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Posted: 3/7/2010 7:55:55 AM EDT
For the last 18 months I've been putting half my income into savings, retirement and investment accounts. To make it happen I had to move to a smaller apartment and put off all large expenditures, but I've gone from being in debt to having enough liquid assets to cover 2 years worth of normal expenses should my job disappear. I also get a big thrill out of watching the dividends roll in.

Any other ARFcommers with aspirations for early retirement?

Link Posted: 3/7/2010 7:58:03 AM EDT
I've been putting roughly 50% into guns and ammo this last year. Does that count?
Link Posted: 3/7/2010 7:58:06 AM EDT
trying too, but I only make about 26k a year takehome, so 12 k or so in saving builds up slowwww.

But then I am 26 and have 40k in the bank and zero debt. If i could just decide where to settle down I will soon be able to buy a house in just about any rural are for cash
Link Posted: 3/7/2010 7:58:16 AM EDT
not 50%, but I did just up my 401K contribution % again. As soon as I finish paying off my debt, I'll be socking away a lot more.
Link Posted: 3/7/2010 7:58:51 AM EDT
No, I have to eat unfortunately.
Link Posted: 3/7/2010 7:59:12 AM EDT
I'm around 40% gross income going into savings/investments/paying down mortgage early.
Link Posted: 3/7/2010 7:59:36 AM EDT
I wish I could get to 50%, now I save about 20% of income. I just don't feel good unless I have ~2 years worth of mortgage payments in the bank. Good job man.
Link Posted: 3/7/2010 8:04:59 AM EDT
Originally Posted By ch1966:
I've been putting roughly 50% into guns and ammo this last year. Does that count?


Only if you plan to sell them for a profit at some point in the future. Otherwise they're just collectibles.
Link Posted: 3/7/2010 8:07:42 AM EDT
finishing paying off some debt right now, but i expect to pocket at least 50% of my salary this year between 401K, cash, and stocks :)
Link Posted: 3/7/2010 8:09:21 AM EDT
I probably save about 80%
Link Posted: 3/7/2010 8:12:42 AM EDT
Good for you I'm actually trying to talk my wife into moving so we can do something similar. Tired of just getting by we have a paid for house that we cannot get rented(inherited in 08) .Instead of paying a mortgage of $1500 man I could do a lot better things with that $$. We may end up having to do it anyway due to my work dwindling to very little. Good job and good luck . BTW you listen to Dave ?
Link Posted: 3/7/2010 8:12:54 AM EDT
Originally Posted By distributor_of_pain:
I probably save about 80%


Nice! Any tips?
Link Posted: 3/7/2010 8:17:46 AM EDT
[Last Edit: 3/7/2010 8:25:12 AM EDT by BigJon314]
I'm doing the same thing...except I'm closer to 60-70% saving/paying off debt. I'm splitting the savings between all sorts of dividend yielding stocks and my student loans (6.1%).

I've been doing a bit of research on the dividend stocks, and what I like is a stock that pays less in dividend than it makes (you gotta be careful on some of those...GM was "yielding" over 10% before its stock went to zero). If they aren't making more money than they are paying out, they either have to start making more money or they are going to cut the dividend.

Another criteria I look for is that historically the dividend has been going up. I look back 10 years and see what the quarterly dividend was and compare it to now. For instance, I like AT&T (ticker :T) right now. It makes more than it pays out, and its dividend has gone up from 0.244 (Jan of 2000) to .42 each quarter in the last 10 years. Right now at 6.7% yield its not too bad.

I rent and don't have a payment anymore on my car, thankfully. When I do buy a car, I intend to pay cash. I am going to start saving a set amount monthly just for a vehicle.
Link Posted: 3/7/2010 8:19:01 AM EDT
Originally Posted By JSparks:
Good for you I'm actually trying to talk my wife into moving so we can do something similar. Tired of just getting by we have a paid for house that we cannot get rented(inherited in 08) .Instead of paying a mortgage of $1500 man I could do a lot better things with that $$. We may end up having to do it anyway due to my work dwindling to very little. Good job and good luck . BTW you listen to Dave ?


I don't agree with all of Dave's advice, but I think his basic message is sound. Good luck on the path to financial independence!
Link Posted: 3/7/2010 8:23:37 AM EDT
are savings rates that good now?
Link Posted: 3/7/2010 8:27:30 AM EDT
[Last Edit: 3/7/2010 8:29:21 AM EDT by TheRocketmac]

Originally Posted By rkh:
Originally Posted By distributor_of_pain:
I probably save about 80%


Nice! Any tips?


He lives in his van, you know, down by the river.


ETA: My wife and I are about at 60% paying debt down using min payments then paying whole debt sources off at once (one at a time).
Link Posted: 3/7/2010 8:29:03 AM EDT
[Last Edit: 3/7/2010 8:29:31 AM EDT by ma96782]
Don't worry..........the Government is saving for you. And, they keep on extending unemployment bennies........there is no end.

Aloha, Mark

Link Posted: 3/7/2010 8:30:09 AM EDT
Originally Posted By TheRocketmac:

Originally Posted By rkh:
Originally Posted By distributor_of_pain:
I probably save about 80%


Nice! Any tips?


He lives in his van, you know, down by the river.



My goal is to move onto a sailing catamran, down by the Carribean.


Link Posted: 3/7/2010 8:30:21 AM EDT
Originally Posted By rkh:
Originally Posted By distributor_of_pain:
I probably save about 80%


Nice! Any tips?


Make good money, keep your bills and desires low. That's about it.
Link Posted: 3/7/2010 8:32:16 AM EDT
We live on 10% of my income, I invest the rest in me mostly.
Link Posted: 3/7/2010 8:32:27 AM EDT
Originally Posted By chapperjoe:
are savings rates that good now?


Interest rates on CDs are garbage now, but there are lots of high quality stocks with growth potential that offer 3-6% dividend yeilds.
Link Posted: 3/7/2010 8:33:20 AM EDT
I can't afford to set aside 50 %
Even when I was overseas, the best I could manage was 25%.
Link Posted: 3/7/2010 8:33:34 AM EDT
I wish I could put away that much.

I like to party too much, and buy new things.
Link Posted: 3/7/2010 8:34:55 AM EDT
[Last Edit: 3/7/2010 8:51:25 AM EDT by Tekka]
I used to do that. I'll do more than that in the future because I like watching compound interest grow.
Link Posted: 3/7/2010 8:36:29 AM EDT
Originally Posted By rkh:
For the last 18 months I've been putting half my income into savings, retirement and investment accounts. To make it happen I had to move to a smaller apartment and put off all large expenditures, but I've gone from being in debt to having enough liquid assets to cover 2 years worth of normal expenses should my job disappear. I also get a big thrill out of watching the dividends roll in.

Any other ARFcommers with aspirations for early retirement?



This is usually where all of the INTJs come out of the woodwork.
Link Posted: 3/7/2010 8:37:22 AM EDT
Not just no, but hell no.
Link Posted: 3/7/2010 8:49:50 AM EDT
[Last Edit: 3/7/2010 8:51:56 AM EDT by ultramagbrion]
Originally Posted By rkh:
Originally Posted By ch1966:
I've been putting roughly 50% into guns and ammo this last year. Does that count?


Only if you plan to sell them for a profit at some point in the future. Otherwise they're just collectibles.


They dont seem to be losing much value. Especially compared to houses , stocks,401ks ,etc over the past 5 years.
Link Posted: 3/7/2010 8:51:08 AM EDT

Originally Posted By trwoprod:
Originally Posted By rkh:
For the last 18 months I've been putting half my income into savings, retirement and investment accounts. To make it happen I had to move to a smaller apartment and put off all large expenditures, but I've gone from being in debt to having enough liquid assets to cover 2 years worth of normal expenses should my job disappear. I also get a big thrill out of watching the dividends roll in.

Any other ARFcommers with aspirations for early retirement?



This is usually where all of the INTJs come out of the woodwork.

INTJ here...
Link Posted: 3/7/2010 8:52:18 AM EDT
Originally Posted By Tekka:

Originally Posted By trwoprod:
Originally Posted By rkh:
For the last 18 months I've been putting half my income into savings, retirement and investment accounts. To make it happen I had to move to a smaller apartment and put off all large expenditures, but I've gone from being in debt to having enough liquid assets to cover 2 years worth of normal expenses should my job disappear. I also get a big thrill out of watching the dividends roll in.

Any other ARFcommers with aspirations for early retirement?



This is usually where all of the INTJs come out of the woodwork.

INTJ here...


Same.
Link Posted: 3/7/2010 8:54:58 AM EDT
Originally Posted By rkh:
Originally Posted By Tekka:

Originally Posted By trwoprod:
Originally Posted By rkh:
For the last 18 months I've been putting half my income into savings, retirement and investment accounts. To make it happen I had to move to a smaller apartment and put off all large expenditures, but I've gone from being in debt to having enough liquid assets to cover 2 years worth of normal expenses should my job disappear. I also get a big thrill out of watching the dividends roll in.

Any other ARFcommers with aspirations for early retirement?



This is usually where all of the INTJs come out of the woodwork.

INTJ here...


Same.


GTFO, this thread is now owned by ESTJ's!
Link Posted: 3/7/2010 9:49:26 AM EDT

Originally Posted By BigJon314:
I'm doing the same thing...except I'm closer to 60-70% saving/paying off debt. I'm splitting the savings between all sorts of dividend yielding stocks and my student loans (6.1%).

I've been doing a bit of research on the dividend stocks, and what I like is a stock that pays less in dividend than it makes (you gotta be careful on some of those...GM was "yielding" over 10% before its stock went to zero). If they aren't making more money than they are paying out, they either have to start making more money or they are going to cut the dividend.

Another criteria I look for is that historically the dividend has been going up. I look back 10 years and see what the quarterly dividend was and compare it to now. For instance, I like AT&T (ticker :T) right now. It makes more than it pays out, and its dividend has gone up from 0.244 (Jan of 2000) to .42 each quarter in the last 10 years. Right now at 6.7% yield its not too bad.

I rent and don't have a payment anymore on my car, thankfully. When I do buy a car, I intend to pay cash. I am going to start saving a set amount monthly just for a vehicle.

Check out LINE. It's a Texas natural gas company that has structured itself to pay out high dividends to attract conservative investors who will hold on and accumulate its stock.

Link Posted: 3/7/2010 9:57:47 AM EDT
Originally Posted By raven:

Originally Posted By BigJon314:
I'm doing the same thing...except I'm closer to 60-70% saving/paying off debt. I'm splitting the savings between all sorts of dividend yielding stocks and my student loans (6.1%).

I've been doing a bit of research on the dividend stocks, and what I like is a stock that pays less in dividend than it makes (you gotta be careful on some of those...GM was "yielding" over 10% before its stock went to zero). If they aren't making more money than they are paying out, they either have to start making more money or they are going to cut the dividend.

Another criteria I look for is that historically the dividend has been going up. I look back 10 years and see what the quarterly dividend was and compare it to now. For instance, I like AT&T (ticker :T) right now. It makes more than it pays out, and its dividend has gone up from 0.244 (Jan of 2000) to .42 each quarter in the last 10 years. Right now at 6.7% yield its not too bad.

I rent and don't have a payment anymore on my car, thankfully. When I do buy a car, I intend to pay cash. I am going to start saving a set amount monthly just for a vehicle.

Check out LINE. It's a Texas natural gas company that has structured itself to pay out high dividends to attract conservative investors who will hold on and accumulate its stock.



Pipeline companies are often structured in similar ways.
Link Posted: 3/7/2010 10:01:13 AM EDT
I wish I could save 50%, but try to get around 33% of my income into savings.
Link Posted: 3/7/2010 10:09:19 AM EDT
Originally Posted By raven:
Check out LINE. It's a Texas natural gas company that has structured itself to pay out high dividends to attract conservative investors who will hold on and accumulate its stock.


Linn Energy is not a traditional stock but instead an MLP, the yield is sweet but MLPs have some complicated tax implications much different from a normal dividend stock.
Link Posted: 3/7/2010 11:02:44 AM EDT
[Last Edit: 3/7/2010 11:03:14 AM EDT by rkh]
Originally Posted By fossil_fuel:
Originally Posted By raven:
Check out LINE. It's a Texas natural gas company that has structured itself to pay out high dividends to attract conservative investors who will hold on and accumulate its stock.


Linn Energy is not a traditional stock but instead an MLP, the yield is sweet but MLPs have some complicated tax implications much different from a normal dividend stock.


Yep. There are tax disadvantages to holding MLPs in certain tax-advantaged accounts, like IRAs.

ETE is my MLP of choice.
Link Posted: 3/7/2010 3:39:10 PM EDT
Early retirement? How about aspiring to a cushy six-figure government job where you never have to retire?
Link Posted: 3/7/2010 3:41:35 PM EDT
Half....so that'd be 25 bucks a week. Yeah, I could probably do that.
Link Posted: 3/7/2010 3:43:31 PM EDT
You should really read YOUR MONEY OR YOUR LIFE by Domingez.

Souds like it would benefit you and what your are doing. It is a great book.
Link Posted: 3/7/2010 3:56:11 PM EDT
In a regular brokerage account are any tax implications to owning MLP's like Line or do they still get taxed as regular dividends?
Link Posted: 3/7/2010 5:33:31 PM EDT
[Last Edit: 3/7/2010 5:33:44 PM EDT by fossil_fuel]
Taxation of MLP payouts is treated very differently, and is much more complicated than normal dividends. some portion of the payments will be treated as a return of capital (thus you'll have to pay more capital gains tax if/when you sell your shares in the MLP), and others may be taxed at normal income tax rates rather than dividend tax rates. You may also be required to file state taxes in every state which the MLP operates if you're above a certain limit.

http://news.morningstar.com/articlenet/article.aspx?id=203288
Link Posted: 3/7/2010 5:39:43 PM EDT
[Last Edit: 3/7/2010 5:45:49 PM EDT by JoeCoastie]
not possible for me. Just paid off the truck a few weeks ago. Tax returns will be a little better this year due to the 3 month old so that's going to pay off the 3k on the CC bill. All I'll have left is monthly expenses and a mortgage.

The mortgage is 1/3 of my monthly take home.

Roughly 250$ goes into my retirement fund which has gotten a 21% return this past year.
Link Posted: 3/7/2010 5:41:51 PM EDT
yeah right.
Link Posted: 3/7/2010 5:42:24 PM EDT
Originally Posted By distributor_of_pain:
I probably save about 80%


Same here.
Link Posted: 3/7/2010 5:43:12 PM EDT
Almost. I take home $450 a fortnight, and $200 goes in the 'no touchy' savings account.
Link Posted: 3/7/2010 5:43:20 PM EDT
Will not be able to do it for awhile.

Just bought a house. House payment will be roughly 1/2 of my monthly income.

Once I manage to get out of all other debt but the house payment, I will start diverting money into savings and investments as much as possible.
Link Posted: 3/7/2010 5:46:25 PM EDT
I max out my TSP and Roth every year, that's about 30-40% of my income. I refuse to invest in taxable stocks/bonds and let uncle sam have everything I earn.
Link Posted: 3/7/2010 6:01:21 PM EDT
I am forced to live pretty much hand to mouth. I'm lucky to put $50.00 a month into my IRA
Link Posted: 3/7/2010 6:18:42 PM EDT
i've been routing fifteen percent of my take-home into a navy fed account that i opened six years ago. beyond that, all i have is 401k and some stocks.

i have to stop being so lazy and make my money work for myself.
Link Posted: 3/7/2010 6:20:44 PM EDT
[Last Edit: 3/7/2010 6:21:06 PM EDT by raven]

Originally Posted By 80thdiv313fa:
Originally Posted By distributor_of_pain:
I probably save about 80%


Same here.

Bravo. I manage 40-50%
Link Posted: 3/7/2010 6:29:25 PM EDT
if you are going to invest make sure not to dump money on one or two stocks... check out various etf funds... and pay attention to fees that are charged.
Link Posted: 3/7/2010 7:51:47 PM EDT
Originally Posted By distributor_of_pain:
I probably save about 80%


How? Unless, as others have said, you live in a van....or you have a high six figure income and live cheaply.
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