Compared to the average American I am exceptionally financially well off. I'm 30 years old and make 155k, invest aggressively, but after doing the math it is still a coin flip as to whether or not I can retire by 50. TC: 150K Housing: 19,200 Everything that isn't housing: 31k Taxes: 46,000 Invested: 64,050 (includes 10,250 401k match) My liquid net worth is currently 340k. In order to be comfortable I need $3m to retire. This gives me enough to live off of the 3% rule while accounting for medical/financial emergencies. At my current rate of investing if I assume 4% return on my portfolio after inflation (4% after inflation is the golden standard for calculating annualized returns over a long time period on a retirement portfolio) By these metrics I should have enough to retire by age 51 BARELY meeting my $3M target. With age discrimination on the rise, it feels like we have no choice but to retire by 50 at the latest. If you turn 50, and you don't have a big enough nest egg to retire yet, too bad you're gonna starve to death.
FYI, you are not a high earner. Become a high earner and problem solved. Don't let Microsoft underpay you and then claim it's a societal problem.
I think Blind is completely out of touch of what most people in North America would consider high earning. If you make $155k in the US, you’re in the 90th percentile. That means you make more than 90% of people. To me that counts as high earning, but if your goal is to get into the top 1%, I guess maybe not. https://dqydj.com/income-percentile-calculator/
Oh im well aware that I'm underpaid at MSFT by industry standards. I was just talking about my outlook for financial security compared to the U.S. population as a whole. 90% of the U.S. population will work until they die, or retire, run out of money, and die on the streets.
Why is the 3% rule a requirement? I get that it's tricky to plan because you don't know what age you're going to live to, but you don't need to leave behind any money either.
Eh I'd rather leave money behind than have to resort to shooting my brains out if I get cancer and run out of money.
Retirement is a luxury for most people in the world. Much so at the age of 50. It's difficult if you try to retire earlier than everyone else with more money than most Americans earn in their lifetimes. Who knew.
Im from a country where im filthy rich with just 500k + with good infra and ok tech scene. i always have the option to fuck off and retire in a heartbeat. But if i was limited to US i would be depressed... Not only u need money to sustain your lifestyle, if u dont get a pricey health insurcance youll die like a dog at old age. Also look at levels.fyi 150k in redmond is pretty low.
I live in atlanta. But yea agreed still.low. Cost of living in Redmond and Atlanta is identical once you account for state income taxes (8% in GA)
Buy a trailer in West Virginia and live off your savings for the next 60yrs. Check your privileges.
That's not living that's surviving
Get on OF for some side income.
Do you realize that 3M today and 3M in 20 years are different? With 2% average yearly inflation it’s 50% in 20 years. I suppose the average inflation will be even higher so you may need 5-6M in 20 years to have the same buying power as 3M today
Yep I am accounting for 3% annual inflation. So I am assuming my.portfolio will grow at 7% before inflation but only 4% after inflation.
How exactly do you pay $46k in taxes on a $155k income? Max out your 401k and get yourself some deductions.
Not me. Passively retired 10yrs ago when I got laid off for 10th time. Just make sure you have >$10m cash. Don’t follow what others do. Follow what the really rich do. No CD, real estate, stocks, pre-IPO equity, scam, drugs, OnlyFans, pornography. Alternative investments. No LC, or high TC. No organs sale needed. Just need to put your $ in say 4,000 bottles of Karuizawa in 1997-2001 for $49.99-199.99 per bottle, and sell em in last 6 years for $3000-100,000 per bottle
What alternate investments?
Anything not mainstream. I am not referring to crime, Prawnhub. MLB/NBA/NFL Trading cards & Golden Age comics make me my 1st million $ in 1980-90s In 1990-2000s Jordan 1 sneakers, colonial & pre-independence stamps/coin/musket/book/letter/rifle/swords made me my 1st $5m. In 2000-2010s I moved into Pappy/Weller/Taylor bourbons, Dali/Picasso painting, Karuizawa/Brora/PortAllen/Macallan scotch & Stradivari cello & violin to make my 1st $15m