4 ms·

With a little bit of 'shopping', you can reduce that number to 1/2 a million. Look at Mr.Money Mustache for example.

by mahyarm 14y ago

001sky 14y ago
Go ahead, but post you're numbers...
- mahyarm 14y ago
  MMM's multiple children family in a colorado suburb lives very nicely on an annual budget of ~$25k annually in a place where houses are around $100-300k vs $800k-3million. According to his math, the safe indefinite withdrawal rate for retirement is around %4, which works out to around $500k. How does he keep a $25k budget? By not spending his money foolishly and 'shopping' for the most optimal deal. He goes into great detail about this in his blog. http://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need-for-retirement/ http://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need...
  - 001sky 14y ago
    This is good data. Just to sum it up though. 3) 500k per your note 2) 500k for two kids in university 1) 200k for house ____________ = 1.2 million after tax = 1.5 million pre tax
    - mahyarm 14y ago
      I bet with some smart education shopping, you can reduce that figure to 100k for the university. A lot can happen in 15 years.
      - 001sky 14y ago
        A lot can happen in 15 years Try this: In 8 years, 80% of what we spend on the entire US Armed forces will be spent to pay rent on the National debt.[1] And, if we think about that, thats about $250K per 2 tax-payer household of assumed govt debt.[2] Not trying to be a kill-joy. Just adding stuff up. _____________ [1] Per the latest budget, approx $800b vs $1000bn/yr [2] 20bn/300 us pop x 50% tax base x 2 earners
        dman 14y ago
        Youre not factoring inflation in, or outright default.
        001sky 14y ago
        Share please. This sounds interesting. =D
        mahyarm 14y ago
        That is completely besides the point to how much you (over)spend on your children's university education. For all we know khan academy will overtake everyone once some news article starts the snowball and people just live at mom & dads house and spend the equivalent of living expenses. The principles espoused on MMM applies everywhere in the world, you should really read into the math and the technique. Sovereign debt is not normal debt, you can't look at it in such personal terms. Normal people can't just print money just to start.
        001sky 14y ago
        I'm not arguing with you in a dis-agreement sense. Actually, I am big fan of minimal stuff. In essence we also agree that these numbers are perhaps just not feasible, so things will change. For example, even under the example you've provided (about 1/2 of the SF numbers), the large portion of university education is 1/3 of the total and 2.5x the house cost. That seems pretty un-realistic. So, i agree with you. But, the data show just historically, that even the cost to support the student in a university town, is also skyrocketing. 30k per kid x 4 is 120k just for living expenses, not tuition. So that is 240k for 2 kids and that is 2.2x your house cost. Similalry, I understand economics. But with $20T outstanding, printing money things will happen. If interest rates double (and they are 1/2 of normal now), then that Interest amount is 1.6x the defense budget. To think about that for a minute: The Banks, if they were acting as a group, could take 1/2 the debt service and finance an Army on the Scale of The USA (by far the largest on the planet). We would basically be renting the country from the banks at 2x what we pay to keep people from "stealing" if you will the country by force of violence. These are some interesting juxtapositions. Also, I'm not debating your $500k number at all. I'm just pointint out that for most people the goal is somewhere as per ChuckMc post. But the meath suggests things either are already more complicated that we think, or are going to get so at some stage. Lastly - on the disruption of education. I think between the two of ur posts we are making the case why this may be heading in the direction you are proposing.
  - ChuckMcM 14y ago
    He doesn't really address the health care issue which goes from like $900 / year to > $25K/year as you move from age 25 to age 75. But the basic concepts are sound.

With a little bit of 'shopping', you can reduce that number to 1/2 a million. Look at Mr.Money Mustache for example.

by mahyarm 14y ago

With a little bit of 'shopping', you can reduce that number to 1/2 a million. Look at Mr.Money Mustache for example.

001sky 14y ago

Go ahead, but post you're numbers...

mahyarm 14y ago
MMM's multiple children family in a colorado suburb lives very nicely on an annual budget of ~$25k annually in a place where houses are around $100-300k vs $800k-3million. According to his math, the safe indefinite withdrawal rate for retirement is around %4, which works out to around $500k. How does he keep a $25k budget? By not spending his money foolishly and 'shopping' for the most optimal deal. He goes into great detail about this in his blog. http://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need-for-retirement/ http://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need...
- 001sky 14y ago
  This is good data. Just to sum it up though. 3) 500k per your note 2) 500k for two kids in university 1) 200k for house ____________ = 1.2 million after tax = 1.5 million pre tax
  - mahyarm 14y ago
    I bet with some smart education shopping, you can reduce that figure to 100k for the university. A lot can happen in 15 years.
    - 001sky 14y ago
      A lot can happen in 15 years Try this: In 8 years, 80% of what we spend on the entire US Armed forces will be spent to pay rent on the National debt.[1] And, if we think about that, thats about $250K per 2 tax-payer household of assumed govt debt.[2] Not trying to be a kill-joy. Just adding stuff up. _____________ [1] Per the latest budget, approx $800b vs $1000bn/yr [2] 20bn/300 us pop x 50% tax base x 2 earners
      - dman 14y ago
        Youre not factoring inflation in, or outright default.
        001sky 14y ago
        Share please. This sounds interesting. =D
      - mahyarm 14y ago
        That is completely besides the point to how much you (over)spend on your children's university education. For all we know khan academy will overtake everyone once some news article starts the snowball and people just live at mom & dads house and spend the equivalent of living expenses. The principles espoused on MMM applies everywhere in the world, you should really read into the math and the technique. Sovereign debt is not normal debt, you can't look at it in such personal terms. Normal people can't just print money just to start.
        001sky 14y ago
        I'm not arguing with you in a dis-agreement sense. Actually, I am big fan of minimal stuff. In essence we also agree that these numbers are perhaps just not feasible, so things will change. For example, even under the example you've provided (about 1/2 of the SF numbers), the large portion of university education is 1/3 of the total and 2.5x the house cost. That seems pretty un-realistic. So, i agree with you. But, the data show just historically, that even the cost to support the student in a university town, is also skyrocketing. 30k per kid x 4 is 120k just for living expenses, not tuition. So that is 240k for 2 kids and that is 2.2x your house cost. Similalry, I understand economics. But with $20T outstanding, printing money things will happen. If interest rates double (and they are 1/2 of normal now), then that Interest amount is 1.6x the defense budget. To think about that for a minute: The Banks, if they were acting as a group, could take 1/2 the debt service and finance an Army on the Scale of The USA (by far the largest on the planet). We would basically be renting the country from the banks at 2x what we pay to keep people from "stealing" if you will the country by force of violence. These are some interesting juxtapositions. Also, I'm not debating your $500k number at all. I'm just pointint out that for most people the goal is somewhere as per ChuckMc post. But the meath suggests things either are already more complicated that we think, or are going to get so at some stage. Lastly - on the disruption of education. I think between the two of ur posts we are making the case why this may be heading in the direction you are proposing.
- ChuckMcM 14y ago
  He doesn't really address the health care issue which goes from like $900 / year to > $25K/year as you move from age 25 to age 75. But the basic concepts are sound.