1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Can you still get "rich" racing bikes in America?

Discussion in 'General' started by HPPT, Oct 15, 2020.

  1. Saving for retirement is great. But where a lot of people have been burned this year is by not saving for “now”.

    IMO, excess money shouldn’t be dumped into retirement until there is at least 6 months, preferably one year’s salary in some type of savings account that you can get right now, if necessary.

    I have always put 10% into a retirement account, because my company matches it dollar for dollar up to 10%. I figured if they are going to match it, then I might as well take advantage of the amount they are willing to match.

    I didn’t put a dime over that 10% until I managed to get a regular savings account to an acceptable amount. That way if everything goes to shit (like this spine situation dragging on much longer than anticipated), I don’t have to stress.
     
    SGVRider, TurboBlew and Dragginass like this.
  2. Dragginass

    Dragginass Well-Known Member

    I agree, but it doesn't need to be based on salary. I keep enough liquid cash for 18-24 months of living expenses. That's far less than a year of my salary, but plenty to carry my family while I reinvent my work life should something happen. My wife stays at home with our kids.
     
  3. StaccatoFan

    StaccatoFan My 13 year old is faster than your President

    In summary...after reading the last two pages:

    1) Too many people lack long term vision in their financial plans. Many young people don't save for the long haul, & many older folks don't think realistically about their stage of life when they move into a ridiculous McMansion in their 50's.

    2) Many people don't have a balanced approach to savings in the sense that they don't have a 6-12 month liquid reserve in place to weather any type of immediate financial storm, as well as saving for retirement (which relates to item one).

    And, I agree with these points.
     
  4. Motofun352

    Motofun352 Well-Known Member

    Key factors to calculate:
    Inflation rate. This is applied to yearly increase in withdrawals from the principle
    Interest earned rate. This is applied to the principle after yearly withdrawal
    Initial principle

    The only thing you can effectively control is the yearly withdrawal but even that is constricted by debt, taxes, utilities, food...sure you can nibble around the edges but uncle sam wants his first as does the governor, the county and the school. You can take a lot of risk to maximize interest rate but one false step could be devastating. What's left? Principle.
     
  5. HPPT

    HPPT !!!

    I'm not saying they can't. I'm saying the income they will generate from that won't be anywhere near what a few people seem to think it will be.

    And I'm saying that someone your age now or their age 30 years ago is not in the same situation. That's all.
     
  6. SGVRider

    SGVRider Well-Known Member

    Ah, the 90s/2000s in America, the age of spinners and bling. That was fueled by unreasonable optimism for the future and credit so cheap and easy they’d give you a ‘busa and a ranch style house if you were breathing. Those days are gone and are never coming back.

    Rich as in you’re living a rockstar life? Hell no. Never gonna happen. Rich as in financially independent and comfortable? Yes. If you actually make it to the big leagues now, I think you have to define financial success as “I built a respectable nest egg and my medical bills are manageable”. That’s entirely possible. We’re not going to see anyone make Mladin money racing in America again in our lifetimes.
     
  7. Mongo

    Mongo Administrator

    Agree to an extent. The amount of income depends on which person you're arguing with :D

    No idea why you're going on about their age or my age now or 30 years ago - 2-2.5 million dollars is enough for any version to retire on and retire well. My age now I said I could retire on half a million easily. Separate thing from the 2-2.5 Broome initially brought up although I don't see why anyone in their 20's now if they chose to do so couldn't retire on a million bucks. They'd have to live within their means but it is still very doable with the million invested very conservatively to make it last.
     
    The Great One likes this.
  8. HPPT

    HPPT !!!

    I'm sure we could stretch this indefinitely and get to the 20-year-old dude taking his 1 million bucks to Bhutan or Kathmandu to live life like a king until he dies. For the sake of discussion, we're trying to keep it around the average person.
     
    Gorilla George likes this.
  9. Mongo

    Mongo Administrator

    Okay, lets actually figure out what your point is since you're being awfully vague on it - are you saying a 25 year old could not invest a million dollars right now and live the rest of their life on that million dollars?
     
  10. HPPT

    HPPT !!!

    I'm saying it would have to be a very frugal life not much fun for someone that age. Especially if they have to buy a house.
     
  11. SuddenBraking

    SuddenBraking The Iron Price

    I think he's saying (I don't want to be presumptuous and speak for him, but since I've started drinking I will) that all of this is dependent upon four variables.

    1. How long you're planning to live.
    2. The (real, inflation adjusted) return on your money.
    3. What you plan on spending per year.
    4. The amount of money you start with.

    Your 3 is lower than most people's, so you're debating "could" someone live off of XX dollars. I think we all know the answer is "it's theoretically possible", but that's not how we'd choose to live. Most people view retirement as accumulating enough wealth to live out the rest of your days as how you "choose to live" (which in many cases is your pre-retirement spending levels) vs "how cheap can I live until I die".
     
    Gorilla George and HPPT like this.
  12. Mongo

    Mongo Administrator

    Well there is where we disagree. If you're retired you don't have to live in an expensive place since no commuting needed. Plenty of places all over the world to live where you don't need to drop half a mill on a house, lots of fun used cars and bikes and so on.

    Based on what little I have invested just looking at say the last four years I could live as I do right now paying a mortgage and pulling only what I make in salary, paying taxes on it and all that and my million would have turned into around 1.25. Granted that is assuming a significant other with income as well, I wouldn't has as much leftover to add to the principal if I had to cover the entire mortgage - then again I wouldn't live in a house this size either so give and take on it.

    Granted I am frugal in large part.
     
  13. Valid point.

    I did mine based on salary, just because it made me feel better. But that way works also. :beer:
     
  14. rd49

    rd49 Well-Known Member

    Lol, retired people buy cars.
     
    Gorilla George likes this.
  15. Mongo

    Mongo Administrator

    Yeah but they don't need brand new expensive ones every 2 years :D


    Also in general about this thread and the retirement thing - being able to retire in your 20's, even if you have to live what people in general consider frugally - does absolutely still make you rich....
     
    The Great One and Dragginass like this.
  16. HPPT

    HPPT !!!

    I already covered the Bhutan option. :D
    If you had started with this, I wouldn't have spent any time on this discussion beyond the first post. You came at me with you being a 20-something whom I assumed was a single. Now you're in your 50s with a significant other who has an income. And you say I'm vague. We are not going to agree on this. :D
     
  17. YamahaRick

    YamahaRick Yamaha Two Stroke Czar

    I recently invested in Zuma futures. The ROI on recent purchases could be huge.

    If I were to sell them. Not likely though.
     
    motion and TurboBlew like this.
  18. ChemGuy

    ChemGuy Harden The F%@# Up!

    Ill give you tree fiddy for it...since its in such bad shape...:D
     
  19. motion

    motion Nihilistic Member

    I'll need around $10-$15K a month when I'm 67 (I'm 57 now). That's without any bills, aside from insurance, utilities, food, wine.

    I'm happy with a 10 year old pickup truck, but we always have a fun sports car and my wife needs a new car to drive so I don't have to worry about her breaking down (we're rural).

    I know I can't sit around for more than 2 weeks without going crazy, so between my hobbies and traveling, it ain't cheap. I used to think I could retire and only spend a few thousand a month, but its just not realistic.
     
  20. YamahaRick

    YamahaRick Yamaha Two Stroke Czar

    Candidly speaking, I'm glad my grasp of reality is (IMO) is less expensive than yours.

    $180K/year, after taxes, to ~get by?~

    Do you really think the ROI on your green penis will be in the black?

    And you didn't spend a few bucks to protect your wife's car from hail?

    WTF is wrong with you?

    PS - if your wife looks like 1987 version of the singer Pebbles, then yes, this boy would like to ride in her Mercedes.
     
    Gorilla George and motion like this.

Share This Page