Financial Goal Question

[bholdr]

real estate.

positive cashflow rental properties, a half-dozen homes combined with intelligent long-term investing (iras, etc)should be able to provide a modest retirment by 40 or so, if you can get there.

that's my plan anyway, but i'm thinking 60- gotta get some living in along the way.

[gvibes]

For a looooooooooooooong retirement, I think a 4% withdrawl rate is good number (that's return over inflation).

How much do you want to live on? 50k a year (today's dollars) sounds like a nice round number for a modest retirement. You would need $1.25M (once again, in today's dollars) to retire on.

Let's assume a 6% real rate of return on your investments up until retirement. That's a little opitimistic, I think, but whatever. To hit the 1.25M number, you would need to deposit roughly $3500 a month (also in today's dollars - ie the amount you deposit monthly will need to increase to keep up with inflation), assuming you start with nothing. That's quite a bit of scratch.

EDIT: my math sucks, so I could be badly wrong here, but that sounds about right.

[OtisTheMarsupial]

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I own a 230K "condo" (3 bed/2 bath) and pay $1700/month (including cable/homeowner dues etc.). Once I propose to my girlfriend/oprah, I hope to have her pay close to half of that

[/ QUOTE ] ROFLMAO

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So, you're going to propose like this:
"I love you and want to spend the rest of my lilfe with you. Now will you please just move in and start paying half my bills?"

[James Boston]

....if this guy wants to retire at 40, at least not without severe penalties. You have to be 59, or have had the money in it for five years (if you invested at age 57,58,etc...) to get it out penalty and tax free.

[ddubois]

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I'm married now and we still split

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I find this strange to even read. My wife and I don't 'split' anything. There is no 'my' money or 'her' money - there is a single SchwabOne account (plus some IRAs) that has the money in it. I guess I need to thank my lucky stars that we are both frugal and don't have any of the issues that seem to affect the plebes.

[turnipmonster]

not sure what to say, people are different I guess. we each have our own accounts and a joint account that we both contribute to, and besides all that I have a separate poker bankroll.

my friend's parents (who have been married 40 years) said they were much happier after opening separate bank accounts as well as a joint account (and this is after they had been married and had kids). my parents always had one account though. different strokes for different folks.

--turnipmonster

[Chris Daddy Cool]

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....if this guy wants to retire at 40, at least not without severe penalties. You have to be 59, or have had the money in it for five years (if you invested at age 57,58,etc...) to get it out penalty and tax free.

[/ QUOTE ]

you can take money out without penalties after just 5 years as long as it goes towards the purchase of your own home. but otherwise you'll have to wait some more years to reep the full benefit or pay the penalties.

[Talk2BigSteve]

Buy as much stock in Party Poker as you can get!!! Let The people here at 2+2 pay for your retirement.

Living, Learning, and Laughing.
Big Steve [img]/images/graemlins/cool.gif[/img]

[FMThe2nd]

I direct you to
the retire early home page.

Check out the "4% withdrawal" study link on that page. I believe that study says you need to accumulate enough so that you can live off of 4% of the amount. So, if you can live on $40,000 per year, you will need to accumulate $1 million. I believe the 4% withdrawal amount assumes that you have 80% in a stock index and 20% in bonds.

The creator of that page retired when he was 38 and had a $400,000 net worth.

One cool thing about being a poker player is that you should be able to retire much sooner than a non-poker player. If you can live off of $40,000 per year and can make $20K per year playing poker, then theoretically you can retire when you accumulate $500,000.

Early retirement can be achieved, but you will need to make a plan as soon as possible and have the discipline to stick to it. Good luck.

[Reef]

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How do you guys know he's not marrying Oprah?

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Because oprah's a man-hating bull dyke?

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thx - I lol'ed