Do you FIRE? Financial Independence, Retire Early

[ShaggyBevo RIP 3868]

17 minutes ago, CHIEF said:

Here is the thing, you never know....I don't pile up cash or stock over $100k or so. With a minor in history, I always fear our monetary vehicle could go the way of the Weimar Republic (worst possible scenario). I reach a certain level of cash, and I buy an item that can generate income, or the service it provides can be used to generate income or trade. Saved up $15k, bought a skid loader, save up $6k, split ownership of a 28 ft. gooseneck. $10k, bought a tractor. My next purchase, is an excavator at about $20k. Next, a car lift at $4k, etc...

Luckily I have the acreage/shop to put it on/in. I personally don't trust anything where I don't have full control. Rent houses, land, equipment, greenhouses, items that provide services, food on the table, or a roof over your head are where I invest. This is where the last thing that people with no money will still be willing to use their limited funds.

I'm pessimistic enough to think there will be something come down the pipe in the next 30 years that will wipe out investments, pensions, and the value of cash money.

CHIEF

FDIC goes up to $250,000 per account. 

[Nice Guy Eddie 13506]

On 9/28/2021 at 5:15 PM, EuroHorn said:

You can do backdoor Roths if your income is above the limit. Many people do that as they prepare for retirement.   

In a current bill(s), the backdoor Roth could be eliminated on Dec. 31st. If someone was planning to do this in 2022, you might want to get moving in case this becomes law. My guess is that it will not be eliminated but you never know.

I'm in agreement that Roths are incredible. I'm 52 and make a decent salary. I've used 2021 to fully transition from traditional 401k contributions to mainly Roth 401k. Every paycheck or so, I lower the % to traditional and up the % to Roth. I know some experts would think I'm too old/too high of a tax bracket to get as much benefit from Roth and they're right to a point. My thought is that I should still get 20+ years of Roth tax-free growth. Perhaps the Roth account will be the last one I touch for withdrawals. 

[Nice Guy Eddie 13506]

There is a lot of misconception about FIRE. Some think it is only extreme minimalism. Or they think FIRE people obsess about savings or non-spending 24/7. If you’re planning your finances so you control your life, welcome to FIRE. 

Non-FIRE people are those that don’t have a plan and will figure it out as they go. AKA 80% of the US population.

Here are the 4 commonly expressed FIRE types:

• Lean FIRE – these are the minimalists that get attention on CNBC. These can be modest income people that want to retire by 35 or 40. It may require low, low spending. I believe these unicorns are extremely rare and would make miserable friends.
• Fat FIRE – people with high incomes with a fat spending budget but they’re saving at a high rate to be able to easily cover this lifestyle in the future. I think some of the people here expressing doubt about FIRE fall in this category.
• Coast FIRE – people that invest like crazy in their youth and then allow time to cover their future income needs. They can loosen up in their 30s to 50s and spend most of the job income as their retirement needs/wants are already set.
• Barista FIRE – their savings can cover their basic needs in retirement but they need some income to cover their wants. This could be working part-time at Starbucks, hence the name. Or it could be infrequent contract work with their pre-retirement career. 

Personally I hit slightly on all 4 types even though working in retirement is more of an idea because I haven't retired.

There isn't FIRE police that force someone into a category and anyone can adjust as needed. Personally I think everyone should learn FIRE principles and then decide how to apply them. At the end of the day, the movement is only advising people to take control of their personal finances to meet whatever long term goal you have. More than 1 way to get there.

[Archer 474]

1 hour ago, Nice Guy Eddie said:

In a current bill(s), the backdoor Roth could be eliminated on Dec. 31st. If someone was planning to do this in 2022, you might want to get moving in case this becomes law. My guess is that it will not be eliminated but you never know.

 

Mega Backdoor Roth would be eliminated this year. The normal $6,000 rollover backdoor roth has 10 years until it would be eliminated. 

[tbone_ 14105]

Subscribed

[troph 24781]

21 hours ago, Nice Guy Eddie said:

There is a lot of misconception about FIRE. Some think it is only extreme minimalism. Or they think FIRE people obsess about savings or non-spending 24/7. If you’re planning your finances so you control your life, welcome to FIRE. 

Non-FIRE people are those that don’t have a plan and will figure it out as they go. AKA 80% of the US population.

Here are the 4 commonly expressed FIRE types:

• Lean FIRE – these are the minimalists that get attention on CNBC. These can be modest income people that want to retire by 35 or 40. It may require low, low spending. I believe these unicorns are extremely rare and would make miserable friends.
• Fat FIRE – people with high incomes with a fat spending budget but they’re saving at a high rate to be able to easily cover this lifestyle in the future. I think some of the people here expressing doubt about FIRE fall in this category.
• Coast FIRE – people that invest like crazy in their youth and then allow time to cover their future income needs. They can loosen up in their 30s to 50s and spend most of the job income as their retirement needs/wants are already set.
• Barista FIRE – their savings can cover their basic needs in retirement but they need some income to cover their wants. This could be working part-time at Starbucks, hence the name. Or it could be infrequent contract work with their pre-retirement career. 

Personally I hit slightly on all 4 types even though working in retirement is more of an idea because I haven't retired.

There isn't FIRE police that force someone into a category and anyone can adjust as needed. Personally I think everyone should learn FIRE principles and then decide how to apply them. At the end of the day, the movement is only advising people to take control of their personal finances to meet whatever long term goal you have. More than 1 way to get there.

so it's an acronym used to describe everyone that is financially responsible?

[Nice Guy Eddie 13506]

50 minutes ago, troph said:

so it's an acronym used to describe everyone that is financially responsible?

haha. Most people who are financially responsible wants to be Financially Independent and have the ability to Retire Early. So yeah. It's still an exclusive club.

[Fudge Nuggets 19184]

On 9/27/2021 at 6:00 AM, 52-80 said:

i plan to splash scalding oil on my legs at the fry station and live off workers comp for the rest of my life

Workers comp and disability insurance are the redneck 401k plans.

[immamac 42832]

On 9/30/2021 at 9:59 AM, Nice Guy Eddie said:

There is a lot of misconception about FIRE. Some think it is only extreme minimalism. Or they think FIRE people obsess about savings or non-spending 24/7. If you’re planning your finances so you control your life, welcome to FIRE. 

Non-FIRE people are those that don’t have a plan and will figure it out as they go. AKA 80% of the US population.

Here are the 4 commonly expressed FIRE types:

• Lean FIRE – these are the minimalists that get attention on CNBC. These can be modest income people that want to retire by 35 or 40. It may require low, low spending. I believe these unicorns are extremely rare and would make miserable friends.
• Fat FIRE – people with high incomes with a fat spending budget but they’re saving at a high rate to be able to easily cover this lifestyle in the future. I think some of the people here expressing doubt about FIRE fall in this category.
• Coast FIRE – people that invest like crazy in their youth and then allow time to cover their future income needs. They can loosen up in their 30s to 50s and spend most of the job income as their retirement needs/wants are already set.
• Barista FIRE – their savings can cover their basic needs in retirement but they need some income to cover their wants. This could be working part-time at Starbucks, hence the name. Or it could be infrequent contract work with their pre-retirement career. 

Personally I hit slightly on all 4 types even though working in retirement is more of an idea because I haven't retired.

There isn't FIRE police that force someone into a category and anyone can adjust as needed. Personally I think everyone should learn FIRE principles and then decide how to apply them. At the end of the day, the movement is only advising people to take control of their personal finances to meet whatever long term goal you have. More than 1 way to get there.

lol at how dumb this post is. 

[Nice Guy Eddie 13506]

59 minutes ago, immamac said:

lol at how dumb this post is. 

internet tough guy

[Gatorubet 30183]

Workers comp and disability insurance are the redneck 401k plans.

Throw a rock in Mississippi during deer season and you will hit a guy in a tree stand on disability who “can’t work!”

[Guest Lobo]

STDI/LTDI are way different than government disability.  Proper private D.I. is to cover shit like COVID or pregnancy.  It just keeps paychecks flowing in when you're sick or out of work for a few months.  SSDI is a way different animal.  And yes, it's totally abused...usually by white Southerners.......in my vast experience.  

[Not a cat 5651]

I retired at 45.  Got divorced at 48, which throws a huge wrench in FIRE plans.

Fortunately, didn't burn any bridges so was able to get my old job back.  Now I'm almost 52, and have a more money just for me than the joint assets I had when I retired the first time.  It's really stunning how much a single upper middle class dude can save without even really trying, plus a raging bull market didn't hurt.

I could easily retire this second if I really wanted but my youngest is a junior in HS so I figure might as well work another year as it's not like I'm going to be traveling the world until he goes away to college.  (Side note, your work conditions really improve when both you and your employer know you don't really need the paycheck).

Once he goes to college, I figure I'll rv around the country with my dogs for a while.  When that gets boring, I'll hike the Appalachian trail, paddle the Mississippi or something else stupid like that.  Or maybe 2 chicks at the same time.

 

 

 

[Anastasis 23454]

40 minutes ago, Not a cat said:

I retired at 45.  Got divorced at 48, which throws a huge wrench in FIRE plans.

Fortunately, didn't burn any bridges so was able to get my old job back.  Now I'm almost 52, and have a more money just for me than the joint assets I had when I retired the first time.  It's really stunning how much a single upper middle class dude can save without even really trying, plus a raging bull market didn't hurt.

I could easily retire this second if I really wanted but my youngest is a junior in HS so I figure might as well work another year as it's not like I'm going to be traveling the world until he goes away to college.  (Side note, your work conditions really improve when both you and your employer know you don't really need the paycheck).

Once he goes to college, I figure I'll rv around the country with my dogs for a while.  When that gets boring, I'll hike the Appalachian trail, paddle the Mississippi or something else stupid like that.  Or maybe 2 chicks at the same time.

Broad stroke business? Sales?

[Not a cat 5651]

5 minutes ago, Anastasis said:

Broad stroke business? Sales?

In house lawyer for financial services firm.

[Guest Lobo]

If you wanna do something cool part-time, PM me.  We built a neobank (with a federally chartered brick-n-mortar 50-state CFI behind it) for artists (musicians mostly, but some comics, authors, political commentators, et. al.).  We'll need an financial services attorney, particularly one that doesn't need it to be an 80-hour week grind of a job with heavy comp.  Long story, but your attitude seems right.

[4thgenhorn 38]

Thanks for inputs. I’m in similar situation at 45 and could prob retire now and live comfortably. 
 

one thing always in my mind though, I learn a lot daily in my work and via colleagues. I work in tech with some sharp people and they give me some of the best investment ideas and keep me current. I worry if I retire id become stupid and obsolete in a matter of years. How to stay sharp with a 40+ year retirement?

 

also I have elementary age kids so figure I should work at least until they are in high school, just in case they need an extra helping hand. 
 

for me retirement really comes more to what new thing would I want to do with my day, rather than just walking away from Co. it’s more than a number, once u have the number that is, and I’m not sure I know yet what that new thing would be. 

[blacklab 11926]

so sign up at a place like toptal and be a contractor. Work a few months, take a few months off, stay sharp and busy when you want, take summers off to spend time with your kids

[Horns99 155]

You guys that are retiring early, what’s your target asset # ? Mid 7 figures or 8 figs, to make sure it last as long as you need it? The significant other & I debate this. Especially with younger kids, what the hell else are you going to do.


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[closetohumping 17431]

On 9/27/2021 at 12:38 AM, troph said:

At least soon to be divorced dudes. I don’t know any wives that like tight leashes. 

First of all I commend the OP and those of you who are able to retire before 50

 

i could, but I’d have to really downgrade my lifestyle and I just can’t do that.  This is why I quoted this post.   My wife is used to this life and we’re not gonna sell our house and move to Sugarland or king wood.  I’ve thought about it for sure.  All of my colleagues are the same as me as well.  We don’t love sales, but we’ve built this life that take s a lot of income to sustain and that’s hard to give up.  Would love to figure it out though

[Hefeweizen 5308]

12 minutes ago, Horns99 said:

You guys that are retiring early, what’s your target asset # ? Mid 7 figures or 8 figs, to make sure it last as long as you need it? The significant other & I debate this. Especially with younger kids, what the hell else are you going to do.


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I am pretty sure that net worth needs to be north of 5 million to make it work.  I don’t see it otherwise unless you have serious discipline.

[Not a cat 5651]

1 hour ago, Hefeweizen said:

I am pretty sure that net worth needs to be north of 5 million to make it work.  I don’t see it otherwise unless you have serious discipline.

It all depends on the income you think you'll need.  Good rule of thumb is withdrawing 4% annually adjusted for inflation will suffice for a 30 year retirement and a 3 to 3.5% withdrawal rate will last into perpetuity for a decently balanced 60/40 or so portfolio.  

So if you need 80k a year, 2MM should do for a 30 year retirement, and 2.5MM for a longer one.  If you can get by on 50k a year shit gets fairly easy to reach on a professional income.

There's always a chance we hit 1980s Japan in the market or have 70s style inflation, and of course those numbers go out the window.  But in those cases I think we're all fucked anyway.

The scariest thing is the sequence of return risk.  A really shitty bear market in the first year of retirement is just brutal for your prospects.  Someone that retired in 2000 might be eating cat food while someone who did in 1999 or 2001 is fine.  

[CooterBrown 18001]

That 4% draw is overly conservative IMO. I guess that makes sense if you move your entire portfolio to a super conservative mix that’s not even keeping up with the market average return. Personally, I’m going to keep investing in retirement at a decently aggressive mix. I can’t ever see dropping my portfolio below 50-60% in an S&P index fund.

[Not a cat 5651]

4% is certainly conservative but that's the whole point, it's supposed to cover the worst case scenarios and still be "safe".  5 or even 6 percent works in a lot of cases but if you're retiring in 1929, 1968 or 2000 you don't want to be withdrawing above 4%.

If you can be flexible and cut expenses or get part time work when the shit hits the fan then it gets easy. In my situation, I hit my own version of a bear market in 2018 when half my portfolio went Thanos on me.  No problem, go back to work for a bit and ride it out.  Flexibility is key.

[TwiceHorn 31429]

One thing people don't really figure is that, assuming you live to be 85, which is reasonable, that last 5-10 years is going to be pretty easy to live a modest/frugal lifestyle.  Even if you're quite healthy, simple age is going to cut down your travel and extra-cost leisure activities.  And if your health deteriorates in a significant, but not life-destroying way, that's a near certainty.

I sort of unintentionally cut back my work to a very leisurely level, that I could sustain well past normal retirement age, without much interfering with travel and leisure, so I probably will keep working at this level almost indefinitely.  Wife is a bit in a similar situation, but she'll probably quit altogether around 65.

By most reasonable measures, we should be set, but, like Chief, I fear something weird is going to happen.

 

Edited January 2, 2022 by TwiceHorn

[UTGrad98 2271]

2 hours ago, Horns99 said:

You guys that are retiring early, what’s your target asset # ? Mid 7 figures or 8 figs, to make sure it last as long as you need it? The significant other & I debate this. Especially with younger kids, what the hell else are you going to do.


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We spend at most 60k a year and 25k of that is the mortgage. Our situation is different than most because my wife is from Mexico and there is a real chance we move there sooner rather than later. As long as there is no funny business with inflation our social security will cover most of our expenses when we hit 65 so its getting there that is the real issue. We could easily easily retire with 1.2m if mortgage is paid. But I'm a miser. Wife wants 2m. The debate is ongoing. The thing is it's not black and white. My job allows me to go part time as I'm in healthcare so I will most likely work like 1 day a week when I decide to quit if I some extra cash. But that gives me time to start other ventures. My wife can work for her dad in Mexico as well so for us it's not all or nothing. My personal FIRE will be when I decide to exit the rat race full time because the stress I have isn't good for me long term.

[Nonbryan 173]

I imagine the highest cost associated with retiring early is high health insurance coverage costs, right?

[Not a cat 5651]

15 minutes ago, TwiceHorn said:

 

By most reasonable measures, we should be set, but, like Chief, I fear something weird is going to happen.

 

Have you considered investing in timber properties?  Virtually a foolproof retirement investment.

[High Plains Drifter 11024]

 

I'm on the wrong side of 55. I've been working part time (3/5 time- 24 hrs/week) for the last 15 or so years. I'll probably quit entirely/ retire in three or so years when I'm about 60. Rest of time is spent working on the house/gardening/volunteering/house husband-father/fucking off.

Wife works full time. She says she plans to work until she can't- doesn't want to ever retire.

We have no debt, house is paid off.  Only one daughter who is still at home, and her college account is well funded.

 

[UTGrad98 2271]

2 minutes ago, Nonbryan said:

I imagine the highest cost associated with retiring early is high health insurance coverage costs, right?

Yes that is the only issue stopping most people.  I would think after a year though your yearly income level would be at point where Obama care wouldn't be to high. My hope is they lower Medicare age to 50. I'd imagine there would be a retirement boom that would dwarf what's happening this past year.

[CooterBrown 18001]

I imagine the highest cost associated with retiring early is high health insurance coverage costs, right?

Until you’re 65 then you’re on Medicare because few private insurance policies (that are affordable) will cover you.

My wife’s pension will provide medical insurance for both of us between retirement and Medicare. Plan is to retire in 10 years at 59 1/2 for me and 54 for her.

[TurkeyChew 383]

9 minutes ago, Nonbryan said:

I imagine the highest cost associated with retiring early is high health insurance coverage costs, right?

This. Employer covered insurance at a top flight firm means something like Humira is $60 a year ($5/month) versus the $70k out of pocket. Being underinsured is expensive if you have a chronic condition or need.

[Anastasis 23454]

29 minutes ago, UTGrad98 said:

Our situation is different than most because my wife is from Mexico and there is a real chance we move there sooner rather than later.

[52-80 19140]

7 hours ago, Lobo said:

If you wanna do something cool part-time, PM me.  We built a neobank (with a federally chartered brick-n-mortar 50-state CFI behind it) for artists (musicians mostly, but some comics, authors, political commentators, et. al.).  We'll need an financial services attorney, particularly one that doesn't need it to be an 80-hour week grind of a job with heavy comp.  Long story, but your attitude seems right.

Im pre-law. Can i do it remote?

[Nice Guy Eddie 13506]

Another retirement safeguard is to have 3 years of expenses saved outside of the market as an emergency fund. Then if the market tanks, you live off the emergency funds, hoping the market recovers over that time.

I’ve listened to a few retirees mention they work an additional year or two to create that emergency fund. 

[Reagan1k 3024]

As mentioned above, sequence of return is the single most important part of the equation for most people except the ultra wealthy.

Retiring into a market that experiences a couple of bad or even a few down years means a) withdrawals and therefore expenses must be cut significantly or b) the money won’t last as projected even if the markets recover to their projected long term averages.

If you don’t have a flexible budget (i.e.have fixed expenses) or aren’t disciplined in other spending then a 2-3 year bear or flat market at the start of retirement can make what you wanted to be a 4% withdrawal much higher.  Stacking a few withdrawals of what must become 5-10% or more due to fixed expenses on top of a falling market early in retirement destroys principal and that can’t be easily recouped.

Having “buckets” of money not exposed to the market from which to pull current income and then refilling those buckets in subsequent years is a way to mitigate that risk but it requires disciplined asset allocation and rebalancing. 

[Nice Guy Eddie 13506]

Everyone needs to have realistic expectations about how their retirement will start and is it enough. And if it’s not enough, something has to give and most likely that means a more frugal lifestyle.

I have some friends whose incomes that have stagnated if not dropped slightly over the past few years.  But their lifestyle spending has increased and their son is about to enter college. I’m sure they will stop all retirement saving to help him not take on school debt. They’re in their late 40s and talk about working into their 70s to make the numbers work. They have normal corporate jobs. In my view, their entire plan is an extremely narrow path built on hope.

I can’t speak for all corporate jobs but many don’t want you after a certain age. You become too expensive. Probably less productive. And you might be holding up a mgmt position that they want to give to a younger, future leader. I’ve seen it many times that this person gets the nice buy-out, if lucky. Worse case, it’s a layoff with a month or two of pay.  And at some ages, it’s easier said than done to find a similar job.

[Anastasis 23454]

1 hour ago, Nice Guy Eddie said:

I can’t speak for all corporate jobs but many don’t want you after a certain age. You become too expensive. Probably less productive.

Unpossible. 

[tequila 317]

Jesus Christ, I guess most of y’all never want to have fun once you’re done working?


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[ShaggyBevo RIP 3868]

On 1/1/2022 at 8:48 PM, UTGrad98 said:

Yes that is the only issue stopping most people.  I would think after a year though your yearly income level would be at point where Obama care wouldn't be to high. My hope is they lower Medicare age to 50. I'd imagine there would be a retirement boom that would dwarf what's happening this past year.

This is thing that has us working on putting away another couple million.  If the US goes to universal health you're going to see a wave of retirees that are presently working only to keep healthcare coverage.

[UTGrad98 2271]

11 hours ago, tequila said:

Jesus Christ, I guess most of y’all never want to have fun once you’re done working?


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Reading some of yalls posts I'm on the other side of this discussion it seems. Before covid we went on 1 or 2 week long vacations a year to various all inclusive resorts around Mexico at the tune of 3500 or so per trip. Our other 2 weeks of pto was visiting my wife's family which is basically a resort itself. What else is there? I think we will remodel out master bath this year and are looking at 13k or so. What else?

 

All I value anymore is time, memories and quality of life years. I could give 2 shits about most material things with the exception of splurging on a new desk top computer every few years to play the latest video games. I genuinely don't care about the other stuff. In retirement I can see us going on probably 4 or 5 vacations instead of 2. And? 15k a year on that is nothing if house is paid. And if we move to Mexico in a few years we will need half our estimated retirement. 

[zman13 178]

17 hours ago, tequila said:

Jesus Christ, I guess most of y’all never want to have fun once you’re done working?


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5 hours ago, UTGrad98 said:

Reading some of yalls posts I'm on the other side of this discussion it seems. Before covid we went on 1 or 2 week long vacations a year to various all inclusive resorts around Mexico at the tune of 3500 or so per trip. Our other 2 weeks of pto was visiting my wife's family which is basically a resort itself. What else is there? I think we will remodel out master bath this year and are looking at 13k or so. What else?

 

All I value anymore is time, memories and quality of life years. I could give 2 shits about most material things with the exception of splurging on a new desk top computer every few years to play the latest video games. I genuinely don't care about the other stuff. In retirement I can see us going on probably 4 or 5 vacations instead of 2. And? 15k a year on that is nothing if house is paid. And if we move to Mexico in a few years we will need half our estimated retirement. 

I guess it comes down to how much you have to spend to have fun. If you need to buy a new 70k car every 2 years, that's an expensive way to have fun. If your idea of fun is to live in Greece or Thailand for six months, that's a cheaper way to have fun. 

@tequila - what expensive purchases/lifestyle do you have to fund in retirement?

[Guest]

6 hours ago, UTGrad98 said:

Reading some of yalls posts I'm on the other side of this discussion it seems. Before covid we went on 1 or 2 week long vacations a year to various all inclusive resorts around Mexico at the tune of 3500 or so per trip. Our other 2 weeks of pto was visiting my wife's family which is basically a resort itself. What else is there? I think we will remodel out master bath this year and are looking at 13k or so. What else?

 

All I value anymore is time, memories and quality of life years. I could give 2 shits about most material things with the exception of splurging on a new desk top computer every few years to play the latest video games. I genuinely don't care about the other stuff. In retirement I can see us going on probably 4 or 5 vacations instead of 2. And? 15k a year on that is nothing if house is paid. And if we move to Mexico in a few years we will need half our estimated retirement. 

This is my line of thinking. Hell, I hate the stuff I own now. Why would I want more of it? I just want time to screw around without feeling like I need to be doing something productive. I'm not going to travel Europe for three months staying at five-star hotels. I'd honestly just go to SPI for a week here and there.

[ZB'Tejas 593]

37 minutes ago, zman13 said:

 

I guess it comes down to how much you have to spend to have fun. If you need to buy a new 70k car every 2 years, that's an expensive way to have fun. If your idea of fun is to live in Greece or Thailand for six months, that's a cheaper way to have fun. 

@tequila - what expensive purchases/lifestyle do you have to fund in retirement?

Housing costs? Even if your house were paid off I would imagine taxes would be $30K annually or more and upkeep another $10K especially in 10-20 years. Then throw in a car payment every now and then, medical, and a few trips a year and I would imagine you get to $100K annually with food and normal expenses.

Good for everyone on here that's far along on that journey. I feel really far behind and now need to throw in college savings into the mix. Not to mention a home remodel that is being insisted on by the SO. Guess work is in my future for quite some time.

[Nice Guy Eddie 13506]

8 minutes ago, ZB'Tejas said:

Housing costs? Even if your house were paid off I would imagine taxes would be $30K annually or more and upkeep another $10K especially in 10-20 years. Then throw in a car payment every now and then, medical, and a few trips a year and I would imagine you get to $100K annually with food and normal expenses.

Good for everyone on here that's far along on that journey. I feel really far behind and now need to throw in college savings into the mix. Not to mention a home remodel that is being insisted on by the SO. Guess work is in my future for quite some time.

100K is what I've been targeting. I'm single and expecting ~30K in social security benefits. (Completely depends on when I would start taking it.)  Go with the 4% withdrawal and I'm looking at needing 1.75m in retirement funds to cover the 70K. But then again my lifestyle is much less than 100K today so it's doubtful I would spend that much more in retirement.

[52-80 19140]

18 hours ago, tequila said:

Jesus Christ, I guess most of y’all never want to have fun once you’re done working?


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It dont cost that much to have fun IN A VAN DOWN BY THE RIVER

[tequila 317]

I guess it comes down to how much you have to spend to have fun. If you need to buy a new 70k car every 2 years, that's an expensive way to have fun. If your idea of fun is to live in Greece or Thailand for six months, that's a cheaper way to have fun. 
[mention=1707]tequila[/mention] - what expensive purchases/lifestyle do you have to fund in retirement?

I fully expect to be doing a lot of traveling and/or have multiple properties with taxes to go with them. We have 4 kids, and the youngest will most likely be living with us for his entire life, so that increases many of our expenses by 50% at least. I think I’ll probably need $250k post tax income/year in “retirement.”

My goal is to build as much passive income as possible over the next 10 years. I don’t ever see myself being fully retired, as I enjoy what I do too much.


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[Not a cat 5651]

2 hours ago, FirstTimeCaller said:

Hell, I hate the stuff I own now. Why would I want more of it?

This.

I'm already mentally preparing to sell my house in 18 months when the youngest graduates and I'm just stunned at all the stupid shit I own.  And this is after renting a 10 cubic yard dumpster 2 years ago and cleaning out the most useless of it.

Seems that about 10% of my stuff serves a useful function (clothes, utensils, etc.) or brings me joy (fishing and camping gear).  The rest is just a bunch of shit cluttering up my life. 

 

[CHIEF 5075]

26 minutes ago, Not a cat said:

This.

I'm already mentally preparing to sell my house in 18 months when the youngest graduates and I'm just stunned at all the stupid shit I own.  And this is after renting a 10 cubic yard dumpster 2 years ago and cleaning out the most useless of it.

Seems that about 10% of my stuff serves a useful function (clothes, utensils, etc.) or brings me joy (fishing and camping gear).  The rest is just a bunch of shit cluttering up my life. 

 

Kinda the same way. Sitting on millions in assets, could sell everything and move into an 18 ft. travel trailer on the deer lease. Had to have all these material things in my 20's and 30's. Now wish I didn't have any of it in my 50's. Priorities change. A golf cart and apartment in Cozumel, a truck and travel trailer in Texas and I would be fine. Don't really need, or want an expensive lifestyle to maintain.

On health care, I'm covered through Mrs. CHIEF's company till 65, they pay for all of it. She worked for the State long enough that we get Medicare paid for by the State once I hit 65.

CHIEF

Edited January 4, 2022 by CHIEF
healthcare

[Chewbacca 7765]

On 1/1/2022 at 4:39 PM, Horns99 said:

You guys that are retiring early, what’s your target asset # ? Mid 7 figures or 8 figs, to make sure it last as long as you need it? The significant other & I debate this. Especially with younger kids, what the hell else are you going to do.


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My number is $10 million in liquid assets (not including real estate equity).  Once I'm there, I'm out.  Hopefully we're 2-3 years away from that.