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Nicely written testimonial. Via Business Insider:

There once was a dude from the southeast who thought that life could be broken down into a few simple constructs: get a job, buy stuff, retire and die. Yep, that dude was me (pictured at right).

Early retirement? Not in the cards. 401k retirement plan? Sure, but only the minimum. Retirement was the furthest thing from my mind. After all, I had stuff to pay for!

From a young age, I was off to a great start. This is my story, a look into my life as a very standardized American with first world “white people problems”, and how I managed to escape that wretched cycle of waste. Are you ready? Let’s go.


Read the whole thing at http://www.businessinsider.com/im-34-years-old-and-im-planni...

- Matt
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He's got enough to live on for 40 years? I didn't see him running the numbers in this fluff piece. Anyone can plan on retirement in a year but I see nothing in this piece with real numbers.
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He's got enough to live on for 40 years? I didn't see him running the numbers in this fluff piece. Anyone can plan on retirement in a year but I see nothing in this piece with real numbers.

Noted the same, but assumed he did the same intensive planning for how much he would spend in retirement as he did in planning how much it would cost to buy the Corvette, STS, etc........

This was a fantasy article written to try and sound like an expert, but void of any reality.

LakeD
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Um, he actually has a popular blog where he runs the numbers of his net worth monthly with updates on his target date for financial independence.

http://www.thinksaveretire.com/

He's a Mr. Money Mustache type of saver. I don't really follow him, but a cursory glance around his site seems like the numbers basically add up for how he plans to live after he retires. As far as I'm concerned, more power to him. People should live their lives how they want.

A good financial independence article doesn't have to have numbers every time. Sheesh! Some of the best posts I ever read on the Fool's boards were written by Tamarian G. a long, long time ago. There was a lot more about lifestyle changes in her post than cold, hard numbers. And thank goodness for that. Her posts inspired me. So did this article.

I just find it so odd that more posters on this board aren't happy to find celebrations of frugal living in the media.

- Matt
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Um, he actually has a popular blog where he runs the numbers of his net worth monthly with updates on his target date for financial independence.

http://www.thinksaveretire.com/


Now the blog is interesting. Only skimmed it, but there is meat there.


A good financial independence article doesn't have to have numbers every time. Sheesh! Some of the best posts I ever read on the Fool's boards were written by Tamarian G. a long, long time ago. There was a lot more about lifestyle changes in her post than cold, hard numbers. And thank goodness for that. Her posts inspired me. So did this article.

While I agree with that statement, I still think the "article" IMHO was poorly written and lame. He simply said, gosh, I used to be a pig but saw the light and cleaned-up my act. Again, his blog goes in to more detail, but maybe that was what the article was all about, sucking in readers for his blog. Ironically, I missed the blog connection as I thought it was such a weak article.

And without any even simple core numbers, it was hard to believe. He stated he spent half his salary on a 5-year old Corvette that wasn't tricked out. So, even assuming a car dealer really screwed him, his salary wasn't likely over $100k. There's no information to say what he made 6 years later when he had his turn-around, nor what his wife made. It is hard to believe you can save enough in 5 years to go from zero to filled retirement pool. So what is his "number" and how do you get there, that is what would have been the intriguing story to me.

And how does he define retirement. Does he plan to continue to blog and hence make money, so does that mean he's truly retired?? That's a debate I don't want to pursue at this time, but something to consider. Sorry, this article to me, was just advertising to get more readers for his blog and therefore, not much of an article.

I just find it so odd that more posters on this board aren't happy to find celebrations of frugal living in the media.

We all are entitled to our own opinions as well as likes and dislikes. I wouldn't say I "celebrate" frugality, but I strongly and deeply appreciate frugality. I even more enjoy and appreciate a true sharing of what and how someone practices frugality. Even if I don't plan to do what they do or did, it's fun to learn others approaches and perspectives. I suspect his blog will be a more entertaining and of "value."

LakeD
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LakeDog writes,

And how does he define retirement. Does he plan to continue to blog and hence make money, so does that mean he's truly retired?? That's a debate I don't want to pursue at this time, but something to consider. Sorry, this article to me, was just advertising to get more readers for his blog and therefore, not much of an article.

</snip>


I took a quick look at the blog. As of Oct 2015, he has at net worth of $670,000. His retirement goal is $750,000 -- enough for a $30,000/yr budget for living expenses at a 4% withdrawal rate.

He plans to live in a small RV or Airstream trailer after he retires, then supplement his income doing "work camp" (i.e., get free rent and utilities for doing work around the RV campground.) There are lots of rural areas around the country where you could do that on $30,000/yr, though few could tolerate the lifestyle.

http://www.thinksaveretire.com/2015/08/01/our-financial-inde...

It sounds like what he's planning is doable.

intercst
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Frugal living is not necessarily the same as lbym.

I like to be sure I am spending money where I find value for my life as well as getting the best value for that spending.

I'm not looking for living in a box by the river or desiring to be debt free. I do like that last line of my net worth spreadsheet and when I feel like I am spending money on the things important to me.
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I took a quick look at the blog. As of Oct 2015, he has at net worth of $670,000. His retirement goal is $750,000 -- enough for a $30,000/yr budget for living expenses at a 4% withdrawal rate.

Thanks intercst,

This is where it gets interesting to understand. I read his blog some also and he makes a few assumptions. You're correct, he is planning on $750,000 as his target and is planning on at least a $30k withdrawal rate and yes, plans to live in an RV. He stated in his blog on his wife's SS, that they plan on NO other income during retirement. He also makes the comment that he makes about 8.2% on his investment. So here is what I am trying to understand, not being critical, but I think to really LBYM and retire, you have to sweat some details.

First, yes, he can draw $30k a year. But if he draws a flat 4% of his nest egg, he won't keep up with inflation. So if you throw in an adjustment for 3% inflation on average, he still will make it 50 years. But only if he "earns" 6.5% on his investment. So he may be retired but he better be sure his money is working hard. He claims he makes 8.2% but can you always count on that? I'd have a hard time sleeping at night knowing I had to guarantee 6.5%. More power to him if he doesn't feel those are not issues, but I personally can't feel comfortable running on the edge. Let's hope he earns well the first few decades, cause if they are short, he'll need to do even better down the road. In reality, if he does well, he could easily end-up with millions extra. The power of LBYM.

Second, what about that "life happens." Does he have an emergency fund? His RV won't last 50 years, if he barely makes his funds growth, will he be able to buy another one? Again, not being critical, I'm looking to understand. Personally, I have a plan A and B, as well as a "hunker in the bunker" plan if things really go wrong. That is just my approach to such. Love to hear and learn others approach.

But I'm also curious how much people have budgeted for. I couldn't do $30k for property cost reasons alone, in addition to my interests and enjoyment cost a little more.

Side note, I was disappointed that his Blog "Retirement renaissance" was the same article as in the journal. Cut and paste.

It's interesting.......

LakeD
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While I agree with that statement, I still think the "article" IMHO was poorly written and lame. He simply said, gosh, I used to be a pig but saw the light and cleaned-up my act. Again, his blog goes in to more detail, but maybe that was what the article was all about, sucking in readers for his blog. Ironically, I missed the blog connection as I thought it was such a weak article.

Most of these articles are exactly that: fluff pieces to draw in blog traffic. I find the comments are often more informative as the commenters take the time to do the research that the "journalist" didn't.

Minxie
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He's got enough to live on for 40 years? I didn't see him running the numbers in this fluff piece. Anyone can plan on retirement in a year but I see nothing in this piece with real numbers.

From the article in the OP, you can get to the author's blog, where he says he and his wife have been saving 100% of her salary and a portion of his own (I don't know for how long). And they expect to sell their homes and live in an RV traveling when they retire.

More power to them, but I wonder if they've run any worst-case scenarios, such as what if one gets diagnosed with a serious illness like cancer, where it's best to stay in one place to get treatment, living in an RV might not be comfortable for someone, and co-pays and out of pocket costs can be considerable - (not to mention who knows what will happen with the ACA if Republicans reach the White House again).
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MetroChick writes,

More power to them, but I wonder if they've run any worst-case scenarios, such as what if one gets diagnosed with a serious illness like cancer, where it's best to stay in one place to get treatment, living in an RV might not be comfortable for someone, and co-pays and out of pocket costs can be considerable - (not to mention who knows what will happen with the ACA if Republicans reach the White House again).

</snip>


Under Obamacare your maximum annual out-of-pocket cost is limited to $6350 single/$12,700 married, even if you get a $1 million hospital bill. If this couple are able to limit their income to $30,000/yr., they might even qualify for cost-free Medicaid if they avoid living in a Republican Red State that opted out of Obamacare's Medicaid expansion.

Medical bills are less of a concern for retirees today than they were pre-Obamacare.

intercst
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I would love to read one of these stories about a couple with small children retiring early. Does anyone know of any? I suppose if you home schooled and declined to put away money for college, it could be possible. In so many of these articles the couples are childless, homeless (for all intents and purposes) and live a lifestyle that I find unappealing - at least an this stage in my life.
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neveragain asks,

I would love to read one of these stories about a couple with small children retiring early. Does anyone know of any?

Here's one, but it sounds more like an American horror story.

Family with 12 kids roams US full-time in RV
http://www.today.com/money/american-story-family-12-kids-roa...

</snip>


intercst
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Actually one of the frugal pioneers - Amy Dacyzyn retired early. Her husband had a Navy pension and they had 6 kids.

http://www.amazon.com/The-Complete-Tightwad-Gazette-Dacyczyn...

I didn't read them all but there are interviews with her now grown kids out on the web, too.
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I would love to read one of these stories about a couple with small children retiring early. Does anyone know of any? I suppose if you home schooled and declined to put away money for college, it could be possible. In so many of these articles the couples are childless, homeless (for all intents and purposes) and live a lifestyle that I find unappealing - at least an this stage in my life.


http://www.mrmoneymustache.com/

MMM is one of the central figures in the retire early movement. They have one child though I believe they "retired" prior to having him.

Minxie
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neveragain ~

You, certainly, have a right to voice your opinion on the honesty of retiring at 30. That said, I would just like to clarify something for you lest you incorrectly think you save money by homeschooling.

I suppose if you home schooled and declined to put away money for college, it could be possible.

All five of my children were home educated and participating in that choice does not opt you out from paying for the public schools. That fee is part of property taxes. Home educating costs money and that is paid for by the parents or guardians. If you choose to go through the home school option through the public school system then there isn't any additional money but you are part of the government system rather than a part from it.

We told our kids that we would pay for community college or job training education but that they would be responsible for the costs after that.


Robyn
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correction:

...... but you are part of the government system rather than apart from it.
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You, certainly, have a right to voice your opinion on the honesty of retiring at 30. That said, I would just like to clarify something for you lest you incorrectly think you save money by homeschooling.

That is why I wanted to hear from people who retired early with school age kids. So many seem to trade their homes for RV's. If you live in an RV, are you paying property taxes? How do you prove residence to enroll your kids in school? Also when I hear RV, I think travel - if the kids are in school and enjoying it certainly that plays a part in when and how often the family can travel? To me the only way it could work to retire early with school aged kids is if you homeschooled. And at least in one example- they did. I haven't read far enough in MMM's blog to see. He mentions a 7 year old boy so obviously he's dealing with it now. I have no idea how much it costs to homeschool a child but some expenses are eliminated: I transport my middle kid school, pay school supplies, field tip, book fees - all for a public school. How much was it?
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I haven't read far enough in MMM's blog to see. He mentions a 7 year old boy so obviously he's dealing with it now.

http://www.mrmoneymustache.com/2011/10/12/avoiding-ivy-leagu...

Now we check out books from the library (about 25 per week on average), watch science documentaries on Netflix, bike down to the creek to make ever-more ambitious dams from the round river rocks and sand, and we sit in a sunny patch on the garage floor with the hot glue gun, and make robots out of scrap metal parts that we find sitting around in my tool boxes (see headline picture for this article).

Our son goes to the public school that is a 5 minute bike ride away from our house, a school that is often passed over by the Ivy-League-Preschool set that occupies the other high-priced homes of our neighborhood. Ours is a school where about 40% of the kids come in with English as their second language, which seemed very exciting to all three of us in the MMM family.


The MMMs do not live in an RV nor do they homeschool. MMM Jr attends the local public school. He owns a house worth several hundreds of thousands, though I don't remember the precise value.

Minxie
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So many seem to trade their homes for RV's. If you live in an RV, are you paying property taxes? How do you prove residence to enroll your kids in school?

You don't pay property taxes unless you own property.

Where would your kids live if they were going to a traditional school while you were gallivanting around the country in your RV?

Take your kids with you and homeschool'em on the road.

Google "Homeschool" to find associations that can help you with this.

https://www.google.com/?gws_rd=ssl#q=rv+living+and+homeschoo...
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Where would your kids live if they were going to a traditional school while you were gallivanting around the country in your RV?

That's the thing- I don't want to go gallivanting around the country. I just want to retire early and stay put. I noticed that many retire early with kids types tended to move into an RV and homeschool. But I think it is more of a lifestyle choice than financial one.

For me personally MMM is a great example of where I'd like to be.
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I just want to retire early and stay put. I noticed that many retire early with kids types tended to move into an RV and homeschool.

Full confession here.....bass ackwards, and whatnot......are there any actual boney fido statistics on this topic?? Real observations would do as well, mind.

Never, ever considered homeschooling (not smart enough.....but smart enough to *know*)...however, everything I've seen on teh intardnet and TV has never shown a homeschooling family in a trailer
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....and as a strategy for *retiring in your 30s* I haven't noticed a single worthwhile post from a source that I perceive as, well..... worthwhile.
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I suppose if you home schooled and declined to put away money for college, it could be possible. In so many of these articles the couples are childless

We have four kids, and being a father to four is, I suppose, my "calling." My wife was a stay-at-home parent for over 20 years, so we had to forgo her income, in addition to spending about $6700 per kid per year. (I once explained that calculation on this board, and it's the pre-16 number.)

I see stories about families with two kids that really save money, but I didn't want to be so frugal that my own couldn't take music lessons, or be in sports or whatever. So, we "wasted" a lot of money on basketball camp and track shoes that never had a "return on investment" as far as getting a kid money in college. Maybe being well rounded helped some of them get into a college or earn scholarships, but it's hard to see it directly.

I'm going to be "stuck" working for pay until at least age 58 and possibly age 62. But, the things that would have enabled an earlier retirement just weren't things I was willing to do (not have kids, not allow them to be in activities that cost something, not have any pets).

A way that this whole scheme may have saved money is that I don't have any really expensive hobbies. Every fall I was going to high school football games, college football games (two did play in college) and high school volleyball games. In the winter, it was wrestling and basketball. The cost of two tickets plus gas to get there is still way less than what people spend on golf, I suppose. Our home became the gathering place, so I did have to shell out for juice and chips, or hot dogs and S'More fixings on bonfire nights, but I like knowing my kids' friends and classmates. Also, there's some comfort in the teenaged boys knowing who I am and knowing that I know them for when any of them ask one of my daughters to a dance or something. I heard third hand that I scared the linebacker who came to pick up my daughter for homecoming, but he came to the door, called me "sir," and shook my hand, so he passed the initial scrutiny.
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Under Obamacare your maximum annual out-of-pocket cost is limited to $6350 single/$12,700 married, even if you get a $1 million hospital bill. If this couple are able to limit their income to $30,000/yr., they might even qualify for cost-free Medicaid if they avoid living in a Republican Red State that opted out of Obamacare's Medicaid expansion.

Medical bills are less of a concern for retirees today than they were pre-Obamacare.


That $12,700 is about 40% of their projected $30,000/year budget during retirement - probably not something they're currently budgeting for, ACA only covers "insured" treatment - if you have a rare cancer that needs an expensive prescription insurance doesn't pay for, your costs can easily exceed the $12,700 max. Qualifying for Medicaid is questionable when you have such large retirement assets. And again, who knows how ACA will stand or change over the next 2 decades. IMO it's still a big risk.
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I would love to read one of these stories about a couple with small children retiring early. Does anyone know of any?

I posted one. I suspect the common factor on any of this is not having consumer debt or more accurately, starting with a negative net worth. Once that happens, you are digging out and it's a much longer path.

Staying at least a raise behind and saving the difference is a strategy. Another is two incomes but living on one.

One other factor is looking at what you can do toward financial freedom rather than focusing on what you think is not possible.

(hint:using the word "lifestyle" is a clue)
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So many seem to trade their homes for RV's. If you live in an RV, are you paying property taxes? How do you prove residence to enroll your kids in school? Also when I hear RV, I think travel - if the kids are in school ...

One way of doing it (and one that I was sorely tempted to do but came to my senses) is to be a "Host Camper" at a state park. Many states have an option where the host camper gets free space and utilities (water/electricity hookups) in exchange for so many hours a week of "camp duty" at one of the state parks. I met and talked to a family with two children who did just that. They stayed at the state park for the school year and their children attended the nearest public school which was in a small community about 12 miles away - the kids caught the school bus every morning at the state park entrance. easy enough to show residence at the state park with a letter from the head ranger. Once school let out they would travel around for three months - staying at - you guessed it - other state parks - in what they considered their primary state, but other states as well. Part of this was a scouting expedition as they would check out other state parks to see if they might like hosting in them. The other thing that I learned was that a lot of these "park hosts" select their park homes based on a season. One lady (retired, a widow and without small children in tow) told me she hosted at Texas state parks in the fall and winter and moved up to the northern state parks for summer. Spring was when she went to visit her grown children in various states. She and her husband had retired, bought their RV and set out to travel the country and be park hosts ... about 5 or 6 year into their nomadic life he was diagnosed with cancer - they went to Houston for some treatment but early on, being told it was terminal, opted out of intensive, invasive treatment on the chance of a few more months, and decided to go back to their favourite state park and continue with their hosting duties. When he became too sick to continue as a host the rest of the park hosts, as well as the salaried staff, rallied around and took care of him and his wife there at the park. I don't mind telling you that I got a real severe attack of allergies that made my eyes and nose start running something fierce when this lady was describing her story to me. Most of the park hosts are retired couples but there are some families with children doing this (like the young couple with the two kids we met). I thought it was just fascinating and Bella and I were all gung-ho to do it but like I said I came to my senses. Sort of. Still like the idea of doing it but I would have to buy an RV. I'm strictly a tent camping sort of person and have never seen the lure of an RV but it would definitely be a hassle to try and do the park host gig without an RV. It's one thing to tent camp for two or three weeks but no way I would do it for months on end.
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one of my friends, a couple, did that RV deal at the local Corps of Engineer campground. For '20 hours' a week, they got a free spot, free electricity and cable.....

YOu'd either man the booth at the entrance gate, or 'help' new folks into their spot on 'your row' of vehicles, get them hooked up, etc....clean up the litter......

They did that for a couple years till health problems set it. Then they had to give it up.

Probably 10 folks in the park got the deal. You got a couple weeks off to visit family, etc....but you couldn't all be gone at thanksgiving and other holidays. Summer, naturally, was the busiest time. winter was slow.



t.
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LOL what's with the stock photo of an old Corvette in that article? What's the point of that?

Like if I write a piece about my finances, and I happen to live in a house, I should just randomly include a picture of somebody else's house in my piece? Here you go, dear reader...just in case you were bored with my writing, here's an unrelated picture to entertain you!

xtn
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What I'm dying to know is how do you keep a woman around if you start talking about quitting your job; selling your house; and moving into a 200 sq foot mobile home ?
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how do you keep a woman around if you start talking about quitting your job; selling your house; and moving into a 200 sq foot mobile home ?



You find someone with the same value set as mentioned above and go from there...



peace & a van down by the river
t
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<<He plans to live in a small RV or Airstream trailer after he retires, >>


The Mayor of Seattle is currently very actively involved in providing free places for people to park their RVs and trailers, and free spaces for free tent camping on city property at no cost. Free water, porta potties and garbage service will of course be provided at no cost.

No taxes!

Why pay taxes and fees to live in Seattle when you can get all this for FREE and let the suckers pay for it?



Seattle Pioneer
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Maybe they want to sit on toilet seat where every aids infested hep c crackhead hasn't been. I mean really a ports potty?

Why live in an rv? A tent would be even cheaper or a park bench or a box even cheaper than that.
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<<Why live in an rv? A tent would be even cheaper or a park bench or a box even cheaper than that.>>



I suppose people can collect more junk in an RV, although I saw a "homeless" guy with a regular warehouse under tarps on a city street some time ago.


A couple of days ago, there was a shoot out among our homeless who occupy a popular area called "The Jungle," with five people being shot.

After thirty years of homeless politics, city voters seem to be ready for a hard crackdown rather than ever greater coddling.



Seattle Pioneer
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I suppose people can collect more junk in an RV, although I saw a "homeless" guy with a regular warehouse under tarps on a city street some time ago.

When I lived in St. Paul, MN., we had a homeless guy that lived on Rice Street near downtown St. Paul. He would go up and down the strip there, some of the restaurants giving him food to sweep up or shovel sidewalks (he didn't like getting handouts, but wanted to work for the money). Whenever I used to see him, from the window of a city bus, he's have a chain of two or three shopping carts that he moved up and down the sidewalks with him.

http://homelesswithahome.blogspot.com/2009/01/for-every-home...

Friends even created a Facebook page for him:

https://www.facebook.com/Bones-On-Rice-St-St-Paul-Minnesota-...

At one point, the Humane Society took away his dog, because the winter was too harsh:

http://mrssatan.blogspot.com/2005/12/homeless-mans-dog-taken...

Every time an article would be published on him, his brother would be chastised for not helping him out. But Bones would always leave whatever situation his brother would put him, preferring to live on the streets.
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