What's your "walk away" number?

[Twptophan]

Inverse bond tent is the way to go...
A few million in 401k-type RMD accounts invested in bonds/REITs. Draw down about 4-5% per year in your 50s (Rule of 55) to get the balance down to an amount for efficient RMDs when the time comes.
Many more millions in the taxable brokerage in growth funds paying about 1% in dividends.
Live mostly off the 401ks early on while the brokerage grows for 20yrs and supplements the 401k income. Portfolio shifts to a heavier equity allocation over time which is fine from a risk standpoint because the safety factor is tremendous.

---

Members don't see this ad.

 

[Ready_User_1]

My goal is not just have $$$ to live on which is easy. My goal is to create a legacy for my kids/grandkids thus my $$$ needs to continue to grow and still produce good income.

This.

 

[deleted126335]

Damn . . . Straight geezer status. Maybe you and Noy can get some matching walkers.

Wee bairns.

 

[doctalaughs]

10M sounds great but 5M is plenty.

My walk away money is 300K pretax income without withdrawal anything.

Currently have about 4M in rental properties, 1.2M debt on properties outside of my other retirement stuff. Once I pay off the 1.2 M debt, I will have 250K pretax income. Once I get to 5M in rental properties, I will have about 300K pretax which is a hedge on inflation as rents/property value continue to go up.

Likely within 10 yrs, I should be able to get 10M in properties.

Out of curiosity is most of your net worth invested in real estate or do you also have sizable pre/post tax accounts?

 

[anbuitachi]

This.

but why... they can make their own money... you dont even know what they'll spend it on.

 

[dabears505]

When I pay off house and have enough saved for kids colleges, I'm never going to spend a night at the hospital ever again.

 

[IlDestriero]

I don’t have a particular number. But I want to have enough to live 40+ more years, not really worry about spending, and leave the kids some money/property. I qualify for university retirement healthcare benefits in a few more years. No need to work after that. I have enough money and that answers the healthcare question.
I’ll probably cut down to 80% for a few years than 60 for a few more, then out. No prolonged goodbye. No professor emeritus lingering in the twilight zone indefinitely. No need to work myself to death.
This job can be very stressful, we just make it look easy. Don’t forget that.
If I’m still working in 10 years I’ll be surprised.

 

[emergentmd]

Out of curiosity is most of your net worth invested in real estate or do you also have sizable pre/post tax accounts?

Outside of Real estate, I have low 7 figures in IRA/Stocks, mid 6 figures in real estate syndication, mid 6 figures in cash, Kids 529 essentially funded, and business ownership that has a nebulous value but by creates the most cash flow.

I am definitely more weighted towards real estate but there are so many advantages with real estate along with the many tax benefits.

Shocking to most EM docs, I still love my current EM gig but loved it when I was working in the hospital. I will prob work til I can't physically do it anymore likely cut down to 2-4 dys a month.

 

[emergentmd]

but why... they can make their own money... you dont even know what they'll spend it on.

Sure they can and will make their own money. My hard work and existence is more than about me. I always believe that success is to allow my kids to have a better life than I did. This is not to mean that they can bum around spending their inheritance. It means that when I am old watching grass grow, I want my kids to be able to do things that I could not when I were financially strapped in my 20's/30's.

 

[sevoflurane]

I've been dreaming about quitting medicine altogether, or, more likely, working a less stressful job with more controlled hours and fewer politics (e.g., locums, maybe?). I'm currently working at a high volume, high acuity, demanding practice and am experiencing some burnout despite being overall satisfied with the compensation. I've caught myself daydreaming about retiring early and am wondering: at what number would you say, "F.U." to 8-hour surgeries on 95-year-old patients and drive off into the sunset? I still haven't decided what my number is, as we are a young and growing family.

At 5 million, assuming a "safe" withdrawal rate of 4%, this would equate to roughly $200,000/year. Nothing to sneeze at but would be significantly less than what I make now.

At 10 million, it's double that, and I'm thinking this would be more than enough for us. I would probably still work at least part-time for extra insurance against the unplanned, and I really enjoy what I do, minus the drama with OR staff, surgeons, and hospital leadership which have all contributed to the burnout.

I think if I got a windfall of 6.6 million (5 million post-tax for long-term capital gains), I would think very hard about my exit plan and working "for fun." Hoping SDN still exists when/if I hit this number.

I feel you on the burnout. Definitely feeling my age. For the first time I have completely removed myself from the “extra weekday” and “extra weekend” call. Slowing down is feeling better and better.

As for healthcare costs... it’s not cheap. I was very surprised what a broken hip and later a broken hand cost me. Add to that the cost of living and expenses (I’ll def spend more if I am not working) and a good dose of traveling.... it adds up. 250k/ year is probably the minimum if I want to do the things I want to do... especially early on.

Titrating my work down and my lifestyle up is of paramount importance NOW as I am still young enough to do the things I want to do.

 

[anbuitachi]

Sure they can and will make their own money. My hard work and existence is more than about me. I always believe that success is to allow my kids to have a better life than I did. This is not to mean that they can bum around spending their inheritance. It means that when I am old watching grass grow, I want my kids to be able to do things that I could not when I were financially strapped in my 20's/30's.

Outside of Real estate, I have low 7 figures in IRA/Stocks, mid 6 figures in real estate syndication, mid 6 figures in cash, Kids 529 essentially funded, and business ownership that has a nebulous value but by creates the most cash flow.

I am definitely more weighted towards real estate but there are so many advantages with real estate along with the many tax benefits.

Shocking to most EM docs, I still love my current EM gig but loved it when I was working in the hospital. I will prob work til I can't physically do it anymore likely cut down to 2-4 dys a month.

well done with your success!

i imagine one of these days ill consider moving to a low cost state like new jersey or something

 

[anbuitachi]

I feel you on the burnout. Definitely feeling my age. For the first time I have completely removed myself from the “extra weekday” and “extra weekend” call. Slowing down is feeling better and better. Pretty sure my wife is about to drop OB from her practice.

As for healthcare costs... it’s not cheap. I was very surprised what a broken hip and later a broken hand cost me. Add to that the cost of living and expenses (I’ll def spend more if I am not working) and a good dose of traveling.... it adds up. 250k/ year is probably the minimum if I want to do the things I want to do... especially early on.

Titrating my work down and my lifestyle up is of paramount importance NOW as I am still young enough to do the things I want to do.

View attachment 334722

wait, broken bones cost you a lot with insurance? or are you talking about what they charged to insurance?

 

[sevoflurane]

I think it was around 14k for both incidents probably more. ER, xrays, CT scans, ortho, labs... it adds up fast, and I have a high deductible plan.

 

[sevoflurane]

Actually... now that I think about it I think it was even higher than what I stated.

 

[emergentmd]

I don't understand. I could get a good policy and prob would not cost more than 30K/yr for my family

 

[sevoflurane]

I don't understand. I could get a good policy and prob would not cost more than 30K/yr for my family

Do you have a high deductible plan? Maximum out of pocket is like $7500 per year. I hit that on both accidents. On top of that is the actual cost of the plan.

 

[GassYous]

I hope I don't break a hip any time soon I'll just call it a day at that point

 

[deleted162650]

I feel you on the burnout. Definitely feeling my age. For the first time I have completely removed myself from the “extra weekday” and “extra weekend” call. Slowing down is feeling better and better. Pretty sure my wife is about to drop OB from her practice.

As for healthcare costs... it’s not cheap. I was very surprised what a broken hip and later a broken hand cost me. Add to that the cost of living and expenses (I’ll def spend more if I am not working) and a good dose of traveling.... it adds up. 250k/ year is probably the minimum if I want to do the things I want to do... especially early on.

Titrating my work down and my lifestyle up is of paramount importance NOW as I am still young enough to do the things I want to do.

View attachment 334722

Dude, you guys have more than enough in the bank to be comfortable. If I were in your shoes, I’d go 1/2 time tomorrow. That’d give you enough jangle in your pocket to live off and just let those investments ride.

Oh, and a broken hip?? That puts you firmly in the geezer club. Time to throw out all the rugs in your house (tripping hazards) and get that life alert lanyard.

 

[sevoflurane]

Dude, you guys have more than enough in the bank to be comfortable. If I were in your shoes, I’d go 1/2 time tomorrow. That’d give you enough jangle in your pocket to live off and just let those investments ride.

Oh, and a broken hip?? That puts you firmly in the geezer club. Time to throw out all the rugs in your house (tripping hazards) and get that life alert lanyard.

I would if I could. I am under contract for another year. In the meantime I take up as much vaca as possible.

 

[sevoflurane]

1/2 time is where it’s at for us. We will likely make less than a FTE, but we won’t w/draw from our brokerage/retirement accounts for a while. Just gonna let it marinate for at least a few years before we make any big moves away from anesthesia. I think that I honestly still have at least 5 years in me before fully removing myself from medicine.

 

[sevoflurane]

Oh, and a broken hip?? That puts you firmly in the geezer club. Time to throw out all the rugs in your house (tripping hazards) and get that life alert lanyard.

Fauk... you are not wrong... 😂

 

[emergentmd]

I get working b/c you love it, to accumulate for assets. I just don't understand getting cheap health insurance as a reason to continue to work if you have millions. I have been on high deductible plans. 10K deductible, 20K/yr premium. Maybe alitle more. Doesn't seem like 30-40K for insurance is a reason to work when you have more than enough assets to retire.

There are 10 more imp reasons I can think of to retire including hobbies, kids than just for an insurance policy.

 

[BioChemDork]

Many people are:

1. Overestimating how much they need in retirement (unless everyone is taking fabulous $25k vacations multiple times a year, or living in very high cost of living areas), and underestimating the diminishing returns on happiness from the extra spend.
2. Not taking into account that our societal policies work against you when your spend is excessively higher than the mean (e.g. increased tax rates, losing ACA subsidies, kids not getting college financial aid.)
3. Underestimating the risk from yield-chasing to get to the higher financial independence # in a reasonable amount of time. (This is how people get into scammy investment schemes.) Lower FI number, less need to chase yield. VTSAX and chill.
4. Underestimating their safe withdraw rate. 3.5-4% is fine if you either have a bond tent, or better yet continue to work part time for a few years to negate sequence of returns risk and allow the pot to grow. Continuing to work part time maintains your career viability if a catastrophic expense emerges (eg multiple family members require full time nursing care for decades, or becomes a disabled adult dependent). EarlyRetirementNow has a now 44 part series on safe withdraw rates. It's a slog but if you get through it, you probably know more than many financial planners.
5. Underestimating the value of your most precious and finite resource: Time. What's more impactful for your children? 20 more hours a week with you from ages 0-10? Or an extra $2 million inheritance when you pass away in your 80 and they are in their 50-60s?

As for me, as soon as I hit $2.5 mil + amount needed to pay off house in full, I'm dropping down to 0.5 FTE. I will continue to work until the juice isn't worth the squeeze anymore. The 0.5 FTE income will cover 100% of my expenses and then some.

The kids get:

1. taught financial literacy and conscientious spending habits from a young age. (Difficult to do if you are at work all the time and outsourcing your childrearing.)
2. top 5% K-12 education
3. 60% of their college/graduate education paid for ($75k a kid if you lump sum it into a 529 when they are born). They need skin in the game, incentivizing them to pick something that has an effective ROI
4. "mom and dad matching" for their Roth IRA/401k when they are starting out until 30 years old. Thanks to compounding, this effectively funds half of a middle class retirement at age 67. They will need to work to get things beyond that, or if they want early retirement like their parents.
5. Financial safety net against catastrophic failure, health insurance until age 26.
6. If there is money left over, 529 for grandchildren, and possibly an accelerated gift in their 40s (after they've established their spending patterns), if our nest egg is doing well.
7. Whatever is left over when my spouse and I kick the bucket.

Grinding for generational wealth is not an effective use of your time; it just leads to messed up entitled kids more often than not. And it's usually squandered by the 3rd or 4th generation anyway.

 

[sevoflurane]

There are 10 more imp reasons I can think of to retire including hobbies, kids than just for an insurance policy.

Agree 100%. Not something to overlook over a 30-40 year period. But yeah.... I agree. It is just another piece. Recession, Depression, Inflation, Covid 2.0, major illness, parents getting old, divorce, company going down, cyber theft, law suits... it’s not the be all and end all but worth a look for risk stratification over 30-40 years.
That’s all.

 

[sevoflurane]

.

 

[emergentmd]

Grinding for generational wealth is not an effective use of your time; it just leads to messed up entitled kids more often than not. And it's usually squandered by the 3rd or 4th generation anyway.

There is alot of truth to this and time is more valuable than money. There always has to be a balance in life. When I work too much, my wife would pull me back. The most miserable people I know work all the time, turn around when they are too old to do anything, have broken relationships everywhere, and wonder why no one wants to be around them.

2.5M seems light to me. I get that you can drive down your expenses and not outlive it, but I prefer to retire younger (before 55) and still have the same lifestyle now.

 

[Mman]

Many people are:

1. Overestimating how much they need in retirement (unless everyone is taking fabulous $25k vacations multiple times a year, or living in very high cost of living areas), and underestimating the diminishing returns on happiness from the extra spend.
2. Not taking into account that our societal policies work against you when your spend is excessively higher than the mean (e.g. increased tax rates, losing ACA subsidies, kids not getting college financial aid.)

or perhaps people just have different things they want to do in life that require different amounts of money. Sure there are diminishing returns on happiness in terms of increasing income, but that is not apples to apples with how you spend your money. We know that spending money on experiences (like travel) provides more happiness than spending on things (like a fancy new car). Maybe I want to have a house in the mountains and at the beach and take fancy trips every couple months.

Now I wouldn't call those things "needs" in retirement, they are wants. But if I am retiring really early shouldn't I plan on doing the things I want to do and not just the things I need to do?

As for things like financial aid for kids for college, that ship has long sailed. They aren't getting a penny. I will give them $500K+ 529 plans before I retire.

 

[pjl]

Many people are:

1. Overestimating how much they need in retirement (unless everyone is taking fabulous $25k vacations multiple times a year, or living in very high cost of living areas), and underestimating the diminishing returns on happiness from the extra spend.
2. Not taking into account that our societal policies work against you when your spend is excessively higher than the mean (e.g. increased tax rates, losing ACA subsidies, kids not getting college financial aid.)
3. Underestimating the risk from yield-chasing to get to the higher financial independence # in a reasonable amount of time. (This is how people get into scammy investment schemes.) Lower FI number, less need to chase yield. VTSAX and chill.
4. Underestimating their safe withdraw rate. 3.5-4% is fine if you either have a bond tent, or better yet continue to work part time for a few years to negate sequence of returns risk and allow the pot to grow. Continuing to work part time maintains your career viability if a catastrophic expense emerges (eg multiple family members require full time nursing care for decades, or becomes a disabled adult dependent). EarlyRetirementNow has a now 44 part series on safe withdraw rates. It's a slog but if you get through it, you probably know more than many financial planners.
5. Underestimating the value of your most precious and finite resource: Time. What's more impactful for your children? 20 more hours a week with you from ages 0-10? Or an extra $2 million inheritance when you pass away in your 80 and they are in their 50-60s?

As for me, as soon as I hit $2.5 mil + amount needed to pay off house in full, I'm dropping down to 0.5 FTE. I will continue to work until the juice isn't worth the squeeze anymore. The 0.5 FTE income will cover 100% of my expenses and then some.

The kids get:

1. taught financial literacy and conscientious spending habits from a young age. (Difficult to do if you are at work all the time and outsourcing your childrearing.)
2. top 5% K-12 education
3. 60% of their college/graduate education paid for ($75k a kid if you lump sum it into a 529 when they are born). They need skin in the game, incentivizing them to pick something that has an effective ROI
4. "mom and dad matching" for their Roth IRA/401k when they are starting out until 30 years old. Thanks to compounding, this effectively funds half of a middle class retirement at age 67. They will need to work to get things beyond that, or if they want early retirement like their parents.
5. Financial safety net against catastrophic failure, health insurance until age 26.
6. If there is money left over, 529 for grandchildren, and possibly an accelerated gift in their 40s (after they've established their spending patterns), if our nest egg is doing well.
7. Whatever is left over when my spouse and I kick the bucket.

Grinding for generational wealth is not an effective use of your time; it just leads to messed up entitled kids more often than not. And it's usually squandered by the 3rd or 4th generation anyway.

Interesting question, because “walk away” is very different than “actually want for regular life.”

Well at a 3% withdrawal, you need:
2-3 mil for the house, 1 mil to pay property tax, 1 mil to pay expenses

1 mil for the other house, 1 mil to cover the tax/expenses

1 mil for health insurance

3 mil for vacations

3 mil for living and stuff

Plus a bit extra in case the dip that will come at some point comes at a bad time. Can just use this pile for the boat/cars I will need before death.

So I would want ~15 mil to live and maintain the lifestyle I would want if I was to say “I’m never working again.”

Alternatively, I can do the same lifestyle if I have 4 mil plus make 270 post tax annually. Invested money is making money too so I can drop the work income further as I grow the investment.

I bet you can guess which of those scenarios I am closer to.

Turns out working even a little rather than stopping completely pays off a ton as you let compounding happen and cover some expenses with salary.

Now, if you look at my actual lifestyle vs what I described, I need nothing close to those numbers. Probably 3 mil would sustain me indefinitely, less if I work a shift here or there. But we are dreaming and I want to dream in a way that would give me all the material and experience things I want.

 

[Leinie]

I don’t have a particular number. But I want to have enough to live 40+ more years, not really worry about spending, and leave the kids some money/property. I qualify for university retirement healthcare benefits in a few more years. No need to work after that. I have enough money and that answers the healthcare question.
I’ll probably cut down to 80% for a few years than 60 for a few more, then out. No prolonged goodbye. No professor emeritus lingering in the twilight zone indefinitely. No need to work myself to death.
This job can be very stressful, we just make it look easy. Don’t forget that.
If I’m still working in 10 years I’ll be surprised.

How long do you have to work/how old do you have to be for University retirement benefits? That could be a good reason to wind down a career at an academic center.

 

[chocomorsel]

Interesting question, because “walk away” is very different than “actually want for regular life.”

Well at a 3% withdrawal, you need:
2-3 mil for the house, 1 mil to pay property tax, 1 mil to pay expenses

1 mil for the other house, 1 mil to cover the tax/expenses

1 mil for health insurance

3 mil for vacations

3 mil for living and stuff

Plus a bit extra in case the dip that will come at some point comes at a bad time. Can just use this pile for the boat/cars I will need before death.

So I would want ~15 mil to live and maintain the lifestyle I would want if I was to say “I’m never working again.”

Alternatively, I can do the same lifestyle if I have 4 mil plus make 270 post tax annually. Invested money is making money too so I can drop the work income further as I grow the investment.

I bet you can guess which of those scenarios I am closer to.

Turns out working even a little rather than stopping completely pays off a ton as you let compounding happen and cover some expenses with salary.

Now, if you look at my actual lifestyle vs what I described, I need nothing close to those numbers. Probably 3 mil would sustain me indefinitely, less if I work a shift here or there. But we are dreaming and I want to dream in a way that would give me all the material and experience things I want.

Was about to say hot damn!! Living it up!!!

 

[IlDestriero]

How long do you have to work/how old do you have to be for University retirement benefits? That could be a good reason to wind down a career at an academic center.

My university uses the “rule of 75”.
Age + years of service (anything >/= 50% is a year) must equal 75 before you can access retirement benefits. They’re not great, no pension, etc. but the winner for early retirement is you can keep the Rolls Royce health plan. I pay 8k now and they pay $18k for a family plan. PPO, max out of pocket is $1500, network is broad and deep.

 

[Ready_User_1]

but why... they can make their own money... you dont even know what they'll spend it on.

Set it up in a trust and put whatever provision(s) you want. I live the life I want and had to struggle a great deal to get to where I wanted. If I can make sure my kids, and the subsequent generations after can have financial freedom - that's worth it to me on my death bed.

My kids have a UTMA so I'll be able to see how they handle a smaller pot of money (~300K) at around 21-23 years old where I have zero control of how they use it... but this gives me guidance of those provisions and how my trust is spelled out. Of course, they don't know that - and you better believe I will be harsh on them if they squander it. 300K in the bank at 23 compounding until they're 60.... mother of god, if only I had that option...

 

[Neopolymath]

I get working b/c you love it, to accumulate for assets. I just don't understand getting cheap health insurance as a reason to continue to work if you have millions. I have been on high deductible plans. 10K deductible, 20K/yr premium. Maybe alitle more. Doesn't seem like 30-40K for insurance is a reason to work when you have more than enough assets to retire.

There are 10 more imp reasons I can think of to retire including hobbies, kids than just for an insurance policy.

My father and I just had this conversation. People working a few more years for a bad reason (IMO) happens so much in the corporate world but I'm kind of surprised to see it happening in physician conversations too given the analytical minds and higher paychecks. How many of them get cancer/hit by a car/lose a spouse that they could have been spending more time with? One thing I life I believe in is not falling for that "I'll be happy when X happens" mindset. I don't believe in killing myself at work to retire a few years earlier and I definitely don't believe in it for people with frankly boring lives and no hobbies/passions, which is unfortunately very common in medicine.

I like this thread and I think it dovetails nicely with the side gigs threads that pop up from time to time. I think it's important to have other skills and diversification. I also think it's important to go part time quickly if at all possible but work for more years. These are the happiest people I know in medicine and in general. I have modeled my life after them. When I hit 3 million I will probably go part time unless I just LOVE my job. I have a couple side businesses that provide good value now and I see that only improving.

I think that is less risky and more fun than depending on a 401k to do everything when you retire completely. What if things change? What if you want back into medicine and can't get back in after you retire?

 

[BLADEMDA]

Very good comments so far. I agree with hitting your "number" then cutting back way back on work. We all work in a field where 1 week per month or 2 days per week is quite possible/feasible with no overhead. That leaves us with a lot of time off with some income coming in regularly.

So, IMHO, there are 2 numbers. The first number is what you need to cut way back (? 1/2 time) while the second number is the amount needed to call it quits. I propose the second number is substantially larger than the first since getting back into this field is much more difficult after you quit then simply deciding how many hours you want this week or this month as a part-timer.

 

[BLADEMDA]

Retired from Medicine at 43: Why, How, and What Now?

But it's skewed by only taking positive results since the negatives are removed. So what's the real return? the short answer is it does not effect it to a relevant degree. On a market cap weighted basis, as companies head to zero they carry less and less weight in the total market. It gets...

forums.studentdoctor.net

 

[BLADEMDA]

 

[BLADEMDA]

Doze and I have discussed this in great detail. He is a believe in lower equities in the 50% range as one nears semi-retirement. My philosophy is to hold dividend paying, high quality stocks as I approach semi-retirement. This pushes me up to a 70/30 ratio. I am 70/25/5 ( 5 is alternative investments) as of today. My new purchases have been value stocks, quality dividend stocks and foreign equities.

I am now heavily buying TIPS as inflation is a huge risk going forward in a Biden economy. I fully expect 3% inflation in 2022 and I wouldn't be surprised if we see 3.5-4% in 2022 or 2023.

 

[BLADEMDA]

I don't mean to scare any of you. But, based on the expected inflation rate over the next 20 years those of you thinking about a number in 2021 dollars need to add 50-70% more for the actual retirement number in 2041.

For example, today's number may be $5 million but in 2041 you will need $7.5 million for the same purchasing power as today.

 

[emergentmd]

If you like your job, the semi retirement number is more important atleast to me. I am currently working 6 dys a month (24hr shifts) from a previous 9/month and it is almost life changing. 3 dys doesn't sound like much but there are much less clumped up shifts and typically I will have 3-5 dys between each shift. Taking long vacations is much easier and I don't feel like I am paying the price by front/back loading all my shifts.

I hope to get to 2-4 dys a month in the next 1-2 yrs which would be the perfect semi retirement for me which will actually feel like retirement..

 

[GassYous]

I don't mean to scare any of you. But, based on the expected inflation rate over the next 20 years those of you thinking about a number in 2021 dollars need to add 50-70% more for the actual retirement number in 2041.

For example, today's number may be $5 million but in 2041 you will need $7.5 million for the same purchasing power as today.

That's why I'm aiming for 10 mil and trying to make hay while the sun shines.

 

[emergentmd]

or perhaps people just have different things they want to do in life that require different amounts of money. Sure there are diminishing returns on happiness in terms of increasing income, but that is not apples to apples with how you spend your money. We know that spending money on experiences (like travel) provides more happiness than spending on things (like a fancy new car). Maybe I want to have a house in the mountains and at the beach and take fancy trips every couple months.

Docs need to understand this. When I started as an attending and broke since birth, money was like an addicted drug. Just watching it accumulate was great but at the end of the day, family/experiences is what really matters.

One of the best purchases I have ever made was a vacation lake house 1 hour from my house where we go to get away from everything. Take the boat & jet ski out, watch the kids swim, watch the sunset with nothing around that reminds me of work. I am getting a new 70k boat soon and boats are probably the biggest money pit but it sure is enjoyable to run around the lake.

I have stopped penny pinching and looking for every way to save. I pay extra and get people to do my chores b/c I just don't like to clean the house/cut the grass/clean my windows.

I am redoing some landscaping. In the past, I would have rented a truck and made 3 trips carrying 5 tons of gravel and taken 2-3 full days to get it done. Now, I just spend 500 for deliver and pay someone 1K to do the 3 dys worth of work. Best money spent to avoid a sore back

 

[Mman]

I fully expect 3% inflation in 2022 and I wouldn't be surprised if we see 3.5-4% in 2022 or 2023.

While I understand the fears of inflation at some point, I know of nobody that expects anything near that in the next 2-3 years (at least amongst economic types that get paid to forecast these things) nor are there any indicators that we are headed towards it.

The smartest economic types you can find will tell you we should have already seen inflation based on their models but it just is not there and they do not know why.

 

[emergentmd]

Doze and I have discussed this in great detail. He is a believe in lower equities in the 50% range as one nears semi-retirement. My philosophy is to hold dividend paying, high quality stocks as I approach semi-retirement. This pushes me up to a 70/30 ratio. I am 70/25/5 ( 5 is alternative investments) as of today. My new purchases have been value stocks, quality dividend stocks and foreign equities.

I am now heavily buying TIPS as inflation is a huge risk going forward in a Biden economy. I fully expect 3% inflation in 2022 and I wouldn't be surprised if we see 3.5-4% in 2022 or 2023.

This is why I invest in real estate. It’s a great inflation hedge and where I buy it’s never vacant.

5 yrs ago bought a home renting 1300/mo. It currently rents for 2100/mo.
STR bought 4 yrs ago rented about 500/nt now I rent it for 800/nt.

When inflation happens, people income goes up to match, this rent goes up too

 

[deleted126335]

My number:

 

[deleted126335]

Doze and I have discussed this in great detail. He is a believe in lower equities in the 50% range as one nears semi-retirement. My philosophy is to hold dividend paying, high quality stocks as I approach semi-retirement. This pushes me up to a 70/30 ratio. I am 70/25/5 ( 5 is alternative investments) as of today. My new purchases have been value stocks, quality dividend stocks and foreign equities.

I am now heavily buying TIPS as inflation is a huge risk going forward in a Biden economy. I fully expect 3% inflation in 2022 and I wouldn't be surprised if we see 3.5-4% in 2022 or 2023.

I have strongly favored TIPs and I-Bonds for a long time. I think that they should comprise a huge portion of one's fixed income portfolio. Unfortunately, all fixed income is brutally expensive. I-Bonds are the least ugly fixed income out there. Unfortunately, low purchase limits. Corporate bonds are priced to negative real yields ASSUMING ZERO DEFAULTS. F$cking unprecedented in financial history. That said, I have been purchasing short term TIPs for the last few months because I see them as the least ugly horse in the fixed income glue factory.

Treasury Inflation-Protected Securities

TIPS: Perfect investment for imperfect times? News, ideas, alerts

tipswatch.com

 

[pgg]

I want to not work, more than I want $10M, so I'll quit well before that mark. A few million plus my sweet government pension will do it.

My hobbies don't involve airplane ownership or funding an ex-wife's new husband's hobbies, so I've got that going for me.

 

[pgg]

I don't mean to scare any of you. But, based on the expected inflation rate over the next 20 years those of you thinking about a number in 2021 dollars need to add 50-70% more for the actual retirement number in 2041.

For example, today's number may be $5 million but in 2041 you will need $7.5 million for the same purchasing power as today.

Shrug

Invest in "stuff" and the $ value of that "stuff" will also inflate.

If that doesn't do the trick we'll be living in an apocalyptic wasteland, having witnessed the collapse of western civilization. The balance in your brokerage account will matter less than which gang you belong to.

 

[anbuitachi]

My father and I just had this conversation. People working a few more years for a bad reason (IMO) happens so much in the corporate world but I'm kind of surprised to see it happening in physician conversations too given the analytical minds and higher paychecks. How many of them get cancer/hit by a car/lose a spouse that they could have been spending more time with? One thing I life I believe in is not falling for that "I'll be happy when X happens" mindset. I don't believe in killing myself at work to retire a few years earlier and I definitely don't believe in it for people with frankly boring lives and no hobbies/passions, which is unfortunately very common in medicine.

I like this thread and I think it dovetails nicely with the side gigs threads that pop up from time to time. I think it's important to have other skills and diversification. I also think it's important to go part time quickly if at all possible but work for more years. These are the happiest people I know in medicine and in general. I have modeled my life after them. When I hit 3 million I will probably go part time unless I just LOVE my job. I have a couple side businesses that provide good value now and I see that only improving.

I think that is less risky and more fun than depending on a 401k to do everything when you retire completely. What if things change? What if you want back into medicine and can't get back in after you retire?

I dont get why you would think this would happen less in medicine... we start working for real at a later age, and have fewer years of compounding and savings. Many people in corporate get as much as us after a few promotions especially selecting for individuals with comparable achievements in hs/college years as med students. Im willing to bet most of my corporate friends will retire much earlier than i will.

I agree with part time. It's also what i plan on doing, but i dont know if my work place will allow it,

 

[anbuitachi]

we been at 2% inflation for a long time now, i dont even know what this truly means. most of the stuff i buy (food), or stuff i see myself buying in the future (apartment), have gone up significantly in price, way more than the yearly inflation. other big expenses like college/med school tuition have skyrocketted as well in the past decade, despite the low interest rates

 

[BLADEMDA]

Inflation is coming soon. Many of you are just too young to remember real inflation. Biden is flooding the economy with cash. Jay Powell openly said he will let the economy run hot and make sure inflation is above 3 percent before raising interest rates.

many experts know this is highly likely later this year or in 2022. They are preparing for it. You should too.