Can I lease a couple of nice cars?

[corn18]

You might be right.

I tried the traditional approach to retirement savings - stuffing everything I had into a 401K for 20 years - and realized my returns on it were pretty dismal. I decided if I was ever going to really achieve my financial dreams, it wouldn't be by watching CNBC. It would have to be on my own, and in my own way. The mutual fund managers don't care about my life - they just want to beat the averages by a little bit.

I liquidated my company 401K of every penny - over $400K - paid the taxes and bought two nice rentals for $300K that produce a very nice income.

I also spent about $250K from another savings acct on a business franchise that
is now throwing off about $185K a year.

So yes I have had much more success with the non-traditional approach to wealth accumulation and retirement. That would be putting it mildly. It's worked so well that I am - for all intents - retired right now.

I doubt that I'm going to use the proceeds from my non traditional approach to go back and try the traditional approach, which for me was just a waste of time.

I don't think you should go back to the traditional approach. Just build up some liquid money and then feel free to enjoy your wealth. Seems straight forward and completely congruent with your desires.

[Singuy]

Good point. Question ...what expenses are a waste of money ? If I buy Kraft Mac & Cheese instead of the generic, is that a waste of money? If I want to fly first class to have more legroom on a 3 hour flight, is that a waste of money?

Yes..lol

"A waste of money" is very subjective. Everyone values what they spend on differently. A waste of money to you may not be a waste of money to me. If you think you are financial stable enough for the rest of your life, then who are we to tell you what to do?

We are just looking for certain signs that may lead you down a slippery slope. We generally don't encourage people buying huge liabilities. Tom can give you some incite about his experiences with money. His income is more than yours and lived large..which also got him into a lot of financial trouble.

[Butterscotch]

This might be rude to ask, and as no one else has mentioned it I must be correct, but why so much for tithe? I don't belong to a church so I am unfamiliar with this. How is that amount determined? Is it an obligation? If you have a tough month can you not pay it? Is it a tax write off? Is the amount determined by you or by the church? Will the church help you out financially if you fall on hard times? Do they invest it? I truly am interested so I apologize if this is rude.

[greenskeeper]

I never lease or finance a vehicle....cash always. Drive it until the wheels fall off. This is not out of nessesity as I could easily purchase 2 new vehicles through lease or finance but why? I have other places to allocate my hard earned money.

On another topic...do you have at least one years operating expense in an easily accessible account for you businesses?

[TexasHusker]

This might be rude to ask, and as no one else has mentioned it I must be correct, but why so much for tithe? I don't belong to a church so I am unfamiliar with this. How is that amount determined? Is it an obligation? If you have a tough month can you not pay it? Is it a tax write off? Is the amount determined by you or by the church? Will the church help you out financially if you fall on hard times? Do they invest it? I truly am interested so I apologize if this is rude.

Not rude at all. Tithe just means a tenth. We want to give 10 percent of our earnings away. In our particular situation, we feel that our church is a good place to do that: very little of their budget goes to buildings and gymnasiums - much (most?) goes to missions - both locally and elsewhere. For example, we have a huge local homeless ministry (the church is located downtown) in which we help battered mothers, children, and addicts get their lives together.

The tithe is not an obligation nor given compulsively - I could give a dollar a year and the church would never say a word - it's just a percentage we feel comfortable with.

[Fishindude77]

I think you have gotten some good feedback. I'm not impressed by fancy cars so don't really get the want. I'd be a lot more impressed with a guy that drives pretty basic automobiles, but lives in a paid off house and has a hefty bank account.

[scfr]

Have you thought about opening a tax-deferred retirement plan for the self-employed?

BTW, I strongly recommend that you sit down and figure out your actual net worth and start tracking it over time.

[TexasHusker]

I think you have gotten some good feedback. I'm not impressed by fancy cars so don't really get the want. I'd be a lot more impressed with a guy that drives pretty basic automobiles, but lives in a paid off house and has a hefty bank account.

Impressing someone is pretty far down on my list.

[TexasHusker]

Have you thought about opening a tax-deferred retirement plan for the self-employed?

BTW, I strongly recommend that you sit down and figure out your actual net worth and start tracking it over time.

I checked today and net is in the 1.7 range - it has increased quite a bit due to the values of my businesses going from basically zero to nearly $1 million from a 3X multiple of earnings.

I'm through with all traditional investment vehicles - i.e. IRAs etc. Too many rules, no way to leverage the $$$, and piss poor earnings and growth. I grew weary of the gubmit telling me what I could do with my $$ and when.

[LivingAlmostLarge]

Is college paid for? Are you set to pay for college in 2 years? If not would it be wiser to take the excess cash and pay cash for college soon?

[Nika]

Once necessities are taken care of, the rest of the income can be allocated to luxuries that give you enjoyment.

To us, necessities include savings, sufficient retirement contributions, and college funds.