Phase III - Deja Vu All Over Again

Where are you and where are you going?
7Wannabe5
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Re: Phase III - Deja Vu All Over Again

Post by 7Wannabe5 »

OTOH, if I had believed that very same adage, It is possible that I might have maintained my virginity beyond the age of 15.

Seriously, I never believed that “the man” was out to screw me either. I did believe something like “established society is constructed to confine me.” I now view it as more like the sort of trap that tightens up the more that you struggle. So, similar to your take except that I fear/dislike being trapped more than I fear/dislike being screwed.

classical_Liberal
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Re: Phase III - Deja Vu All Over Again

Post by classical_Liberal »

7Wannabe5 wrote:
Sat Sep 12, 2020 12:03 pm
I now view it as more like the sort of trap that tightens up the more that you struggle.
This sentence has so much wisdom to it. I'm going to steal the concept because it perfectly embodies both what I mean when I say, most restraints are internal, and my general strategy for dealing with those that seem external.

Put another way, if you stop struggling against what you view as an external restraint, it usually just lets go.

IlliniDave
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Joined: Wed Apr 02, 2014 7:46 pm

Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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IlliniDave
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Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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RockyMtnLiving
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Joined: Fri May 08, 2020 8:49 am

Re: Phase III - Deja Vu All Over Again

Post by RockyMtnLiving »

Thank you very much for this snap-shot summary regarding where things stand for you at this moment in time. I'm 56, so your journal is very relevant and informative.

It sounds like you have as much of a rock-solid plan as is humanly feasible; plus, your analytics are thorough, thoughtful and sound.

Thank you again for letting us follow your journey and peer over your shoulder as you map out your financial future.

IlliniDave
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Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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Scott 2
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Re: Phase III - Deja Vu All Over Again

Post by Scott 2 »

Getting ready to pull the trigger is tremendously focusing. It is interesting to see the plan unfold.

Implicit in your estimates is a life expectancy calculation. How are you figuring that? It is an area where being idealistic about health can dramatically influence results. Changing assumptions can literally double the time horizon. There's also the matter of diminished capacity to consume as we age, which I assume is reflected in your lifestyle assumptions.

Right now, my contingency plan is lead a baseline lifestyle that could be covered by social security. It is unlikely to reach that point (given my current spend), but life happens. I sometimes I wonder if a more "optimal" path wouldn't be to intentionally spend everything down by 70, doing as much as possible during my most able years. After all, I could die. The world could burn. Etc.

classical_Liberal
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Re: Phase III - Deja Vu All Over Again

Post by classical_Liberal »

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IlliniDave
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Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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Scott 2
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Re: Phase III - Deja Vu All Over Again

Post by Scott 2 »

@classical_liberal - that is a good model. The part my brain tends to gloss over, is that a failing plan will be obvious 10+ years before the money is gone.

@illinidave - that all makes sense. I know you are planning to leave a financial legacy. Have you figured out what that will look like? Do the recipients already know? Have you considered transferring wealth now, while it might provide more benefit?


The most likely scenario for my parents, is that financial fears lead them to sacrifice retirement quality, leaving me with an unnecessary inheritance. Not that money is bad, let's say they pass when I'm 60, my course is already set. I'd much rather they live their remaining years extremely well and always encourage them to do so.

IlliniDave
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Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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Scott 2
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Re: Phase III - Deja Vu All Over Again

Post by Scott 2 »

Got it. To some extent, I am thinking of exactly the financial assistance recommended against in the millionaire next door. But maybe there are options that offer value - housing and education. Or perhaps shared experiences, like a family vacation.

We have a friend whose wealthy father helped with home purchases - both the starter, and then a nicer place when kids arrived. The friend is finding success in her career and benefits far more from his help while she is young.

My wife's parents have done similar for her siblings. The youngest lives with her husband, in a home her mother bought on foreclosure. The husband is handy and has been fixing it up, so ostensibly there is return of value on the investment, but mom probably isn't going to see it. I think there has also been some assistance with student loans.

We've opted out of any help, due to the transfer of control. But, we also have no children, making the money problem much easier to solve. Our estate plan is largely familial distribution of wealth, but about 20% goes to a charity we like.

IlliniDave
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Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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IlliniDave
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Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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Scott 2
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Re: Phase III - Deja Vu All Over Again

Post by Scott 2 »

My process would be:

1. Draft an email with what I want to say, but don't send. A communication trail may force your boss into certain behaviors.
2. Call my direct manager and discuss it, at an opportune time in their schedule
3. As part of that conversation, talk about communication strategy, desire to set the company up for success, etc.
4. Most likely, follow up the call by sending the draft email to them only
5. Complete the remainder of the communication strategy we agreed upon

I've had one boss sit on the information until 2 days before I left. When I took my recent leave, my current boss had us on the phone with HR that same day, my impacted peers the next. It all depends on the company.


This also assumes you don't have any special requirements that must be met to protect your retirement benefits. If the company has rules around those, I'd follow them to the letter.

IlliniDave
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Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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Scott 2
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Re: Phase III - Deja Vu All Over Again

Post by Scott 2 »

I've quit a few times. It always leaves me elated - their problems are no longer my problems. The feeling is very freeing. Forget about getting any work done that day though. People do tend to treat you differently, once they know you are a short timer. It ranges from congratulations to jealousy to immediately cutting you out.

I have never worked in an organization as complex as yours. The separation of HR makes a lot of sense.

My current boss was pretty casual when I raised my intent to take leave. However, as soon as the HR person heard "FMLA", it triggered a pre-determined checklist on her part. She was clearly following the rules, to avoid making a mistake and exposing the company to liability. Every single sentence was rehearsed, very specific. They even outsourced the "certification" aspect to a 3rd party firm, I'm sure to protect the company's interest.

Because she was so formal, I was a little nervous about inadvertently screwing something up on my end. I wondered - "Is this a trap???" It turned out ok though, since I was already clear on what I could ask for.

IlliniDave
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Joined: Wed Apr 02, 2014 7:46 pm

Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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IlliniDave
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Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

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RockyMtnLiving
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Re: Phase III - Deja Vu All Over Again

Post by RockyMtnLiving »

What is your target AA?

We are similar in age, if I recall. Ours is 65/30/5, and our YTD performance is up approximately 10%. Nearly all of the equity and fixed income is in broad-market ETF's at Vanguard.

Specifically as to exposure to the US economy, our equity component is roughly 90% US/10% international, so while we are likely underweight international, I won't complain about the performance of that portfolio mix to date. I'm also not worried about future US tax policies for several reasons. First, under all reasonably foreseeable scenarios, it looks like Congress is going to remain effectively deadlocked. And second, even if taxes were to tick up a bit -- either corporate or individual, or both -- I don't think that would be detrimental for the US economy; indeed increased taxes would likely have at least some positive macroeconomic attributes. Both debt and deficits are high and climbing, so it isn't unreasonable for the federal government to address the revenue side of the equation, in my humble view. I've also come to question policies focused on nothing more than tax cuts. To wit: the most recent federal US corporate tax cuts were used in part to buy back shares which is beneficial for investors, of course, but less so for employees, contractors and local economies.

While I spent my life as a hard-core free-market capitalist, I've become more progressive as I've aged perhaps. Taxes are necessary, and I want to be paying for my fair share of public goods. I'm a fortunate Baby Boomer; the generations behind me have had a rough go of it. I want to be helping them.

Anyway, I'm very optimistic about the future, even for the US economy. And passive investing works. Set an AA and rebalance once a year. And don't read the financial news every day.

Thanks for the update; glad you are well.

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