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PBS Frontline : The Retirement Gamble, sorta Must See


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1 hour ago, NewlyRetired said:

I can't wait to downsize.  With my daughter heading off to college next fall, I am really ready to start the deep planning.

I can't wait to have a smaller house, smaller yard, smaller drive way etc.  All those things seemed important when I first purchased the house but now for the next phase of my life I want to make some real changes.

We are going to start the process by visiting every open house we can find of smaller homes and then we will likely purchase some land and build a custom small house.  While we know this will be more expensive than buying and renovating, I feel like I can get everything exactly as I want it.  And with this being hopefully my last home, I want to build it very specifically in terms of maintenance. 

One think to think about is when your kids have kids....Do you want that extra bedroom or two when they come in down (if they live away), or at least a playroom for when you watch them?

This is the source of argument (civil mind you) b/w my parents right now.  My dad wants to downsize b/c of all of the reasons you do and my mom wants to keep more space b/c with 8 grandkids, she thinks she will see them less due to less space in the house.

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1 minute ago, Getzlaf15 said:

What happened?

every expense is just magnified.  Much much more expensive then residential prices.  Heating and air maintenance is a biggie as is my roof.  Any repair you get over there knows they can gouge you because its commercial.  I have some pretty loyal guys but they still are pricey.  But I have a 5 rolling 5 year lease so thats nice

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Just now, pantherclub said:

every expense is just magnified.  Much much more expensive then residential prices.  Heating and air maintenance is a biggie as is my roof.  Any repair you get over there knows they can gouge you because its commercial.  I have some pretty loyal guys but they still are pricey.  But I have a 5 rolling 5 year lease so thats nice

Thanks....   might be closing on my first commercial next Friday.   Two dentists and an insurance company.  All have 3.5+ years left on 5 year leases.  Roof has 5 years left, everything else looks fine...

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5 minutes ago, Tiger Fan said:

 

ETA: just read your additional replies......looks like you've got a pretty good handle on things....especially with the windfall inheritance...maybe you wait til that happens to pick up additional properties :shrug:

I will say this, investigating, watching and ultimately buying real estate is addictive.  Putting the 20% down is a hassle.  I missed the run of the early 2000's when this wasnt necessary

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1 hour ago, NewlyRetired said:

I can't wait to downsize.  With my daughter heading off to college next fall, I am really ready to start the deep planning.

I can't wait to have a smaller house, smaller yard, smaller drive way etc.  All those things seemed important when I first purchased the house but now for the next phase of my life I want to make some real changes.

We are going to start the process by visiting every open house we can find of smaller homes and then we will likely purchase some land and build a custom small house.  While we know this will be more expensive than buying and renovating, I feel like I can get everything exactly as I want it.  And with this being hopefully my last home, I want to build it very specifically in terms of maintenance. 

Mr Money Mustache had some interested ideas about energy efficiency when he built is new house.  Stuff like metal roof and house orientation.  Worth checking out

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28 minutes ago, Tiger Fan said:

One think to think about is when your kids have kids....Do you want that extra bedroom or two when they come in down (if they live away), or at least a playroom for when you watch them?

This is the source of argument (civil mind you) b/w my parents right now.  My dad wants to downsize b/c of all of the reasons you do and my mom wants to keep more space b/c with 8 grandkids, she thinks she will see them less due to less space in the house.

excellent point!  

We only have one child and there is a chance she will never have kids or get married (physical problems) so this is less of a concern for us.  We just want to make sure we always have a place for her in the household should she not venture out on her own.

 

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59 minutes ago, Slapdash said:

Mr Money Mustache had some interested ideas about energy efficiency when he built is new house.  Stuff like metal roof and house orientation.  Worth checking out

yeah, I love this type of stuff.  The siding and trim can now be made out of PVC material which lasts a very long time and they even have those extra long lasting paints.  

If we do get to building I will be conscious to continually remind architect and contractor to be aware of long term maintenance. 

I am also a bit of a closet prepper at heart so I might take advantage of this freedom to be some what prepared for possible issues.

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23 minutes ago, ghostguy123 said:

Does anyone actually have a woman in their life that gives half a #### about retirement??

absolutely.  My wife and I were on the same page entirely since we first met in wanting to retire early.  The earlier you want to retire the more you both need to be on the same page financially IMO.

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47 minutes ago, ghostguy123 said:

Does anyone actually have a woman in their life that gives half a #### about retirement??

Mine didn't, but she was 22 when we got married.  I just saw that she had payroll savings withdrawal at the amount we agreed - it varied over the years ...never lower than 15%.  

She's glad now and tells me so on a regular basis.  

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2 hours ago, Binky The Doormat said:

I think FireCalc is pretty easy and awesome.  

Retirement savings calculators and retirement spending calculators are two different things.  Though I also like FireCalc a lot - I use it as a benchmark for my excel program I wrote (mine does taxes, which FireCalc ignores).

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1 hour ago, ghostguy123 said:

Does anyone actually have a woman in their life that gives half a #### about retirement??

Mine wants to keep working.  Which is fine - being a kept man would be just fine by me.    Amazing once you get near the inflection point of FU money/not-yet FU money how much even reasonably small amounts of regular income make.

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3 minutes ago, Binky The Doormat said:

yes - fair enough

Well, what I said isn't quite right, so let me partially retrace.  Firecalc does do some simple cases for retirement spending, but is really based around "how much do I need to sustain $XXX for 40 years?". There are retirement spending optimizers/calculators that can help optimize taxes, spending, etc. to really stretch your dollar.  I-ORP is one of those.  I'm thinking of building one soon. 

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Just now, Sand said:

Well, what I said isn't quite right, so let me partially retrace.  Firecalc does do some simple cases for retirement spending, but is really based around "how much do I need to sustain $XXX for 40 years?". There are retirement spending optimizers/calculators that can help optimize taxes, spending, etc. to really stretch your dollar.  I-ORP is one of those.  I'm thinking of building one soon. 

 

Yeah, not as big a fan of their spending model.  Let us know when you build this monster.  

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1 hour ago, ghostguy123 said:

Does anyone actually have a woman in their life that gives half a #### about retirement??

I don't think I'm going out on a limb to far that having aligned and transparent goals with your spouse is absolutely crucial when it comes to personal finances.  I'm lucky that I've been with my wife since college, so we've gone through all of our future planning together as soon as we both had paychecks....but I can totally see how it can complicate things for those who get married later in life who are both set in their ways.

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1 minute ago, Tiger Fan said:

I don't think I'm going out on a limb to far that having aligned and transparent goals with your spouse is absolutely crucial when it comes to personal finances.  I'm lucky that I've been with my wife since college, so we've gone through all of our future planning together as soon as we both had paychecks....but I can totally see how it can complicate things for those who get married later in life who are both set in their ways.

It just seems that for the most part every woman I ever hear about, EVER, is more than willing to spend needless amounts of money on things. 

They may be saving and doing some things to plan for the future, yet go through day to day activities just wasting money on convenience and/or needless stuff. 

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2 hours ago, Sand said:

Complicated subject, but if you're talking starting retirement in 1965 maybe 4% squeezes you a bit.  If you retire in 1979 you can spend like mad and never run out.  Sequence of returns matters a ton.  That's why there are some variable schemes out there that try to help maximize your safe withdrawal percentage.

I can go into it in detail later.  This is a good book on the subject.  There are some good excel calculators (not user friendly, but good) on bogleheads.

You taking into account SS?  If I need a consistent amount from one year to the next, obviously, the year before I start collecting ss, I'm going to be drawing a much higher  percentage from my retirement account.

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1 hour ago, MechEng said:

How much are you guys making that you can max out 401k and roths?

Just into the 6 figures, I'm practically homeless by fbg standards.  But we don't spend like FBGs.

1 hour ago, ghostguy123 said:

Does anyone actually have a woman in their life that gives half a #### about retirement??

Yep.  Although lately she cares more about building a cabin. 

29 minutes ago, Tiger Fan said:

I don't think I'm going out on a limb to far that having aligned and transparent goals with your spouse is absolutely crucial when it comes to personal finances.  I'm lucky that I've been with my wife since college, so we've gone through all of our future planning together as soon as we both had paychecks....but I can totally see how it can complicate things for those who get married later in life who are both set in their ways.

:goodposting::yes:

23 minutes ago, wilked said:

My wife and I fully aligned with goals and plans, even if she let's me manage the details

Another :goodposting:  We discuss the vision, she trusts me to put it into action.  

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32 minutes ago, FUBAR said:

 

Another :goodposting:  We discuss the vision, she trusts me to put it into action.  

Next Wednesday, my vision I started 15 years ago sets us for life. And it will wind up setting up my three kids for life.

What you focus on expands.

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1 hour ago, NutterButter said:

You taking into account SS?  If I need a consistent amount from one year to the next, obviously, the year before I start collecting ss, I'm going to be drawing a much higher  percentage from my retirement account.

SS is always a big part of retirement planning.

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1 minute ago, Sand said:

SS is always a big part of retirement planning.

True, but honestly I don't add it in when I'm planning.  Probably should and I think we've discussed it before but I figure if we can get by fairly well without it, we'll be able to travel more, give more to charity or whatever we want with it. 

@Doctor Detroit (or anyone else with military friends or experience) do you know anyone who has taken the survivors benefit plan?  Anyone regretted not taking it?  I've convinced my wife to sign off on waiving it  (spouse is required to be there in person) but would love to see where I might be making a mistake. 

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19 minutes ago, FUBAR said:

:popcorn: tell us more, tell us more, did you get very far? 

My dad had passed away then, and my sister and I spent a good chunk of change during his last ten years to help support him.  I didn't want my kids to ever have that happen to them, so I started investing in RE. Wednesday we close on a refi that sets us for life.  And a nice bonus is it will set up my kids for life after we are gone.

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31 minutes ago, FUBAR said:

True, but honestly I don't add it in when I'm planning.  Probably should and I think we've discussed it before but I figure if we can get by fairly well without it, we'll be able to travel more, give more to charity or whatever we want with it. 

@Doctor Detroit (or anyone else with military friends or experience) do you know anyone who has taken the survivors benefit plan?  Anyone regretted not taking it?  I've convinced my wife to sign off on waiving it  (spouse is required to be there in person) but would love to see where I might be making a mistake. 

I definitely factor it in, but not to be able to spend more but to retire earlier.  To be conservative, instead of getting max bennies at 70, I've moved it to 72 b/c something like that is going to need to be done to keep it solvent.   

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On 12/14/2016 at 7:42 PM, NewlyRetired said:

@saintfool roughly 11 years from now, a 4 year private college education will cost around $400k before financial aid if we assume an average 4% growth in college costs.

Public college will obviously be much less.

I've checked recently what estimates for public college/university are. Current estimates put it at $31k annually for tuition and room/board. I hadn't checked estimates since I started his 529 almost 7 years ago. New estimate is $186k for all four years which is ridiculous but whatever. It doesn't change the fact that he'll need it. It doesn't look like I'll be reach that target ahead of schedule after all. Booo.

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2 hours ago, FUBAR said:

True, but honestly I don't add it in when I'm planning.  Probably should and I think we've discussed it before but I figure if we can get by fairly well without it, we'll be able to travel more, give more to charity or whatever we want with it. 

@Doctor Detroit (or anyone else with military friends or experience) do you know anyone who has taken the survivors benefit plan?  Anyone regretted not taking it?  I've convinced my wife to sign off on waiving it  (spouse is required to be there in person) but would love to see where I might be making a mistake. 

No I think they all take it.  What would be your reason for not taking it?  I mean sure you might live until 80 and get screwed, but what if you have a heart attack and die two years after you retire?  I think just like with any "benefit" you have to do the math and figure out the break even point.  I'd be interested to see what you come up with, I've never really thought about it before. 

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47 minutes ago, Doctor Detroit said:

No I think they all take it.  What would be your reason for not taking it?  I mean sure you might live until 80 and get screwed, but what if you have a heart attack and die two years after you retire?  I think just like with any "benefit" you have to do the math and figure out the break even point.  I'd be interested to see what you come up with, I've never really thought about it before. 

I can get over a million dollar life insurance, 30 year term for less than I'd pay for the SBP, invest the difference.  Plus the sbp is only going to pay her roughly $1750/month (adjusted) while it costs over $200/month (adjusted).  That seems like expensive insurance.  

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13 hours ago, Getzlaf15 said:

My dad had passed away then, and my sister and I spent a good chunk of change during his last ten years to help support him.  I didn't want my kids to ever have that happen to them, so I started investing in RE. Wednesday we close on a refi that sets us for life.  And a nice bonus is it will set up my kids for life after we are gone.

Congrats Getzlaf!

We've never made the big FBG coin, just two mid range incomes in our house.  Never maxed the 401K (but always invested to get the max match), maxed the Roth when we could (most years), maxed the HSA, and wife will have a nice teachers pension.  All of this effort, but it just never looked like we would be able to retire early or like we wanted (we have high travel expectations).  But 8 years ago we also made our first RE investment.  

Today we have 19 units (11 SFHs, 4 duplex) and another duplex under contract.  Only one very small loan.  For the first time our rentals will make more than either of our W2s (including a 30K "loss" on a rehab).  Its actually looking like our 401K/IRAs won't even matter in retirement.  

Question for you - do you have other retirement savings?  It honestly looks like we won't need anything else, however I can't just stop contributing.  Also (I think we touched on this somewhere else) why the refi?  Wouldn't you be better off long term without the loan?  Shoot me a pm if you dont want to discuss here.  

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18 hours ago, Tiger Fan said:

Yeah, there's no doubt there is money to be made in real estate.  While this thread is primarily focused on optimizing traditional investment/retirement vehicles (401k, IRA, 529, etc), there's no single say to skin the cat....and I think adding a more real estate perspective is needed.  A tad selfishly, it's something I'm looking to dabble in soon....I'm in the process of reading the landlord thread and making some notes there prior to posting.

How far out are you til retirement? Is the ultimate goal to carry these rentals into retirement for additional retirement income...or perhaps sell along the way and cash out if the opportunity lends itself?

 

ETA: just read your additional replies......looks like you've got a pretty good handle on things....especially with the windfall inheritance...maybe you wait til that happens to pick up additional properties :shrug:

This thread might be more useful if you're looking at the investing end.

https://forums.footballguys.com/forum/topic/223924-official-real-estate-forum/

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1 hour ago, Random said:

Congrats Getzlaf!

We've never made the big FBG coin, just two mid range incomes in our house.  Never maxed the 401K (but always invested to get the max match), maxed the Roth when we could (most years), maxed the HSA, and wife will have a nice teachers pension.  All of this effort, but it just never looked like we would be able to retire early or like we wanted (we have high travel expectations).  But 8 years ago we also made our first RE investment.  

Today we have 19 units (11 SFHs, 4 duplex) and another duplex under contract.  Only one very small loan.  For the first time our rentals will make more than either of our W2s (including a 30K "loss" on a rehab).  Its actually looking like our 401K/IRAs won't even matter in retirement.  

Question for you - do you have other retirement savings?  It honestly looks like we won't need anything else, however I can't just stop contributing.  Also (I think we touched on this somewhere else) why the refi?  Wouldn't you be better off long term without the loan?  Shoot me a pm if you dont want to discuss here.  

I lost all my money in my Sep-IRA during the dot com bust and then started investing in RE.  I'd keep contributing If I were you just for the added tax break and diversification.

Our current loan we took out almost ten years ago can't go below 5.2%.   Our new loan is fixed at 3.26% for 35 years. Payment is going down quite a bit, and we are paying off two cars and a ton of debt from my old business.  We're also buying a small commercial building from this loan that will return 9.2% before depreciation.  

Went to a class last month that was taught by a guy making a million per year in passive income.  My big takeaways from it were that the richest people he knew never sold their RE. They just used it safely to get more.  The other was they pay things off as fast as possible. I've always done the latter and it's always turned out to later give me an opportunity I didn't think was ever possible.

My original goal 15 years ago when I bought a three and four unit place was to pay them off in 10 years and have $5k in income per month so my kids would never have to take care of me.  It's all now in a trust to be passed to them.  

I really enjoy reading this thread. My take away from it is the limits put on the retirement contributions for the different vehicles used. That would/did at one point irritate the #### out of me.  With RE, there are no limits and most of my yearly income has been sheltered by the depreciation allowance.

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13 hours ago, ghostguy123 said:

How is her day to day spending?

I guess if she does that then who cares what her spending habits are so long as it isnt racking up debt

FWIW, we each have ______ allocated to us each month that we can spend on anything we want.  It gets tracked and that's it.  WA LA.  

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14 hours ago, ghostguy123 said:

How is her day to day spending?

I guess if she does that then who cares what her spending habits are so long as it isnt racking up debt

My wife and I have aligned our retirement planning goals - max the 401ks, max IRAs, HSA contributions, put $x into a joint account for bill paying and other general joint savings.  After all of those are factored in, we are each left with our play money, for lack of a better term.  She doesn't spend more than she has in her "play money" account and neither do I.  I don't really look at what she buys and she doesn't really look at mine.  I get my concert tickets, sports tickets, beer, and she buys clothes and #### on Amazon.  :shrug: works for us.

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When you guys are figuring out how much you need, how are you projecting expenses?

 

For context, I'm getting close to finishing grad school (1.5 years) and have a great full-time offer, but in a job that I really like (not love). In trying to decide between taking it (still have some time) and pursuing the thing I really love (probably less money, at least for a while at the beginning), we mapped out what we spend on things. We kind of just guessed at a bunch of it, fairly quick and dirty (like we doubled our car cost because we'll get a second car, without really doing more research because we're just ballparking it) for an annual budget. We came out to an expense that, total, was roughly 25% of our income and felt like we would be totally fine with that.

 

So my question is - how much of this is actually useful, planning-wise, if you don't necessarily know where you will live or what jobs each of you will have? We just assumed ZERO income growth beyond her current/my offered salary. Do you just save as much as you can now (we're young, I'm 24 and she's 25) and then worry about the details a few years down the road? Is it worth the time early to be focusing on this, or it is better to just kind of have an idea and build some good habits?

 

 

Other question: for those of you who just don't sell your real estate when you move, do you move far? Or do you live in the area of all your properties? I really like this idea for slowly accumulating rentals, but I don't know how to manage the properties if you move away. Like, say I move between like a few of Dallas, Chicago, Denver, Portland, OKC, Orlando, Boston, etc...over the course of 20 years. Is it reasonable to think I may be able to follow that plan or should I be figuring out another path?

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18 minutes ago, Instinctive said:

When you guys are figuring out how much you need, how are you projecting expenses?

 

The younger you are the harder this is.    This is what we did.

1) Track your expenses closely for a few years.   use categories as much as possible

2) Once you get settled into a life style you like take a step back

3) Decide if that lifestyle is one you would like in retirement

4) Remove categories that you hope will be gone by retirement age (mortgages etc)

5) Add in a travel budget in todays dollars assuming you want this

6) Add in any other hobby budgets that you might be considering for retirement

7) Add in a health care budget

8) Be mindful of college costs if you have kids

9) Pick a couple of different inflation rates and use them to see what your expenses might be in retirement

 

At your age, just save as much as possible.  When your life settles down, home, kids, etc, this will be an easier process.  I would not recommend modelling at such a young age unless you just want to understand the process.  I retired in my early 40's but did not start truely modelling until my early 30's.  Unless you want to get out really early, just save as much as possible when young and don't sweat the details for a while.

Edited by NewlyRetired
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13 minutes ago, Instinctive said:

When you guys are figuring out how much you need, how are you projecting expenses?

For context, I'm getting close to finishing grad school (1.5 years) and have a great full-time offer, but in a job that I really like (not love). In trying to decide between taking it (still have some time) and pursuing the thing I really love (probably less money, at least for a while at the beginning), we mapped out what we spend on things. We kind of just guessed at a bunch of it, fairly quick and dirty (like we doubled our car cost because we'll get a second car, without really doing more research because we're just ballparking it) for an annual budget. We came out to an expense that, total, was roughly 25% of our income and felt like we would be totally fine with that.

So my question is - how much of this is actually useful, planning-wise, if you don't necessarily know where you will live or what jobs each of you will have? We just assumed ZERO income growth beyond her current/my offered salary. Do you just save as much as you can now (we're young, I'm 24 and she's 25) and then worry about the details a few years down the road? Is it worth the time early to be focusing on this, or it is better to just kind of have an idea and build some good habits?

Other question: for those of you who just don't sell your real estate when you move, do you move far? Or do you live in the area of all your properties? I really like this idea for slowly accumulating rentals, but I don't know how to manage the properties if you move away. Like, say I move between like a few of Dallas, Chicago, Denver, Portland, OKC, Orlando, Boston, etc...over the course of 20 years. Is it reasonable to think I may be able to follow that plan or should I be figuring out another path?

This may sound odd for an accountant to say, but I don't have specific target retirement amounts in mind.  You're 24, your wife (gf?) is 25.  Unless you are an extreme retire-early FIRE person like NewlyRetired - and more power to you if you are - you probably don't need to have dollar figures in your head at this point.  I am 29, my wife is 30.....I have no idea what the economy and markets will look like in 30+ years when it's time for us to retire.  Will we have kids?  How much will we want to put into their college?  It's all very impossible to predict at this point.

I'm of the opinion that if you're not stupid with your money and you save as much as you can, that's what you should be doing off the bat.  Put money in your 401k, take advantage of a traditional or Roth IRA.  If you're interested in real estate, start saving for downpayments, etc. 

I am not a real estate person myself but many of my clients are; you should be able to fairly easily find a property manager in any of those cities you're referencing.  It will eat into your annual income on the property, obviously, but if you expect the capital appreciation to continue long into the future then it's just an investment you'll have to make.  Keep in mind that if you do have a "personal residence" and you move, you have effectively 3 years to sell the property and qualify for a $250,000/500,000 (depending on your filing status) gain exclusion for tax purposes.  It is not uncommon for me to pickup a new client who has sold a home in a high COL city that has appreciated substantially.....they lived in the house until, say, 2011, moved, value continued to appreciate and they sold in 2015 at a gain.  Well, depending on the circumstances, they could've saved maybe $50,000 in taxes if they'd sold it in 2014.  If the gain from 2015 over 2014 exceeds that amount, fine....but if it didn't, they ####ed themselves.

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58 minutes ago, Instinctive said:

When you guys are figuring out how much you need, how are you projecting expenses?

 

For context, I'm getting close to finishing grad school (1.5 years) and have a great full-time offer, but in a job that I really like (not love). In trying to decide between taking it (still have some time) and pursuing the thing I really love (probably less money, at least for a while at the beginning), we mapped out what we spend on things. We kind of just guessed at a bunch of it, fairly quick and dirty (like we doubled our car cost because we'll get a second car, without really doing more research because we're just ballparking it) for an annual budget. We came out to an expense that, total, was roughly 25% of our income and felt like we would be totally fine with that.

 

So my question is - how much of this is actually useful, planning-wise, if you don't necessarily know where you will live or what jobs each of you will have? We just assumed ZERO income growth beyond her current/my offered salary. Do you just save as much as you can now (we're young, I'm 24 and she's 25) and then worry about the details a few years down the road? Is it worth the time early to be focusing on this, or it is better to just kind of have an idea and build some good habits?

 

 

Other question: for those of you who just don't sell your real estate when you move, do you move far? Or do you live in the area of all your properties? I really like this idea for slowly accumulating rentals, but I don't know how to manage the properties if you move away. Like, say I move between like a few of Dallas, Chicago, Denver, Portland, OKC, Orlando, Boston, etc...over the course of 20 years. Is it reasonable to think I may be able to follow that plan or should I be figuring out another path?

One of he best pieces of advice financially I've ever received was from my dad when I got my first job out of college. He said that your so used to leaving on the cheap in college, you're not going to miss the extra money by stocking away as much as you possibly can for retirement early. Just take it out of the paycheck. Obviously your salary will grow with time, but you'll be ingrained from the beginning to live well below your means.....which is huge in the personal finance game. 

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7 minutes ago, Tiger Fan said:

One of he best pieces of advice financially I've ever received was from my dad when I got my first job out of college. He said that your so used to leaving on the cheap in college, you're not going to miss the extra money by stocking away as much as you possibly can for retirement early. Just take it out of the paycheck. Obviously your salary will grow with time, but you'll be ingrained from the beginning to live well below your means.....which is huge in the personal finance game. 

As an alternative to this, I think this is why a lot of professional athletes go broke not long after their career ends.  You go from nothing in college to a massive financial windfall, and then assuming you're not a superstar you drop down to virtually nothing within 3-4 years.  For most people, they progressively earn more during their careers.....for a professional athlete, you hit your max earnings in your 20s and then when you're 30 you're past your earnings prime. 

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14 hours ago, FUBAR said:

I can get over a million dollar life insurance, 30 year term for less than I'd pay for the SBP, invest the difference.  Plus the sbp is only going to pay her roughly $1750/month (adjusted) while it costs over $200/month (adjusted).  That seems like expensive insurance.  

I'll look into this soon because I'm now very interested in the pros and cons here.  So is the survivor benefit essentially set up for the financially ill-prepared or is your case different because your pension is starting while you are still in your 40s?  I think it's a fantastic question.  

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