Medicare for all will be here for most of you so I'd plan on a lot higher taxes in retirement for those with the bulk of their savings in pretax retirement vehicles. Actual HC cost will be reasonable if you can live with the care inside the system.

Pelayo said:

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Medicare for all will be here for most of you so I'd plan on a lot higher taxes in retirement for those with the bulk of their savings in pretax retirement vehicles. Actual HC cost will be reasonable if you can live with the care inside the system.

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This is one reason I've maxed my Roth IRA and contributed to 401k to try an balance the effect. This scenario also makes HSAs invaluable retirement tools.

Retire abroad for cheaper healthcare.

AliasMan02 said:

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The government reneging on the tax protections of the Roths is one of my big fears.

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Not sure how they could other than taxing the gains. That could create some legal issues.

Currently married and no kids, but planning on 2-3 kids. Ideally, somewhere between 45 and 50 would be nice; realistically, aiming for 55. Travel is the one spending bug that is hard for me to kick. Like someone else mentioned, I prefer to spend money on experiences rather than things. However, I have no drive to leave a legacy, etc. I work to pay the bills and enjoy life outside the office. I'll contribute to my kids education but don't plan on funding it 100%.

AliasMan02 said:

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The government reneging on the tax protections of the Roths is one of my big fears.

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Yep, me too.

More likely that they just phase out post-tax vehicles.

Pelayo said:

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AliasMan02 said:

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The government reneging on the tax protections of the Roths is one of my big fears.

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Yep, me too.

More likely that they just phase out post-tax vehicles.

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This is what I see happening, if anything. They can't just go back and say "the gains you made for 30 years are now actually taxed after we told you they wouldn't be." A phase out is all that really makes sense.

The Wonderer said:

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AliasMan02 said:

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The government reneging on the tax protections of the Roths is one of my big fears.

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Not sure how they could other than taxing the gains. That could create some legal issues.

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That's what I figure they will try. I know Obama wanted to fiddle around with some of that on a lesser scale but I'm just afraid the pot will be too tempting not to try just a 10% tax on withdrawals over a certain amount or something like that.

AliasMan02 said:

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The Wonderer said:

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AliasMan02 said:

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The government reneging on the tax protections of the Roths is one of my big fears.

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Not sure how they could other than taxing the gains. That could create some legal issues.

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That's what I figure they will try. I know Obama wanted to fiddle around with some of that on a lesser scale but I'm just afraid the pot will be too tempting not to try just a 10% tax on withdrawals over a certain amount or something like that.

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Gets into some potential due process and ex post facto issues. On the other hand, it's the government, so the fight against it would be difficult.

jake2011 said:

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AliasMan02 said:

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The issue I've been struggling with a bit is that I think my retirement at 60+ is basically handled by my tax protected investments that I can start drawing then. What I need to figure out is how to best start prepping for ages 50 to 60. I'm sure there are "no brainer" options for that but I need to dig in and find them.

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After tax brokerage account/ savings for pre 60 retirement money and pre tax 401K/IRA for after 60 money. If you have left over after tax money when you turn 60 it just gets added to the pot. Pre 65 when you can join Medicare (if it still exists by then) is a big wildcard for early retirees because of the crazy healthcare inflation we have been having.

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Roll 401(k) to Traditional IRA. Pay income taxes in your low, retirement bracket.

Convert Traditional to Roth IRA. 5 year holding period, then principle can be withdrawn penalty free.

Just Google a Roth ladder. Instead of bridging 10-20 years, it's only 5 years until the ladder is "seasoned".

CS78 said:

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No need to draw anything out really. Rent houses. The plan will be to pass them to our kids.

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how many units would you need to be comfortable to retire

Depends. 5 year old son is disabled so it depends on his growth and development. I'm 40 now, and would like to get out of the high stress, rat race, by 60 and in to a more"fun job" and do that as long as I can. I don't think 55 is realistic for me.

AliasMan02 said:

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The government reneging on the tax protections of the Roths is one of my big fears.

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I would worry more that they shift the tax burden towards a consumption tax. It would likely be good for the economy, but would screw over people that had preferenced Roth savings vs. pre-tax savings vehicles.

in reading this thread, I'm finding that there is probably a pretty big disparity in when I will be "financially independent" and when I will be "comfortably financially independent". I'm probably looking in the neighborhood of 55-60...depending on whether my children are highly motivated or just leeches.

I will likely never fully retire. My dad "retired" at 54, then got his securities licenses. He didn't need money, so he spends a lot of his time working with older folks who don't have much and need to make it stretch and younger kids who don't have much and are looking to learn. He's not crushing it, but now that his friends are retiring, he's rolling over their 401ks and making enough to pay all their bills without touching his retirement or drawing SS early.

I'll probably do something similar, as there is no way I can fully retire and fish/golf all day. Having enough money saved up that I could quit at any time is the goal. I turn 40 this year and 50 is my goal for full FI. I'll be 56 when my youngest turns 22. Depending on the cost of college, FI may not come until that point.

The one factor that Creates huge swings in my calculations is my wife going back to work. She's been a SAHM for 10 years now. Has a degree/license in Speech Therapy. If/when she goes back to work, that will support college and earlier retirement.

OasisMan said:

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how many units would you need to be comfortable to retire

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Ive worked the numbers a bunch of different ways to figure out what's needed. For every 100k of free and clear houses, you can expect to get back about $550-$600 per month in after tax, all things considered cash flow. The great thing about it though is that doesn't include appreciation and everything tends to be inflation protected.

Financing obviously makes things more complex. You can make more on your equity if highly leveraged with long term loans or less if you let yourself slip in to the area of having a bunch of 15 year loans on properties that also have a bunch of equity.

Is this with a property management company or self managed?

ColinAggie said:

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Retire abroad for cheaper healthcare.

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This has always been in my alternative plans in the future if healthcare gets out of control more than today and goes the socialized way in this country. That and it would not surprise me we will eventually get taxed on our wealth down the road. I have heard these ideas from the left. The politicians, especially the left, will go where the money is and that is with the baby boomers in retirement. They will try and tax your wealth since they will not get enough from taxing passive income. If this happens I sell everything and vacate the USA for Thailand. Good healthcare, good food, and inexpensive to live and they want expats to retire there and bring their money.

Those wanting to retire early prepare accordingly. Always have more in the kitty then you need. You never know what our politicians will do in the future or who will be in control.

ColinAggie said:

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Is this with a property management company or self managed?

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With management will put you in the $500-$550 per month range. Without $600- to maybe $650. Obviously you need to be making smart investments. Not rock star but not just every house that hits the market. Typically middle class 3/2s, in the 1100-1400 sq/ft range.

I hope you fish better than you golf.

Financially independent by 35.
Retirement whenever I get tired of working after that age

That's why I need to be financially independent. I go fishing with an awesome guide. He takes care of everything, including catching my limits and his.

aggieband 83 said:

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Quote:

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I'm 60 and have an 8th grader so never.

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Damn!

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Lol! That kid lives the life of Reilly.

cgh1999 said:

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aggieband 83 said:

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Quote:

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I'm 60 and have an 8th grader so never.

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Damn!

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Lol! That kid lives the life of Reilly.

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He's working on his retirement too. He's mooched off me all this time but now he's gainfully employed. He started saturday as a golf cart and driving range wrangler at Houston Oaks. About time.

Soooo. A bit of a surprise kid. I was one too. Dad nicknamed me BooBoo (back before you couldn't say **** like that because non PC)

jja79 said:

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aggieband 83 said:

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Quote:

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I'm 60 and have an 8th grader so never.

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Damn!

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His oldest brother turns 34 tomorrow. Damn is right.

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Good for you!

jja79 said:

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aggieband 83 said:

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Quote:

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I'm 60 and have an 8th grader so never.

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Damn!

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His oldest brother turns 34 tomorrow. Damn is right.

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Larry King?

I'm 60, not 100.

jja79 said:

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I'm 60, not 100.

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They have little blue pills for that sort of problem.