29 yrs old, looking to Semi-ER in 2-3 years, RE by 50 maybe?

[MooreBonds]

Quote:

Originally Posted by LiquidSapphire Hi, thanks for the welcome. I am happy with some of the positive replies, and also with some of the constructive criticism but pretty insulted with being called "crazy". Did I call you crazy for working into your 50s and 60s? No? Because I would be crazy to stay at this job that long. I thought this was a respectful forum. Maybe I was wrong. I hope not but we'll see.

One thing I can say, having walked the walk - I realize that in some situations, a person truly isn't cut out for the situation (like I was working for my family's business); however, VERY soon (like, 1 week) after starting a new career in a somewhat related industry, I had a very rude awakening to the peculiarities of my new boss and my new co-worker in my department. Not to mention the half-assed motivation and attitude of the other people in the new company.

Things may be bad in your current situation, but do a true assessment of things. What exactly is it that you don't like? Is it something that is a root cause, or are you bothered by a symptom of an issue?

Also, ask yourself what pains-in-the-ass that you WOULD be able to put up with in a different career. Working part-time in any old job doesn't free you from the stupidity/BS/back stabbing/"I've been in this industry longer than you've been alive - ergo, I know everything and you know nothing"/lazy/know-it-all mentality that exists in EVERY industry, in MOST companies in existence. Realize that EVERY company will have negatives.

Don't leave a decent situation where you're at, only to realize that the only difference between your new part-time job and old full-time job is that you only have to put up with the BS for 20 hours a week instead of 40 hours. Go into it with full knowledge that you will be annoyed/amazed by the things you see and suffer experience first-hand, just in a different way than before.

[ShortInSeattle]

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Originally Posted by LiquidSapphire Hi, thanks for the welcome.. My SO is supportive and we are not able to have kids, and we have no plans to have any more, so I am fine there. I am confident in my decision and that it won't change. He will not be able to semi-ER with me but he's fine with that. I am happy with some of the positive replies, and also with some of the constructive criticism but pretty insulted with being called "crazy". Did I call you crazy for working into your 50s and 60s? No? Because I would be crazy to stay at this job that long. I thought this was a respectful forum. Maybe I was wrong. I hope not but we'll see.

It's great that your SO is supportive. It does make me curious though... How do you view your finances as a couple? Are they fully separate? I'd have a hard time working part time while my hubby works full time because we pool our assets. We don't expect equal salaries, but we do expect equal contributions of time and effort towards building our financial future. This isn't to say you should view it the same, I'm just curious. I realize it's none of my business.

As far as the board goes, I think you'll find people are honest about what they think and sure there are some snarky edges too. The great thing about free advice is you can take what you like and discard the rest.

Cheers,

SiS

[arebelspy]

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Originally Posted by LiquidSapphire Yes I could stay some more years and earn more money. And I could breath twice as fast and soak up twice as much more oxygen. I think at some point, one earns "enough" and just doesn't need anymore. I am not really into accumulating stuff or experiences, this allows me to live cheaply. There are few things that I would rather spend money on rather than my freedom.

Hah, what a great line. I am so stealing that.

Quote:

Originally Posted by LiquidSapphire I am happy with some of the positive replies, and also with some of the constructive criticism but pretty insulted with being called "crazy". Did I call you crazy for working into your 50s and 60s? No? Because I would be crazy to stay at this job that long. I thought this was a respectful forum. Maybe I was wrong. I hope not but we'll see.

Eh, don't take it personally. People here are critical, but also supportive, and helpful.

Like I said earlier in the thread, it's an idea well outside the norm (both the ultra frugality and retiring super super early). Plenty of people will call it, and you, crazy. That's one thing you'll have to learn to deal with and make your peace with if you actually go through with your plan.

You'll hear it much worse in real life than what's been posted so far here.

EDIT: People here are also much more realistic than the ERE forum, so it's good to get a balance here, on the spectrum between the average American and the ERE folks. Just don't get too riled at criticisms.

[FUEGO]

Quote:

Originally Posted by LiquidSapphire I am happy with some of the positive replies, and also with some of the constructive criticism but pretty insulted with being called "crazy". Did I call you crazy for working into your 50s and 60s? No? Because I would be crazy to stay at this job that long. I thought this was a respectful forum. Maybe I was wrong. I hope not but we'll see.

I don't think the idea is crazy. If the numbers work, they work. Nothing is without risk, and as long as you identify those risks and can accept them and plan for them, then go for it.

I'm just a couple years older than you and planning on ER at some point in my 30's (currently targeting 35 but that could change). In contrast to you, I have a spouse and 2 young kids and a third on the way, so I will have a different set of expenses, at least for the next 22 years or so. But I currently don't plan on having a portfolio of 2+ or 3+ million as some here have suggested is necessary in order to eek out a bare bones existence.

For us, we are basically sticking it out working the next four years or so until we have "enough". Although neither of our incomes are close to your current income, we are currently of the mindset that the jobs are easy enough and the income is good enough to warrant continuing to work full time. So far I haven't seen an easy way to go part time and continue making the same money or even close on a per hour basis, so semi ER isn't something we are currently pursuing.

In your situation, you only have $200,000 which will allow you to withdraw around $6000-7000 a year (3-3.5%) so you will need to make up another $8000-9000 each year to cover your current expenses (which may be bare bones very basic expenses?). Like you acknowledge, not that hard to due even part time with a minimum wage job. Since you plan on working another few years anyway, your portfolio will likely increase significantly due to new additions and portfolio growth, so you will be able to cover even more of your expenses. And if Obamacare remains intact you will have access to cheap or free (subsidized) health insurance come 2014 (before you plan to possibly semi ER).

And your plan to semi ER isn't irreversible. If it doesn't work out, you get bored, or need more income, you can always go back to work later.

I personally would not entertain retiring on $200,000 (or closer to $400,000 that you will probably have in another 3 years), but my set of circumstances are much different than yours.

[FUEGO]

One additional note on budgeting for large lumpy expenses.

To throw out a data point for your consideration, I track our expenses very closely. On basic expenses, we spend about $24-25k a year the last few years. So I can budget for that. But on top of that, we have budgeted for ER another $11000 of basic expenses a year, plus a $6000 discretionary "vacation/entertainment/fun" each year. The $11,000 consists of additional amounts for dental care, health insurance and copays etc, house related capital costs (roof, appliances, HVAC, etc), increased kid costs, car replacements, 10% contingency of our $24000 basic expenses, and taxes. Adding it all up, our basic expenses are currently $24000 but in retirement we are adding $17,000 more to our expenses to cover some additional basic expenses and some desired discretionary spending. Your situation is obviously different, but I just wanted to point out how our ER spending will be significantly higher than our current basic spending, even though the only thing we are increasing in terms of lifestyle are some additional vacation or fun spending. Make sure you add in a little fluff in your spending forecast.

[ronocnikral]

when DW was 29, I could see her writing almost the exact same OP. with a few modifications of course.

I plan to quit my job, get married (yes, those two happened in that order), wake up at 11am every day, have my new husband finance my business ventures and enjoy "semi-retirement."

my offer to switch roles with DW is met with laughter.

my suggestion: sink your hooks in this guy or keep your nose to the grindstone.

[cb7010]

I do have a couple things in common with the original poster...I started thinking about ER when I was about 29 and I live in Denver, CO! But, I chose a slightly different course...

I've kept working and growing my savings over the past 10 years or so, since my initial thought about ER, and am now in a much better financial place to consider some form of ER. What I chose to do when I had $200K or $300K saved was to look at it as liberating in the sense that if I left that money alone and assumed historic returns, then my later life retirement (say after age 65) should be taken care of. Then, all I had to do was make enough money until 65 to live (yep, I could've been a bartender on the beach)..so, from my perspective $200K at age 29 is a fantastic start; but, probably wouldn't have worked for me as it would require a more extreme budgeting strategy than I would have desired. But, each person has to make their spending and lifestyle decisions for themselves.

One other thing to consider, at least from my perspective, is how you define the term "retirement". I used to have this vision of retirement as me enjoying my hobbies all day long and doing mostly nothing else. What I've realized is that I already ski, golf, fish, cycle, etc..pretty much as much as I want to and I'm still working full time. So, the more I've considered it, I now define "retirement" as being able to work at whatever I want and with little to no consideration for the money. I am pretty sure I will occupy myself with some type of "work" until the day I die; but, is it really work if you are doing something each day you enjoy and are truly passionate about?

[eridanus]

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Originally Posted by LiquidSapphire and any smart person should budget 1-2% of their property purchase per year toward maintenance, and I have done so.

I think 1-2% is far too little but, then, I don't know your expenses. I budget an extra 15% and part of that is car, which you don't have. Fuego, above, budgets an extra 45% but part of that is taxes and kids and car replacement. Everyone has to plan for these lumpy expenses but taking $4000 out of $400,000 is a lot different than taking $4000 out of $1MM. In your new freedom, though, you can learn a lot of skills, from auto repair (for SO's car?) to carpentry, that will reduce some of those lumpy expenses.

I sorta-kinda do part-time but not on a weekly basis. I do a contract, take a month of two off, and then start another one. I had 2 months off last year. In some years, I've only worked 8 months out of the year. I know you said that work sucks but it might be something to consider if it's only the people and not the actual work.

[FUEGO]

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Originally Posted by eridanus I think 1-2% is far too little but, then, I don't know your expenses. I budget an extra 15% and part of that is car, which you don't have. Fuego, above, budgets an extra 45% but part of that is taxes and kids and car replacement. Everyone has to plan for these lumpy expenses but taking $4000 out of $400,000 is a lot different than taking $4000 out of $1MM. In your new freedom, though, you can learn a lot of skills, from auto repair (for SO's car?) to carpentry, that will reduce some of those lumpy expenses.

I took the 1-2% the OP is talking about as a percentage of the property value. In other words, a $150,000 house will need $1500 to $3000 per year to maintain it. That is roughly what my house is worth and roughly what I budgeted after adding up all the components of my house that depreciate. I imagine 2% is what you would use if you wanted your house pristine and never wanted to lift a hammer or install your own fridge/washer/dryer/dishwasher and 1% is what people like me would budget if you just don't want it to fall apart.

Of course if you are handy and healthy I imagine you can cut those costs to a half percent. However the last thing I would want to do is fall off a ladder with a stack of shingles and break a hip when I am 70 because I couldn't afford the extra couple thousand bucks to hire a crew to re-roof for me...

[haha]

Quote:

Originally Posted by LiquidSapphire I am happy with some of the positive replies, and also with some of the constructive criticism but pretty insulted with being called "crazy". Did I call you crazy for working into your 50s and 60s? No? Because I would be crazy to stay at this job that long. I thought this was a respectful forum. Maybe I was wrong. I hope not but we'll see.

A few comments here. In case you are referring to me, I did not and would not call you crazy. As far as I know, I have never called anyone crazy. I did politely say that you might perhaps consider that this could be a crazy idea. These are very different statements. 2ndly, putting rules around what sort of polite comments you will accept basically means that no comments that might cause you to reconsider your plan will be offered.

Also, consider you you have no idea (and never will have) how old I was when I retired, what my financial situation was, how it went for me, what do-overs I might like, or what experiments in basic living I have tried. Or whether people might have said to me when I pulled out, "That might be a crazy idea!" Or whether I came to think that they were correct, and that only a good dose of luck and circumstance kept it from becoming a disaster.

So good luck and may the wind always be at your back. I hope it is not only relatively satisfactory but overwhelmingly, bounteously ecstatic!

Ha

[brewer12345]

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Originally Posted by haha 2ndly, putting rules around what sort of polite comments you will accept basically means that no comments that might cause you to reconsider your plan will be offered. Ha

Why else would one ask a question on the forum?

[Nords]

Quote:

Originally Posted by LiquidSapphire I am happy with some of the positive replies, and also with some of the constructive criticism but pretty insulted with being called "crazy". Did I call you crazy for working into your 50s and 60s? No? Because I would be crazy to stay at this job that long. I thought this was a respectful forum. Maybe I was wrong. I hope not but we'll see.

I don't have a dog in this fight, but I have an observation.

Historically, the posters here who feel "insulted" by other posters tend to move on pretty quickly. I'm not saying that this board is rude to newbies (it's not) or that you're oversensitive (you haven't been here long enough for us to tell) but I can say that previous posters who have complained in your manner... have moved on. For some reason the "my feelings are being hurt, stop doing that" card doesn't play around here.

If you can get past that then you'll learn more than you know now, and you'll get the best constructive criticism & financial advice you can find. Wishful thinking and hopeful planning will quickly be identified. Those have been my experiences. But then I come from a background of extremely harsh criticism.

If you think the constructive criticism has value to you then you're gonna need a thicker skin. I'm just sayin'.

[pb4uski]

LS, you have done well. My sense is that you are willing to live more frugally and closer to the edge than many of us are. It seems like you could change to a less stressful part-time job and between the earnings from the part-time job, withdrawals from savings and SO's support make things work but you might be financially exposed to the least little hiccup.

Is the stress you are having at work now the result of your profession or the result of your employer? Depending on your answer, perhaps a career change or a change in employers might be a better choice for you.