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[Dusn]

What sort of investment accounts do you hold your savings in while taking those 4% withdrawals? I would imagine when someone is in retirement and needs that money to last for life, they move things to a very conservative investment vehicle. What very
conservative vehicle is giving 4-5% annual.return on average?

this is complicated. Go to the big ERN early retirement now) website and read his articles on sequence of return risk.

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[Dusn]

I think people forget about the taxes in that 25x number. To be honest if someone wants 25x and their fatfire number is 100k/yr you would technically want closer to 3 million and assume 20% long term cap gain tax even though it may not all be taxed but being conservative.

Also, when you take the 100k out of a taxable brokerage (not talking about ira, 401k etc) assume it is all profit after selling stock which you have held for more than 1 year and your retired and have no other income does the 100k get added to your annual income or how much tax are you paying in a no tax state on average if you have any idea?

if you keep your spending and your withdrawal from your taxable account at not too much higher than 100k/year, then I think your capital gains federal tax rate should be zero.

 

[Splenda88]

2 mil in the market plus 1 mil in real estate and I will say good bye to the rat race (eg,. working ~20 hrs/wk) if can I can achieve that in 10 yrs.

Once your house is paid off, 1.5 mil is enough money to retire in IMO...

I am a non trad physician; that is why I am aiming for a 10 yr semi retirement.

It can be done.

 

[Monocles]

2M before age 40. At this rate I can work ~30h a week and would be easily out if the market doesn't have a massive correction.

 

[FutureInternist]

A reply in the comments section is spot on:

“I have often read online people saying things like if they got a raise they’ll end up paying much more than just what the raise was worth because they’ll be in a new tax bracket. It’s also interesting to see people’s eyes glaze over when you explain the tax brackets to them. These days I just agree with them and let it be.”

It’s almost like people creating excuses for themselves not to make more money.

I give a talk on taxes, 401k, NQDC, HSA, Roth IRAs, 529 etc to the local hospital’s residents every year and my very FIRST “pimp” question is exactly this.

You (single), are offered a raise from X to Y, which “propels” (I use that word to throw them off 😏) into the next tax bracket (but barely).

Do you take the raise?

I do get to see the eyes glaze over (except this year cos of Zoom) 😏