You Know What Really Grinds My Gears? Now with 3x more gears...

[topfiverecords]

Let’s be real. Most of you are soft retired already.

[Locke]

Originally Posted by Sliver

Agree.

That's another reason why I don't want to take my foot off the gas. Make hay while the sun is shining. You can do well right now, but it's getting harder and I think there are fewer opportunities for those coming up after us. The low-hanging fruit is not very abundant. Because of my pessimism for the future, I want to build up some insulation for my family going forward. I'm not going to be one of those guys kicking back on an early retirement while my kids live an anxious and stressed-out life trying to get traction to buy a fricken townhouse. I'm in it with them.

Once they get settled in life I'll re-evaluate my own retirement.

Or maybe my business will randomly go tits up and I'll get a job washing Locke's helicopter for $12/hour and a pat on the head. Anything can happen in this crazy world.

Oh if you want to purloin my Helicopter washing position, thats going to be tough.

I pay an orphan a cheese sandwich every other day for that gig, the hardest part is keeping his mom away so he still thinks he's an orphan. $12/hour? I am not made of money! Do you know how much helicopter fuel costs???

[Shazam]

Originally Posted by Sliver

lol, yeah that's not the conversation anybody is having.

$2 million is plenty on a long enough timeline.

The conversation we're having that is obvious to everyone except you is: would you retire tomorrow if you won $4 million? Literally everyone knows it'll grow if you keep working and let it build for a decade, so that adds nothing to the conversation.

You're basically saying it's not enough to retire and you'd have to keep working haha.

Of course I'd retire tomorrow. And so could you. And you'd be able to do all the things you want to do for your family.

You just suck so bad with large amounts of money you have zero idea about how to handle it.

[Slava]

Originally Posted by Shazam

Of course I'd retire tomorrow. And so could you. And you'd be able to do all the things you want to do for your family.

You just suck so bad with large amounts of money you have zero idea about how to handle it.

Well, I'll chime in. There's no way I retire tomorrow if I came into $4m tonight. I know that this is a hot take incoming, but not many people should. I think that people need something to retire to, which is a significant issue, and there are some social issues at play here, too.

I believe people need a reason to get out of bed in the morning and they want to feel productive. I'm not saying that you should stick around doing the same job you have today if you hate it. But the reality is that people who retire to "just hang and chill" are the people who also die early. It's not healthy.

But there's another factor, aside from kids, that a lot of us have to consider as well. You come into a whack of cash today. None of your friends do, so sure, you're going to travel and play golf or whatever...alone? That's a terrible idea. And yeah, you can make new friends, but I don't know if that is a solution either. I like my friends and I like hanging out with them.

[WhiteTiger]

I really like my job, so I'd likely move to part-time and keep working, just not 12 hour rotating shifts anymore.

[Table 5]

I don't think I would retire at my age (early 40s). I'd probably close down my current business and try something else...but definitely not go into Kramer at Del Boca Vista mode. I think work keeps us sharp, and we all need something to keep us motivated. Start a new business based off a hobby, work at a charity, whatever, just not turn into a blob with nothing to do.

People always think they'll just travel and enjoy life, but I think a lot of people just fall into the same boring routines, and a lot of people get lonely since they aren't a part of regular society as much. Knowing a few rich people who've had money from the start, most of them just seem kind of listless and miserable.

Edit: basically what Slava said.

[PepsiFree]

Originally Posted by Jason14h

Using the 4% rule that's $160,000 year

If you make $160,000 a year living in the region of Alberta, Canada, you will be taxed $53,196. That means that your net pay will be $106,804 per year, or $8,900 per month. Your average tax rate is 33.3% and your marginal tax rate is 42.0%.

You aren't retiring in Luxury off $105,000 a year. You certainly can retire, and/or take time off work, work part time, and be very comfortable.

But if you don't hate your job you actually can keep working and start living a real life of luxury with an extra $100K a year in income plus your working salary.

$100k after tax per year without having to work is absolutely living in luxury for the vast majority of the population.

[Sliver]

Originally Posted by Shazam

Of course I'd retire tomorrow. And so could you. And you'd be able to do all the things you want to do for your family.

You just suck so bad with large amounts of money you have zero idea about how to handle it.

One of us is definitely coming across as ignorant on this topic, I'll give you that.

[Sliver]

Originally Posted by PepsiFree

$100k after tax per year without having to work is absolutely living in luxury for the vast majority of the population.

For a single person that would be pretty good for sure. If you're a couple and both pulling that in that would be awesome. If you are one person with multiple dependents bringing that in...not living in luxury.

[indes]

4mm? I'm only 35 and have 3 kids so there's no way that would retire me. I would probably pay everything off (even though paying off your mortgage doesn't make sense yada yada), buy some new vehicles and probably share some of the wealth with our parents. That would burn 1mm and then I would have to invest the rest and keep working. Would my wife keep working as well with us having no bills...hard to say.

We both do pretty well so if we both worked - I bet we could retire in 8 years or less if we had a 6% gain on the remaining 3mm. This assumes we're contributing 10k/month to our fund that's gaining 6%. If it was just me, and contributing 5k/mo it would take 10 years to hit that 6mm mark.

At 6mm I think we would be more than okay to live the life we want indefinitely while still increasing our overall networth. I guess 6mm is my retirement number (with being debt free)

[TheIronMaiden]

Originally Posted by indes

4mm? I'm only 35 and have 3 kids so there's no way that would retire me. I would probably pay everything off (even though paying off your mortgage doesn't make sense yada yada), buy some new vehicles and probably share some of the wealth with our parents. That would burn 1mm and then I would have to invest the rest and keep working. Would my wife keep working as well with us having no bills...hard to say.

We both do pretty well so if we both worked - I bet we could retire in 8 years or less if we had a 6% gain on the remaining 3mm. This assumes we're contributing 10k/month to our fund that's gaining 6%. If it was just me, and contributing 5k/mo it would take 10 years to hit that 6mm mark.

At 6mm I think we would be more than okay to live the life we want indefinitely while still increasing our overall networth. I guess 6mm is my retirement number (with being debt free)

How come paying your mortgage in one go wouldn't make sense?

[Slava]

Originally Posted by TheIronMaiden

How come paying your mortgage in one go wouldn't make sense?

Because you're saving say 4% (just to make up a number) and could make more than that investing for say 25 years (amortization of the mortgage).

[indes]

Originally Posted by TheIronMaiden

How come paying your mortgage in one go wouldn't make sense?

If you can make more off investing the money than you lose on mortgage interest then technically speaking, you would be better off doing that. Personally, I think the peace of mind of not having a mortgage is worth it.

[Jason14h]

Originally Posted by PepsiFree

$100k after tax per year without having to work is absolutely living in luxury for the vast majority of the population.

The average household income in Calgary is $131K and 106$K average after taxes according to google AI

"The average household income in Calgary, Alberta is $129,000. The average household income before taxes is $131,600, and the average household income after taxes is $106,700"

So by your definition the average Calgarian family is living a life of luxury.

If that's your definiton of luxury fair enough

[Mr.Coffee]

Originally Posted by Slava

Because you're saving say 4% (just to make up a number) and could make more than that investing for say 25 years (amortization of the mortgage).

Risk free 4% is not risk adjusted whatever guess % in market. It’s not as clear cut as you’re suggesting. There’s a comfort of mind part of the equation here that is also personal and can’t be calculated. It’s gotta be all thought through.

Still your point kind of stands. No decision like this is cut and dried so I don’t like seeing black and white comments on something like this. What are GICs these days anyway?

[Jason14h]

Originally Posted by TheIronMaiden

How come paying your mortgage in one go wouldn't make sense?

You can also create a home business investing your own money and write off part of your mortgage interest and other home office expenses ! (I think)

[surferguy]

I would fire myself via sky writing and buy a villa somewhere on a coast with a nice right hand beach break that barrels directly out front.

I’d spend the rest of my days volunteering for the local community association with the only intent of kinda helping.

Oh and I’d buy a Mitsubishi Delica for about 15k.

The rest of my money would be spent slowly turning Slivers algorithm to convince him to join the Secret Santa.

[Sliver]

Originally Posted by surferguy

I would fire myself via sky writing and buy a villa somewhere on a coast with a nice right hand beach break that barrels directly out front.

I’d spend the rest of my days volunteering for the local community association with the only intent of kinda helping.

Oh and I’d buy a Mitsubishi Delica for about 15k.

The rest of my money would be spent slowly turning Slivers algorithm to convince him to join the Secret Santa.

You're just saying that because you know I'd buy my guy a fleshlight and I think you'd game things so you'd be my recipient, you dirty dog.

[Jason14h]

Originally Posted by Sliver

You're just saying that because you know I'd buy my guy a fleshlight and I think you'd game things so you'd be my recipient, you dirty dog.

Maybe we need to do "Adult" secret Santa

[PepsiFree]

Originally Posted by Jason14h

The average household income in Calgary is $131K and 106$K average after taxes according to google AI

"The average household income in Calgary, Alberta is $129,000. The average household income before taxes is $131,600, and the average household income after taxes is $106,700"

So by your definition the average Calgarian family is living a life of luxury.

If that's your definiton of luxury fair enough

Household isn’t the same as individual.