TorchtheFlyingTiger

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IMO, you shouldn't think about "retiring early" until you have at least $10M in net worth

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Sure Suze. Even with inflation, that's gonna buy a lot of jackets.

Follow the FOO (Financial Order of Operations)

You think it's stupid this went viral yet shared it with all of us on OT?
I live in FL, first I've heard of it.

Let me guess, these idiots around the table didn't bother doing the math on the tax and penalty.

At they're already in 22% bracket and another $130k would spill into 24%

So, tax and penalty on a $130k withdrawal would be 22-24% federal plus 10% penalty and state tax if applicable. That's between $28-$31k tax plus $13k penalty and state tax. So $41k+ for peace of mind and to net less than $90k leaving $60k of debt.

Drives me nuts because the loudest morons are always the most confident ones offering workplace financial advice. I have a relative that took a 401k loan to pay off a truck in his 20s because the loudmouths persuaded him and he didn't follow my advice.

I want to convert filling 22% and perhaps 24% bracket but keep getting hung up on the idea of paying LTCG at 15% to free up cash to pay for the taxes. It's probably.the right move to avoid widow penalty, IRMAA and higher bracket RMDs later. I'm finding it hard to justify paying 15% LTCG though when I could pass to widow or heirs with stepped up basis and they pay zero.

This also leads me to realize I will have a difficult time spending Roth eventually and losing the tax free growth so maybe I should work on using my $ instead of tax optimization.

4 yrs into early retirement and I'm still 100% equities.

I wouldnt recommend that for everyone. Fortunately, we live well but spend pretty modestly and I cover expenses with pension. I figure the pension substitutes for the conservative portion of a retirement portfolio. There's truly no one size fits all approach.

If you have adequate investments in taxable brokerage a SBLOC, Securities Backed Line of Credit. I've found terms were better and may not even have to make payments if so desired. Just got to be conservative and not borrow so much you have to worry about a maintenance call on your investments.

I've never bought extended warranties.

If I couldn't self insure through any repair I wouldn't buy the car.

I listen to Clark Howard a lot and he often mentions how many consumer complaints he hears about warranty companies not paying out or being unresponsive. Only one's I'd ever consider are form manufacturer not a third party ever.

Can a case be made for putting assets in joint account for creditor or lawsuit protection? I was recently advised by estate attorney to retitle our individual brokerages to joint for this reason. Something about Tenancy By Entirety (TBE) accounts protecting assets if one spouse was subject to creditors or lawsuit. Apparently it's state dependent. Also, wouldn't widow get added benefit of a 50% step up in basis at death of 1st spouse?

I assume doing so would make them marital assets though and lose protection as inherited individual assets.

Before buying dividend funds make sure you understand the tax implications in a taxable brokerage.

This dude is apparently new to investing and many of you are suggesting picking individual stocks, that's terrible advice for a newbie!

I'm working on convincing my mother to spend her's. Finally got her to buy a home (she's intended to relocate for past 2 years since retiring). I just try to show her in different ways how much excess she has. Hopefully, she will start being a bit less frugal.

I really need to follow my own advice and lead by example. Been living on pension only since early retiring 4 yrs ago. Realizing tax optimization isnt doing me any good if I dont spend my $.