Pick your salary

[Thremp]

FlyWf,

You obviously have little knowledge of thought problems. Please stick to the confines outlined.

4% inflation adjusted would be on the higher end of a retirement portfolio where you were trying to control RoR. Actually I'd be stunned if you could manage that reliably.

I'm not saying you can't do it. But that it wouldn't be a retirement as in the traditional sense of golfing and vacations. You'd have little discretionary money and likely be living at the very bottom of middle class.

[Nicholasp27]

3k/month after tax with no housing payment is not very bottom of middle class

and i'd be happy to 'retire' with a 1.4mil nest egg at 25...i'd find ways to make more money than the '3k/month' but i wouldn't have to work a 9-5 anymore...i could still start companies, invest in real estate, make adsense sites, etc etc

1.4mil is enough to not have to 'work' the rest of ur life if u are gonna do side projects to make extra money

[FlyWf]

[ QUOTE ]
FlyWf,

You obviously have little knowledge of thought problems. Please stick to the confines outlined.

4% inflation adjusted would be on the higher end of a retirement portfolio where you were trying to control RoR. Actually I'd be stunned if you could manage that reliably.

I'm not saying you can't do it. But that it wouldn't be a retirement as in the traditional sense of golfing and vacations. You'd have little discretionary money and likely be living at the very bottom of middle class.

[/ QUOTE ]

Did you just try to throw down a gauntlet with regard to [censored] session prowess? I'd stake my zombie invasion contigency plans and genie outsmarting strategies against anyone's.

"Can you retire on 1.4M" is not actually a thought problem, as it was never originally outlined to have confines, it's just a tangent of the original salary picking question debate.

$45k a year that is(hopefully) mostly in capital gains and with no house payment is not the very bottom of the middle class.

Also, the traditional sense of retirement is not non-stop golfing and vacation. Most retired people live incredibly boring lives on very low incomes before their family commits them to a minimum security retirement complex. $3k a month after tax with no mortage is golfing and vacation money, anyway.

[ThaSaltCracka]

[ QUOTE ]
[ QUOTE ]
Toro,

Your example is hardly parallel to someone working full time on $2500, $5000, and $10,000. It's not even close.

[/ QUOTE ]

I agree, I wasn't trying to say that. What I was saying that at 24 i didn't mind sleeping on the ground under the stars, it was even fun but at age 34 I would have hated it.

My point was that I thought I could live on 2500 when I was 20 but not be able to do it at an older age.

[/ QUOTE ]

Yeah it would be fun for a weekend, but not for a whole year. I am convinced that those first 3 years would take at least 10 years of your life. To me, making the massive amount of money later on is irrelevant because I think you could live good and comfortably on that 200k a year and you wouldn't have to worry about some homeless man shanking you during years 1-2.

[TheBlueMonster]

[ QUOTE ]
you wouldn't have to worry about some homeless man shanking you during years 1-2.

[/ QUOTE ]
there is always that risk, no matter where you are. [img]/images/graemlins/grin.gif[/img]

[Thremp]

FlyWf,

You have:

1) Little concept of a budget.
2) Little grasp for the subject at hand.

If you can address the original issues before, without delving into ridiculous circular arguments I'd be happy to show you why you are wrong.

[FlyWf]

[ QUOTE ]
FlyWf,

You have:

1) Little concept of a budget.
2) Little grasp for the subject at hand.

If you can address the original issues before, without delving into ridiculous circular arguments I'd be happy to show you why you are wrong.

[/ QUOTE ]


What are you talking about? What circular argument did I make?

I have no idea what you mean by budget. Are you saying I shouldn't have gone out to eat last Thursday? It was delicious and I'd do it again.
Because you're the guy who doesn't believe people can live on $40k a year. And the subject at hand doesn't require any "grasp", it's basic [censored] arithmetric. ROI-inflation-taxes=dollars. ROI is so variable at given risk levels. You can do the entire with with calc.exe and a .txt document.

I suspect the reason you're freaking out about the RoR is because you don't really understand the concept of random walk. I'm also going to take a wild stab and guess that you are in the financial management/advice field.

[Thremp]

FlyWf,

Really? Okay. Do a calc for me with RoR and the SD of investments? Since you seem to think that your returns are so linear.

The concept of a random walk? The one thats debatable?

Do you understand the fact that if you start out with a 10 year period with a real return of ~0% (Not hard when you have a real return of 2.5-3.5%) that there is almost no way to make it 60 years without rocking the poverty line?

Circular argument: You claim that your 3k a month is "vacay and golf" funds. Assuming you own a home... Do you have kids? Do they eat? Do you insure anything? Do you drive? Do you wear clothes?

BTW 40k a year is 2x the poverty line for a family of 4. Welcome to America.

[FlyWf]

Do you understand that a real return of 3.5 isn't the cap on your earnings? Baring economy collapses a retirement plan that doesn't require any drawdown has no functional difference between a 20 year retirement and an 80 year retirement. I don't really give a [censored] about the 5th percentile outcome because the way that happens is the total collapse of western civilization and I'd have bigger things to worry about than the depreciation on my 3 bedroom in Rochester.

I don't have kids and don't plan on ever having them. The question said could you or I retire on 1.4M, not could some hypothetical dude with 2 kids and a stay at home mom. Note that's still eminently possible, though seriously, I think the wifey could get at least a part time job. You're right that you could eventually require me to support enough people than $3k aftertax would be insufficient. You got me good there.

Also, that's not what circular argument means.

[Thremp]

FlyWf,

Sorry if I was unclear. I didn't mean to imply that it was impossible for anyone. A single guy could make this happen. I'm sure you could adjust consumption etc and have some lean years where you'd be down ~25k a year and some larger where you'd be up ~40k. If you started out very slowly you'd likely be able to pull in a much nicer income later in life.

I was merely saying the avg 20 year old, who would like to have a family assuming no other income otherwise it defeats the whole point screws himself.