F.I.R.E. (financially independent retire early)

Do any of you over 50 peeps have this question on their horizon?

Been thinking about what is my incentive to remain working.

No bills, lots of savings in verious retirement accounts and stupid big emergency fund.

I should put somewhere to make me at least $200 a year .

I'm hoping the super savers on this forum will chime in.

For a working stiff, I find myself thinking about retiring more and more.

The "where do you guys get money for your mods" thread got me thinking about this, too.

Anyways, please comment.

Thanks
Kirk

 

I was somewhat forced into retirement a few years back at the ripe old age of 54. All I knew how to do was drive a truck and my hearing had gotten so bad I can't pass the DOT physical. I could have been a Walmart greeter or a convenience store clerk or something I guess but what the hell. Put my savings in my truck and gonna go see the country while I'm young enough to not need a babysitter or diapers. My utilities, insurance and truck payments are my only bills so that leaves a little gas and beer money. I don't like the cold so it was a bit boring through the winter. Now spring is getting here so I'm gearing up for some traveling.

 

I can retire in about 16 months from my job i have been with now for 32 years. In 16 months i will have my full 25 years in my Union. 7 years we weren't Union. I had myself setup nice for retirement but then i went and got married with a women who had kids (3) 1 is grown and out but 2 are still in the house or in college. So not sure i can do the retire thing in the next 16 months but been able to outfit my truck the past 2 years and close to calling it complete but you know how that goes!Hope the economy stays in the right direction because most of my retirement money is tied into stocks! I will be a ripe 56 in 16 months!

 

You might enjoy reading the Bogleheads forum a bit, but like TW, things can get muddled up a bit if you don't know what you are looking for.

I found the book 'Bogleheads Guide to Investing' both educational and written in layman's language. It lays out some simple techniques that are quite logical. I found it at my library.

'Bogleheads Guide to the Three Fund Portfolio' is pretty good. In fact I'd suggest reading it first (it's short/quick), then reading the other.

I'm a Vanguard fan, and have been since the 80's when the company I was with started the 401k program.

Here is an interesting story where Buffet won a $1m bet using a Vanguard fund vs an actively managed fund that might peak your interest. https://www.fool.com/investing/2018/01/03/warren-buffett-just-officially-won-his-million-dol.aspx

We have 3 Vanguard accounts (different types). While it would be nice (simpler?) to have one, this is fine too, and what we have can't be combined. Within those accounts we sort of model the 3 fund portfolio concept, with a couple of personal low risk nuisances. We also use different allocations for each, based on our anticipated length of time before spending from that account. 30/70, 60/40, 70/30. If you do the math on the aggregate it works out to about 50/50, but that really doesn't matter too much, it was just a fun exercise.

We are fortunate in that I've been retired 7 years next week, we have 5 pensions between us that more than cover our living expenses, good medical plans (and good health too!), 2 paid for houses and vehicles, and the only reason so far to dip into the retirement pool has been for extensive travel. Since that's discretionary, we typically skim profits when accounts are up and set that aside in cash for that purpose. There will come a day when we can no longer travel, or not enjoy it as much, so right now we are always on the lookout for deals.

 

Thanks, Bill I am aware of BH. You are right, it can be exhausting.

 

When I finished college I went on a road trip with a friend to visit his grand parents in Sun City Arizona. I decided right then and there I wanted to be retired. Now some years later I've reached financial independence, but the retirement part hasn't happened yet. I'm not really sure why I keep working. Maybe its a fear that the fucktards in Washington will plunge us into another recession, or that I really like what I do.

I'm not a super saver by any means or maybe I am. Back when I got my first job money was stupid tight. When I got my first raise I put 75% of it towards paying off debt and saving and 25% went to improving my lifestyle. I have followed that plan ever since, which means I live far below what I could "afford." When the great recession hit and I got laid off, like everyone else, it was an inconvenience, but some of my coworkers went bankrupt and lost everything.

I'm not sure my plan is the best one, do you live like the grasshopper or the ant? There are boats and cars and toys that I could have had but didn't. On the other hand I have very few worries about money and I sleep well at night.

 

Sounds familiar. I have a few of those toys you refer to, but all were paid for by my side gig.

I honestly believe I wont be retired. I'll just change where the money comes from.

 

Semi retired since I was 38. Average working 22-24 weeks a year. Will full retire at 58.
Nobody ever looks back on their life and wishes they'd spent more time at work instead of doing the things they enjoy. If you don't need the money, enjoy what's left of your short life.

 

The Wife and I planned for retirement from day one. Passed on more than one vacation and put that money into investments and we both retired at 56 with two full pensions. House paid for Vehicles paid for just have utilities and some small stuff to pay for each month and still are able to go and do what we want and still save money..................Everyday is Saturday.

 

Lynn and I started investing at about age 27 - wasn't much at the time but we routinely put some away monthly out of my military pay. We began with USPA&IRA, switched some/all of our investments at times to get better performance and now have those funds split between two different investment professionals - Lynn's is with one, mine with another at least for now until we see which one can perform better for us. I took my Army retirement when I hit 26 years of active duty - age 49. We both went to work locally after moving back home. Lynn retired for good 3 years ago to care for aging/ill parents and began taking her Social Security last year. I will retire next July for good at age 65 and take my Social Security at that point, too. Based on calculations, I'll have to live well into my 80s to reach the point where waiting until I hit the max makes sense. Our house is close to being paid off - not too worried about throwing dollars at it now because our investments yield a good amount above the interest rate on the mortgage. We firmly believe in using other people's money while ours grows at a higher rate.

The best thing we did was to start investing fairly early - wish I'd started right from the beginning. Even when we did start it was only $25 a month but we kept at it and increased the amount every year as my salary increased. I'm looking forward to stepping out of the working-world.

 

These are the responses I was looking for. I expected that anyone replying would be savvy investors. I'm fairly sure that anyone reading this thread is debt averse unless they are leveraging rental houses or similar.

I am curious if anyone had a "magic number" in their head. Reach that number and retire from a 9-5 job and do more enjoyable side jobs for less money and stress.

I hear more and more that anyone that wants a quality retirement will need 1.5 mil to 2 mil to retire comfortably. Much more if living on the west coast, high rent districts.

Cost of living here in the state of Michigan is fairly reasonable.

All the retirement articles I read just irritate me more and more. Some authors will say 600,000 is enough to live comfortably, others say you need 4 million. (FU, Suze O.).

I've gotten where I quit reading retirement news.

 

I like to think Tacoma owners in general are smart with money. We drank the coolade and believe that Toyota trucks are a more dependable truck than others. Because of that, we tend to hold onto these automobiles for a long time. The longer we keep a car the more money we save (or lose less money, its a car).

I've never bought brand new, in fact, the trucks are wrecks that I buy at auction and repair and drive until all equity is used up. I haven't had a car payment in 15 years. All that money has gone into various retirement accounts.

 

I would not call myself a savvy investor at all, just persistent. I prefer mutual funds so someone else can do the work. I don't want to watch the market daily. I've always tried to fund my retirement from the beginning, then whatever is left is what I live on. I'm 48 and have already met my goals for my market investments. I'm no penny pincher and am not debt free, but will be by the time I retire. I still spend plenty along the way and enjoy life. After all, what's the point if I die before retirement and never got to enjoy the fruits of my labor.

My wife and I will both have 2 federal pensions each. That goes a long way towards financial stability in retirement. I'm not dependent on the market and if the Federal government goes under, we're all screwed. What I have invested in mutual funds I plan to completely deplete over 30 years. I will be in better health and able to do more early in retirement and plan to do a lot. If I'm still around in my 90s, I'll happily make it just on the pensions.

 

Thanks.

I too plan on spending the retirement money down. I earned it, I'm gonna spend it.

 

Retirement being driven by a nest egg goal is a crapshoot as there are so many variables. A defined pension makes future income streams easier to determine and rely on, especially after the market gyrations of the last decade. Health insurance costs prior to Medicare eligibility is a driving factor to remain employed for many. Personal health is also a big factor. Debt free/mortgage and other debt to service? Caring for other family members?

All that written, 80% of pre-retirement income stream from all sources is the bogey we've adopted/are focusing on. YMMV.

 

Hey guys, thought you could help if anyone is still watching this forum. I have a Roth IRA and im maxing that out yearly, my job has a 401k, but when i first got hired, i decided to go with the Roth 401k. But now doing some research, is it better to do a regular 401k to take the tax advantages? Then do the Roth Conversion ladder? or Keep my Roth 401k. Thanks!

 

I think a combination of both is not a bad thing. The Roth has some great withdrawal perks that are not available with 40k.

 

I agree with @koditten a split is what I wish I would have done. I was invested in index mutual funds In a 401k and now that I collect S.S. that along with my required distributions when I get 72 will put me in a higher tax bracket.

 

I'm a SINK. Turning 53 this year. Pulling the pin next spring.