Comments on: A plan to financial independence at 35 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html Financial independence, frugality, self-sufficiency, ecology, capitalism, and voluntary simplicity Fri, 21 Nov 2008 19:16:51 +0000 http://wordpress.org/?v=2.6.3 By: HIB http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-2286 HIB Wed, 24 Sep 2008 14:50:32 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-2286 It's great that you and your boyfriend are on the same page. That's probably the most crucial part of your plan. It's also nice that other parts of the family also feel the same way. Congrats on the work done so far and bet sof luck into the future! -HIB It’s great that you and your boyfriend are on the same page. That’s probably the most crucial part of your plan. It’s also nice that other parts of the family also feel the same way.

Congrats on the work done so far and bet sof luck into the future!
-HIB

]]> By: laurel rose http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-973 laurel rose Sat, 12 Apr 2008 21:42:21 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-973 Hey Joe, you're absolutely right about medical costs-- Elizabeth, have you considered how you will be able to finance a good health insurance policy? Individual policies are available through the Blues (Blue Cross and Blue Shield) as well as through other companies. One uninsured medical emergency and you could be financially wiped out. A catastrophic health ins. plan could prevent a serious depletion of your principal. Best of luck with achieving your goals!!! Hey Joe, you’re absolutely right about medical costs–

Elizabeth, have you considered how you will be able to finance a good health insurance policy? Individual policies are available through the Blues (Blue Cross and Blue Shield) as well as through other companies. One uninsured medical emergency and you could be financially wiped out. A catastrophic health ins. plan could prevent a serious depletion of your principal.

Best of luck with achieving your goals!!!

]]> By: Joe W http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-599 Joe W Sat, 01 Mar 2008 13:24:52 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-599 Since everyone else seems to be glad-handing you, I'll be the voice of reason. Let's hope you don't get stuck with any onerous medical bills (say $40,000 plus because I assume your not planning on spending $1000 a month to get personal medical coverage once you retire, and I wholely doubt a non-profit which you're going to bail on before even serving 20 years with them will continue to pay for your medical expenses), because your pittance in interest will not cover them, all your bills, etc. You will have to eat into your principal and since you won't be bringing in any more money, you'll be in a world of hurt. Plus you'll be getting no cost of living adjustments so inflation will eat away at your interest and more importantly at your stagnant principal. I might have taken your pie in the sky retirement plan a little more seriously if you backed it out to 45 years old but 35, you are dreaming. Since everyone else seems to be glad-handing you, I’ll be the voice of reason. Let’s hope you don’t get stuck with any onerous medical bills (say $40,000 plus because I assume your not planning on spending $1000 a month to get personal medical coverage once you retire, and I wholely doubt a non-profit which you’re going to bail on before even serving 20 years with them will continue to pay for your medical expenses), because your pittance in interest will not cover them, all your bills, etc. You will have to eat into your principal and since you won’t be bringing in any more money, you’ll be in a world of hurt. Plus you’ll be getting no cost of living adjustments so inflation will eat away at your interest and more importantly at your stagnant principal. I might have taken your pie in the sky retirement plan a little more seriously if you backed it out to 45 years old but 35, you are dreaming.

]]> By: Andy http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-551 Andy Tue, 26 Feb 2008 15:04:46 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-551 It's all about career and lifestyle choice. Unfortunately, some people just made the wrong career choice and will never achieve financial independence. Others will not plan appropriately for the expenses associated with children. My wife and I are both 27 and pharmacists. She makes $108,000 and I make $111,500. We've been out of school for three years and we each started at $100,000 (plus, we each received a $30,000 sign-on bonus). We plan to have no children. We will both be financially independent at 33. That is, we'll have paid off our only current debt which is our mortgage and have saved $1 million. At that point, we both plan to work as floating pharmacists; working only 20 hours or so a week. Reducing your expenses helps, but in order to really achieve financial success you need to make the right career and lifestyle choice. It’s all about career and lifestyle choice. Unfortunately, some people just made the wrong career choice and will never achieve financial independence. Others will not plan appropriately for the expenses associated with children.

My wife and I are both 27 and pharmacists. She makes $108,000 and I make $111,500. We’ve been out of school for three years and we each started at $100,000 (plus, we each received a $30,000 sign-on bonus).

We plan to have no children. We will both be financially independent at 33. That is, we’ll have paid off our only current debt which is our mortgage and have saved $1 million. At that point, we both plan to work as floating pharmacists; working only 20 hours or so a week.

Reducing your expenses helps, but in order to really achieve financial success you need to make the right career and lifestyle choice.

]]> By: Elizabeth http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-539 Elizabeth Tue, 26 Feb 2008 01:14:33 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-539 @Steve: Thanks, I'll definitely check that out! @No One Important: Sounds like you've done great for yourself! I'll probably buy a house/condo someday, but I don't know where or when, so can't crunch the numbers yet. @Kacie: Probably will get married, but no plans yet. Maybe I'll pop the question using the romantic rationale of tax benefits? In the case of raises, I plan to continue saving 70% of my income. I don't anticipate any raises above inflation for the next few years. @Retired Syd: Wow! Congratulations on your retirement and thanks for the support! @Steve: Thanks, I’ll definitely check that out!

@No One Important: Sounds like you’ve done great for yourself! I’ll probably buy a house/condo someday, but I don’t know where or when, so can’t crunch the numbers yet.

@Kacie: Probably will get married, but no plans yet. Maybe I’ll pop the question using the romantic rationale of tax benefits? In the case of raises, I plan to continue saving 70% of my income. I don’t anticipate any raises above inflation for the next few years.

@Retired Syd: Wow! Congratulations on your retirement and thanks for the support!

]]> By: RetiredSyd http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-538 RetiredSyd Mon, 25 Feb 2008 23:15:19 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-538 Wow, Elizabeth, I did a double-take here for a minute. You sound exactly like me at 27 (except that my goal was to retire at 45). I'm retiring in 4 days (a year early at 44!) I just wanted to tell you you are not crazy, you WILL do it. (The part about tracking when you hit round numbers in your calendar made me laugh so hard, I did EXACTLY that. Were we separated at birth or something? Oh yeah, separated by 17 years, I guess not. . . ) I look forward to following your path on your blog. Wow, Elizabeth, I did a double-take here for a minute. You sound exactly like me at 27 (except that my goal was to retire at 45). I’m retiring in 4 days (a year early at 44!)

I just wanted to tell you you are not crazy, you WILL do it.

(The part about tracking when you hit round numbers in your calendar made me laugh so hard, I did EXACTLY that. Were we separated at birth or something? Oh yeah, separated by 17 years, I guess not. . . )

I look forward to following your path on your blog.

]]> By: Adfecto http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-537 Adfecto Mon, 25 Feb 2008 23:13:45 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-537 I commend anyone who is willing to set a goal and strive to achieve it. I can't imagine living on $1000 a month. I don't really want to live on $1000 a week. :-) This doesn't mesh with my life goals but do what makes you happy. I commend anyone who is willing to set a goal and strive to achieve it. I can’t imagine living on $1000 a month. I don’t really want to live on $1000 a week. :-) This doesn’t mesh with my life goals but do what makes you happy.

]]> By: Philip Brewer http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-536 Philip Brewer Mon, 25 Feb 2008 17:46:08 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-536 I think of it this way: It's all my money. My entire portfolio (401(k), IRA, Roth, savings accounts, etc.) supports all my goals. Suppose you retire at 35 with enough total assets that your investment income would support your lifestyle, but a fraction of those assets are in tax-deferred investments that you'd rather not tap into. You can spend down the money outside the tax-deferred accounts faster than they produced income, while letting income in the tax-deferred accounts accumulate. As long as you don't run out of money in the regular accounts before you want to start withdrawing from the 401(k), you're fine. It's possible to do some calculations, based on assumed investment returns and spending rates, and figure out what fraction of your money can go into a 401(k) and still leave enough outside to support you from age 35 to age 59-and-a-half. The tax advantage can be substantial, especially if your taxable earnings while you're employed are much higher than your investment earnings after retirement will be. I think of it this way: It’s all my money. My entire portfolio (401(k), IRA, Roth, savings accounts, etc.) supports all my goals.

Suppose you retire at 35 with enough total assets that your investment income would support your lifestyle, but a fraction of those assets are in tax-deferred investments that you’d rather not tap into. You can spend down the money outside the tax-deferred accounts faster than they produced income, while letting income in the tax-deferred accounts accumulate.

As long as you don’t run out of money in the regular accounts before you want to start withdrawing from the 401(k), you’re fine.

It’s possible to do some calculations, based on assumed investment returns and spending rates, and figure out what fraction of your money can go into a 401(k) and still leave enough outside to support you from age 35 to age 59-and-a-half.

The tax advantage can be substantial, especially if your taxable earnings while you’re employed are much higher than your investment earnings after retirement will be.

]]> By: Kacie http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-535 Kacie Mon, 25 Feb 2008 17:32:20 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-535 Also, I'm curious. Have you factored in possible pay raises into your 8-year plan? Also, I’m curious. Have you factored in possible pay raises into your 8-year plan?

]]> By: Kacie http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-534 Kacie Mon, 25 Feb 2008 17:27:53 +0000 http://earlyretirementextreme.com/2008/02/a-plan-to-financial-independence-at-35.html#comment-534 Go go go! I'm rootin' for ya! I'm wondering: Are you planning to get married? If so, take a look at what "married filing jointly" can do for your tax situation. For my husband and I, filing jointly meant we were in the .15 tax bracket rather than the .25 or .28 or whatever the next higher one was. BTW...I definitely did not marry my husband for the money benefits! I married him because we love each other and want to spend the rest of our lives together. Lol I just wanted to mention that. Go go go! I’m rootin’ for ya!

I’m wondering: Are you planning to get married? If so, take a look at what “married filing jointly” can do for your tax situation.

For my husband and I, filing jointly meant we were in the .15 tax bracket rather than the .25 or .28 or whatever the next higher one was.

BTW…I definitely did not marry my husband for the money benefits! I married him because we love each other and want to spend the rest of our lives together. Lol I just wanted to mention that.

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