Carl Pelini
- Thread starter HBK4life
- Start date
You must be one of those fellas that lives on Blue Water or West Shores lake west of Omaha? Went to take a look see over there just the other day. Blue Water looks like a world class beach resort and West Shores has some of the most gorgeous houses you'll ever see. Not a bad way to spend the money if you have it.
I get the feeling people have no idea how much money they need to retire.
If you have $3 million in retirement. At a safe investment rate of 5% interest and inflation rate at 5% you can only live at $150,000 withdraw rate for 20 years. Not great numbers if you are 48 and plan on retiring.
Nope. Live on a couple acres with a nice, but not crazy home. Nothing like the multi-million dollar homes people have out there.
People don’t realize how much they really need to retire. Especially if you want to retire early. I read a lot of FIRE and fat FIRE (financial independence, retire early) books and forums. People often underestimate the costs of insurance when they retire early (pre Medicare), what they will spend if they don’t have work taking up their time, and how it’s extremely difficult to adjust to your lifestyle when you’re making $400k+ in working years down to $150k in a retirement at 45.
Everyone thinks if their pay tripled tomorrow, they would live the same as they do currently and would put all the extra away. In reality, lifestyle creep happens and they end up spending tons more money and saving slightly more than they did previously.
Ideally you are 100% debt free...and if you aren't, I wonder if you should retire yet...but assuming you are debt free, home, cars, paid for, etc....150K is an atrocious amount of money to blow thru on an annual basis.... I guess maybe some people just have no discipline and can spend every dime they have and then some.
I think what he's getting at is you would no longer have employee covered health insurance so that could eat a bunch of it depending on what happens with your health before Medicare. So there is more risk then the average person assumes. But yeah, $150,000 should be plenty for most debt-free Americans.
I've seen it both ways with people retiring debt free and with debt. Worked out for all of them, but all were disciplined savers.
...agree and hope my reply didn't come off wrong....I was just talking outloud....and the fact is everyone knows people who could blow thru that 3mil in very short order with little to nothing, to show for it.
Right, I guess that is how I was looking at it. House paid off, two nice but reasonable cars paid off...
10K a month to spend is an insane amount.
I know people like to pretend that they will go on all these vacations and have all these hobbies but really, you might do a few small trips each year, you are not going to Iceland every other month.
Hobbies? Walks, biking, golf, cards, books, movies, TV.
I mean, you can buy a season golf pass for 2000 dollars and it will cover your entire year of golf. No one is golfing every single day.
But in this scenario, it’s a dude that is used to making a toooon of money. Not you and me. Not even $300k. Tons of money.
They’re spending habits and lifestyle expectations aren’t ours. People keep thinking of themselves and their habits and putting them on a guy that made millions. It isn’t the same.
Maybe but this is also a guy that at one point was making nothing. Has two college degrees, never had an agent and did his own deals and by most accounts, seems like your typical guy next door.
Now, maybe he spends money like crazy but I suppose I just never got that idea from him.
I am soooo guilty of what you just described. haha. Thinking of how I fit into that scenario and not how others look at it or fit.
~$10k per month is an atrocious amount to spend?
Has nothing to do with discipline. Some people want to live their life.
Travel, dining, experiences, kids, wife, etc.
I mean, if you want to live your life you are probably not bringing your wife to the fun shit you want to do...so you are saving half the money right away...
🔒
I'm CTM......"A Cardinal Mooney football coach was allegedly punched by a father of the team's football squad."
Granted I only went to public school but I think that amount comes out to $12,500K a month, not 10K and yes, that is an atrocious amount to spend every month if your home and car is paid off...wouldn't be my cup of tea to spend like that but others mileage may vary or course.
I know you’ve been burned badly by marriage and plan to die alone
I and many others have not, however
I was just rounding it down to show how much it still is!
10K a month is a ton when you are just talking about "entertainment" type things.
$12.5k is ~$10k
Insurance payments on luxury items (unless you also assume everyone lives in a shitbox and drives the same beater they’ve had for 15 years), health insurance for the family (not everyone uses the govt’s handouts here), etc., would easily eat up half or more
And again, some like to live their life on top of that
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I have a guy on my coaching staff, older totally retired and has a trust. Gets 24K a month.
He has two cars. An SUV and a Maserati. It is a pretty sick car.
He has two cars. An SUV and a Maserati. It is a pretty sick car.
..trust = somebody else's money that was given to him right? ....very easy to spend like that when you weren't the one that earned it. but im only jealous, that isn't a criticism...i would just never be comfortable having 4 cars like that...in fact I'd purchase or lease cars for others if I had that kind of jack given to me. again, YMMV, not looking down my nose or making fun of anyone, but I would literally feel so guilty owning 4 cars just for myself I wouldn't be able to look myself in the mirror.
I would not even want two cars. I hate driving. Like, I have never been like "I really want to go for a drive today"
Didn’t anyone go to church this last Sunday and listen to the gospel? Sell all your possessions and give it to the poor and go follow the Lord. You are all sinners and heaven has no place for those living in luxury. Robin Leach did the devil’s work and corrupted this world. Follow the words of Jesus and be rewarded tenfold in heaven.
It’s not even the monthly expenses that add up. It’s all the one off’s. Own a house? Can easily have a few expensive repairs to eat into that $150k. Roof. Ac. Plumbing. Electrical. Much less any improvements. Vacations can easily be $5-10k a piece. It’s not hard to spend $10k a month averaged over a year.
No worries about retirement here.
My wife will be working until the day I die.
My wife will be working until the day I die.
$10K vacay's are something we'll never have to worry about. That's insane. Yes I know people who've dun 'em. Hawaii, helicopter tour to go with...Paris for 2 weeks. Barf. No way I could enjoy myself knowing I dropped 5 figures to do it.
...now I could soend 10K on a bike, but I think we can all agree that would be totally worth it.
And yet every single car ad promotes getting out on the open road through the scenic mountains / forest at 100mph. Who frickin' wants to do that? Talk about missing the target audience in those ads.
For the record, I put on 30,000+ miles for the past 25 years because of work, wife, & kids. I'm not hopping out of my vehicle on a daily basis from my required needs to then go out and drive around all weekend long.
And sorry, BTF69, I don't mean to trigger you by admitting I have a wife.
What are you going to do with your money if not spend/enjoy it?
(Sincere question)
He will be giving it to Cyclists Against Cars national charity,.
I would totally enjoy that 10K bike!! In fact I'll buy several.. ...i'd enjoy that way more than any vacay that costs the same.
We will travel, but I have zero desire to leave the states. My biggest fear is out living my money, and my wife and I just don't really feel comfortable spending a lot of money on anything. If I die with a fair amount of money in the bank so be it.
We're all different on this issue. What works for me obviously wouldn't for others....
We're not stingy or tightwads, we're just somewhat frugal and enjoy very simple things.
