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Author: madbrain Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76075  
Subject: Re: Tax efficient investing for early retirement Date: 5/11/2006 3:37 PM
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>Yeah, do. You may be surprised at how much you spend on thing like eating out, buying lunch at work

Well, I track it all, so I'm not really surprised. I count all eating out together, whether it's lunch at work or dinner at a fancy restaurant for 2. I checked the last 3 years and that's been remarkably stable at $3k annually.

>'small' ($50-$100) impulse buys like brand name clothes or shoes, or who knows what. If none of these match you, then *something* does.

I'm not into the brand name clothes or shoes at all ;)
I checked, and there is no pattern of any small things I do regularly that add up over time. Rather, a few large / very large ones that just empty all my savings at the time.

2001 I got a driver's license and bought my new car for cash ($25k with taxes and warranty) . I have put on a few pounds on since I no longer bike to work, though still not bad. But I don't regret having a car since I live in a suburb.
2002 I bought a nice new german small grand piano, that barely fits in my house, again for cash ($25k) . That should last a lifetime and I certainly don't regret it .
2003 I had an 8 weeks paid sabbatical from work and went with my ex on a 6 weeks trip to Europe, about $15k. And also an excess of electronics - I was wrong that there was no year that I ever spent over $10k, that year was $11.5k.
2004 I made a $12k mortgage prepayment. Still $7k in electronics.
2005 I did a $55k remodel of my kitchen and 2.5 bathrooms. I couldn't have done it without a $40k gift from my father (a one-time tax-free donation in France - better than paying 70% estate taxes later). I had been waiting a long time, and many repairs needed to be done especially in the bathrooms. Ripping out eveything and putting nice stuff is what I wanted to do all along for years, but I didn't have enough cash. The opportunity came with the gift. I think the remodeling added at least as much value to the house as its cost, but I did it mainly because I live in the house, not to flip. I also bought a $7k used car for my ex . Oh, and no electronics last year !

>Most people don't need internet, tv, *and* NetFlix, but if yo ucan figure out where that 'missing' $25-$30K is going, that may be irrelevant.

I couldn't live without internet, I'm in a tech job after all. I have had DSL at my house since it was first available in beta by Pacbell in 1997 . But it's a good point about TV and netflix, there is only so many things one can watch. However on the HD projector, the HD satellite channels look stunning and it's really worth paying for. Netflix provides the ability to choose one's favorite movies on top of that (though DVD is much lower quality). My sister is a movie editor in France, so I get to see a few of her indie movies on netflix, that would never show on TV ;).

>Hmmm. Works for me here at work on Firefox on XP. Well, this one isn't sorted as obviously, but its still by type:
http://www.ishares.com/fund_info/index.jhtml

Thanks. Must have been a bug specific to Solaris.

>About Vanguard, I was logged in when I sent that, but you shouldn't need to be to view it. Here's a non-logged in version:
http://flagship5.vanguard.com/VGApp/hnw/FundsVIPERByType

Thanks again.

>Well yes, but eventually it'll kick in. And your 401K withdrawals will be there too - although not forced for a while. Still, at least affter a while, you won't be paying average tax rate.

True.

>Or maybe split it as I suggested, so you're playing both sides.

I think the split will work best. But by the numbers I ran, it doesn't look like a retirement 45 will really be possible, at least not the way I want to live. 50 looks doable though.

>Good luck!

Thanks.
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