I've played one round of golf since Covid.
How did/will you make your decision to retire? SIAP
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Last: 11 hrs ago by DannyDuberstein
Did you play much before?
jja79 said:
Did you play much before?
Annually at my Rotary fundraiser. But we gave that up due to Covid and never started back.
Played recently. Surprisingly I wasn't as terrible as i thought. I need to pick it back up.
I worked at a golf course in high school and played a ton of golf when i was younger.
I want to set my kids up with security...but I don't want them to know about it
On the underspending issue…. Having enough money for potential Long Term Care is an issue. My dad is 82, is spending well below his means and has plenty of padding currently in retirement. However, if he ends up needing extended full time care/help, that padding will go fast. It's something he's very tuned into.
I was playing with this calculator: https://engaging-data.com/will-money-last-retire-early/
It overlays a probability that you'll still be alive as well as some financial probabilities. I don't know that it changes my outlook but it's kind of sobering to see on a chart. Regardless, nobody wants to live to 95 but run out of money, so that is still going to be my basis
It overlays a probability that you'll still be alive as well as some financial probabilities. I don't know that it changes my outlook but it's kind of sobering to see on a chart. Regardless, nobody wants to live to 95 but run out of money, so that is still going to be my basis
Yeah living long can be a blessing and curse. My dad's dad lived to be 89 but spent the last 5 or so years in a nursing home with bad Alzheimer's.
For me, 5yr horizon. Get son thru college and into first job and have daughter in last yr of college. Now, if the market is still going crazy like now, it will be really hard to walk away. If the mkt and my comp come back down to reality, I'll be out.
JDUB08AG said:
I want to set my kids up with security...but I don't want them to know about it
I totally get that and feel the same. I have a Trust set up for my son at this point, and my hope would be to not touch it at all and let him start taking control after he is done with school, settled into a job, otherwise stable. Maybe he could use it for seed money to start something on his own if he wishes. Additionally, it gives me some creditor protection. As far as I know, he doesn't know anything about it. He is still in college, so I really don't want him to feel as if there's a pot of gold at the end of some mythical rainbow. I have seen plenty of kids who seem to be "stuck" doing nothing, just waiting for their inheritance to kick in. It's not a good thing.
This has been a great read.
I am blessed to have a comfortable 8 figure net worth. I am in a job I really enjoy. If I am being honest it also gives me a lot of my identity as I am reasonably well known in it.
Unfortunately it is stressful and I work 60-80 hour weeks. I am planning to start slowing down this year when I hire one more to my group.
The biggest problem I face is most of my wealth is not liquid and in real estate. I would not be able to live off current cash flow but I will continue to get residuals off my day job until I totally walk away.
For those with real estate that retired early (50) how did you transition from equity to cash flow?
I am blessed to have a comfortable 8 figure net worth. I am in a job I really enjoy. If I am being honest it also gives me a lot of my identity as I am reasonably well known in it.
Unfortunately it is stressful and I work 60-80 hour weeks. I am planning to start slowing down this year when I hire one more to my group.
The biggest problem I face is most of my wealth is not liquid and in real estate. I would not be able to live off current cash flow but I will continue to get residuals off my day job until I totally walk away.
For those with real estate that retired early (50) how did you transition from equity to cash flow?
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
what are the real estate investments you have that aren't producing cashflows...land?
Diggity said:
what are the real estate investments you have that aren't producing cashflows...land?
Land
New apartment building
New place in deer valley
All will.. but more recent equity/appreciation plays
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
sounds like the long game. you could always go down to .25-.5 FTE I would imagine, correct?
Diggity said:
sounds like the long game. you could always go down to .25-.5 FTE I would imagine, correct?
yes and no.. patients expect me to deliver them so a bit harder.. but I am working on it
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
Dr T and the Women said:
This has been a great read.
I am blessed to have a comfortable 8 figure net worth. I am a job I really enjoy. If I am being honest it also gives me a lot of my identity as I am reasonably well known in it.
Unfortunately it is stressful and I work 60-80 hour weeks. I am planning to start slowing down this year when I hire one more to my group.
The biggest problem I face is most of my wealth is not liquid and in real estate. I would not be able to live off current cash flow but I will continue to get residuals off my day job until I totally walk away.
For those with real estate that retired early (50) how did you transition from equity to cash flow?
This will sound like a smart ass answer and I don't mean it to be...but sell any RE that can't/has little potential to cash flow and move the proceeds into vehicles that will.
Next question is how much time do you really want to spend managing the RE? If you are high 8 figures then maybe you have a mgmt company do all that.
YouBet said:Dr T and the Women said:
This has been a great read.
I am blessed to have a comfortable 8 figure net worth. I am a job I really enjoy. If I am being honest it also gives me a lot of my identity as I am reasonably well known in it.
Unfortunately it is stressful and I work 60-80 hour weeks. I am planning to start slowing down this year when I hire one more to my group.
The biggest problem I face is most of my wealth is not liquid and in real estate. I would not be able to live off current cash flow but I will continue to get residuals off my day job until I totally walk away.
For those with real estate that retired early (50) how did you transition from equity to cash flow?
This will sound like a smart ass answer and I don't mean it to be...but sell any RE that can't/has little potential to cash flow and move the proceeds into vehicles that will.
Next question is how much time do you really want to spend managing the RE? If you are high 8 figures then maybe you have a mgmt company do all that.
not smart ass at all.. I have of late moved to more appreciation than cash flow properties.. luxury rentals that will appreciate but also places I can use
Even though I have "made it" I still feel like I can't mentally flip the switch from growth mode to harvest mode.. the real estate will likely throw off 7 figures alone in 10 years and I feel like scaling back the day job will still provide plenty to live off.
For better or worse I am a grinder who likes to work too much.. I am not sure I can ever fully retire and do nothing
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
You may need to evaluate your asset allocation. Having the right proportion in the right places may matter more than maximizing the net worth.
Might be worth an objective analysis from afar.
Might be worth an objective analysis from afar.
I just saw some podcast discussing that once you retire-
you can cash out your private brokerage account and pay zero taxes once retired as long as your total income is under a certain set number (I think $62,000)
which this podcaster was claiming is why private brokerage is much superior to corporate 401K
you can cash out your private brokerage account and pay zero taxes once retired as long as your total income is under a certain set number (I think $62,000)
which this podcaster was claiming is why private brokerage is much superior to corporate 401K
To qualify for a 0% tax rate on long-term capital gains, your total taxable income must fall below specific thresholds.
The specific taxable income limits for the 0% bracket are:
Taxable income is calculated as your gross income minus deductions (such as the standard deduction). If you have both ordinary income (like a salary) and capital gains, your ordinary income is taxed first, and your capital gains are taxed on top. Any capital gains that push your total income above the 0% threshold will be taxed at the 15% rate.
The specific taxable income limits for the 0% bracket are:
- Single / Married Filing Separately: Up to ($49,450)
- Married Filing Jointly / Qualifying Surviving Spouse: Up to ($98,900)
- Head of Household: Up to ($66,150)
Taxable income is calculated as your gross income minus deductions (such as the standard deduction). If you have both ordinary income (like a salary) and capital gains, your ordinary income is taxed first, and your capital gains are taxed on top. Any capital gains that push your total income above the 0% threshold will be taxed at the 15% rate.
txaggie_08 said:
To qualify for a 0% tax rate on long-term capital gains, your total taxable income must fall below specific thresholds.
The specific taxable income limits for the 0% bracket are:How the Limit Works:
- Single / Married Filing Separately: Up to ($49,450)
- Married Filing Jointly / Qualifying Surviving Spouse: Up to ($98,900)
- Head of Household: Up to ($66,150)
Taxable income is calculated as your gross income minus deductions (such as the standard deduction). If you have both ordinary income (like a salary) and capital gains, your ordinary income is taxed first, and your capital gains are taxed on top. Any capital gains that push your total income above the 0% threshold will be taxed at the 15% rate.
yes I think that is what the podcaster was referencing
so as long as your private consulting business brings in less than $50,000 seems like you can live off capital gains from your private brokerage at zero taxes.
is that correct?
as a single guy with no dependents
txaggie_08 said:
To qualify for a 0% tax rate on long-term capital gains, your total taxable income must fall below specific thresholds.
The specific taxable income limits for the 0% bracket are:How the Limit Works:
- Single / Married Filing Separately: Up to ($49,450)
- Married Filing Jointly / Qualifying Surviving Spouse: Up to ($98,900)
- Head of Household: Up to ($66,150)
Taxable income is calculated as your gross income minus deductions (such as the standard deduction). If you have both ordinary income (like a salary) and capital gains, your ordinary income is taxed first, and your capital gains are taxed on top. Any capital gains that push your total income above the 0% threshold will be taxed at the 15% rate.
here are the numbers including the standard deduction you mentioned:
Single = 49450 + 16100 = $65,550
HOH = 66150 + 24150 = $90,300
MFJ = 98900 + 32200 = $131,100
So assuming a married couple had stock positions that have tripled in value, they could sell a position that is worth $196,650 (but only 131,100 in gain the rest is basis) to live off for the year and owe $0 in federal income tax. That is why there is saying "salaries are for suckers"
LMCane said:txaggie_08 said:
To qualify for a 0% tax rate on long-term capital gains, your total taxable income must fall below specific thresholds.
The specific taxable income limits for the 0% bracket are:How the Limit Works:
- Single / Married Filing Separately: Up to ($49,450)
- Married Filing Jointly / Qualifying Surviving Spouse: Up to ($98,900)
- Head of Household: Up to ($66,150)
Taxable income is calculated as your gross income minus deductions (such as the standard deduction). If you have both ordinary income (like a salary) and capital gains, your ordinary income is taxed first, and your capital gains are taxed on top. Any capital gains that push your total income above the 0% threshold will be taxed at the 15% rate.
yes I think that is what the podcaster was referencing
so as long as your private consulting business brings in less than $50,000 seems like you can live off capital gains from your private brokerage at zero taxes.
is that correct?
as a single guy with no dependents
If you made $50k in ordinary income and single you could use the standard deduction of $16,100 against that income and have $33,900 left of ordinary income.
That would leave $15,550 ( $49,450 - 33,900 ) of room to realize long term capital gains at 0%. If you realize more than that you bump into the 15% bracket for the next dollar of long term capital gain you realize.
I've really enjoyed reading this thread over the last few days. Our goal is to retire when the last kid moves out of the house in 18 years, which will put us at 52.
Wondering what those of you retiring in your early 50's are using for retirement funds? To my understanding, you can't withdraw from Roth or traditional IRA's till 59 without a penalty. Are you simultaneously funding a Roth and just a normal investment account to bridge those few years till you can start withdrawing from your ROTH?
Ag97 said:
Wondering what those of you retiring in your early 50's are using for retirement funds? To my understanding, you can't withdraw from Roth or traditional IRA's till 59 without a penalty. Are you simultaneously funding a Roth and just a normal investment account to bridge those few years till you can start withdrawing from your ROTH?
Cash buildup for last several years + muni bond ladder + depletion of taxable accounts.
Ahead of above or in parallel, you cut expenses to make it last longer. For us, this was getting mortgage free and then moving homes to dramatically cut our fixed property tax and insurance expenses since those never go away.
It's an order of operations draw down process once you build up enough that you can legitimately retire in early 50s.
Still funding my wife's Roth IRA along the way, but most of our investment gains now are compound interest. I will occasionally reinvest some cash spun off from muni bond ladder into something new.
Ag97 said:
Wondering what those of you retiring in your early 50's are using for retirement funds? To my understanding, you can't withdraw from Roth or traditional IRA's till 59 without a penalty. Are you simultaneously funding a Roth and just a normal investment account to bridge those few years till you can start withdrawing from your ROTH?
I'm 43 and am building up a healthier taxable brokerage account to help bridge the gap from 55 to 59.5. Also will be using Rule of 55 to help bridge that gap as well, due to my employer having a nice match on the 401K and a generous cash savings plan. I wish I had built up the taxable account earlier in life, but by building up a big Roth and IRA, that will pay off down the road and got me to 2 comma club fast.
Ag97 said:
Wondering what those of you retiring in your early 50's are using for retirement funds? To my understanding, you can't withdraw from Roth or traditional IRA's till 59 without a penalty. Are you simultaneously funding a Roth and just a normal investment account to bridge those few years till you can start withdrawing from your ROTH?
Look up Roth Ladder, Rule of 72t SEPP and rule of 55 as methods to withdraw from retirement accounts penalty free.
Brokerage and cash can bridge gaps as well.
Brokerage vs retirement accounts shouldn't be your barrier, simply need to make sure you have enough.
What are you guys retiring "young" going to be doing? I'm 69 and 2 years in. Not sure what I'd have done all day if retirement was 30 years or so.
I'm 51 and if the market stays strong and I hit my magic number for retirement funding in the next 5 to 10 years, I'm pulling the retirement string immediately. I've got 30 acres where I live that needs a lot of work. I may buy a few more acres so I can run a few more cows. I've got more places I want to travel to than I have years left, more than likely. I've been continuously employed since I was 13. I haven't had a chance to do what I want on my own terms and time in 30 years.
When I get to my magic number and I have what I consider **** you money, I'm out. I'll find plenty to keep me busy. I can't sit around and watch tv all day or scroll on my phone. I'm looking forward to having time to do the projects I've been putting off for years.
When I get to my magic number and I have what I consider **** you money, I'm out. I'll find plenty to keep me busy. I can't sit around and watch tv all day or scroll on my phone. I'm looking forward to having time to do the projects I've been putting off for years.
jja79 said:
What are you guys retiring "young" going to be doing? I'm 69 and 2 years in. Not sure what I'd have done all day if retirement was 30 years or so.
I'm one of those guys who doesn't have to always be doing something. I never worried about "what am I going to do".
However, we just moved to a spot where I will have many more opportunities to hike and do outdoor stuff. I'll be getting a trail bike soon although I'm having to completely re-learn the hobby as the terminology and technology has totally changed from when I used to do it. I'm traveling more.
This house requires a little more upkeep than our last one because we are out in the county, so I have more day-to-day stuff to do around the house which I don't mind.
Outside of that I read a lot.
I live out in the country. There will be plenty of chores for me to do once I retire. Maintaining acreage is a huge time consumption and right now I don't have enough time to keep up with it the way I would like. Between that and some occasional travel to see things I want to see before I expire, plus an occasional game of golf and that should keep me busy!
Contemplating an RV for travels but more likely will just jump in the truck and just hotel it along the way.
This thread has gotten me inspired to kick it in high gear!
Contemplating an RV for travels but more likely will just jump in the truck and just hotel it along the way.
This thread has gotten me inspired to kick it in high gear!
jja79 said:
What are you guys retiring "young" going to be doing? I'm 69 and 2 years in. Not sure what I'd have done all day if retirement was 30 years or so.
literally anything other than working will be.. more enjoyable than working
I'm 55 now and if it weren't for golden handcuffs keeping me in for 2 more years, I'd be done now.
There is no way I could have maintained the pace of what I do until 65. The travel, work intensity, long hours just isn't sustainable. I started building my 'transition fund' back in 2000 so that I could have the option to retire as early as 50.
So far as what to do? I have so many hobbies and interests that I have a hard time limiting myself as to what I do outside of work. Mountain biking, camping, hiking, fishing, snow skiing, scenic photography, snow shoeing, dirt bikes, working on cars, etc, etc. Just a ton of stuff outdoors. And that is all on top of my workout routines and other kinds of adventure travel. I love the 'Die with Zero' mentality and am trying to create as many memory dividends as I physically can for as long as I'm able.
Did an awesome hike in Hawaii yesterday and snapped this from the most amazing black sand beach imaginable. Also another pic from a state park that protects a fishing village that flourished from 1300-1920 AD.
There is no way I could have maintained the pace of what I do until 65. The travel, work intensity, long hours just isn't sustainable. I started building my 'transition fund' back in 2000 so that I could have the option to retire as early as 50.
So far as what to do? I have so many hobbies and interests that I have a hard time limiting myself as to what I do outside of work. Mountain biking, camping, hiking, fishing, snow skiing, scenic photography, snow shoeing, dirt bikes, working on cars, etc, etc. Just a ton of stuff outdoors. And that is all on top of my workout routines and other kinds of adventure travel. I love the 'Die with Zero' mentality and am trying to create as many memory dividends as I physically can for as long as I'm able.
Did an awesome hike in Hawaii yesterday and snapped this from the most amazing black sand beach imaginable. Also another pic from a state park that protects a fishing village that flourished from 1300-1920 AD.
jja79 said:
What are you guys retiring "young" going to be doing? I'm 69 and 2 years in. Not sure what I'd have done all day if retirement was 30 years or so.
I'm 36 and just purchased 22 acres that borders my current 6. Probably set my retirement back a few years but this is what I would do in my retirement anyway so just getting a head start on it. If I could retire tomorrow I would but I'm not going to skimp and save for an early retirement just to skimp and save in retirement. I'll have no problem staying busy in retirement but will need a pretty steady burn rate to keep up with what we do currently.
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