BCOBQ98 said:

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GE,

Sounds like you are willing to work longer at a job where you are doing well at to subsidize your kids and grandkids. I think that is admirable but how do you go about doing that? Are you talking about helping them with school and part of their first house or something more such as providing them an allowance which would allow them to work a job they like but may not make enough money to live well on?

Many people receive this inheritance or help at a time when they are in the 50's or 60's and don't actually need it as they have adequately saved on their own. Sure it may allow them to upgrade their living situation but it doesn't substantially change their life as it could if they had this money in their 30's or 40's.

I understand the reluctance to give the money earlier because the tendency for most people would be to blow the money. That said I've got a friend who received a chunk of his inheritance in his 40's before his parents passed. This allowed him to quit work and go back to law school full time and ultimately go where he wanted to in life.

Not intending to hijack the thread.....

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1. Fully fund college through 529 contributions when kids are young. 2. Contribute to custodial brokerage accounts accounts while they are still minors. 3. Give straight cash if they are fully responsible as adults, if not find another way to help out. Same program for grandchildren plus they'll benefit from inheritance if I'm lucky enough for my kids to not be in a position to need it by the time that happens.

BCOBQ98 said:

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GE,

Sounds like you are willing to work longer at a job where you are doing well at to subsidize your kids and grandkids. I think that is admirable but how do you go about doing that? Are you talking about helping them with school and part of their first house or something more such as providing them an allowance which would allow them to work a job they like but may not make enough money to live well on?

Many people receive this inheritance or help at a time when they are in the 50's or 60's and don't actually need it as they have adequately saved on their own. Sure it may allow them to upgrade their living situation but it doesn't substantially change their life as it could if they had this money in their 30's or 40's.

I understand the reluctance to give the money earlier because the tendency for most people would be to blow the money. That said I've got a friend who received a chunk of his inheritance in his 40's before his parents passed. This allowed him to quit work and go back to law school full time and ultimately go where he wanted to in life.

Not intending to hijack the thread.....

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It is not unheard of to have families skip or mostly skip generations with regards to inheritance for this very reason. Grand-kids are usually in a position that an inheritance would be life changing compared to kids who, like you mentioned, would be in their 50's or 60's.

SoupNazi2001 said:

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Distributions from multi-family investments come from the rental income of the property and are typically tax-free until they are sold due to the significant depreciation of the properties. I have not paid any taxes on multi-family distributions thus far.

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offset against the depreciation makes sense. More like deferred taxed.

GigEm81 said:

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GE said:

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Anybody plan to retire early but concerned that when you get there your annual income is too high to leave? Such as a partner at a law firm sitting on $5 million in net worth in their 40's looking at the prospect of earning over $1 million each year in the near future.

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This is true, If you have had a successful career, you will be at highest earning, But you can't retire (much less retire early) without leaving money on the table.

What you want to avoid doing, in my view, is leaving a bunch of time on the table.

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Absolutely correct. They're called golden handcuffs for a reason!!

I left the corporate world with as much as I was leaving behind in near term (5-10 yr) money. $8-10 million, but can't put a value on time away vs time to be there. Just being there for family is worth so much.

Following up on this great thread:

How has COVID-19 impacted, altered or adjusted your FIRE plans?

What moves are you making now given the bleak economic future we are facing?

Following up on this great thread:

How has COVID-19 impacted, altered or adjusted your FIRE plans? What moves are you making given the bleak economic future?

GigEm81 said:

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GE said:

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Anybody plan to retire early but concerned that when you get there your annual income is too high to leave? Such as a partner at a law firm sitting on $5 million in net worth in their 40's looking at the prospect of earning over $1 million each year in the near future.

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This is true, If you have had a successful career, you will be at highest earning, But you can't retire (much less retire early) without leaving money on the table.

What you want to avoid doing, in my view, is leaving a bunch of time on the table.

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This is exactly my dilemma. I have personally known of too many recent instances of people between 50-65ish unexpectedly passing and have had some real mortality concerns. I've got good reason to believe I will live into my 90s (another 40 years) and have saved very diligently since I finished at A&M. Also, for the record, both parents were bankrupt while I was at A&M and I came out with a personal net worth of negative $25k.

I got a life-changing promotion a few years ago and now making serious coin. And can do so for another 9.5 years if I want before mandatory retirement. However, I can't fathom spending the money I've saved/is growing without uncharacteristically changing my spending habits over the rest of my life. I've started a series of donations that I only dreamed of 30 years ago.

I'm really enjoying my work nowadays, but find myself now sometimes thinking about what I'd REALLY like to be doing instead of working 60 hours a week. I think I will likely retire from my current job in 2-5 years, then look into teaching some sort of financial literacy/personal finance course at a community college. One of my HS buddy's grandfather did this until he was in his mid-80s and the dude was simply awesome.

It's really hard to think about walking away earning what I earn, but the kicker here is time. Time to do the things with my brother and my friends that give me peace and energy. The things that are good for my mental health. Fishing, skiing, hiking, mountain biking, college football and basketball, etc. There's just a point where 'enough is more than enough', even knowing you're leaving quite a bit of money on the table.

GoAgs92 said:

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What do the early retired do for healthcare, Obamacare?

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That's the typical option. You might be able to find some alternatives through pooled church plans which I've heard about.

For the overal thread, I "early retired" at 47 in 2020. I walked away from a lucrative job that I could have done until I was 67, but I got bored and had accomplished what I could. It was scary as hell to leave, but I haven't regretted it.....yet. Lol.

I've done a little bit of consulting since I left but nothing that remotely replaced my corporate income. Spent most of my time in the first six months getting my FILs house in order that needed a lot of work. Had some neglect when his mind started going and he couldn't take care of it properly. However, that also meant we spent about 30% of our time in the last two years on the coast so no complaints there.

Other than that I've spent a ton of time with my wife which COVID so generously enabled. She's back in the office mostly full time now and I've decided to job hunt and get back out there. I miss leading people and have a potential opportunity to build out an organization from the ground up. It intrigued me enough to get me back in the game. If I don't get it, I will just keep on being House Manager and that's not terrible so Im good with however things fall.

So to get the subsidy to make Obamacare more affordable, the couple needs a part time gig….or would dividend income etc count?

GoAgs92 said:

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So to get the subsidy to make Obamacare more affordable, the couple needs a part time gig….or would dividend income etc count?

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I think the subsidy is just based on lack of income. Less income = greater subsidy. You can generate an estimate on the healthcare.gov website based on number of people you need insured, zip code, and income.

SoupNazi2001 said:

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Ragoo said:

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SoupNazi2001 said:

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Distributions from multi-family investments come from the rental income of the property and are typically tax-free until they are sold due to the significant depreciation of the properties. I have not paid any taxes on multi-family distributions thus far.

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offset against the depreciation makes sense. More like deferred taxed.

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Current income is almost never taxed due to depreciation and then you pay lower capital gains rates when you sell or you can do 1099 exchanges and never pay tax. You can't go a more tax efficient investment than real estate.

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3% annual property taxes in Texas are hardly tax efficient investments. Not saying real estate isn't a great investment, just pointing out that you're still paying significant taxes.

I have been planning FIRE for many years.

although I still have a high standard of living.

single guy, age 51, no kids, no expensive divorce.

my plan is the day I get to a million dollars in net worth (assets minus liabilities) then I am quitting the corporate legal world.

so far I have begun to write a book of historical non-fiction, and in 2023 may take a tour guide course.

I am about $200K away from my goal. B''h this could be possible in 2026 at age 55.

cjsag94 said:

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I can't imagine the stress (of the intensity required to reach this goal) and all the things I'd miss out on in life to accomplish this goal.. but to each his own.

I'm curious what motivates this goal for people? Is it really hating your job that much. Or is it because you really want to fly fish (or whatever it is you want to do along those lines) all the time?

It feels like that joke where the guy goes to a bar and orders a drink to drown his sorrow.. bartender says what's up . Guy says he'd be getting out of prison today and free to live out his days in peace if he'd have just liked the b$&#ch 25 years ago when he wanted to!

In other words... Is 25 years of agony coupled with the real path that lies ahead really the best approach to what you are actually trying to accomplish?

Edit to say:. What Stive says was a quick and eloquent way to say the same thing... This goal requires avoiding many things in life.. good and bad.

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actually it doesn't require any sacrifice. I still go to the Ritz Carlton. I have been to 37 countries. I have lived in ten states. I have had a few BMWs.

what it takes is I travel in the "off season" and use my military ID for disounts at hotels. I buy a 228 BMW instead of a 435. I don't have kids and avoid getting married to someone without a prenup.

i started saving after law school at age 27 and now 25 years later I am close to the goal of a million dollar net worth (about $730K this week not including my home).

it just depends what one wants out of life.