re: Retirement thread piggyback...how much do you want to earn in retirement yearly?

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Is RMD going to be an issue for you? Minimizing that along with minimizing my federal tax debt are my two top priorities in planning my retirement budget.

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I mean, maybe, but I doubt it will be much of an impact. I've ROTHed as much as I can, but there is only so much I can do about matching and growth on matching. It's tough to complain about taxes on free money.

I'm sure it will come up, eventually, but I'll deal with it then. That's more of a tax planning issue than a retirement income issue (although, I agree that they will interface heavily if and when RMDs rear their ugly heads).

That’s where the current circumstances come to play. My RE will be paid off when I’m 60 so I have two options;

Use proceeds to buy retirement house free and clear to minimize monthly costs; or
Invest proceeds and finance house if returns look to outpace interest rate.

I’m pretty tight so lean towards the former but who knows what we’ll be dealing with at that time.

People that are currently younger than 40 will never be able to retire

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Don't take your mortgage into retirement
I don't care of its 2.5%
Be liquid

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How does an early paid off mortgage increase liquidity?
I maintain more liquid capital by retaining mortgage than having it locked up in home equity. Heck, I took out my 3.75% mortgage at early retirement and have zero intent to pay it early.

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Those who generate most of their income via Covered Calls and/or Cash Secured Puts, please chime in here.

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Chiming in.

If you have the money, it's easy to make the money in covered calls. Example. MU is sitting at 119. Selling the 122 will make you $200 plus $300 if assigned. That's a $11,900 investment and that's a 4% return if assigned.

Having spent a lot of time with this, I have made some rules for protection.

1- don't use high risk ETFs/Stocks. Keep it to known companies. I like AMZN as an example here.

2- I will never use more than 50% of my money in any account. The thought here is that markets go up and down and I can not control that. BUT it controls where I have to sell calls at and I will give you a current example of mine:

I own 200 shares of SMCX. It's a 2x bull on SMCI. Calls are great when it's moving up or sideways. But I'm in at $54. It's currently at $28. The calls at $54 is worthless right now. So I either wait it out (how does that help in retirement), sell calls below my entry, or have cash on hand to combat with.

What I did, because I have 50% cash, is purchase enough to lower my entry to $34. I sold calls on the $34 at $85 per contract.

3- Know your deltas. Don't just look at how much you can make. For me, there are stocks/etfs that I don't care to keep long term. With those, I sell them for the dollar signs... a high delta. Use SMCX for that. When it was above $55, calls were really high. And I sold higher deltas for 4-500$ each.

If I want to keep it, I never sell a call over .16 and most of the time it's .09. Again, AMZN as the example. A .09 delta will only make me $36 per contract. But it's also $10 higher than the current price and that means $1000 if assigned and the chances of that happening is low with a .09 delta.



What you need to know is how much you WANT to make per month. Then aim higher. Find your stocks/etfs that you feel comfortable with and see what the calls generally go for at a delta for the goal you have set. So, if you are wanting to make $5k per month, and you know the general price per contract, then you know how many you need to sell to reach that. This is give you how much money you need.


AMZN again. I know that I can get between $40 to $75 per week per contract. That means I need to sell 60 calls every month. Divide that by 4, that's 15 calls per week. I will need 1500 shares to reach my goal. That's a total of $342,000 investment. Plus I would need $342,000 in cash for market dives.

CRWV. I can sell a .16 delta for $100 and that's $11 above it's current price of $90 per share. To make that goal of $5K per month, I would need to sell 12 per week. The cost of my investment is just $108,000.

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Adults are speaking.

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Mortgage is already paid off.

Planning on $20K - $30K a month.

I doubt we’ll ever spend that, but better to overshoot the mark than come up short.

Thanks for sharing
I have some roth accounts and I know my RMD will come into play in my 70’s.
Thanks for your insight

No mortgage at that time. Aiming for 5k +ss. It's way more than I will ever need

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Goal is $50k/month after taxes,

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Is this a typo? $50K a month? You want $600K in spending annually?!