we will see how things go but I either plan to retire the summer after my kids graduate high school or after they graduate college. Probably the latter, will be 50ish then.The Wonderer said:That's actually what I'm shooting for, so yeah. I should make it by 40; 45 at the latest. I'd walk away/transition to my replacement the moment my last kid enters college.GE said:40-45 hours most weeks with a ton of flexibility and ability to work remotely but necessity to be accessible by phone or email at least within 48 hoursThe Wonderer said:Would depend on how much work they expect me to do for that price.GE said:
Question that comes to mind:
For those of you who intend to retire early, is there any career advancement or salary increase that would disincentivize you from doing so? I'm thinking about jobs where you may be at $350K salary at age 40 ramping up to over $800K by the time you're 50. At some point it seems like it would be hard to leave on the table from a money standpoint, especially given increasing life expectancies
Your FIRE (Financial Independence, Retire Early) Number?
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Last: 3 yr ago by Ulrich
I see a lot of talk about withdrawal rate. What other sources of passive/semi-passive income are yall planning on including in the mix? I'm thinking rental income and things of that nature.
Quote:
Question that comes to mind:
For those of you who intend to retire early, is there any career advancement or salary increase that would disincentivize you from doing so? I'm thinking about jobs where you may be at $350K salary at age 40 ramping up to over $800K by the time you're 50. At some point it seems like it would be hard to leave on the table from a money standpoint, especially given increasing life expectancies
So, I think every individual going through this will have a different answer. I happen to be going through this situation right now.
I have been at the same company for 29 years, and over the past ten have really blown it out of the water, meaning I've made the company a ton of money and have made a lot of people wealthy. I work for a public company where much of our compensation is incentive based, both cash and stock. And those two things are based on EPS targets, and I and the group I run (structured finance + a lot of other things) have added about $5 per share over the course of the last ten years.
So what do they do this year? They pull me up to the executive floor, make me a officer of the company, one below the CFO, and I'll make 25% more in total comp, and I've made in the $600s for the last 4 years (I work for a $5.5B market cap co).
Problem, and I know it's a high class one, is I am sick of opening the same doors, fighting the same fights, dealing with the same headaches that I have for 29 years. Another 25% in comp isn't going to change my life. Heck, doubling my comp from $300 to $600 didn't change me or my way of doing things, it just allowed me to accumulate investments which now allow me to consider retiring at 52. Hope this didn't come across as a bragging montage, your question just hit really near to me at this time. I really want more life, not more money.
Probably goes without saying I would def love a FIRE forum with other Aggies so I'm in on whatever we can do to get one set up. Besides football in the fall it would be the only forum I would be on every week of the year.
Also, I haven't seen this website mentioned
https://www.mrmoneymustache.com/
It's another favorite of the FIRE crowd
Also, I haven't seen this website mentioned
https://www.mrmoneymustache.com/
It's another favorite of the FIRE crowd
Today is Yesterday's Pupil
Congrats. Pretty awesome accomplishment
I have always heard that when it is time for you to retire, you will know it. Sounds like you are there. And if you can still maintain the lifestyle you want, take the leap. Congratulations! And I am not far behind you.
If you don't mind, please elaborate on your passsive income strategy.
Why are you still working? With that comp I would imagine you'd have plenty enough as long as you didn't have massive lifestyle inflation
I have no shot at my current career of making less than a quarter of your salary and I'm pretty sure I'm going to FIRE at age 40 with a 1-2% SWR.
Don't see the point in trading years for money once you have enough unless you truly love what you do. I can't see myself loving the daily grind of meetings, political BS, megacorp red tape, etc. The higher you move up the worse it seems to get.
I have no shot at my current career of making less than a quarter of your salary and I'm pretty sure I'm going to FIRE at age 40 with a 1-2% SWR.
Don't see the point in trading years for money once you have enough unless you truly love what you do. I can't see myself loving the daily grind of meetings, political BS, megacorp red tape, etc. The higher you move up the worse it seems to get.
Personal Capital. It's free.
Happy to send a referral link. We'd both get a $20 Amazon GC.
Happy to send a referral link. We'd both get a $20 Amazon GC.
That is pretty inspiring Smucket. Glad you have the high class problems and that the accumulation of assets has become a number in a spreadsheet rather than a real impact on your life.
Can anyone point me to a good resource for budgeting monthly income needs during retirement? I feel like I'm picking a number out of thin air - yet that is a pretty important variable in the whole calculation. We plan to have a house paid off. We are assuming the kids will be self sufficient. We do want to travel 3-4 times per year. I am clueless as to what I should budget for healthcare.
Personal Capital is a fantastic tool. The fee analyzer, portfolio monte carlo simulator and general ease of use is top notch.
In our political climate and the lunacy of the fascination with marxism amongst so many it is impossible to plan or divine out of the ether any long term budget for healthcare. There is too much instability and meddling to allow for rational planning. The real issue for future early retirees will be healthcare. You can probably be safe if you are now in you rate 50's or early 60's devising a plan but the good Lord only knows what we will see in 10 years or so.thirty-two said:
Can anyone point me to a good resource for budgeting monthly income needs during retirement? I feel like I'm picking a number out of thin air - yet that is a pretty important variable in the whole calculation. We plan to have a house paid off. We are assuming the kids will be self sufficient. We do want to travel 3-4 times per year. I am clueless as to what I should budget for healthcare.
Good luck.
https://www.flexibleretirementplanner.com/wp/download/Quinn said:
Do you guys have a retirement calculator or excel spreadsheet that y'all like to use? Doesn't have to be FIRE related, moreso looking for something general.
Your biggest unknown/concern when retiring early is medical insurance. It is mine. When you reach 65 you will have medicare and a supplement and that will sure to increase as well depending on your retirement income. If the socialist get into power all bets are off and I am leaving the country. If that means forfeiting my citizenship so be it.
Thanks for the recommendations. I'll take a look at these - Dick, I'll let you know if I need a referral link.
Regarding health care needs post retirement, I'm not even sure where to start on that (like others have said). I am 25+ years from retirement and I'm type 1 diabetic. That's a huge variable that I'll have to follow closer in about 20 years. I am a CPA, and I saw someone mention that they are looking into health insurance through the AICPA, so that's something I'll keep in mind.
Regarding health care needs post retirement, I'm not even sure where to start on that (like others have said). I am 25+ years from retirement and I'm type 1 diabetic. That's a huge variable that I'll have to follow closer in about 20 years. I am a CPA, and I saw someone mention that they are looking into health insurance through the AICPA, so that's something I'll keep in mind.
Without changes, Medicare goes broke in 8 years....drill4oil78 said:https://www.flexibleretirementplanner.com/wp/download/Quinn said:
Do you guys have a retirement calculator or excel spreadsheet that y'all like to use? Doesn't have to be FIRE related, moreso looking for something general.
Your biggest unknown/concern when retiring early is medical insurance. It is mine. When you reach 65 you will have medicare and a supplement and that will sure to increase as well depending on your retirement income. If the socialist get into power all bets are off and I am leaving the country. If that means forfeiting my citizenship so be it.
retired last year at 50. traveled for a year, and we are back in the states. right now going through health insurance options. I agree with everyone else, it is the biggest unknown that we are facing.
been hearing that since it was started same with SS...ALWAYS going broke in { fill in the blank} yearsORAggieFan said:Without changes, Medicare goes broke in 8 years....drill4oil78 said:https://www.flexibleretirementplanner.com/wp/download/Quinn said:
Do you guys have a retirement calculator or excel spreadsheet that y'all like to use? Doesn't have to be FIRE related, moreso looking for something general.
Your biggest unknown/concern when retiring early is medical insurance. It is mine. When you reach 65 you will have medicare and a supplement and that will sure to increase as well depending on your retirement income. If the socialist get into power all bets are off and I am leaving the country. If that means forfeiting my citizenship so be it.
so very underrated ............. remember the last weekend where the 2 of you were say...rained in together in your house, nothing really to do, no where to go just each other.....now multiply this by 365......... ( BTW...you aint 30 anymore so one of the options has probably suffered a significant downgrade..)WhoopRAB said:
I hit critical mass at 40. That was in 1999. The subsequent financial meltdown was an unexpected test, but we cut expenses, stayed invested and bounced back.
Others on this forum have provided the blueprint for financial success: good jobs, the power of compound interest, regular savings, don't divorce, no new car loans, and living below your means. There is more to the equation.
If you retire young, you better have a great spouse because you're going to spend a lot more time together. I joke that my 30th anniversary is equal to most couples 50th. Work consumes at least 10 hrs of your daily life and separates you from each other.
I'm very fortunate, my spouse and I share common daily interests and enjoy our time together.
ARE YOU READY !!!!
Honestly spending thousands of hours with my wonderful wife sounds like the best part
I'm teaching her golf so she can do it with me.
I'm teaching her golf so she can do it with me.
Have to admit I'm a little worried about this aspect. I love my wife and we get along pretty good, but we don't have kids and she is an extreme extrovert. Like would love to have 20 people in our house at all times kinda thing. Of course I am an introvert, would prefer to be left alone, maybe with my dog, in quiet. Beer in one hand, cigar in the other. So it's going to be an interesting change since I've been going to work 5 or 6 days a week for the last 29 years, 15 of which I've been married.
This is why I read TexAgs-much cheaper than a psychiatrist.
This is why I read TexAgs-much cheaper than a psychiatrist.
Today is Yesterday's Pupil
Smucket, did you pull the trigger?
I'm curious if any one else has with the crypto/TSLA melt up.
Personally, for various reasons, e.g. WFH w/ toddler in a demanding job & wife working COVID at her hospital, I took a sabbatical from my firm the last two months of '20. It confirmed a lot of my feelings about time ownership and the pursuit of FIRE. However, I think my perspective has changed from sprinting to FIRE to transitioning to a slower paced, more time flexible career today. I won't say I always enjoyed WFH with my daughter, but I cherish the time I thought I was never going to get.
We've hit our coast # (~50% of FI) and our returns have well outpaced contributions the last two years. Returns will carry us now to RE - even if a bit delayed from 45 (but most likely not as we're on pace for <40 as is). But I'm ok with the delay if I get better time balance now while our daughter is so young. I think the best way of accomplishing the flexibility I want is by doing something on my own. I was never going to make Partner (no thanks) at my consulting firm, so I realistically only have a few more years of up before I hit the out limit.
I'm curious if any one else has with the crypto/TSLA melt up.
Personally, for various reasons, e.g. WFH w/ toddler in a demanding job & wife working COVID at her hospital, I took a sabbatical from my firm the last two months of '20. It confirmed a lot of my feelings about time ownership and the pursuit of FIRE. However, I think my perspective has changed from sprinting to FIRE to transitioning to a slower paced, more time flexible career today. I won't say I always enjoyed WFH with my daughter, but I cherish the time I thought I was never going to get.
We've hit our coast # (~50% of FI) and our returns have well outpaced contributions the last two years. Returns will carry us now to RE - even if a bit delayed from 45 (but most likely not as we're on pace for <40 as is). But I'm ok with the delay if I get better time balance now while our daughter is so young. I think the best way of accomplishing the flexibility I want is by doing something on my own. I was never going to make Partner (no thanks) at my consulting firm, so I realistically only have a few more years of up before I hit the out limit.
ammo = 3MMjeffdjohnson said:
50 year supply of bulk Ramen Noodles = 25k
Tiny House = 30k
2 acres of rural land = 5k
Solar panels, dig a well, miscellaneous = 10k
FIRE = 70k
FIRE = 3,070,000
I feel like an lolpoor after reading the replies here.
Im thinking about doing a Semi-Fire thing, basically just retiring from the corporate rat race and work part time, pursue side hustles etc. Im 35 with a $700k net worth. Im thinking work another 5 years and then semi retire at 40 with $1.5MM or so. I wouldn't draw down too much from the portfolio since I could live off my side hustles and dividends.
Of course this all depends on what the stock markets do in the next few years!
Of course this all depends on what the stock markets do in the next few years!
ea1060 said:
Im thinking about doing a Semi-Fire thing, basically just retiring from the corporate rat race and work part time, pursue side hustles etc. Im 35 with a $700k net worth. Im thinking work another 5 years and then semi retire at 40 with $1.5MM or so. I wouldn't draw down too much from the portfolio since I could live off my side hustles and dividends.
Of course this all depends on what the stock markets do in the next few years!
Are you single? Kids?
I'm not sure those numbers give you much cushion for medical expenses later in life with inflation.
Single, no kids, of course that could all change if I meet that special lady lol. I plan on moving to a lower cost of living place, maybe Puerto Rico where my family is from. Also, I would still work, just not for a corporate company anymore.bmks270 said:ea1060 said:
Im thinking about doing a Semi-Fire thing, basically just retiring from the corporate rat race and work part time, pursue side hustles etc. Im 35 with a $700k net worth. Im thinking work another 5 years and then semi retire at 40 with $1.5MM or so. I wouldn't draw down too much from the portfolio since I could live off my side hustles and dividends.
Of course this all depends on what the stock markets do in the next few years!
Are you single? Kids?
I'm not sure those numbers give you much cushion for medical expenses later in life with inflation.
I wouldnt draw down from the portfolio, so Im assuming $1.5MM will grow to $3MM+ by the time Im 55.
not entirely sure -- my initial goal was 5mil -- allotting 200k/yr SWR at 4%Boat Shoes said:
Your FIRE (Financial Independence, Retire Early) Number?
stay at home wife, 2 kids
started at -500k mid-2017, hopefully will cross the 1mil milestone next year
a present thought is to scale back at 45 (kids will be off to college) and not touch the 403b / 457b / roth until 65 -- just work ~1wk every other month or so, coupled w/ taxable investments -- and travel
Not sure if I ever contributed to this thread in the past (didn't feel like looking through it), but this last year unexpectedly forced me into early retirement. I'm only 47 and my original FIRE number was 55 which is why I call it early retirement. COVID hit and my company offered packages and I decided to take it. It was an extremely hard decision and one in which my wife and I discussed for weeks before I took it. Once I finally got my head in the right space it was an easy decision and one I haven't regretted. I do miss the people but not the work.
I've essentially not worked since 3Q last year. I consider my time off as a sabbatical because I do plan to return to work although I will be doing my best not to return to corporate america. The changes there in the last year do not appeal to me at all as it will only become even more political and bureaucratic in every way. Been there done that as a senior leader at Fortune 500. My mouth would get me in trouble in the new world order that has come about in the last year. Currently exploring consulting opportunities and have a few leads I'm working on there.
In the immediate aftermath of this decision, we completely reworked our spend with the goal being "can we live off of my wife's salary while (1) not spending any of my package money and (2) continue meeting our annual savings/investment goals?" So far, we have proven that (1) is totally doable. Jury is out on (2) still, but I think we can mostly get there. Simultaneously, it makes me sick how much we were wasting all those years now! Lol. Water under the bridge though.
Here are the scenarios we are planning/working/proving out with this unexpected "retirement":
Going to be an interesting year to say the least.
I've essentially not worked since 3Q last year. I consider my time off as a sabbatical because I do plan to return to work although I will be doing my best not to return to corporate america. The changes there in the last year do not appeal to me at all as it will only become even more political and bureaucratic in every way. Been there done that as a senior leader at Fortune 500. My mouth would get me in trouble in the new world order that has come about in the last year. Currently exploring consulting opportunities and have a few leads I'm working on there.
In the immediate aftermath of this decision, we completely reworked our spend with the goal being "can we live off of my wife's salary while (1) not spending any of my package money and (2) continue meeting our annual savings/investment goals?" So far, we have proven that (1) is totally doable. Jury is out on (2) still, but I think we can mostly get there. Simultaneously, it makes me sick how much we were wasting all those years now! Lol. Water under the bridge though.
Here are the scenarios we are planning/working/proving out with this unexpected "retirement":
- Use 2021 to finalize our next steps in life with work and home. This means putting a little money into our house to get it up to snuff for sale if we want to do that. Looking at about $15K there and I will use funds from my retirement package to pay for it. I had also saved up 6 months of cash before this happened as a general financial rule of thumb so we are cash heavy right now with about 24 months of cash on hand. Much peace of mind there having that on the side for those of you who have yet to sock away cash for an event like this. [I will eventually invest a lot of this once I figure out bullets below.]
- Focus on consulting as a source of income for me. I have obtained my LLC and I'm currently exploring three different opportunities on this front. Don't know yet if any of them will pan out, but one of them is stronger and further along than the others.
- If consulting doesn't work out, then attempt to find work at a smaller, private company. I won't make the big corporate compensation, but I'm fine with that. Would rather love what I do and who I work with than get the money.
- If neither of those options work out and we get real desperate, then pursue corporate world again (yuck).
- My favorite scenario and the one which we are both rapidly warming up to...sell our house in Dallas, move away from there, and buy out my FIL's house on the coast. He can no longer live there anyway, so we taking care of two homes now. Our only expenses at that point would be property tax, maintenance, and living. There would be no debt. If my wife ultimately gets a flexible work arrangement, we are most likely acting on this by year end. If she doesn't, she may leave anyway. This scenario, however, presents an unsolved cash flow problem and would be risky. We have plenty in investments but most of it is in tax deferred so that's not ideal, obviously, for our age.
Going to be an interesting year to say the least.
I use 3.5% as my expected withdrawal rate for that reason.
6.5% nominal growth on equity portfolio (conservative, historically), 1.0% reinvestment for inflation, and an assumed 35% long term tax rate (blend of capital gains and income tax for the retirement accounts).
With the current direction maybe inflation should be 2-3% and tax rate close to 45%, but I'm already using a withdrawal target far above my current spending levels so I feel I'm being conservative enough.
6.5% nominal growth on equity portfolio (conservative, historically), 1.0% reinvestment for inflation, and an assumed 35% long term tax rate (blend of capital gains and income tax for the retirement accounts).
With the current direction maybe inflation should be 2-3% and tax rate close to 45%, but I'm already using a withdrawal target far above my current spending levels so I feel I'm being conservative enough.
4m at age 65 + 2 rentals netting 5k +month. I'm 55 and on track. All I need is a beach and a golf course!
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