What if you made $500,000 year?

CGgater

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If made $500K without living in a high cost and high tax area, I’m pretty sure I could retire in about 4-5 years with the money I saved. Admittedly, that’s based on my current situation, which includes a military pension when I retire from active duty. If I was younger, I’d work a bit longer and invest a ton so it would have a better chance at sustainability.
 

78

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This fact should be discussed more in this thread. They flat out suck with money.

I have a married couple client with over 300k gross income. NO savings, no interest income, no dividend income, put less than 5k a year in retirement, and always worried about how much they will owe. CC maxed out, house at beach, over paid for the one they live in, kids in college having to borrow money for student loans.
We need more couples like that to help keep GDP aloft.
 

MidwestChomp

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This fact should be discussed more in this thread. They flat out suck with money.

I have a married couple client with over 300k gross income. NO savings, no interest income, no dividend income, put less than 5k a year in retirement, and always worried about how much they will owe. CC maxed out, house at beach, over paid for the one they live in, kids in college having to borrow money for student loans.

This is infuriating.
 

divits

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So here you have the other end of the spectrum. These people are part of the FIRE (Financial Independence and Early Retirement) movement. It requires living more frugally and saving a large percentage of you income during your working years. I think if you can do it and are willing to trade off a more austere lifestyle for free time, then go for it. Personally, I want to have more money in retirement to do the kind of things I plan to do.

This couple is one year away from having enough money to retire early — here’s what they did

If these people spend their savings the way they say they will then, if they retire at 45, they will actually have more money 40 years later than what they started with at retirement.
 
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Politigator

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So here you have the other end of the spectrum. These people are part of the FIRE (Financial Independence and Early Retirement) movement. It requires living more frugally and saving a large percentage of you income during your working years. I think if you can do it and are willing to trade off a more austere lifestyle for free time, then go for it. Personally, I want to have more money in retirement to do the kind of things I plan to do.

This couple is one year away from having enough money to retire early — here’s what they did

If these people spend their savings the way they say they will then, if they retire at 45, they will actually have more money 40 years later than what they started with at retirement.

While I think working towards financial independence by heavily saving is very admirable, thinking you are going to work 10-15 years, then retire at 35 for the next 50-60 years is just insane. They treat 4% SWR as absolute gospel. They put together a plan to live on $40K for the rest of their lives and assume nothing in the next 60 years will disrupt that.

Much less what you are supposed to do with yourself for 60 years (on $40k)

If I'm going to retire, I'd like to have some money to spend.
 

divits

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Much less what you are supposed to do with yourself for 60 years (on $40k)

.

shuffleboard.jpg
 

MidwestChomp

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Yeah, well, it is kind of the norm.

We have some friends who pull close to 7 figures between salary and business cash flow, and apart from 401k I don't think anything is saved, except to the extent equity in the business increases.
You're avatar says it all.
 

bradgator2

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My wife has a close friend in her mid 50s. Husband has an excellent career and she hasnt had a job in over 20 years. Kids just finished college. Nice huge house. Very well put together family. Life is grand.

A few months ago, they are doing their normal evening workout routine. He is on the treadmill in another room and she thinks to herself that he has been running for a long time. She walks in and he is dead on the floor from a massive heart attack.

She had nothing to do with the finances.

He left nothing. Nothing in savings. Nothing in checking. No retirement. No life insurance. The house was re-mortgaged like 4 times.
 

divits

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My wife has a close friend in her mid 50s. Husband has an excellent career and she hasnt had a job in over 20 years. Kids just finished college. Nice huge house. Very well put together family. Life is grand.

A few months ago, they are doing their normal evening workout routine. He is on the treadmill in another room and she thinks to herself that he has been running for a long time. She walks in and he is dead on the floor from a massive heart attack.

She had nothing to do with the finances.

He left nothing. Nothing in savings. Nothing in checking. No retirement. No life insurance. The house was re-mortgaged like 4 times.

Not meaning to sound callous, but shame on him. And to some extent on her too. I've drilled into my daughter that she needs to be equal partners with whomever she marries and have an equal say and knowledge of ALL the family finances.

But this scenario has played out millions of times.
 

Politigator

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Not meaning to sound callous, but shame on him. And to some extent on her too. I've drilled into my daughter that she needs to be equal partners with whomever she marries and have an equal say and knowledge of ALL the family finances.

But this scenario has played out millions of times.

I think for a woman (or I should say non working spouse) to stay at home with no backup plan is also irresponsible. While bread winning spouse dying may be unusual, divorce isn't.
 

bradgator2

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Not meaning to sound callous, but shame on him. And to some extent on her too. I've drilled into my daughter that she needs to be equal partners with whomever she marries and have an equal say and knowledge of ALL the family finances.

But this scenario has played out millions of times.

Oh trust me, both my wife and I agree 100%.
 

ChiefGator

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I think for a woman (or I should say non working spouse) to stay at home with no backup plan is also irresponsible. While bread winning spouse dying may be unusual, divorce isn't.

A divorce is a reason to keep everything to yourself and to have a pre nup for whatever protection that might give you.

Men in general get hosed a lot in divorces. At least that is my experience.
 

bradgator2

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So there is always a "but" to the story. Or a Paul Harvey ending.

After recovering from the shock that she is basically starting her life over in her mid 50s without a single penny in her pocket... she had to come up with a plan, and fast. Obviously the home went immediately on the market. Her career 20 years ago was a teacher, and she wasnt up to that challenge. She decided to become a flight attendant. I thought these were 2 excellent decisions. Luckily she is very close to her 2 daughters and has some excellent friends, so she had support on her side.

Then her grandmother died a month later and left her 2 mil. Retired again before she even took her first flight. :lol:
 

ChiefGator

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So there is always a "but" to the story. Or a Paul Harvey ending.

After recovering from the shock that she is basically starting her life over in her mid 50s without a single penny in her pocket... she had to come up with a plan, and fast. Obviously the home went immediately on the market. Her career 20 years ago was a teacher, and she wasnt up to that challenge. She decided to become a flight attendant. I thought these were 2 excellent decisions. Luckily she is very close to her 2 daughters and has some excellent friends, so she had support on her side.

Then her grandmother died a month later and left her 2 mil. Retired again before she even took her first flight. :lol:


Interesting rest of the story, she also would have had social security (I think).
 

URGatorBait

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So there is always a "but" to the story. Or a Paul Harvey ending.

After recovering from the shock that she is basically starting her life over in her mid 50s without a single penny in her pocket... she had to come up with a plan, and fast. Obviously the home went immediately on the market. Her career 20 years ago was a teacher, and she wasnt up to that challenge. She decided to become a flight attendant. I thought these were 2 excellent decisions. Luckily she is very close to her 2 daughters and has some excellent friends, so she had support on her side.

Then her grandmother died a month later and left her 2 mil. Retired again before she even took her first flight. :lol:
What an incredible rollercoaster of events
 

stephenPE

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I tried to be polite about it, but apparently you want a pissing contest.
you're a fckn lib.......whataya expect.........But I have noticed some across the aisle have been much more civil
h. If I lived in NY I'd want to get the hell out of there as often as I could.
LMAO..........
I have a married couple client with over 300k gross income. NO savings, no interest income, no dividend income, put less than 5k a year in retirement, and always worried about how much they will owe. CC maxed out, house at beach, over paid for the one they live in, kids in college having to borrow money for student loans.
And that is not unusual cause many people with that income want to PROVE they have that income with all that spending........stupid. I probably need some financial advice but my income is pretty set and Detroit pays for my insurance so I am in great shape. Lets say I have 500 a month for stocks.......what should I do at my age (born in 55)
 

stephenPE

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She had nothing to do with the finances.

He left nothing. Nothing in savings. Nothing in checking. No retirement. No life insurance. The house was re-mortgaged like 4 times.
JFC..............i have read stories like that............
Then her grandmother died a month later and left her 2 mil. Retired again before she even took her first flight. :lol:
You have the best stories I must say........
 

Detroitgator

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you're a fckn lib.......whataya expect.........But I have noticed some across the aisle have been much more civil

LMAO..........

And that is not unusual cause many people with that income want to PROVE they have that income with all that spending........stupid. I probably need some financial advice but my income is pretty set and Detroit pays for my insurance so I am in great shape. Lets say I have 500 a month for stocks.......what should I do at my age (born in 55)
Pay for your own insurance. You chose to have a second family, you pay for your choice.
 

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