• Lucky Girl

    Thanks for these interesting posts. I found your blog from the MMM community, where I lurk regularly, but our income more closely mirrors the physicians you discuss here than most folks on MMM. It’s nice to see how other high earners deal with these situations, and the dramatic swings that can be affected by some simple lifestyle inflation or deflation. I’m looking forward to digging in on your tax post next–always such a challenge with high income.

    • You’re welcome, and glad to see you found me via MMM. I can identify with many of Pete’s philosophies, and his blog was the first one that got me thinking about the concepts of FI and RE.

      By far and away, the best way to reduce taxes is to reduce taxable income. Retirement does that. Contributing the max to tax deferred retirement accounts does that. Most other strategies involved spending money to save on taxes (mortgage interest, charitable giving, etc…) Tax loss harvesting is a useful and poorly understood tool that can be utilized. At some point, I’ll write about my TLH strategy.

  • I met someone once who was in his late 50’s making $200k and he could only “afford” to save about 3% of his salary per year. He actually thought he could retire in 5 years and was completely oblivious to what kind of assets he would need to maintain the extreme spending of his current lifestyle. I have no idea what happened to him but I can’t imagine he is going to be living the lavish retirement lifestyle he was envisioning.

    • Hopefully, he had a wake up call and “deflated” his lifestyle prior to retiring. Cutting back after years of high spending can be not only difficult, but humbling, or even humiliating. Thanks for sharing!

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