- Joined
- Dec 11, 2006
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I'm at $6m net right now at age 52. We do defined contribution of 55k in my group. My wife saves an additional 32k pretax. We probably save another 250k post tax. Yes you too can do it if you live simple, drive cars for 8 plus years, do not carry debt and are married to the same person for 25 plus years. Teach your kids the value of money and good work ethic.
Here is my plan. Retire at 58. $5m invested in SPY has a yield of 2% which is 100k a year. The portfolio grows at 5% which is $250k a year. I draw $100k of that for an annual income of 200k half of which is taxed at 15%.
This.
I am still young in my career and working like an animal, but my goal is to invest aggressively and ultimately land somewhere between $5m to $7m by age 50-55. At that time, I'll start investing slightly more conservatively (i.e. not just index funds, but throw some in preferred share ETFs yielding around 6% in dividends). From there, with no debt or mortgage to pay off, I can pull out enough (around $200k per year) and just practice medicine part-time without compromising my lifestyle at all. If anything, my lifestyle would be better since I have more free time on my hands without any financial sacrifices.
Having a second high-income earner as a spouse really makes this feasible for a new graduate.
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