Hoyt Ag said:

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jamey said:

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Aust Ag said:

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Mid-level Regional Sales Mgr at my company recently basically asked to be demoted to an Account Rep, so he could spend the last working years relatively stress free. Got to keep most of his old salary (little less now on commissions) , vacation time and most importantly, his insurance . No more overnights.

Checked his ego at the door, and really likes his decision. I'm thinking I might do the same in next few years. "Downsize yourself at work".

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I plan to do similar, but I don't think I'll be able to do so within the same company and salary.

I'm basically looking at working longer for less, probably a lot less and into my 70s without much stress and may start it as early as late 50s. I'll find something that's enough to keep the mind and body active

I've seen so many people burn though it all the way up to 65 or 68, fully retire and not last much longer after that

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I have passed up 2 promotions in a year to keep the life I have at home. Single, no kids. I like to travel, fly fish and hunt in that order. There is not enough money to make me deviate from that. Probably a career limiting move but I am good where I am at. I cannot imagine taking on any more professional responsibility. Vps at our company are run ragged and last about 3 or 4 years. I just do not see any upside.

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I'm in it for the equity. Once I'm vested - I'll be ready to move onto the next stage of life.

As important as cutting expenses and managing your budget is what are you going to do all day after a lifetime of getting up and going hard. I'm just two weeks in but it's hard not to wake up at 5AM and start figuring out the day. I play 9 holes of golf every afternoon at 6 or 6:30 with friends but that leaves a long day between those times. I'm planning to work part time either as a marshall or mowing the rough but that won't begin until after the over seed in October. I don't fish but I may start. Going to the White Mountains with some guys to fish this weekend. Maybe that might be my thing. I've got 3 lakes and the Salt River within half an hour so I need to give it a try.

Anyway sorry for the derail but don't forget this important part of your planned retirement.

I don't think I'll ever have an issue with boredom. Of course, my goal is to get a pay increase in retirement which helps, as having to cut back on expenses can lead to lack of options and boredom. I am currently still on pace to get that pay increase as early as mid 50s, but life has a lot of obstacles between now and then. But even so, I have too many hobbies, interests, and ways to keep my brain/body active to worry too much about that right now. I'll think about that the last few years and if I want to keep working part time, volunteer work, etc.

Either way, I still see myself working part time for a while longer even when I financially don't necessarily have to. But I have heard of many get bored, which is also why I don't get why so many go from 100 to 0. It makes no sense. They end up bored, and they wasted much of their 50s and early 60s just to get there, rather than work a slower paced job a little longer while enjoying their 50s/60s a little more, too. Scaling back for 2+ decades from 50 to 75, rather than working as hard in your 50s as you did your 30s and then abruptly ending at 62 or 65. Then you can even start to withdraw 1-2% and split the difference, and still grow wealth during this time. It's worth it to strongly consider both options and what works best for you as an individual. Though as I've stated before, health insurance is one of the bigger obstacles in doing this, and probably limits some people's options.

I did something like what I think you're talking about. My plan was never to live through another hurricane so I moved from Houston to Phoenix in May, 2023 to basically test drive retirement. The bank I have worked for made it easy by allowing me to work remotely the last year I was working. I was able to have one foot in one world and one in the other world. I don't know how practical that is for most but it really confirmed for me what I wanted to do and where I wanted to be.

Still though the first day you wake up with no deadlines, no urgency and no pressure is real.

Along these same lines, I struggle with what to assume for investment returns, inflation, and life expectancy. I currently use 4%, 3%, and 95, but small tweaks to those numbers lead to vastly different outcomes.

Are you talking 4% real returns factoring in inflation?

I'd still say 5-6% real if you are invested well. Keep 3-4 years conservatively and the rest still in stocks.

4% returns and 3% inflation - essentially net 1%.

I get going conservative, but I would strive for more than 1% real returns. 4% on the low end, 5-6% is entirely possible. Again, real returns.

But again, it depends on your risk tolerance.

AW 1880 said:

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Along these same lines, I struggle with what to assume for investment returns, inflation, and life expectancy. I currently use 4%, 3%, and 95, but small tweaks to those numbers lead to vastly different outcomes.

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Try a Monte Carlo simulator that runs through all the different possible scenarios based on historical market returns and inflation. Should give you a good sense of best case, worst case and everything in between. Nothing wrong with planning very conservatively, but maybe this helps you dial it in a little bit better.

https://cfiresim.com/

Extremely helpful.

Regarding 4% rule, for some reason I didn't think that accounted for inflation.

Most of the financial advisors on Ive watched on YouTube plug in 7% market returns and 4% draw

one safe place said:

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double aught said:

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People regularly using Uber Eats/Door Dash when they are able bodied and have a functioning vehicle blow my mind. Don't get it at all.

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Major waste of money as is eating out a lot. And it has only gotten worse as prices have skyrocketed over the past couple of years.

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You should see one of my neighbors. My wife counted 4 door dash deliveries yesterday. Don't know how anyone can afford that.

I have never used Uber Eats. I also live in a town of 1800ppl in NW CO so we dont have that, just 5 cafes. lol.

Don't normally join in the TexbrAgs, but according to those simulations, I'm on track to retire at 55, maintain current spending/salary, and have several multiples of my retirement at age 95. Also 0% failure in all cycles. I seriously had no idea I was in that kind of shape.

Apparently I can retire today on current spending(way too low) and end life with avg 17M and highest 72M..

https://firecalc.com/

Here is the other one I have used before. Couldn't find it earlier.

AW 1880 said:

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Don't normally join in the TexbrAgs, but according to those simulations, I'm on track to retire at 55, maintain current spending/salary, and have several multiples of my retirement at age 95. Also 0% failure in all cycles. I seriously had no idea I was in that kind of shape.

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I think that is part of the failure (or perhaps a feature?) of the retirement industry today. There is so much focus on save/invest but not a ton on advice (well plenty of bad advice) for planning your actual retirement. Most groups have a very vested interest in you continuing to invest and grow and not to start drawing down.

Figuring out your retirement early is important. Too many don't have any actual plans and just continue working because that is what they think the expectation is. Figure out what you want to do, budget around it and plan.

How much of those future retirement ideas could be done now? Probably more than you think, especially if you're out there busting your butt right now. There is a certain point that your compounding does more work than your current investments and just need times to get there. When you reach that point, you have a few more options.

The SP500 has a historic rate around 10% - that doesn't mean the future will continue, but its a good baseline that you can then bump down to be as conservative as you want. Account for 3% inflation in your calculations one way or another which give the 7% return numbers you see referenced in so many places

Assuming 4% returns and 3% inflation is insanity though. You can beat that today in cash with a HYSA. Market returns should certainly be better.

I run my calcs to band my retirement years. I run an optimistic (based on my account returns) , Historic (sp500) and conservative values and that give me a range of years with the latest running to about age 55 for me.

I may not have done it right but I focused more on what I wanted to do with the rest of my life rather than squeezing every nickel into the retirement bucket. I'm 67 and just days into retirement but have a 41 year old son who has been retired for some time.

10% returns -inflation -taxes -COL adjustment -future value inflation = 0.25%

need 8 figures to live above poverty level

jja79 said:

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I may not have done it right but I focused more on what I wanted to do with the rest of my life rather than squeezing every nickel into the retirement bucket. I'm 67 and just days into retirement but have a 41 year old son who has been retired for some time.

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Ask him what he did. Betting you gave him different advice than what your folks gave you.

349 days to retirement for me.
I have a house on 49 acres in the mountains of New Mexico, and a 55HP turbo diesel utility tractor. That will keep me busy for the rest of my life, especially because I need to do quite a few updates, as well as reclaim it from the pack rats, deer mice, chipmunks, bats, etc.

Don't have a lot saved, but with SS and a small fed.gov pension I have more than enough for my simple needs.

And like some others, I virtually never eat out, but most of my food on clearance from Smith's [a Kroger brand]. And yes I'm single too and don't plan to get married again.

As a retired Fed employee, I can continue my health plan into retirement, and go to the VA if I need care.

Anyway, that's my plan, and of course spend some more time with the grandkids.

The 7% number they use is before inflation.

Caliber said:

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AW 1880 said:

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Don't normally join in the TexbrAgs, but according to those simulations, I'm on track to retire at 55, maintain current spending/salary, and have several multiples of my retirement at age 95. Also 0% failure in all cycles. I seriously had no idea I was in that kind of shape.

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I think that is part of the failure (or perhaps a feature?) of the retirement industry today. There is so much focus on save/invest but not a ton on advice (well plenty of bad advice) for planning your actual retirement. Most groups have a very vested interest in you continuing to invest and grow and not to start drawing down.

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I agree with this point, but I think it's worth adding that there is such an overwhelming percentage of the population that either hasn't saved enough or started saving too late. For the general public it's probably a good message.

anyone giving a women an open ended spending account will be broke. this is 69% fact and 69% intuition.


my wife can convince herself that she spent nothing one month...the CC comes back at 19,000 spent. the next month she'll be nervous of her spending ... the CC comes back at 4,500.

TheMasterplan said:

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This is a view biased by "vacation mind."

It's probably easier to buy your daily groceries or walk to a local cafe but makes everything else more difficult.

You don't really know until you live somewhere.

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It's not a view really. I think it would be great to live in a walkable community.

Regardless, a good portion of a monthly family budget is eaten up by "vehicle" expenses.

Is it feasible for empty nesters to sell a car and just have one car? Yes, in a lot of cases, but we all want our "freedom" to move and I bet 95% of families keep 2 cars rather than being inconvenieced.

I get you but everyone says that when they go to Europe for a week on vacation.

There are trade offs. And that "freedom" is a real
thing. There are conveniences in a walkable community and there are conveniences in having a car.

Going to one car is a reasonable suggestion though.

It may work out for some. It's not a bad idea, if you aren't someone who wants space from their neighbors. But I'm assuming these people all lived on top of one another? How does it work, exactly? Last thing I want in retirement is less space between me and my neighbors. Less privacy.

Cutting down to one car may make sense for those who live further out. One insurance payment, but that's about all you should save on. Ideally, there would be no reason to have a payment during retirement. It would just be gas and insurance. I haven't had one in over 4 years and don't plan to get into one again barring unfortunate circumstances.