and forum response to those perceptions, change over time. I hope no one feels diminished by reading what I have accomplished in the way of saving, as no two people are the same and everyone's circumstances are different. I am very fortunate to be where I currently am financially and will never argue to the contrary!

Recently, I have begun to think about retirement more in terms of the age of my children, especially after reading articles that point out that once your children leave for college you have already spent 99% of the time you will ever spend with them for the duration of your life.

As a result, I have been notionally considering retiring at the end of 2029. That would put me at age 44, my oldest child would be mid-way through her Junior year of high school, and we should have hopefully amassed enough assets by then to support us for the duration.

Obviously a lot can happen/change between now and then, but I haven't seen too many people on here express retirement in terms of their children's life events, as opposed to a specific age or asset total. I thought it was an interesting idea to share.

Thanks!
MaxSave :sharebeer

Lafder
Posts: 3768
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by Lafder » Tue Aug 01, 2017 9:07 am

MaxSave,
I am enjoying watching the progression of your savings and thinking on retiring. I am 49 now. I think we hit 100k around the time we were just over 30 yo. It will be a milestone to have 2 commas in your accounts!! The compounding interest really builds. You will get there soon!

I think it is wonderful you and your wife met young and had similar savings ideas. What wisdom to start low cost Roths so young. I hope to do the same for my kids when they get their first W2 jobs (the accountant I use discouraged me from counting cash jobs for them to start Roths).

As far as your thoughts on retiring when your daughter is in high school.......by then most teens want little to do with their parents :) By midschool it effected my daughter. I treasure our time together now. But I am consistently her second choice if an offer to hang out with a friend comes up. I suspect you will find your teenagers are not interested in a lot of family time. I am just adding that by high school your kids may be past the family time you are envisioning, so make the most of the time with your kids now that you do have the control of what they do :)

You already seem to be doing a great job of quality time with your family.

I would max post tax 401k and the mega back door Roth option, even if it meant dipping into your savings to pay ongoing expenses. Roth space is precious. My husband's take home pay is currently zero to max his megabackdoor option.

If you can and want to retire at a young age, go for it :) Looking forward to hearing if that is what you do.

I forwarded your original post to a friend when you first posted it who also thought they "needed" more than 10 million to retire. It was helpful for them to read through to also realize that was a much higher amount than either of you realistically "need"

lafder

MaxSave
Posts: 21
Joined: Tue May 06, 2014 10:02 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by MaxSave » Mon Jul 09, 2018 9:24 am

It has been around a year since I last posted in this thread, so I thought I would provide an update for all those who are interested. My overall goal is to continue saving for an early retirement by living below our means while simultaneously living a fulfilling life. Though I am no longer shooting for the $13 Million goal mentioned in the title, I still hope to have a sizable sum by the time I decide to retire.

As of now, I am targeting "retirement" at the end of 2029, age 44, though I expect to reach FI long before then. In the past year, I have come to appreciate more and more the stability, flexibility, and low stress nature of my job through discussions with my friends and peers.

I am a year older and wiser, though my investments have continued to "stay the course".

I have been listening to the "ChooseFI" podcast, which I find to be informational and entertaining when it comes to thinking and discussing FI. Some of the concepts explored on the podcast, such as Tax Gain Harvesting and prioritizing Tax-Deferred accounts in conjunction with a Roth Conversion ladder, have made me question whether continuing to utilize a Roth 401k and Roth IRAs are truly the best option. In general, I have not spent as much time on "tax-optimization" for the present, or the future, as I probably should.

I also think I am going to venture into the Travel Rewards game to subsidize some of our increased traveling (we went to Disney World a couple times this year, kids are able to get more benefit from traveling/exploring as they grow).

General

Emergency funds: Three to six months of expenses - Savings account earning ~1% interest

Debt: None, House paid off (no mortgage)

Tax Filing Status: Married Filing Jointly

Tax Rate: 24% Federal, 4% State

State of Residence: Ohio

Age: 33, wife 33, 2 children under age 6

Annual Living Expenses = ~38K

I am an engineer. Wife has enjoyed the past 3 years working inside the home in order to take care of children. She still may or may not return to full or part time work in the near or distant future, no rush, entirely her decision.

Current retirement assets

Taxable:
Total Stock Market (VTSAX) - $28K
Total International (VTIAX) - $23K

His 401k (Fidelity as administrator):
Target Date Fund (55% US Equities, 30% International, 15% Real Estate) (0.12%) - $349K

His Roth IRA at Vanguard:
Vanguard 500 (VFIAX) - $27K
Total Stock Market (VTSAX) - $56K
Target Date 2050 (VFIFX) - $11K
Target Date 2055 (VFFVX) - $20K
Target Date 2060 (VTTSX) - $31K
Target Date 2065 (VLXVX) - $11K

Her Roth IRA at Vanguard:
Windsor II (VWNAX) - $129K

Her 403b at Vanguard:
Vanguard 500 (VFINX) - $200K

Her 401a at Fidelity:
Fidelity Freedom K 2055 Fund (FDENX) (0.64%) - $76K

Her 457 (deferred compensation):
Target Date Fund (50% US Equities, 30% International, 20% Real Estate/Other) (0.09%) - $106K

HSA (paying for current expenses out of pocket and saving receipts):
$10K cash at HSA bank
$23K invested in Fidelity Total Market Index (FSTVX) with Fidelity as administrator

Also currently accruing a pension from my employer

Total of All Accounts Together = $1.1MM

Last Year Total of All Accounts Together = $942K

Past Year Gain = $158K

529 Accounts Total = $37K

Contributions

New annual Contributions
$18.5K (max out) his 401k (plus 3% employer match) (plus additional ~$9K for Mega Backdoor Roth contributions)
$5.5K (max out) his Roth IRA
$5.5K (max out) her Roth IRA
$8K taxable
$6.9K HSA
$4K 529

I appreciate any and all input! Anything from criticism to praise is welcomed.

Thanks!
MaxSave :sharebeer

Darth Xanadu
Posts: 426
Joined: Sat Jan 27, 2018 1:47 am
Location: Middle Earth

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by Darth Xanadu » Mon Jul 09, 2018 11:09 am

MaxSave wrote:
Mon Jul 09, 2018 9:24 am
HSA (paying for current expenses out of pocket and saving receipts):
$10K cash at HSA bank
$23K invested in Fidelity Total Market Index (FSTVX) with Fidelity as administrator
I'm curious, if you are cash-flowing healthcare expenses, why do you have $10k in cash in your HSA? I'm not knocking the decision, but trying to understand it because I go back and forth on my HSA allocations all the time. My view is since I have good emergency fund I invested pretty much all my HSA. I think I can avoid fees if I keep $3k in cash but it's only a couple bucks a month so I don't bother.
"A courageous teacher, failure is."

TSWNY
Posts: 124
Joined: Sun Mar 13, 2016 1:05 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by TSWNY » Mon Jul 09, 2018 11:10 am

Just out of curiosity, what is your rational for your Roth account? 4 target date funds, the S&P and TSM?

User avatar
sergeant
Posts: 895
Joined: Tue Dec 04, 2007 11:13 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by sergeant » Mon Jul 09, 2018 1:05 pm

Thank you for the update.
Lincoln 3 EOW!

randomwalkdownbogle
Posts: 2
Joined: Wed Dec 21, 2016 10:33 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by randomwalkdownbogle » Mon Jul 09, 2018 1:21 pm

TSWNY wrote:
Mon Jul 09, 2018 11:10 am
Just out of curiosity, what is your rational for your Roth account? 4 target date funds, the S&P and TSM?
+1 I was curious about this as well. Kudos on being in such a great position.

Leesbro63
Posts: 5445
Joined: Mon Nov 08, 2010 4:36 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by Leesbro63 » Mon Jul 09, 2018 1:44 pm

Darth Xanadu wrote:
Mon Jul 09, 2018 11:09 am
MaxSave wrote:
Mon Jul 09, 2018 9:24 am
HSA (paying for current expenses out of pocket and saving receipts):
$10K cash at HSA bank
$23K invested in Fidelity Total Market Index (FSTVX) with Fidelity as administrator
I'm curious, if you are cash-flowing healthcare expenses, why do you have $10k in cash in your HSA? I'm not knocking the decision, but trying to understand it because I go back and forth on my HSA allocations all the time. My view is since I have good emergency fund I invested pretty much all my HSA. I think I can avoid fees if I keep $3k in cash but it's only a couple bucks a month so I don't bother.
I’m not the poster you are addressing this to, but: Putting money into an HSA and paying for out of pocket healthcare costs with other money (cash flow), if you can, is generally a great idea. It effectively turns the HSA into an additional Roth IRA.

Darth Xanadu
Posts: 426
Joined: Sat Jan 27, 2018 1:47 am
Location: Middle Earth

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by Darth Xanadu » Mon Jul 09, 2018 1:46 pm

Leesbro63 wrote:
Mon Jul 09, 2018 1:44 pm
Darth Xanadu wrote:
Mon Jul 09, 2018 11:09 am
MaxSave wrote:
Mon Jul 09, 2018 9:24 am
HSA (paying for current expenses out of pocket and saving receipts):
$10K cash at HSA bank
$23K invested in Fidelity Total Market Index (FSTVX) with Fidelity as administrator
I'm curious, if you are cash-flowing healthcare expenses, why do you have $10k in cash in your HSA? I'm not knocking the decision, but trying to understand it because I go back and forth on my HSA allocations all the time. My view is since I have good emergency fund I invested pretty much all my HSA. I think I can avoid fees if I keep $3k in cash but it's only a couple bucks a month so I don't bother.
I’m not the poster you are addressing this to, but: Putting money into an HSA and paying for out of pocket healthcare costs with other money (cash flow), if you can, is generally a great idea. It effectively turns the HSA into an additional Roth IRA.
I don't disagree, but you wouldn't have a $10k cash position in your Roth IRA, why would you in your HSA?
"A courageous teacher, failure is."

User avatar
knpstr
Posts: 2142
Joined: Thu Nov 20, 2014 8:57 pm
Location: Michigan

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by knpstr » Mon Jul 09, 2018 2:18 pm

For $13,000,000 you may want to dump those target date funds that hold bonds. You'll want to go 100% equities.

$730,000 with $41,000 contributions at @10% ~ $7,200,000
Need about 13.7% returns to get to $13,000,000

So why not go for it!? I'd suggest 100% equities and "hope" for $13M. Maybe you'll "only" have $6M but still not bad and $6M still easily handles $120,000 per year (only 2% withdrawal rate).

Even at $6M and 2% withdrawal rates you should still end up with 8 digits by the time it is all said in done so long as you make into your 80s. You may be a bit "crazy" but why not try? With how much you already have and that savings rate you are going to be okay no matter what.
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

terran
Posts: 703
Joined: Sat Jan 10, 2015 10:50 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by terran » Mon Jul 09, 2018 3:33 pm

MaxSave wrote:
Mon Jul 09, 2018 9:24 am
Target Date 2050 (VFIFX) - $11K
Target Date 2055 (VFFVX) - $20K
Target Date 2060 (VTTSX) - $31K
Target Date 2065 (VLXVX) - $11K
Good to see you keep coming back to update!

Curious: why the mix of target date funds? By by math the weighted average of your investment there is approximately equal to a single 2058 fund, so why not 2055 or 2060 with all of it and call it a day? Or just come up with an overall asset allocation for all your investments and do a 3 or fund portfolio across all your accounts?

MaxSave
Posts: 21
Joined: Tue May 06, 2014 10:02 am

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by MaxSave » Wed Jul 11, 2018 8:56 am

To answer the question regarding having $10K cash in my HSA, there are a few reasons for this:
  • The $10K is split between two accounts at HSA bank (me and wife), and $5K is the minimum amount per account one must possess to avoid being assessed monthly fees
  • These accounts were created when both my wife and I had poor access to HSA investing from our employers, with the prior goal being to invest all HSA funds once we had the $5K minimum (which is essentially what we are doing now, since my HSA switched to Fidelity and I am 100% invested within that account)
  • The $10K in cash serves as a "medical emergency fund" in the event we have a medical occurrence we are not able to cash-flow in the short term
  • This $10K in cash could serve as the first bucket of HSA money we use to pay ourselves back from previously covered expenses should a major non-medical expense arise
As far as my Roth IRA asset mix, also a few reasons:
  • One of the two non-Target Date funds was rolled over from a previous American Funds (fees!!!) holding at a local bank where I created my Roth IRA as a youth (did not know about Vanguard) and I wanted to keep this money segregated in case "something went awry" with the transfer
  • The other non-Target Date fund is where I dump my Mega Backdoor Roth IRA from my 401K every year, again segregated in case "something goes awry" with the whole Mega Backdoor process
  • I always purchase the latest date Target Date fund, since I want to maintain an aggressive allocation as I expect this Roth to outlive me and be passed onto my heirs, and hopefully a mixed Target Date allocation will create a "glide path" into slightly more conservative holdings as I age
I hope those points make sense...they may be more psychological than mathematical, but they work for me.

I am interested to see in the coming months how my cash flow changes with the decision to send my oldest daughter to a private Montessori school for a year before she starts Kindergarten. This will represent a +$8K adjustment in our annual living expenses.

Thanks!
MaxSave :sharebeer

PFInterest
Posts: 2112
Joined: Sun Jan 08, 2017 12:25 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by PFInterest » Wed Jul 11, 2018 9:04 am

MaxSave wrote:
Wed Jul 11, 2018 8:56 am
To answer the question regarding having $10K cash in my HSA, there are a few reasons for this:
  • The $10K is split between two accounts at HSA bank (me and wife), and $5K is the minimum amount per account one must possess to avoid being assessed monthly fees
  • These accounts were created when both my wife and I had poor access to HSA investing from our employers, with the prior goal being to invest all HSA funds once we had the $5K minimum (which is essentially what we are doing now, since my HSA switched to Fidelity and I am 100% invested within that account)
  • The $10K in cash serves as a "medical emergency fund" in the event we have a medical occurrence we are not able to cash-flow in the short term
  • This $10K in cash could serve as the first bucket of HSA money we use to pay ourselves back from previously covered expenses should a major non-medical expense arise
As far as my Roth IRA asset mix, also a few reasons:
  • One of the two non-Target Date funds was rolled over from a previous American Funds (fees!!!) holding at a local bank where I created my Roth IRA as a youth (did not know about Vanguard) and I wanted to keep this money segregated in case "something went awry" with the transfer
  • The other non-Target Date fund is where I dump my Mega Backdoor Roth IRA from my 401K every year, again segregated in case "something goes awry" with the whole Mega Backdoor process
  • I always purchase the latest date Target Date fund, since I want to maintain an aggressive allocation as I expect this Roth to outlive me and be passed onto my heirs, and hopefully a mixed Target Date allocation will create a "glide path" into slightly more conservative holdings as I age
I hope those points make sense...they may be more psychological than mathematical, but they work for me.

I am interested to see in the coming months how my cash flow changes with the decision to send my oldest daughter to a private Montessori school for a year before she starts Kindergarten. This will represent a +$8K adjustment in our annual living expenses.

Thanks!
MaxSave :sharebeer
Ty for the update. I'm curious why you have not chosen to abandon the TDF yet. It seems the simplicity and cost do not fit your plan or level of knowledge.

TSWNY
Posts: 124
Joined: Sun Mar 13, 2016 1:05 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by TSWNY » Wed Jul 11, 2018 9:28 am

You went with 4 target date funds to give yourself a better glide path? That's the whole purpose of having one single target date fund.

terran
Posts: 703
Joined: Sat Jan 10, 2015 10:50 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by terran » Wed Jul 11, 2018 11:34 am

MaxSave wrote:
Wed Jul 11, 2018 8:56 am
  • I always purchase the latest date Target Date fund, since I want to maintain an aggressive allocation as I expect this Roth to outlive me and be passed onto my heirs, and hopefully a mixed Target Date allocation will create a "glide path" into slightly more conservative holdings as I age
Fair enough. Although, in that case, why not exchange the entire balance into the newest target date fund? There are not tax consequences to exchanging funds in an IRA. Also note that all of the target date funds are pretty much the same until they start their glide path. 2050 and 2065 (your furthest spread) are 89.82% and 89.83% stock respectively, so virtually identical. It's not until you look at the 2040 fund (so 22 years out) that you see a difference and even that is still at 85.24% stock. So really, you should pick the fund with a date about 20 years after you want your portfolio to start gliding, because before that they're all pretty much the same, so all you're really doing is varying when they'll start gliding.

wrongfunds
Posts: 1728
Joined: Tue Dec 21, 2010 3:55 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by wrongfunds » Wed Jul 11, 2018 12:00 pm

If not $13M, what your current goal?

indexonlyplease
Posts: 1167
Joined: Thu Apr 30, 2015 12:30 pm
Location: Pembroke Pines, FL

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by indexonlyplease » Wed Jul 11, 2018 12:21 pm

Louis Winthorpe III wrote:
Tue Aug 04, 2015 11:16 am
You haven't explained how you're going to grow your portfolio from $700,000 to $12 or $13 million. That's going to be very difficult to do.
Yes please tell. I would like to know how to grow a portfolio from 700k to 13 mil in 20 years. I am all ears.

EnthusiasticLearner
Posts: 78
Joined: Fri Dec 18, 2015 9:18 am
Location: North

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by EnthusiasticLearner » Wed Jul 11, 2018 12:36 pm

As a serial saver who started at an early age and met a spouse at 27 who also saved an alarming rate in 100% equities, I can say these unicorn matches do exist! Unfortunately, we 1. were using only taxed space not ROTHS or otherwise taxed advantaged; 2. subsequently lost $150k on house following a dual job loss in our 30s (an equally unicorn-like perfect storm), so we are merely "on track" now. I buy your numbers, OP, but $13M is just silly (for early retirement). Retire now if you want, retire early even, but $13M AND retire early? No.

WanderingDoc
Posts: 1034
Joined: Sat Aug 05, 2017 8:21 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by WanderingDoc » Wed Jul 11, 2018 2:22 pm

WhiteMaxima wrote:
Mon Jul 31, 2017 1:28 pm
if you live in venezuela, you could turn 1k to 13 mil in weeks. norminal money is just a number. Actually any paper money or stock is just a number. A good measure of wealth is long can your saving can support your lifestyle in a happy, satisfation and healthy way. If you believe this, you can live happier than Bill G and Warren B.
What if I just want to be happier than Warren G? :)
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

mmcmonster
Posts: 249
Joined: Sun Jan 12, 2014 1:18 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by mmcmonster » Mon Jul 16, 2018 12:33 pm

toto238 wrote:
Tue Aug 04, 2015 2:20 pm
You may be overestimating how much travel you want to do. Travel is awesome and fun. But traveling ALL THE TIME is exhausting! You'll likely find that budgeting $10,000 a month to expenses is WAY too much. For $10,000, you would go on a 30-day cruise for two.
I've been thinking about this, as I hope to semi-retire in five or six years (at age 52 or 53), and retire five years after that. (Provided I can get my kids through college and into good careers afterwards, I've got enough money to win the game.)

I'd like to travel to the point of immersion a couple times a year. Spend 2-3 months in London, a couple months in San Francisco, and the rest of the year back home. Maybe the following year pick a couple other cities to immerse in. Since these are essentially short term rentals rather than hotel visits we'd use an airbnb-sort of site rather than a hotel room. That would also give us access to a kitchen and laundry so it won't be nearly as expensive as hotel rooms.

$10k a month during travel times would be nice. Pay for the room and food and some nice tickets to various shows and such.

On our travels now (we're doing a lot more traveling the last 2-3 years and plan to keep it up), we'll spend just a few days in a city and rush through to see all the site. It's great, but exhausting. I know immersion is also going to be exhausting, but I'm thinking that we'll find a few cities that we love and will gravitate back to years later.

AlwaysWannaLearn
Posts: 230
Joined: Mon May 28, 2018 8:37 pm

Re: $13 Million Goal for Early Retirement (am I crazy?)

Post by AlwaysWannaLearn » Mon Jul 16, 2018 3:45 pm

.....

Post Reply