# Retirement planning



## Fuse6F (Jul 5, 2017)

Trying to retire

For those who have or are planning to do so.

How does your retirement income compare to pre retirement?


Eg. You can make 100 bucks working and put 20 into savings. So your spending needs are 80.

Are you now living on less same or more? How does that change a few years out?

I have no guaranteed pension. Only what i save. Trying to judge future needs. Thanks in advance for your comments.


----------



## Clyde Ride (Jun 7, 2019)

Build a budget. Track it for a year or two. Engage in careful thought about your future. Plan for multiple scenarios. Ensure you have contingencies accounted for.

Any article or other information source that suggests basing your retirement spending needs on your pre-retirement income should be completely ignored.


----------



## Sanchofula (Dec 30, 2007)

So here’s the gist:

If you make a $100, save $20, spend eighty, you will work four years to earn a year of retirement (not working), work forty years snd you got enough savings for ten years.

Sure, you could cut back on expenses, ride the same bike for years, drive an old car, not spend on dining out, avoid vacations, etc… make that ten years worth of savings last thirty, but did you really work all those years so you could be poor?

This ^ sounds horrible to me, so my solution is to work full time to seventy, part time to eight, then see what happens.

My wife just turned sixty, I’m a couple years behind her, and neither of us have any interest in retiring.

Truth be told, we like our professions, we’re well compensated (time and money), and it feels good to help others.

It’s interesting to think about not working, but I do plenty of that on my three day weekends and on holidays 👍


----------



## BadgerOne (Jul 17, 2015)

Eh, I'm a lazy investor. I do minimum research, just finding the highest rated funds, and diversify into about a dozen of them. I put about 50 percent of take-home pay into funds and don't think too much about it until recently. That is to say, I'm going to bulk buy come the recession, may even pick up some more real estate. What will my retirement income be? No idea, and I don't really care since I eat rice and beans anyway. At 47, I'm probably going to hang it up in another 2 or 3 years.

You know what? I'm absolutely the wrong person to listen to.


----------



## CTM (Dec 18, 2021)

Try account for a bit of inflation as well for the coming years. Especially with the rate things are going now...


----------



## eri (Sep 4, 2012)

Nurse Ben said:


> So here’s the gist:
> 
> If you make a $100, save $20, spend eighty, you will work four years to earn a year of retirement (not working), work forty years snd you got enough savings for ten years.
> 
> ...


well… the 10 from 40 is a math error. The compounding on returns makes a huge difference.

don’t ask on mtb forums… try bogleheads. Three fund portfolio.

the planning tool I like is “rich, broke or dead”:









Rich, Broke or Dead? Post-Retirement FIRE Calculator: Visualizing Early Retirement Success and Longevity Risk - Engaging Data


A FI/RE early retirement calculator visualizing longevity risk in early retirement and enables you to compare the probability success, failure and mortality.




engaging-data.com


----------



## ridetheridge (Mar 7, 2009)

Here are a couple more planning tools; 
FIRECalc: A different kind of retirement calculator 





cFIREsim







cfiresim.com


----------



## Clyde Ride (Jun 7, 2019)

eri said:


> well… the 10 from 40 is a math error. The compounding on returns makes a huge difference.
> 
> don’t ask on mtb forums… try bogleheads. Three fund portfolio.
> 
> ...


I like that one. It’s very eye opening.


----------



## wayold (Nov 25, 2017)

Nurse Ben said:


> Sure, you could cut back on expenses, ride the same bike for years, drive an old car, not spend on dining out, avoid vacations, etc… make that ten years worth of savings last thirty, but did you really work all those years so you could be poor?


People have a tendency to let their spending inflate to the level of their income. That's a good way to guarantee you'll never retire (unless you're one of the lucky few who still get a pension). This is fine if you love your work. If you don't then avoiding "lifestyle inflation" is the best way to avoid this fate. Yes, there are financial planning tools and savings strategies that matter too, but living below your means is really the key.


----------



## eri (Sep 4, 2012)

wayold said:


> People have a tendency to let their spending inflate to the level of their income. That's a good way to guarantee you'll never retire (unless you're one of the lucky few who still get a pension). This is fine if you love your work. If you don't then avoiding "lifestyle inflation" is the best way to avoid this fate. Yes, there are financial planning tools and savings strategies that matter too, but living below your means is really the key.


i agree. But its the planning tools that do the math to show you the consequences of higher spending.

i think the tools are a great opportunity to play what if, develop an intuition for the power of compounding.

one or two high spend years when youre young are incredibly expensive over the ling term.


----------



## Sanchofula (Dec 30, 2007)

eri said:


> well… the 10 from 40 is a math error. The compounding on returns makes a huge difference.
> 
> don’t ask on mtb forums… try bogleheads. Three fund portfolio.
> 
> ...


Sure, but inflation and cost of living is gonna drive down the relative value of your returns.

I’m a pretty realistic guy, I spend a fair amount of time talking with retired folks, some are struggling, retirement money doesn’t typically last as long as our lives.

Unkess you have a sizable nest egg, ie millions, that allows you to live off your returns, I’d plan on a tapered retirement, like I’ve suggested.

The OP doesn’t strike me as being well off, so I think my suggestion is on target.

I’ll admit that the idea of retiring (not working) has always been a strange concept to me, folks busting a nut to save so they can have tons of free time at an age where free time has less value.

You’re better off making time to live while you work, that way you can enjoy life at all ages.

The other thing I think about is I haven’t worked hard to get to where I am so I can live in a shanty, eat from a food pantry, and ride some old hardtail with tubes 👍


----------



## wayold (Nov 25, 2017)

Nurse Ben said:


> The other thing I think about is I haven’t worked hard to get to where I am so I can live in a shanty, eat from a food pantry, and ride some old hardtail with tubes 👍


I deserve my new car, McMansion, private school for my kids, etc. I heard this every day at work from my colleagues. They're all still there in their '60s while I've been retired (in my little house, with my older cars) for the better part of a decade. Who's happier? Ask them next week at their desk. Ask me at the same time out on the trail.


----------



## wayold (Nov 25, 2017)

In fairness, this really depends on income. My advice presupposes enough disposable income to save some without seriously depriving yourself or your family. If that's not the case then I agree with Nurse Ben. I'm all for financial restraint and early retirement, but not if it makes your family miserable.


----------



## Clyde Ride (Jun 7, 2019)

His approach to life is a bit ascetic for most, but I think there's wisdom to be found at mrmoneymoustache.com.


----------



## Clyde Ride (Jun 7, 2019)

wayold said:


> I deserve my new car, McMansion, private school for my kids, etc. I heard this every day at work from my colleagues. They're all still there in their '60s while I've been retired (in my little house, with my older cars) for the better part of a decade. Who's happier? Ask them next week at their desk. Ask me at the same time out on the trail.


Yeah, there isn't a single right answer. But there's a lot of magic in riding M-F during the day when the trails aren't busy and saving Sat-Sun for mowing the yard and sitting on the deck.


----------



## eri (Sep 4, 2012)

Nurse Ben said:


> Sure, but inflation and cost of living is gonna drive down the relative value of your returns.


Used properly the account for inflation. So long as the future is like the past they should work great. 

Part of the what if is playing with periods of higher inflation and unusually poor returns.

Ill bring this up here because its so important and yet unintuitive: the long term benefit of 100% stock index is surprisingly small compared to a diversified portfolio with periodic rebalancing, and yet the risk is massively reduced through diversification. That wasnt intuitive to me until i did the numbers myself.

you might feel like a chump buying bond indexes when rates are low and inflation is high but i think its worth it given how massively bonds reduce your volatility. You dont miss most real growth so long as you periodically rebalance.


----------



## AKamp (Jan 26, 2004)

So much of it depends on where you are currently. Do you own your home, vehicles? What do you currently have in retirement. How long until you plan on retiring, do you have any other debts, kids in school, alimony?? So many variables.


----------



## wmalan (Dec 8, 2005)

Well at 63, I just "retired". Like many I've never worked for employers that had company defined pensions. Only 401ks in the second half of my work life (that I mostly funded). At the beginning of covid I was let go. I had to wait a whole year before I could qualify for a reduced healthcare plan for the wife and I. That taught me the one lesson everyone fights: How to retire before medicare kicks in at 65? Answer? It's freaking expensive. For most it is as much as the cost of rent. After that, decide if you *can live on a 5% annual draw of your (invested) savings plus SS*. No matter much you have, this is the prudent plan in my view.

Now I will add that while I'm living on far less than before, we also don't consume like before. One other thought is do you want to retire where you live? Many of us live in great areas IF you are a worker bee. But as a retired non worker you may see things way different. I live in a suburb of Los Angeles (SF Valley). To me it is NOT the place to be retired. So those are my initial thoughts on the subject.


----------



## Fuse6F (Jul 5, 2017)

Nurse Ben said:


> Sure, but inflation and cost of living is gonna drive down the relative value of your returns.
> 
> I’m a pretty realistic guy, I spend a fair amount of time talking with retired folks, some are struggling, retirement money doesn’t typically last as long as our lives.
> 
> ...


I like the live everyday mantra. We have no guaranteed tomorrows. 

Define well off? 

Is that as much as i need or i have what i want or truly having some fu money (private jet lifestyle). 

define well off in retirement. Thats why i am asking.


----------



## Fuse6F (Jul 5, 2017)

eri said:


> Used properly the account for inflation. So long as the future is like the past they should work great.
> 
> Part of the what if is playing with periods of higher inflation and unusually poor returns.
> 
> ...


Do you have some what if examples


----------



## Clyde Ride (Jun 7, 2019)

Fuse6F said:


> Do you have some what if examples


What if inflation goes up? What if my rate of return goes down? Or up? Or I spend more? Or less?


----------



## Catmandoo (Dec 20, 2018)

The only reason I DID retire is I figured out that after 40 years of a good pension contributions from myself and my employeer, I would take home more from my TIAA pension and SS (I'm 67) then my paycheck. Became a no brainer at that point to not work anymore. Note that I was fortunate 40 years ago to land a job at the City University that provided great benefits. I am now able to take advantage of those 40 years. I am so glad to be out.


----------



## wmalan (Dec 8, 2005)

Clyde Ride said:


> What if inflation goes up? What if my rate of return goes down? Or up? Or I spend more? Or less?


That's why the rule of 5% works pretty well. Try to live on a max 5% of WHATEVER you've put away plus SS. Why the 5%? That number works over the long haul of ups and downs. For me it means relocating to a lower cost area. And since I don't need to work... I don't need to be near an employment hub.


----------



## Clyde Ride (Jun 7, 2019)

wmalan said:


> That's why the rule of 5% works pretty well. Try to live on a max 5% of WHATEVER you've put away plus SS. Why the 5%? That number works over the long haul of ups and downs. For me it means relocating to a lower cost area. And since I don't need to work... I don't need to be near an employment hub.


I think the studies are more supportive of 4%, but yeah…


----------



## wayold (Nov 25, 2017)

While some studies do show retirement success (i.e. not depleting your funds over 30 years of draw down) with a 5+% withdrawal rate, the classic study used 4% and anything over that is often considered kind of "sporty" by the community over at early-retirement.org. It depends on lots of things: expected length of retirement, asset allocation, existence of guaranteed income (pension, social security) as fallback, etc. There's no rock solid right or wrong, just probabilities.

Personally I prefer to be a bit more cautious than this and retired with a projected withdrawal rate of a bit under 3% (which I've almost never reached). During bull markets like we've mostly had for the last 10+ years I've kicked myself a bit for not being more aggressive and retiring earlier. In times like the last few months, however, when inflation accelerates and the stock market declines I'm awfully glad I built a nice thick pad into my plan.


----------



## Sanchofula (Dec 30, 2007)

wayold said:


> I deserve my new car, McMansion, private school for my kids, etc. I heard this every day at work from my colleagues. They're all still there in their '60s while I've been retired (in my little house, with my older cars) for the better part of a decade. Who's happier? Ask them next week at their desk. Ask me at the same time out on the trail.


Its not how you compare to others, but how your choices worked for you. You have no idea what another person needs nor how their happiness compares to yours, that’s fools thinking.

I work full time and I ride five days a week, more if I want to, I’ve got time to remodel a house, build a campervan, build bikes AND I’ve got the money to do it.

My full time job is allowing me to build a very cool off grid house in a place where I can ride more, spend less (lower cost of living), be closer to my kids, and it’s the place I want to be in twenty years when I start easing into part time work.

Our life satisfaction is 👍👍


----------



## Sanchofula (Dec 30, 2007)

Fuse6F said:


> I like the live everyday mantra. We have no guaranteed tomorrows.
> 
> Define well off?
> 
> ...


That’s a tough question to answer, I know folks who spend a lot, I know some folks who spend very little.

One of the other posters mentioned reducing debt before retirement, I think this is key, pay everything down so all you got is maintenance and taxes on your home, a used quality vehicle, plan out your trips to reduce expense, work off a budget so you know what you can flex, and consider some dude jobs to keep it interesting and to have more play money.


----------



## Fuse6F (Jul 5, 2017)

Looks like its a very hard thing to answer.

had a buddy recently drop 2 months into his retirement and he worked to 65. He didnt need more money. But was making great money and liked his job so kept building the pile.

I want out as soon as possible.

im much younger and think 55 will be my exit age. Perhaps sooner. If the math works out.


We are aiming for our current expenses covered with a 20% pad over that. This would be indexed for inflation.

working past that a few more years would provide the much greater flexibility of a much larger cushion.

math shows it multiplies quickly once you have that income available but dont use it and double down back on the investments.


----------



## chiefsilverback (Dec 20, 2019)

The equation has definitely changed as life expectancy has increased. Retiring at 55 or 60 and then living to 90 requires a pretty significant retirement fund. My father turns 70 this year and still works full time in banking in London, my mother is 74 and works part time for the Citizens Advice Bureau, neither have any plans to call it quits any time soon.


----------



## BadgerOne (Jul 17, 2015)

wayold said:


> In fairness, this really depends on income. My advice presupposes enough disposable income to save some without seriously depriving yourself or your family. If that's not the case then I agree with Nurse Ben. I'm all for financial restraint and early retirement, but not if it makes your family miserable.


A lot of this is personal perspective but I agree entirely. We only go for one ride around this dumb blue orb once and our number might be up at any moment, so living a satisfying life how we want while we're still able is paramount in my mind. Then again, I don't want to be standing in the pet aisle at 77 and deciding what flavor of Alpo I can tolerate this week. There is a happy medium.

My wife's ex father in law lived in a trailer and was quite wealthy from a life of being ridiculously thrifty/cheap, never lived any life at all to speak of. He was a nasty man and a hermit. He was diagnosed in his 70s with MS, and spent his life's savings paying for health care needs until he died. He never enjoyed a penny of that money. So dumb. I ain't going out that way. I'm going to continue to employ my earned private property including money to live an awesome life.


----------



## LMN (Sep 8, 2007)

Certainly no easy answer to that question. I think all of us would like as much money in retirement as possible but I also think most like a lot more time to ride our bikes.

I am fortunate enough to have a defined benifit pension that is indexed to inflation. The catch is to maximize it I would probably have to work until my mid-sixties. But I am eligible to retire and start collecting a reduced pension as soon as I turn 55. I am certainly not planning to work until I am 65 but the pension is at 55 is pretty darn small. My own personal calculation is how long to keep working.

The added complexity, is at 45 I have one year old. It isn't like I am going to retire at 55 and travel the world.


----------



## eri (Sep 4, 2012)

First go here and read the ‘how to ask portfolio questions’



https://www.bogleheads.org/forum/viewtopic.php?t=6212



And then take time to post your situation there. Amazing generous people that will steer you right.


----------



## 33red (Jan 5, 2016)

Fuse6F said:


> Trying to retire
> 
> For those who have or are planning to do so.
> 
> ...


Hi, i am 64 and live in Quebec. Since 9 years i have been helping my parents so i receive about 700$ from welfare
300$ from Quebec my retirement and when my mom dies i will place that sum to receive a monthly amount untill i die.
In november i will start receiving my canadian pension about 600$/month and i will be eligible for a supplement about 310$.

So it will total about 15,000$. Obviously that 310$ will disappear when i will inherit.
For me the secret is living simply. I rent a room for 600$ that includes everything, heating internet etc..
I eat a plant base diet wich is very affordable.
The less money goes out = more free time.
So without an income from a job i will have 3 income that will total 15,000$ or more wich is plenty for me.
Big savings = no car. My ebike is used for fun, going to the grocery, etc...
The way i see *the good life* or *the golden years* is live full time with litle money.We might be sick next year
so waiting to retire might turn out to be a bad choice.
You can use a calculator to see what income you might generate for life. 
here just as an exxample i put in the calculator a 50,000$ investment . . .








Annuity calculator


Sun Life can help you build and protect your savings with investment products, life insurance, health insurance, and financial advice.



www.sunlife.ca





Feel free to ask me any question. 
Obviously at 35 years is the time to put money aside and lowering our expenses is a key.


----------



## DennisT (Dec 29, 2019)

Reading these posts, a lot seems to hinge on whether you enjoy your career or consider it soul-sucking. For me, even though I enjoyed computer programming, I _hated_ the commute with a passion (and getting up at 5:30 am). Maybe I'd have been a little better off if I'd found a job close to home or even working from home.


----------



## hdave (Feb 9, 2005)

Using a financial advisor was the best thing I ever did. Its worth paying the experts. made WAY more money soon as I started using one. Now we dont need to think or worry about it.


----------



## Clyde Ride (Jun 7, 2019)

hdave said:


> Using a financial advisor was the best thing I ever did. Its worth paying the experts. made WAY more money soon as I started using one. Now we dont need to think or worry about it.


You don't necessarily make more money by "paying the experts." The best returns can be accomplished by hiring someone or doing it yourself. But it's also possible to make less both ways.


----------



## wayold (Nov 25, 2017)

Financial advisers can be useful, but if you decide to go that way make sure to find one who works on a "fee only" basis. Many FAs make their money on commission and have a strong incentive to sell you financial products (annuities, funds with a big front end load, etc.) that benefit them more than you. I made that mistake when I was younger and pissed a few $K away to someone I thought was acting in my best interest. Never again.


----------



## Fuse6F (Jul 5, 2017)

run a cagr calculation and see the effects that drip investing make. then realize that your financial advisor is the one who is keeping the drip and leaving you with the rest. it will really piss you off.

but if your not smart enough to do this in the first place, perhaps you need that advisor!!!


----------



## hdave (Feb 9, 2005)

I used him as an advisor for years, then switched to commission so I wouldnt need to deal with the maintenance. The longer we use him the lower the commission is.


----------



## Skooks (Dec 24, 2008)

DennisT said:


> Reading these posts, a lot seems to hinge on whether you enjoy your career or consider it soul-sucking. For me, even though I enjoyed computer programming, I _hated_ the commute with a passion (and getting up at 5:30 am). Maybe I'd have been a little better off if I'd found a job close to home or even working from home.


Yes, a bad commute can be soul-sucking. I did that for a while, then managed to get a job that I enjoy within bike commuting distance from home. Starting and ending the day on the bike is great, and really helps build fitness for other activities. Still enjoy my job and I ride and ski with my colleagues, so all is good. 61 and plan to work for a few more years, or until I stop enjoying it.


----------



## milehi (Nov 2, 1997)

I'm rolling up on 52. I retired at 44.5, did consulting until last year then threw in the towel completely. I was self employed with no pension or 401k. I saved and lived like a pauper and bought houses in desirable locations when property was cheap. I still live below my means but like to travel. I work as a bartender and do $100+ a day for four hours, then screw off. Don't take things too seriously. Life's too short. A day in the life...


----------



## hdave (Feb 9, 2005)

@milehi Nice work man! I quit my job at 53 and dont plan to go back. I never liked work, in fact I hated it. It did pay - the only redeeming quality, but I never liked it. Now we have our money guy doing his job and mine job is just having fun.


----------



## nOOky (May 13, 2008)

I'm retiring when my brother dies. He's leaving me about half a million, but he keeps hanging in there. I'm not sure I'll have enough even then as I expect to live until I'm 90 and I'm 54 now. The main thing I have in common with many others my age is the cost of health insurance. I'm seriously considering retiring in another country, the US just sucks for health care and retiring in general.


----------



## milehi (Nov 2, 1997)

hdave said:


> @milehi Nice work man! I quit my job at 53 and dont plan to go back. I never liked work, in fact I hated it. It did pay - the only redeeming quality, but I never liked it. Now we have our money guy doing his job and mine job is just having fun.


I loved my career but it was just a means to an end. I began thinking about not working when I was in my 20's and was told I had cancer. My parents were both workaholics. I'm a funaholic who figured out how to work only six hours a week. I'd hire people to be there so I could go screw off. Priorities.


----------



## hdave (Feb 9, 2005)

nOOky said:


> I'm retiring when my brother dies. He's leaving me about half a million, but he keeps hanging in there. I'm not sure I'll have enough even then as I expect to live until I'm 90 and I'm 54 now. The main thing I have in common with many others my age is the cost of health insurance. I'm seriously considering retiring in another country, the US just sucks for health care and retiring in general.


Find an insurance broker. There are lots of them and they work on commission. But it helps sort out the ACA insurance. the short version is this, the cost is based on the MAGI on your tax return. If you are married it will be even less. we paid $10 a month for both of us. When my wife went on medicare mine alone bumped up to about $100/month. ITs much less than we anticipated and the broker helped us through the weeds and did all the signing up and everything. I started to do it myself, but its kinda hellish IMO.


----------



## Sanchofula (Dec 30, 2007)

Got my job offer, so we're cranking up for a move to the promised land  

At 57, I can work this job until I don't want to work, pretty exciting, should be nearly debt free after this move and we'll still be bringing in the bacon!

Hey milehi, you wearing sunscreen?


----------



## hdave (Feb 9, 2005)

Nurse Ben said:


> Got my job offer, so we're cranking up for a move to the promised land
> 
> At 57, I can work this job until I don't want to work, pretty exciting, should be nearly debt free after this move and we'll still be bringing in the bacon!
> 
> Hey milehi, you wearing sunscreen?


Where is the promise land?


----------



## Sir kayakalot (Jul 23, 2017)

hdave said:


> Where is the promise land?


I know where, but I’m not tellin


----------



## Sanchofula (Dec 30, 2007)

Small southwest town, moderate climate, riding in my back yard, great riding in winter ~ 30 minutes south, great riding in summer 20-30 minutes away, near enough to the kids but not too near


----------



## AKamp (Jan 26, 2004)

How small a town, Flagstaff??


----------



## Sir kayakalot (Jul 23, 2017)

AKamp said:


> How small a town, Flagstaff??


Flagstaff is a small town? Lol, where the heck do you live?


----------



## Sanchofula (Dec 30, 2007)

AKamp said:


> How small a town, Flagstaff??


55k in the entire MSA
Small college
National Parks nearby


----------



## wayold (Nov 25, 2017)

It's kind of hilarious that we're treating this as a mystery location here when you've already talked about it openly multiple times elsewhere.


----------



## AKamp (Jan 26, 2004)

Sir kayakalot said:


> Flagstaff is a small town? Lol, where the heck do you live?


Smaller than many. I figured with the 30 min drive for the winter he is heading to Sedona, in the summer probably just driving to the trailhead instead of riding out his back door


----------



## Rev Bubba (Jan 16, 2004)

Fuse6F said:


> Trying to retire
> 
> For those who have or are planning to do so.
> 
> ...


In answer to your question, my actual financial needs after I retired were about 1/2 of when I worked. 

Long before I retired, we had paid off all debt. I estimate we were debt free by the time I reached 40 when we paid off our mortgage. After that, we paid cash for everything. Sons college was paid in cash. Long trips? We didn't take many. Expensive cars? That's just stupid. Bikes lasted a long time. I became a ski instructor so skiing for me and the family was free. 

My answer is no use to most people. I started planning for retirement in high school.

I knew I didn't want to work. Its too late to find a career with a pension and too late to start saving with any hope of building a comfortable nest egg when you are nearing retirement. I bought my first IRA in my early twenties and saved every year since then.. I stayed in the National Guard for twenty years to get a pension there. I choose a job that paid less but gave great benefits. I retired at 62 with a retirement income greater than my regular job (which had a decent pay).

Pass this on to your grandchildren. It might not be too late for them. I taught our sons that to be successful, except for a house, if you can't pay cash, you can't afford it. They seem to be doing quite well as they reach their 40's.


----------



## Sir kayakalot (Jul 23, 2017)

Rev Bubba said:


> In answer to your question, my actual financial needs after I retired were about 1/2 of when I worked.
> 
> Long before I retired, we had paid off all debt. I estimate we were debt free by the time I reached 40 when we paid off our mortgage. After that, we paid cash for everything. Sons college was paid in cash. Long trips? We didn't take many. Expensive cars? That's just stupid. Bikes lasted a long time. I became a ski instructor so skiing for me and the family was free.
> 
> ...


Same here. I literally started my retirement fund at the age of 19. Payed everything off by 40. That is the most important part of retiring early. Worked a job that had a pension and had a mowing business on the side. Retired 6 years ago at 46. Preach it to the young ones because that’s where the planning HAS to start. Very few young people will take it serious. Glad I did


----------



## Rev Bubba (Jan 16, 2004)

Sir kayakalot said:


> Same here. I literally started my retirement fund at the age of 19. Payed everything off by 40. That is the most important part of retiring early. Worked a job that had a pension and had a mowing business on the side. Retired 6 years ago at 46. Preach it to the young ones because that’s where the planning HAS to start. Very few young people will take it serious. Glad I did


Well done.

Make a plan and stick to it. Have a budget 10 years out if you have kids. I did this because I knew college was in the future. The difference between you and I was we knew the future was coming one way or another and if we didn't plan for it, well, it would come anyway and just knock us on our arsh.

I waited to 62 because that was the age I was eligible for my full pension. It took me until 37 to find that perfect job.


----------



## Sir kayakalot (Jul 23, 2017)

Rev Bubba said:


> Well done.
> 
> Make a plan and stick to it. Have a budget 10 years out if you have kids. I did this because I knew college was in the future. The difference between you and I was we knew the future was coming one way or another and if we didn't plan for it, well, it would come anyway and just knock us on our arsh.
> 
> I waited to 62 because that was the age I was eligible for my full pension. It took me until 37 to find that perfect job.


I was fortunate that my pension would pay after 25 years of service regardless of age. There are still people working there that were there before I started. They can’t retire because of poor money management their whole life. Not too smart to finance a 30 year mortgage on a new home at 50+ years old.


----------



## eri (Sep 4, 2012)

Rev Bubba said:


> Make a plan and stick to it.


That can be taken the wrong way.

Theres people holding all their assets in a small number of stocks. Or paying big fees for actively managed funds. Or holding fast trading funds intended for tax advantaged accounts in their taxable. Theres millions of mistakes people make. Took me years to convince my friend to make ‘obvious’ adjustments because he was afraid to alter his investment strategy.

Make a great and plan, as perfect as you can imagine, but continue to track performance and risk. Continue to learn and fine tune and rebalance. Adjust your plan as you learn and grow.

Best thing in the whole world is finding an arithmetic mistake that lets you improve your investments for the future.


----------



## hdave (Feb 9, 2005)

Rev Bubba said:


> In answer to your question, my actual financial needs after I retired were about 1/2 of when I worked.
> 
> Long before I retired, we had paid off all debt. I estimate we were debt free by the time I reached 40 when we paid off our mortgage. After that, we paid cash for everything. Sons college was paid in cash. Long trips? We didn't take many. Expensive cars? That's just stupid. Bikes lasted a long time. I became a ski instructor so skiing for me and the family was free.
> 
> ...


thats pretty much how we got here as well. I didnt get serious about investing till I was 30, but did have a 401 going. Havent had a car loan in 30 years - cash. House has been paid off for 2 decades. no loans, if you cant afford it dont buy it on credit. found jobs with a strong bonus and retirement plan and maxed out the contributions for years. fix what breaks as much as needed before replacing etc. Sell any and everything you can that you replaced or dont need. eBay has made me over 30K in 20 years. been retired a 1.5 years and I am 54.


----------



## Rev Bubba (Jan 16, 2004)

hdave said:


> thats pretty much how we got here as well. I didnt get serious about investing till I was 30, but did have a 401 going. Havent had a car loan in 30 years - cash. House has been paid off for 2 decades. no loans, if you cant afford it dont buy it on credit. found jobs with a strong bonus and retirement plan and maxed out the contributions for years. fix what breaks as much as needed before replacing etc. Sell any and everything you can that you replaced or dont need. eBay has made me over 30K in 20 years. been retired a 1.5 years and I am 54.


Well done.


----------



## JoelBrown (7 mo ago)

wayold said:


> While some studies do show retirement success (i.e. not depleting your funds over 30 years of draw down) with a 5+% withdrawal rate, the classic study used 4% and anything over that is often considered kind of "sporty" by the community over at early-retirement.org. It depends on lots of things: expected length of retirement, asset allocation, existence of guaranteed income (pension, social security) as fallback, etc. There's no rock solid right or wrong, just probabilities.
> 
> Personally I prefer to be a bit more cautious than this and retired with a projected withdrawal rate of a bit under 3% (which I've almost never reached). During bull markets like we've mostly had for the last 10+ years I've kicked myself a bit for not being more aggressive and retiring earlier. If you have urgent financial needs, you can use the trice loans service. In times like the last few months, however, when inflation accelerates and the stock market declines I'm awfully glad I built a nice thick pad into my plan.


Yes, it's good that you did it. Now the stock market has collapsed so much that I don't even know what to do. I keep some assets in there and hope it doesn't fall any further.


----------



## hdave (Feb 9, 2005)

Our financial plan included a Monty Carlo Simulation. In that we used higher than expected withdrawal rate and lower than expected returns...so very conservative. The probability we will deplete funds is in the couple percent range. With more real numbers its a slam dunk.


----------



## _CJ (May 1, 2014)

I "retired" at 48. Not in the traditional sense of living off a pension, or retirement savings, but reached a point where I don't _need_ to work to survive or pay my basic living expenses. I've been working part time in a new to me industry, almost entirely based on the fun factor. It's like having a hobby I get paid to do, and keeps my standard of living higher than just food and shelter.

I'm not one of those people who have a structured retirement plan, but I'm in a good position to enjoy my life as I see fit for the next ten years, while I'm still physically able to do the things I like to do. After that, other sources of income will open up....reverse mortgage, social security, etc. that will likely carry me to the end.

All that to say, do what's right for you, and how you want to live your life.

Also,


----------



## gerryl (Aug 10, 2014)

Nurse Ben said:


> 55k in the entire MSA
> Small college
> National Parks nearby


Northern AZ (if that is your destination?), is very nice. Went to my niece's graduation at NAU in May - Great town. Enjoy.


----------

