http://www.early-retirement.org/forums/ Introduce yourself here! (But hey -- start a new thread, so we can see your post!) en Sat, 21 Nov 2009 00:07:53 GMT vBulletin 60 http://www.early-retirement.org/forums/images/early_r/misc/rss.jpg http://www.early-retirement.org/forums/ http://www.early-retirement.org/forums/f26/my-retirement-story-at-age-45-a-47393-new-post.html Fri, 20 Nov 2009 21:57:59 GMT First time poster here, having searched for forums on early retirement. I retired last year (October 31) at the age of 45. I worked for 23 years... First time poster here, having searched for forums on early retirement.

I retired last year (October 31) at the age of 45. I worked for 23 years in the actuarial field, the first 16 of them full-time and the last 7 of them part-time. I had an awful commute from where I lived on Long Island (New York) to Manhattan for the 16 full-time years and to Jersey City (New Jersey) for the part-time years. My company became a for-profit company in 1997 and I took a big company stock payout (about 300k) last year, invested it in a high-yield (not junk) bond fund to generate enough money (along with my other considerable savings) to cover my expenses with room to spare. I have an IRA from my old 401(k) which has bounced back nicely in the last 12 months. It has nearly 300k in it and it is waiting and growing until I can tap into it in 14 years. I have a frozen pension waiting for me, too, at age 65. So, all I have to do is live off my dividends for 14 more years until the "reinforcements" start arriving. Even if I have to tap into principal in 10 years that is okay. I checked this out with a financial advisor. Playing with numbers is something I became very good at in my 23 years in the actuarial field.

I have been debt-free since 1998, having paid off the mortgage on my co-op apartment. I found a decent and affordable individual health insurance policy last year. I bought a new car (a Toyota Corolla) in 2007. My monthly expenses are both affordable and mostly predictable. I am single and am childfree, the latter my biggest reason for being able to retire.

The last 12 months have been great. No more alarm clocks, no more trains, no more commute, no more office stuff (I actually liked the work most of the time, though), no more lousy lunches in New Jersey. Even working two days a week from mid-2007 to my final week at the end of October, 2008, was an awful experience, mainly because of the tiring, annoying, and often sickening commute.

Once I began working part-time in 2001, I was able to reclaim my life. I resurrected an old hobby (at night, something I had no energy to do while I worked full-time) and began doing volunteer work in several area schools as part of the school Scrabble program. Otherwise, I come and go as I please, including spending time with my ladyfriend of 5 years.

I am enjoying the start of my second year of retirement and look forward to many more. ]]> Hi, I am... scrabbler1 http://www.early-retirement.org/forums/f26/my-retirement-story-at-age-45-a-47393.html http://www.early-retirement.org/forums/f26/27-year-old-youth-pastor-wanting-to-be-prepared-47283-new-post.html Thu, 12 Nov 2009 02:39:46 GMT I have the great combo of a low paying job that requires a high cost private college degree :) So I am trying to figure out the balance of... I have the great combo of a low paying job that requires a high cost private college degree :)

So I am trying to figure out the balance of taking care of my family, wanting my wife to stay home with our 2 year old daughter, being ready to try for more kids, needing to pay off a mountain of school debt, and invest what I can for retirement. ]]> Hi, I am... thecma http://www.early-retirement.org/forums/f26/27-year-old-youth-pastor-wanting-to-be-prepared-47283.html http://www.early-retirement.org/forums/f26/forced-retirement-at-33-a-47247-new-post.html Mon, 09 Nov 2009 19:16:53 GMT I was injured at work and will be retired in 6 month to three years (depending on my recovery time). I am married and have two young son's. I am looking for somewhere we can raise our sons, and live a "Country" lifestyle. I do not like living around a lot of people, but we need a good school system as well. My retirement will only be around $65,000 to $70,000 per year. ]]> Hi, I am... hugo121175 http://www.early-retirement.org/forums/f26/forced-retirement-at-33-a-47247.html http://www.early-retirement.org/forums/f26/young-military-officer-cautiously-planning-ahead-47227-new-post.html Sun, 08 Nov 2009 00:11:27 GMT My name is Tim. I am 23 years old and currently serving in the military as an O-1, making O-2 later this month. I'm also engaged to be married early next year and my fiancee is 21 years old. I think we're too young to be really excited about the prospect of early retirement right now, but I feel fortunate that we might be able to have that option someday. I like to keep my options open.

A little about us... We both have a B.A. from a good university. My fiancee probably has just as much earning potential as I do, but I'm not sure how much of it can be realized while I'm on active duty. We both took a college course in personal financial planning and we talk frequently about money. We are similar in the way we handle money: savers by nature and risk-averse.

I hope that will suffice for now as an introduction. Rather than draw this thread out, I'll post some specific questions elsewhere. I look forward to some good discussion.

Tim ]]> Hi, I am... timwalsh300 http://www.early-retirement.org/forums/f26/young-military-officer-cautiously-planning-ahead-47227.html http://www.early-retirement.org/forums/f26/officially-fired-today-47218-new-post.html Fri, 06 Nov 2009 23:33:57 GMT I've been lurking around here for about a year, but today was finally the day for me -- age 40, no dependents, and a million things I want to do now that I'm free (well, 28 at least, because I listed them all).

I guess I first need to unwind though after almost 20 years of type A personality stress and pressure... how long does that take?

Anyway, hello to everyone already in the club, and I look forward to participating here more often! :greetings10: ]]> Hi, I am... Kabekew http://www.early-retirement.org/forums/f26/officially-fired-today-47218.html http://www.early-retirement.org/forums/f26/61-and-hopeful-about-retire-at-62-a-47147-new-post.html Tue, 03 Nov 2009 18:11:22 GMT Hi, I'm (as I said) 61 and hoping to retire at 62. I've developed a lot of spreadsheets showing anticipated expenses vs. income and I think I'll be okay. I am kinda hoping SS stays around. Female, in a LT relationship with a man who is in the same situation financially. No debt except a small mortgage. I plan to pay that off when I hit Medicare age - my health expenses should go down.

Lately I've been ill with asthmatic bronchitis once or twice a year for the past 4 years. I feel like I never get my energy back all the way - due to working. That feeling that I can't keep working is driving this move. The age 62 is so I can collect SS - it would be harder to do now and I'll be 62 in June 2010.

So - how to get health insurance... My current plan is to see if they pass any legislation that helps me. Then in April or May apply for insurance and see if I get denied coverage. I can stay on COBRA for 18 months but there will be another 18 months to cover. At least I'll know if I seem insurable. I have to have health insurance for fear of being bankrupted by an unforeseen illness. We do have a high risk pool where I live (MO) but it's around $800 a month for high deductible coverage. A friend of a friend is on it.

Hoping that I don't have anything that would preclude being insurable. We live simply but not in a spartan manner, don't spend a whole lot of money on "stuff". The cars are paid for. No debt except whatever I've spent this month.

Anyhow - this is my intro even though I've read stuff off and on for a while. I don't really need investing advice - I'm good at that. Any other advice - especially for this 3 year window between 62 and 65 - is very welcome. ]]> Hi, I am... thinker25 http://www.early-retirement.org/forums/f26/61-and-hopeful-about-retire-at-62-a-47147.html http://www.early-retirement.org/forums/f26/early-early-retirement-47144-new-post.html Tue, 03 Nov 2009 16:42:37 GMT Hi Everyone! I've been reading a few threads and thought some of the members here could give me a little guidance. I have a long way to go, but I'm off to a great start, and I think I have a solid plan.

Some basics:

My name is Ben. I want to retire by the time I'm 42.

I'm 22, have a BS in Computer Science, minor in Mathematics and have been working full time in IT for a rock-solid telecom since I was 18. I attended college full time and worked full time - which was a nightmare, but I survived! My current salary is approximately $45k, hopefully with a big promotion around the corner.

My wife, who is 21, will be graduating with a BFA in Photography in Spring 2010; she's currently working part-time at the same company as me at $12/hr providing multimedia services (shooting, editing, publishing). Most likely, she will be offered a full time position upon graduation at a similar pay rate.


Our debt is manageable - about $16.3k in Student Loans for me @ ~5.5%, and about $20k in student loans for DW @ ~5%. All of these are federal loans. I currently have no plan to accelerate payments on these student loans. Outside of one revolving $2k balance @ 3.9% that I am paying minimally, we have no credit card debt. We rent currently and are debating whether or not to buy.

Our assets are meager but growing quickly. My 401k stands at about $25k value today, with 85% stocks (index funds mostly) and 15% bonds. I recently read Your Money or Your Life and realized just how soon I could retire - and because I'm up over 40% YTD on my 401k, I have been locking in recent profits by slowly adjusting into bonds. My wife has about $3.5k in a Roth IRA. Combined, we have about $5k in ING savings accounts and checking.

The Plan:

Perhaps central to this plan is that we aren't going to have children. Our dogs are enough responsibility.

I'm contributing 18% of my gross pay into my 401k, with 8% company match that is 100% vested. In 2010, I plan to keep this 401k rate the same and scrounge up $1.5k for my Roth IRA. In 2011, I plan to fully fund $5k into my Roth IRA and continue doing that for the rest of my working years. In 2012, I will raise my 401k rate to 20%, fully fund my Roth IRA, and shovel as much as I can into taxable investment vehicles.

When she graduates in May, my wife will contribute 10% to her 401k, with 8% company match that is currently 40% vested. She will fully fund her Roth IRA in 2011 and beyond, and her salary will help with keeping our lifestyle comfortable but frugal. One big helper is that my paycheck + company benefit covers our health insurance. My wife's company benefit (currently $450 per month) will go straight to her 401k.

So from 2010 to 2028, assuming 2% raises (likely to be MUCH higher) I have calculated that we can comfortably contribute the following amounts per year, split between our 401k's, our Roth IRA's, and taxable investments:

$15,162.69 $26,137.41 $26,460.16 $27,721.29 $28,075.72 $28,437.23 $28,805.98 $29,182.10 $29,565.74 $29,957.05 $30,356.19 $30,763.32 $31,178.59 $31,602.16 $32,034.20 $32,474.88 $32,924.38 $33,382.87 $33,850.53
These figures don't include bonuses ($500 - $2000 per year combined), inheritances (likely to be moderate amounts - $10k to $50k), or stock grants & options (currently have approx $10k in future value).

From 2010 to 2022, I will be shooting for an 8% return. 2023 - 2025, I'm shooting for 7%, 2026 - 2027 = 6%, and 2028 and beyond = 5%.

The ultimate goal: $1.2m in safe, interest-bearing capital at retirement time. Enough for $60k/year income pre-tax until we're 100 years old. Including housing and a few too many luxuries, our current monthly expenses rarely top $3k/mo. Chop our housing cost and live more frugally, and we can easily skate by on $2k/mo or $24k/year post-tax.

Here are a few things I've been pondering:

• Buy a house now with a mortgage or wait until I can pay cash? With no kids (and no more Lifetime Learning Credits), our tax bill is about to sky rocket. Buying a house could help with this. We wouldn't be able to comfortably swing it until late 2010, and I'd be hesitant even then. By that time, the tax incentives, housing prices, and mortgage rates might not be so favorable. Our credit scores are excellent, 720+ and rising. The down payment is our biggest concern. That and having enough left over after closing to cover emergencies like a septic failure.
• How to balance taxable investments with my 401k? I'm shoveling too much into the 401k I think, but it works for me because I never have to see the money. I know I should at a minimum fully fund my Roth IRA. But what about after that? With our tax future looking dire, the more I contribute to my 401k, the less I'll be taxed. But retiring at age 42 means that I can't tap my 401k for a Loooong time. Any ideas?
• Should I accelerate my debt payments? This may require cutting back on my investments. The interest rates on our debt accounts are relatively low; I think I can beat them with relatively safe investments in the long run. What do you think?

Please let me know if you see any red flags. Send me words of caution and of encouragement. I'm open to any and all advice.

Thanks in advance!

-Ben ]]> Hi, I am... benb331 http://www.early-retirement.org/forums/f26/early-early-retirement-47144.html http://www.early-retirement.org/forums/f26/what-do-the-experts-think-47098-new-post.html Sat, 31 Oct 2009 21:14:05 GMT Hello, everyone. I have been lurking for awhile and just had to jump in. Everyone seems so friendly. Heard about your group from the Boglehead... Hello, everyone. I have been lurking for awhile and just had to jump in. Everyone seems so friendly. Heard about your group from the Boglehead website. My husband and I think about retiring early, myself more than him. He is gone from the home 13 hours per day running our company. He will be 50 in 2010, our daughter will be graduating in May 2010 and we will be married 20 years in 2010. I keep looking at the numbers and really believe we could retire in 2010 but not 100% sure.
We have duplexes paid for that net income is $60,000 per year. My husband would like to take care of them, cutting grass, painting when vacancy occurs, etc. We have $860,000.00 in 50% bonds and 50% mutual funds, all with Vanguard. I will be 53 in 2010 and my theory is live on $5000.00 per month rental income, have $200,000.00 in laddered CD's for emergency until I turn 59 1/2 and we can access our Vanguard accounts.
So what do you experts think?:)
Ann ]]> Hi, I am... Dreaming 2010 http://www.early-retirement.org/forums/f26/what-do-the-experts-think-47098.html http://www.early-retirement.org/forums/f26/4-more-years-no-might-be-laid-off-47063-new-post.html Thu, 29 Oct 2009 21:55:50 GMT well, like most libraries there will be a budget reduction next year, which they haven't spelled out.
I catalog books, and it is one of the areas that is outsourced, so my job may be eliminated or i may have to work in a branch (with people!)...
I have been almost maxing out my 457, so after 21 years there is $180 thou in the account.
My matching retirement with the count is $100,000 total!.
I take home 1400 a month after health insurance, and I cover myself, husband and 24 year old daughter living at home. She works, but no insurance. I know about Cobra for 18 months.
husband has good pension and salary, but we will probably have to postpone the 2 nice vacations we have every year. he was planning on retiring in 2 years.
Should i start "downsizing" now? Cut out Cable, Curves Weight watchers?
I really need the weight watchers and it's only 40 a month.
Oh, I am 59, hubby is 60 so I don't think i should panic yet. Just will hate to pay the big health insurance bill. I think after 18 months with cobra, I can convert till medicare kicks in, but it will be over 1000 a month I'm sure. We both have pre exisiting conditions (he's diabetic).
Even if i survive this cut, next year will be bad, and the year after. We only have about $20000 in emergency fund. Should I cutback on the 457, and boost that up?
Any advice appreciated.
Thanks.. ]]> Hi, I am... 4 more years http://www.early-retirement.org/forums/f26/4-more-years-no-might-be-laid-off-47063.html http://www.early-retirement.org/forums/f26/hi-there-just-here-and-almost-gone-47045-new-post.html Thu, 29 Oct 2009 00:48:20 GMT Hey everyone, how goes it?

I'm 57, two furry feline dependents - and want to retire at 58. Currently there's $1.1M in 15% stocks, 35% bonds (G Fund), and 50% cash (CDs, treasurys, ibonds, green stuff). It's cash-heavy because the house just sold in preparation for retiring early next year to a cheaper, sunnier area.

The $26,000 pension won’t go far, even in Florida - current expenses, including fun, are about $60,000 annually here in the Washington DC area. I'm thinking an annuity or high-yield preferred shares would be good supplements. Your website is a new discovery and I look forward to participating. Thanks! - Bikerchick ]]> Hi, I am... Bikerchick http://www.early-retirement.org/forums/f26/hi-there-just-here-and-almost-gone-47045.html http://www.early-retirement.org/forums/f26/hello-all-47044-new-post.html Wed, 28 Oct 2009 21:51:14 GMT I posted my introductory story on the Fire and Money topic. Please read and comment. I posted my introductory story on the Fire and Money topic. Please read and comment. ]]> Hi, I am... swampwiz http://www.early-retirement.org/forums/f26/hello-all-47044.html http://www.early-retirement.org/forums/f26/hi-all-how-am-i-doing-47018-new-post.html Tue, 27 Oct 2009 01:06:30 GMT I just found this forum searching around the net for retirement info. I am married, 43, no kids. I am trying to figure out if I am on track to... I just found this forum searching around the net for retirement info. I am married, 43, no kids. I am trying to figure out if I am on track to retire in 7 years at age 50. I am a daily market/portfolio watcher but I do not react violently to market ups and downs. I am about 55/45 stock bond allocation at present. Here are the numbers:

Self employed. I own my office building (worth 125K) outright. I own my condominium outright (450K), no significant debt, 870k in savings (770k savings vanguard, 100k in retirement plans). I am planning on saving 50-60k per year in the next 7 years. I anticipate moving to a more conservative allocation in the next several months. I dont want to experience what many did who were 1 or two years out from retirement with the 2008 market crash. I am fully invested in a vanguard 2030 fund and the rest in short term investment grade vanguard fund.

I am worried about missing any upswing in the market if I move to conservatively. I guess this is a near daily question on the forum. I want to have enough to retire with 70 k annually in retirement income. ]]> Hi, I am... floatingdoc http://www.early-retirement.org/forums/f26/hi-all-how-am-i-doing-47018.html http://www.early-retirement.org/forums/f26/reducing-work-hours-before-retirement-46986-new-post.html Sat, 24 Oct 2009 21:40:27 GMT Hi I'm 55. Some people at my employer are taking early retirement but they are also making available a voluntary reduction in work hours to 72 hours per 2 week pay period. This is equivalent to 26 extra days off per year.
I've been at my job for 28 years and I also have maxed out at 5 weeks vacation per year.
So, if I took the reduction in work hours I would reduce my pay to 90% of what it is now, but I would then have the equivalent of 10 weeks off per year, not including holidays and sick time.
If I retired now, I would get about 65% percent of my pay.
If I go on working at 90% of my pay for x number of years I can continue to contribute to retirement accounts and not spend down my savings.
So I'm just wondering if anyone has any feedback on this. Would you consider working say 1450 to 1500 hours per year (including holidays and sick days) to be "semi FIRED" or part time?
From my own personal point of view, having all those days off would give me plenty of time to de-stress and have time for hobbies and travel.
I think I might get bored or have trouble adjusting to being 100% retired at this point.
Thanks in advance for any comments anyone cares to leave. :greetings10: ]]> Hi, I am... ranchoparque http://www.early-retirement.org/forums/f26/reducing-work-hours-before-retirement-46986.html http://www.early-retirement.org/forums/f26/chips-off-the-table-46962-new-post.html Fri, 23 Oct 2009 16:09:11 GMT Hi all, I am 56 and retired 9 years ago. Since retiring, I have been a huge proponant of Bogle and Vanguard and have done well. However, IMO, things... Hi all,
I am 56 and retired 9 years ago. Since retiring, I have been a huge proponant of Bogle and Vanguard and have done well. However, IMO, things have changed a LOT with the new administration in power and I have decided I no longer need nor want to take risks in the US stock market.

That said, there are still issues if inflation, deflation, devaluation of the dollar and debasemnent. I want to do more than hold my money in cash - especially the US dollar.

I've come up with some ideas - a mix of metals, emerging market fund, foreign currencies (including CDs and savings accounts), foreign stock fund(s), global bonds (including emerging markets).......I'd like to include TIPS, but can't due to the way inflation numbers are fooled with.

I'm interested to know if there are others out there that are thinking through the same things that I am. I'm running along the lines of the Harry Browne Permanant Portfolio but with the agenda of this administration thrown in.

Comments? ]]> Hi, I am... Repairmanjack http://www.early-retirement.org/forums/f26/chips-off-the-table-46962.html http://www.early-retirement.org/forums/f26/know-how-much-you-need-to-retire-46953-new-post.html Fri, 23 Oct 2009 04:22:02 GMT Fifty percent more than you have! With that joke out of the way, I just found these forums and think they are great. My own situation is that I... Fifty percent more than you have! With that joke out of the way, I just found these forums and think they are great.

My own situation is that I have been retired for 14 years already. Left the workforce in my late 30’s. Married, no children, which I think makes ER a lot easier on the net worth.

Look forward to discussions of how people are dealing with the current uncertain times.
:greetings10: ]]> Hi, I am... LARS http://www.early-retirement.org/forums/f26/know-how-much-you-need-to-retire-46953.html