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Let me explain Why, ways to save $2,220 a year. It’s a very specific number. For some reason a long dormant post of mine about the Myth of 401(k) Tax Breaks got revived and along with it, some very strong arguments for why I’m wrong. The premise of the post is that if you forego the tax break you get from your traditional 401(k) and instead opt for a Roth 401(k) or plain after-tax investment account, you’ll actually end up paying less taxes (assuming you get lousy or no matching and you live and stay in the 12% tax bracket, […]

Ways to Save $2,220 a Year

 in 401(k) / investing / Saving by
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There are several reasons for getting a 401(k). 401(k) tax breaks isn’t one of them. Over the last 3 years I have not had to pay federal taxes. This, because all my income is derived from capital gains and seeing as these barely put me past the 10% tax bracket, I owe 0% federal tax on these. This year preparing for taxes (2017) things look different. I started the Roth IRA conversion ladder, in the amount of $40,000. It’s a measure I have to take because my after-tax investment accounts will run dry, prior to my 401(k) withdrawal age of […]

The Myth of 401(k) Tax Breaks

 in 401(k) / investing / Taxes by
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It’s that time of year again. Time to look back on 2017 and what a year it has been. Our budget was blown but what made up for it was a spectacular return on my investments. It was a mixed bag but I must admit, I think I must land on a positive note for us personally. The blown budget Let’s begin with the not so successful feature of 2017. When I retired, our budget was set at $65,000 a year. Due to extremely high and continuously high medical costs, I upped the budget to $71,000 going forward (increasing each […]

2017 in Review

 in finances / financial independence / retirement by
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Healthcare and the insurance to pay for it, is screwed up. While most of you are shopping for toys for Christmas, I just spent the morning on the phone ordering Diabetes supplies for the remainder of the year. Only in America can a basic human right (health that is) be handled so wrong. By the numbers Here is how the system is screwed up: Today, putting in my last order for the year, I just reached one of the individual deductibles on our policy.  so lets look at the balance. The insurance company this year charged: Me: $577 * 12 […]

A screwed up tale of American Healthcare

 in healthcare / Insurance  tagged Health Insurance by
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I’ve been in the United States for over 20 years and I still haven’t taken the step of taking on American Citizenship. Why? In a nutshell: Education. Not for me (mine served me fine), but for my children. By clinging on to my Dutch citizenship, I keep the door open for my kids to get their advanced education in Europe. Why? Because, even if at par with the US, it comes at a fraction of the price. Tuition at any college/university in the Netherlands is around $2,300 annually. Is college that much different? Are colleges and Universities better in the […]

Education experienced elsewhere

 in education / Student Loans by
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With all the support and extra traffic coming from my friends at FreedomIsGroovy.com, I feel compelled to put down some thoughts. I tend to not write about politics, but never has politics hit home as hard as this year. The first effects are already felt and potential upcoming changes may hit even harder. ACA Renewal It’s ObamaCare renewal time. Last year, I received probably 50 timely emails/messages letting us know it was coming up. This year I received a single text. I’m personally aware of what’s happening but it makes you wonder, how many will miss this year’s enrollment due […]

The month of unknowns

 in finances / healthcare / retirement / Taxes by
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And this is on a personal finance blog, why?? It so happens, that’s how I keep busy during my early retirement. You could say it’s a symptom of Personal Finance. Symptoms which exhibit itself entirely different for each accomplished PFr. Some travel, some deal with chemical toilets, from under their tiny houses (they never seem to mention that touting, tiny houses) and some build 3D Printers. There’s no real lesson in here on how to retire early but I do keep getting amazed about how I could save more money. The savings mentioned below go beyond building 3D printers but […]

Just finished my latest 3D printer build

 in 3D Printing / frugal / Saving by
Earlier this year, I wrote about getting started on the Roth IRA conversion ladder. The first rung has been taken. This week, I completed the first of 7 conversions. For those of you not in the know, I have some money, but it’s in all the wrong places. I’m 47 years young, 3 years retired with a modest income from various investments. The problem is, that the bigger chunk of these investments are tied up in my 401(k) (Luxury problem, I admit). Based on today’s budget, five years prior to the age of 59 (and a half), my after tax […]

Roth IRA Conversion Ladder update

 in 401(k) / FIRE / retirement by
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I realize retirement isn’t for everybody. We all know the stories of “Bob” retiring and him withering away, sitting in front of the window only to die 5 years later. Some people live to work and when you love your work, kudos to you. Some people will flourish in retirement. I think I belong to the latter. Busy in Retirement I’m over three years into retirement, keeping busy doing the things I really love. Prior to retirement I built my own CNC machine. It wasn’t a success but I loved doing it nonetheless. Since then I’ve been building my own […]

Keeping Busy by Giving Back using 3D Printing

 in 3D Printing / retirement by
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At last year’s dentist appointment, it was pointed out that our son has an overbite. As it could destroy his teeth, left untreated, certainly something that should be addressed by orthodontics. Normally, when a doctor or dentist tells you your child needs X, Y or Z care, you don’t hesitate; you take care of it. We immediately saw an orthodontist. Course of treatment would be internal braces that would be screwed outward a little each week, squeezing his upper cleft outward a little at a time. It would last for about 6 months to a year, to be followed up […]

I’m glad we waited, NO orthodontics!

 in family / finances / healthcare by
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I just came from the dentist to have my new crown fitted. We’ve been in a bit of a disagreement on pricing (and procedure) and I think one of the issues maybe a misunderstanding of the Millionaire Next Door. My dentist has known me for a while, he even knows I’m a millionaire. He thinks I’m loaded. While I’m trying to tell him, the hard time I’ll have finding the funds to pay for the root canal and crown (and dental induced migraine ER visit), he’s trying to sell me on getting all my filled teeth crowned (probably a whopping […]

The Millionaire Next Door and his/her money

 in Building Wealth / finances / millionaire  tagged Millionaire Next Door by
The following guest post comes to you from Drew Cloud, Founder and owner of The Student Loan Report  When it comes to repaying your student loans, separating fact from fiction can sometimes be a little difficult. Some can make you think twice about paying your loans as quickly as possible. It’s time to dispel some of these student loan repayment myths once and for all. Student Loans Don’t Affect Your Credit Score. Student loans can have a positive and negative effect on your credit score. As you repay your loans, your debt-to-income ratio will get smaller and that means your credit […]

These Student Loan Repayment Myths Are Holding You Back From ...

 in debt / Student Loans  tagged Student Loans by
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Looking on my calendar on June 21st I realized, my third retirement anniversary on June 18th had come an gone. As a Financial blogger and early successful retiree that date should have been marked prominently, instead it just past by. Maybe it’s because after a while it looses it’s significance. Maybe, its because the 18th was father’s day and my mind was occupied with lovely, meaningful crafts from my children. Maybe it was because I was equally occupied, chewing on the left side of my mouth because of a filling place the day prior had gone wrong. It now turns […]

Happy Third Anniversary on Retirement, Oh and more Healthcare

 in FIRE / healthcare / retirement / Uncategorized by
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The following guest post comes from Lauren Davidson. The topic is dear to my heart as I always have believed that every young person should at least once leave his or her country and see some of the rest of the world.  Studying abroad has long been a popular option for college students, for good reason: it’s an exciting opportunity to not only see the world, but to immerse yourself in a new culture while getting an amazing education. During my sophomore of college, I was lucky enough to spend a semester studying in Spain. It was an extraordinary experience […]

Study Abroad Trips: More than a Just an Unnecessary Vacation

 in education / Living / Travel  tagged Study Abroad Trips by
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Mid April, I received the dreaded call. It was actually a Facebook messenger video request. There was no doubt, I knew before I answered, my father had just passed away. My brother called me from the nursing home where my dad took his last breath just seconds prior to Mom and him walking in. We knew this was coming and arrangements were in the works for my dad’s care for the next few months. Months we knew would end in his eventual demise. Having it happen, there and then, so early, came as a shock. We talked, we consoled my […]

An alternative to funeral or cremation, worth thinking about

 in family / finances by
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That’s what I learned 2 weeks ago when I was in the Netherlands. That, and the “fact”, I’m a direct descendant of King Willem II of the Netherlands (albeit from his illegitimate child born in 1842). But let’s get back to the wealth tax. The estate my father left my mother, after his unfortunate passing some weeks ago, revealed my parents still had a mortgage. My brother replied to that, that it was better to have debt, as the alternative would be paying taxes over their assets. They call it Box 3 tax, as that’s where you capture this info on […]

OMG, They’re paying a wealth tax over there

 in finances / Taxes by
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I’ve put it off long enough now. I need to get started on the Roth IRA Conversion Ladder. It seems to be the only solution to my western world problem. The problem of having too much in my 401(k). The Roth IRA Conversion Ladder will allow me to gradually convert funds from my 401(k) to a Roth IRA, in turn, allowing me to withdraw WITHOUT PENALTY when I really need it. The catch: You need to start this at least 5 years prior to the first withdrawal. Is there such a thing as too much in a 401(k)? For most of […]

Roth IRA Conversion Ladder

 in 401(k) / FIRE / investing / retirement by
Article works out the saving (or lack thereof) when purchasing a hybrid assuming 2 dollars per gallon 10
I’ve written several posts on, how we saved money. Saving is good; saving can help you in a better financial future. Even better, saving can make you money! Lots of it!! below I’ll explain how I made 20K buying a Prius. Besides all the benefits, saving often tends to make you give up something. “Yes, we saved buying a Prius but it’s not as comfortable as that BMW next door”. We saved handsomely by cutting the cable but, I no longer have Syfy. “We saved X on Y but….” It’s true, some savings come without negative side effects but most of […]

How I made 20K buying a Prius

 in investing / Saving by
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Well, I would have liked to have written this with nothing but good stuff that happened this year, but I can’t. 2016 may well go down in memory for us as the worst year of our lives. Yes, financially things have been great, early retirement is now two and a half years in and going strong but 2016 is also the year that our 6 year old son was diagnosed with Type One Diabetes. An autoimmune disease in which the body’s immune system systematically attacks the pancreas no longer leaving it able to create insulin. Our six-year-old now needs to […]

2016 in Review, spoiler alert: for us it sucked!!

 in family / finances / healthcare / Insurance by
How I made 200K doing nothing 12
Sounds like a get rich quick scam, right? It’s not, it took a lot of work, sweat, patience and time before I got here, but I’m doing it nonetheless. I retired two and half years ago, haven’t worked for a single penny and today I have more money than I had the day I retired. It’s like magic (but it’s not). Doing nothing I lied, I’ve been doing something, I’ve been enjoying early retirement. I’ve found something I’m passionate about and it keeps be busy most day. What I’m not doing, and haven’t done for two and a half years, […]

How I made 200K Doing Nothing

 in Building Wealth / financial independence / FIRE / investing / millionaire / retirement by
This is what it means to be financially independent 16
It’s been almost a month since I’ve written a post and I should be embarrassed. I’m not. This is what it means to be financially independent. To do whatever, whenever and however I want it. I quit my job to get away from deadlines, I don’t want to self-impose them again by means of this blog. Will millionin10 survive? Will it hurt the ranking of my blog? Yes, probably, but since I’m not trying to sell you anything, nothing lost. For those of you who are wondering what ranking has to do with anything (or even what it means)? For most […]

This is what it means to be financially independent

 in Building Wealth / finances / financial independence by
screw-ups on my way to a million 6
Let’s put it out there, making assumptions is making an ass out of u and me. Mostly though, making an ass of out myself. On my way to wealth, I’ve made a few of them. Today in the series on Screw-ups on My Way to a Million: Making Assumptions. As you can guess, most of them wrong. Is making assumptions bad? That is a tough question. I’ve made several wrong ones but at the same time my entire path to wealth and my continued growth/stability of my wealth is premised on the biggest assumption of them all: The stock market will go up […]

Screw-ups on My Way to a Million: Making Assumptions

 in Building Wealth / emergency fund / finances / millionaire / retirement by
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In my last post I mentioned this was going to be a series. I’ve made a few Screw-ups on my way to a million. Today’s post is about investing emotionally. In other words, falling in love with your investments and the disastrous consequences associated to it. Different emotions in play It’s okay to get emotional when investing. When the stock is up I’m happy and when it’s down I get pissed. Can’t help it, it’s just another day on the job so to say. Investing emotionally isn’t okay, it can cloud your judgement. There are several ways in which you can get tied […]

Screw-ups on My Way to a Million: Investing Emotionally

 in 401(k) / investing / millionaire by
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You’ve probably heard it or seen it on a cheesy motivational poster: The road to success is paved with failure. I prefer to call them screw-ups as it seems to imply more of a duh!!-moment and lessons are learned. For two years now I’ve been writing about how I made my way to a million and how that eventually resulted in early retirement at 43. Today I’ll start a series that focuses on the screw-ups on my way to a million. We all know we learn from our mistakes (or at least should) so before you make yours maybe mine will make […]

Screw-ups up on My Way to a Million: Greed

 in 401(k) / investing / millionaire by
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They say you can’t put a price on a life. Well, there is something morally ambiguous about it, but it happens all the time. Sometimes, that pricing hits too close to home for comfort, in this case, when talking about the price of a life with diabetes. Our son has diabetes Before I go into the cold hard numbers let’s take a step back. Three months ago our son was diagnosed with Type 1 Diabetes. For those who don’t know, Type 1 diabetes (T1D) is an autoimmune disease in which a person’s pancreas stops producing insulin, a hormone people need to get energy from […]

The price of a life with diabetes

 in diabetes / healthcare by
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Oh, the irony. In my last post I wrote about getting what you need, not what you want. Well, I’m writing this, sitting in my basement in a balmy 84 degrees while the HVAC guys are installing a new condenser and coils. Did I want a new Airco Unit? No. Do I need a new Airco unit? Yes, it is hot (and it will get even hotter next week). Am I tempting the powers that be, or did I prepare for all the right reasons? DIY I’m fairly technical so of course I tried to fix things myself. Me and […]

Am I tempting the powers that be?

 in emergency fund / investing by
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After 18 years of cellphone ownership I finally did it: I broke mine. Well not so much broke it but more like drowned it; took a swim with it. It didn’t take it that well. I tried the rice thing, hoping it would suck the moisture out and it would miraculously turn back on. Alas, it didn’t. It was all done for, before I took it out of my pocket. My soaked in lake water pocket that is. Now before I continue I have to disclaim, I used to be one that got what I wanted instead of what I really needed. In my […]

Get what you need, not what you want

 in Budgeting / diabetes / Saving by
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That’s right, I’m 45 and June 18th will mark the second anniversary of retirement. 2 years into retirement and the funny thing is, this never started out to be retirement. I figured I would take some time off and figure out what’s next. Why retire at 45? For, as much as my job had brought me, in experience, joy and money, in the end stress was starting to physically affect me. After 20 years of Business Rules Management technology it was time for a break. It was maybe 2 weeks into my break that my neighbor came to me and […]

2 years into retirement, what’s next?

 in retirement by
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If it’s your business why do you write so much it? No, my money is my business as in: it is my business business, it is there to generate our income. A modest income at that. My business isn’t running that well to be honest. The year I took the helm (the year I retired), SPY saw a high of $208.44, yesterday SPY closed at $209.28. In that time span we’ve also seen SPY drop to a mere $182. Since my business is build on a foundation of mostly SPY one might say we’re off to a rocky start. As any […]

My Money is My Business

 in 5 keys / finances / investing / millionaire by
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It has been some weeks now that we cut the cable. Our heads haven’t exploded yet, which is a good thing (I did not rule that out from happening). As a matter of fact we’ve hardly noticed. No, we no longer get The walking dead but we’ll survive (as I’m sure will they). We no longer get the Daily Show nor the Larry Wilmore show which, given that this is election season, is probably a good thing. As entertaining as these shows are, they’re also somewhat depressing. Here is what we do still get, and how we get it after we cut the […]

We Finally Cut the Cord (continued)

 in Budgeting / entertainment / frugal / Saving by