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Started By
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re: Say you're handed $500K in cash today.....
Posted on 8/29/19 at 8:11 am to OleWarSkuleAlum
Posted on 8/29/19 at 8:11 am to OleWarSkuleAlum
quote:
The general rule of thumb is a 4% withdrawal rate
quote:
Most importantly you do not even acknowledge sequence of return risk, etc
5% is a pretty solid number. well below historical index growth. i'm not dave ramsey promoting 12% growth here
1
Posted on 8/29/19 at 8:14 am to SlowFlowPro
quote:
But why?
Bro by your own admission you want to live off of $75,000 at $1.5MM. That’s a 5% drawdown. You have a chance of depletion prior to death.
quote:
5% is a pretty solid number. well below historical index growth. i'm not dave ramsey promoting 12% growth here
5% would be a 100% equity portfolio growth estimate. Most retirees cannot be 100% equities and certainly with only $1.5MM you should not be 100% equities.
Posted on 8/29/19 at 8:17 am to OleWarSkuleAlum
quote:
Bro by your own admission you want to live off of $75,000 at $1.5MM. That’s a 5% drawdown. You have a chance of depletion prior to death.
a. that's another "windfall retirement" hypothesis
b. in that hypothetical, that 5% (or whatever the annual gain would be) would be the growth after interest. so i put money into fund and a year later, withdraw my "salary". it would be a net-0 (while giving me a nice "salary" to further invest in other areas)
quote:
Most retirees cannot be 100% equities and certainly with only $1.5MM you should not be 100% equities.
well the 5% is a conservative, average return. that's well below the expected average return in equities
Posted on 8/29/19 at 8:18 am to SlowFlowPro
$500k is a lot of money. For those itt that mentioned real estate, please clarify. Buying property to rent? Flipping? Buying land? All of the above?
Posted on 8/29/19 at 8:19 am to SlowFlowPro
quote:
SlowFlowPro
You really need to re-look your drawdown strategy. Get some help seriously.
Posted on 8/29/19 at 8:20 am to KingBarkus
quote:
$500k is a lot of money. For those itt that mentioned real estate, please clarify. Buying property to rent? Flipping? Buying land? All of the above?
MFH put down 25% and then do a cash out refinance. Take that money and do the same on the next place, so on and so forth.
Posted on 8/29/19 at 8:20 am to KingBarkus
quote:
For those itt that mentioned real estate, please clarify. Buying property to rent?
that particular poster? yes
Posted on 8/29/19 at 9:15 am to KingBarkus
quote:
Buying property to rent? Flipping? Buying land? All of the above?
All of the above, in my case. I’d personally play it pretty aggressively and try to grow a real estate business out of it.
Posted on 8/29/19 at 10:31 am to btnetigers
invest entire $500,000 and double it every seven years
Posted on 8/29/19 at 12:20 pm to 3morereps
25,000 ounces silver
Posted on 8/29/19 at 5:01 pm to btnetigers
Ladder CD's and some high dividend stocks in a brokerage account and some cash on the side for bottom feeding in the next recession.
Posted on 8/30/19 at 8:22 am to btnetigers
I owe about 350k on 3 properties. I'd probably pay those off, give my kids the rest and then just go about my day. I might buy a newer pickup, I'm driving a 2007.
Posted on 8/30/19 at 9:28 am to btnetigers
- Add $50,000 total to the 529 for the kids ($25k each)
- $75,000 would go to an emergency fund of some sort. How I would set that up and what it would be in depends on a number of factors.
- $230,000 pay off the remainder of the note on our house.
-$20,000 for two nice vacations in 2020 and 2022
- $125,000 in a taxable account
This allows us to:
- Continue to max out 401ks
- no debt other than student loans (whole tread about this)
- have fully funded 529’s for the kids
- fully funded emergency fund for what was 12 months of expenses for the family
- act like we were yesterday, just without a number of burdens that were there.
- $75,000 would go to an emergency fund of some sort. How I would set that up and what it would be in depends on a number of factors.
- $230,000 pay off the remainder of the note on our house.
-$20,000 for two nice vacations in 2020 and 2022
- $125,000 in a taxable account
This allows us to:
- Continue to max out 401ks
- no debt other than student loans (whole tread about this)
- have fully funded 529’s for the kids
- fully funded emergency fund for what was 12 months of expenses for the family
- act like we were yesterday, just without a number of burdens that were there.
Posted on 8/30/19 at 12:40 pm to TheWiz
quote:
$25k for the toddler in a 529
$75k-$100k for each kid in High School to fund (help fund) college. I guess put it in a 529?
Let's say you have $225k left over. Put aside $25k for the next two year's badass vacation.
Invest the remaining $200k.
With the given scenario I'd do some variation of this, basically depending on how much I already have saved for the HS kids.
My situation (1 toddler):
$25k in education plan
next year's tuition in a liquid investment, then I'd fund it monthly for the following year....
Take about $100k to do shite around the house that I keep putting off and don't want to take loans out for.
Invest the rest
Posted on 9/2/19 at 7:20 am to btnetigers
1. Donate 50k to my church.
2. Donate 10k to missions overseas.
3. Put 50k in each of my kids college savings accounts.
4. Pay off my mortgage 325k
5. Put the balance in my IRA.
2. Donate 10k to missions overseas.
3. Put 50k in each of my kids college savings accounts.
4. Pay off my mortgage 325k
5. Put the balance in my IRA.
Posted on 9/2/19 at 9:37 am to baobabtiger
I don’t think I would change a thing. I’d DCA it into the market over the next 2 years or so and have the remainder in high yield savings in the interim. My only hesitation would be putting it all into the market right now given the volatility and where we are in the economic cycle.
Posted on 9/2/19 at 9:41 am to lynxcat
quote:
I don’t think I would change a thing. I’d DCA it into the market over the next 2 years or so and have the remainder in high yield savings in the interim. My only hesitation would be putting it all into the market right now given the volatility and where we are in the economic cycle.
Studies have proven you’ll have better outcomes if you put all $500k into the market lump sum vs DCA.
Posted on 9/2/19 at 10:04 am to OleWarSkuleAlum
quote:
Studies have proven you’ll have better outcomes if you put all $500k into the market lump sum vs DCA.
Said studies aren’t going to consider that we are in a trade war right now.
Posted on 9/2/19 at 10:34 am to lynxcat
quote:
Said studies aren’t going to consider that we are in a trade war right now.
So you’re saying never in the history of the market has there been a trade war if you can even call this a trade war outside of your TDS stricken mind?
Posted on 9/2/19 at 11:11 am to UpstairsComputer
Make yourself debt free. If disciplined, it’s crazy the amount you can save once you are debt free. Also commit yourself to never borrowing again. Being debt free is life changing.
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