Quote:
Originally Posted by Hellmuth was right
Why are these mutually exclusive?
If you're a single guy like trooper who has no family to support and never spends money on anything besides rent/food you just need to get "ripped off" for 7-9 years and you can basically set yourself up for the rest of your life.
If trooper was smarter in his 20s/early 30s he could be living the exact same life he's living now only with a lot more security (health insurance) and the actual freedom of being able to travel and take months or even years away from poker/YouTube whenever he wants without having to worry about being homeless.
Sadly, even working a decade at $200K doesn't come close to setting someone up for life. If you maxed out your 401K, you'd have contributed approximately $200,000. In a decent market, with interest, maybe you have $250,000 in retirement funds. Of your remaining salary, you'd be taking home approximately 55% -- Let's say $110,000 a year. If you are living in an area where you are making 200K, your housing will not be cheap. Let's conservatively say $2,500/month. Let's also be somewhat conservative and say you spend an additional $1,500/month on food, entertainment and other expenses. Your monthly nut is $4,000, or $48,000 annually. Add on a couple of decent vacations and, at best, you could be saving $50,000 a year. So, after a decade, you've maybe got $700,000 or so in assets. And, again, I think that is being ambitious. What typically happens when you work a job with high income is that your life pretty much sucks during the work week, and you overcompensate on the weekends and other time off. Fun things cost money. Your $1,500 a month is likely more like $3,000+ in expenses. Factor in other expenses over a decade, like a car. In reality, $700,000 is more likely closer to $400,000 to $500,000... Also, this assumes you rolled into your $200,000/year job with no educational loans. Unlikely. You'd prolly have to factor in a few hundred thousand in debt to the equation. If you aggressively attack the loans, you can pay them off fast at $200,000/year. But, as a result, aside from your $17,500 or so 401K contribution, you are actually going to have very little savings the first few years.
Even assuming $700,000 was a feasible number, it is FAR from being set for life. Most retirement calculators claim an individual with $200K/yearly salary would need $5 to $6M to retire, and that's retiring in your sixties (obviously, those numbers are based on maintaining current lifestyle of a relatively high earner and not factoring in additional income).
Curious what kind of plan you had for Trooper for his 20's and 30's that would have had him currently living the dream...
Also, as for Neeme and Owen . . . I personally think both are incredibly likable guys, and wish them the best. I have no idea what their current total income is or how much they are able to save. But, I'd have the same concerns if I were them about the future - savings, affording healthcare, making income to survive... I'd be curious for Andrew to address his long term plan one of these days.
Last edited by Pete_Peters; 03-06-2019 at 12:10 PM.