Comments on: My Weekly PF Blogger Roundup http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/ Financial Commentary For The Average Joe Sun, 21 Mar 2010 15:51:43 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Debt Hawk http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11187 Debt Hawk Tue, 10 Nov 2009 14:41:31 +0000 http://www.joetaxpayer.com/?p=2023#comment-11187 Thank you so much for telling your readers about my Flat Tax article. I hope they like it. Thank you so much for telling your readers about my Flat Tax article. I hope they like it.

]]> By: Financial Samurai http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11065 Financial Samurai Sun, 08 Nov 2009 19:50:34 +0000 http://www.joetaxpayer.com/?p=2023#comment-11065 20X seems like a lot, which goes back to the question.. how much is enough? 6X my average income is good enough for me, especially since I will be debt free in retirement. I guess i'm kinda morbid, and I LIKE to think I'll be dead by 60-65. Hence, that's why I work so hard now to make and save money so I can be retired by 45. At 45, I'll have about 10-13X my gross. That's enough for me, and I'll be ready to travel the world and do other things more than what 6 weeks a year can a lot me. 20X seems like a lot, which goes back to the question.. how much is enough? 6X my average income is good enough for me, especially since I will be debt free in retirement.

I guess i’m kinda morbid, and I LIKE to think I’ll be dead by 60-65. Hence, that’s why I work so hard now to make and save money so I can be retired by 45. At 45, I’ll have about 10-13X my gross. That’s enough for me, and I’ll be ready to travel the world and do other things more than what 6 weeks a year can a lot me.

]]> By: JOE http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11062 JOE Sun, 08 Nov 2009 19:16:50 +0000 http://www.joetaxpayer.com/?p=2023#comment-11062 I always planned to retire when we hit the 20X number. The age at which that will happen just shifts around. Before the dotcom bubble, it was 50 or even younger. Part of it for me is that we have very liberal vacation time, 6 weeks and a few days, plus regular holidays, so we travel if we wish. I have no desire to go away for a month at a time. As far as the expensive cars, etc, no interest. I live in a nice neighborhood, and drive one of the cheapest cars on my street. Neighbors belong to $20K/yr country clubs, I don't golf. Like Dr Stanley's Millionaires Next Door, we've been happy to live below our means. I always planned to retire when we hit the 20X number. The age at which that will happen just shifts around. Before the dotcom bubble, it was 50 or even younger. Part of it for me is that we have very liberal vacation time, 6 weeks and a few days, plus regular holidays, so we travel if we wish. I have no desire to go away for a month at a time. As far as the expensive cars, etc, no interest. I live in a nice neighborhood, and drive one of the cheapest cars on my street. Neighbors belong to $20K/yr country clubs, I don’t golf. Like Dr Stanley’s Millionaires Next Door, we’ve been happy to live below our means.

]]> By: Financial Samurai http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11056 Financial Samurai Sun, 08 Nov 2009 17:54:39 +0000 http://www.joetaxpayer.com/?p=2023#comment-11056 Actually, the temptations become very great once you make in the $500,000 range. You start looking at $2mil+ houses, paying cash for turbo Porsche 911s and Range Rover Super Chargers etc. It's exactly b/c you can live comfortably off of $150,000, that the other $350,000 gross becomes "in danger." A question here for you though... in a post i wrote for Wise Bread entitled "Knowing When To Walk Away", I talk about choosing an age to retire instead of a monetary figure since we never know when we'll pass away. Have you ever thought about choosing an age i.e 50 to retire, and hanging it all up so you can do everything you've always wanted to do? Actually, the temptations become very great once you make in the $500,000 range. You start looking at $2mil+ houses, paying cash for turbo Porsche 911s and Range Rover Super Chargers etc. It’s exactly b/c you can live comfortably off of $150,000, that the other $350,000 gross becomes “in danger.”

A question here for you though… in a post i wrote for Wise Bread entitled “Knowing When To Walk Away”, I talk about choosing an age to retire instead of a monetary figure since we never know when we’ll pass away.

Have you ever thought about choosing an age i.e 50 to retire, and hanging it all up so you can do everything you’ve always wanted to do?

]]> By: JOE http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11054 JOE Sun, 08 Nov 2009 17:42:43 +0000 http://www.joetaxpayer.com/?p=2023#comment-11054 On this topic I'll always have more questions than answers. At the peak of '07 I was closer to 13X. The effort is easier (in my opinion) if one doesn't keep up with Joneses and throws all that extra money away. $100,000 provides a very nice lifestyle. At $200K, you should be able to sock away quite a bit, no? 90%? I don't find a 10% chance of my money running out to be very comforting. I'm looking to add another 9 or two there. But, let's look at right now. Assume my goal is to retire at 62. 15 years to go. 6%/yr return (plus deposits) will get me there. Seems reasonable. But look at the last decade. In March, the 10 yr return was flat to negative. So how exactly does one walk that fine line? I'd rather err on the 'too much' side that too little. On this topic I’ll always have more questions than answers.
At the peak of ‘07 I was closer to 13X. The effort is easier (in my opinion) if one doesn’t keep up with Joneses and throws all that extra money away. $100,000 provides a very nice lifestyle. At $200K, you should be able to sock away quite a bit, no?
90%? I don’t find a 10% chance of my money running out to be very comforting. I’m looking to add another 9 or two there.
But, let’s look at right now. Assume my goal is to retire at 62. 15 years to go. 6%/yr return (plus deposits) will get me there. Seems reasonable. But look at the last decade. In March, the 10 yr return was flat to negative. So how exactly does one walk that fine line? I’d rather err on the ‘too much’ side that too little.

]]> By: Financial Samurai http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11052 Financial Samurai Sun, 08 Nov 2009 17:05:08 +0000 http://www.joetaxpayer.com/?p=2023#comment-11052 Yup, I think I remember you saying that you have about 10X in a previous comment. I guess your ratio depends on your income as well, b/c 10X on $100,000 is different from 10X on $500,000/yr in income. I would argue saving 10X on a bigger salary is much harder. Too much is when the actuary says the likelihood of you living past your normalized draw is greater than 90%. I firmly believe anybody who has a job, who understands pf basics will likely retire with too much. Yup, I think I remember you saying that you have about 10X in a previous comment. I guess your ratio depends on your income as well, b/c 10X on $100,000 is different from 10X on $500,000/yr in income. I would argue saving 10X on a bigger salary is much harder.

Too much is when the actuary says the likelihood of you living past your normalized draw is greater than 90%.

I firmly believe anybody who has a job, who understands pf basics will likely retire with too much.

]]> By: JOE http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11050 JOE Sun, 08 Nov 2009 16:56:52 +0000 http://www.joetaxpayer.com/?p=2023#comment-11050 FS- At 47, I have about 10X annual income saved for retirement. The goal is 20 or so, so I am on track. Curious how "too much" gets defined. If I hit my goal early, I can choose to retire or work to have a buffer. After the recent crash, someone who was all set may no long be so well off. So where do you draw that line? FS- At 47, I have about 10X annual income saved for retirement. The goal is 20 or so, so I am on track. Curious how “too much” gets defined. If I hit my goal early, I can choose to retire or work to have a buffer. After the recent crash, someone who was all set may no long be so well off. So where do you draw that line?

]]> By: Financial Samurai http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11048 Financial Samurai Sun, 08 Nov 2009 16:34:23 +0000 http://www.joetaxpayer.com/?p=2023#comment-11048 I think there are a lot more people saving too much than you think Joe. Just ask the readers. You are probably very financially fit right? Well, I think so am I. More people have much more money than we all think, and that's why the US economy is strong like bull. FS I think there are a lot more people saving too much than you think Joe.

Just ask the readers. You are probably very financially fit right? Well, I think so am I. More people have much more money than we all think, and that’s why the US economy is strong like bull.

FS

]]> By: Jason @ Redeeming Riches http://www.joetaxpayer.com/my-weekly-pf-blogger-roundup/comment-page-1/#comment-11043 Jason @ Redeeming Riches Sun, 08 Nov 2009 15:28:28 +0000 http://www.joetaxpayer.com/?p=2023#comment-11043 Hey Thanks for the link Joe! I appreciate it as always! Hey Thanks for the link Joe! I appreciate it as always!

]]>