32 and wanting to retire in a few years - Page 2

justin · 11-02-2005, 02:28 PM

Thanks for the clarification. I tend to agree with you HH. If you're truly FIRE, why go back to work just to get health insurance. It may be you didn't have enough saved in the first place to RE.

I have considered enrolling in college to get cheap guaranteed health insurance if I was ever denied reasonable individual coverage. That's the back-up plan. I'm inclined to think a 3 credit hr class of your choosing once a year would be infinitely more fun than a part time job for health bennies.

wildcat · 11-02-2005, 02:42 PM

I said consider P-T work if you can't stand your current job any longer and have an amount that is at the bottom end of the RE range, especially given the very long time horizon if a person were to retire @ 40. Just a safety net and to allow more time for the egg to grow. Maybe suggesting that one could use a P-T job for insurance was a bad idea but the income could certainly help a very long ER.

retire@40 · 11-02-2005, 02:54 PM

Quote:

Originally Posted by wildcat

I said consider P-T work if you can't stand your current job any longer and have an amount that is at the bottom end of the RE range, especially given the very long time horizon if a person were to retire @ 40.* Just a safety net and to allow more time for the egg to grow.* Maybe suggesting that one could use a P-T job for insurance was a bad idea but the income could certainly help a very long ER.

PT work isn't a bad idea at all, especially if it's something you enjoy doing.* It could even work if you jump from job to job as you get tired of each job.

PT work can help you semi-retire which is the next best thing to full retirement.

Every $1000 that you earn at your PT job is the equivalent of $25,000 of savings.* For those willing to go PT and earn an average of $1000 a month, it will give the same revenue stream that $300,000 in savings would generate.

justin · 11-02-2005, 02:57 PM

I think cutting back to part time work is a great idea, and if it comes with health ins. bennies, great! I just wouldn't personally recommend including "working a PT job forever for health insurance benefits" in my RE plan. There's a good chance I'll go PT for a while (and get health insurance) when the time comes to ER. But working PT seems like a big sacrifice just to get the health ins. I guess you do what you have to do. Half time work is only 1/4 as bad as full time (assuming disutility = (time spent working)^2 ).

Just be honest with yourself about it and don't say "I'm ER'd, but still working for the health insurance benefits".

SteveR · 11-02-2005, 03:00 PM

Do you guys see companies that employ PT help actually offering health insurance? I don't see much of it at all. Maybe it is a geographical thing.

haha · 11-02-2005, 03:03 PM

Quote:

Originally Posted by SteveR

Do you guys see companies that employ PT help actually offering health insurance?* I don't see much of it at all.* Maybe it is a geographical thing.*

Starbucks, Trader Joe are 2.
Ha

justin · 11-02-2005, 03:11 PM

The small engineering firm I work for does, if you're worth it.

How good is the health insurance at Starbucks or Trader Joe's I wonder?

wildcat · 11-02-2005, 03:27 PM

I think Costco is another

11-02-2005, 04:36 PM

A typical deal is that you can buy-in (at full price) if you work at least 20 Hrs per week; you might get a subsidy from the employer if you work at least 30 H/W. Your mileage may vary. BTW -- I've heard that Starbucks isn't too bad re health insurance.

HH

11-02-2005, 04:44 PM

Quote:

Originally Posted by retire@40

Every $1000 that you earn at your PT job is the equivalent of $25,000 of savings.* For those willing to go PT and earn an average of $1000 a month, it will give the same revenue stream that $300,000 in savings would generate.

This is not true -- the $1000 from the job stops when the job ends, whereas the $1000 from the $25K portfolio goes on for 30 years, more or less. Equivalently, every $1000 that you earn (and invest) provides a lifetime income boost of about $40 per year.

HH

justin · 11-02-2005, 05:00 PM

Quote:

Originally Posted by ProfHaroldHill

I've heard that Starbucks isn't too bad re health insurance.

Maybe that is why their coffee is $5/cup.

HFWR · 11-02-2005, 05:03 PM

I'm just po'd that I didn't think of it first...

retire@40 · 11-02-2005, 05:14 PM

Quote:

Originally Posted by ProfHaroldHill

This is not true -- the $1000 from the job stops when the job ends, whereas the $1000 from the $25K portfolio goes on for 30 years, more or less.* Equivalently, every $1000 that you earn (and invest) provides a lifetime income boost of about $40 per year.

The point is, if you are at the (burnout) point that you just want to quit your job, but your portfolio is short by about $300,000, one option is to quit the full-time job and go PT earning $1K a month to supplement your 4% SWR.*

It goes without saying that you may have a cash flow problem if you stop your PT job.* But if you do that until you can manage without the job, either by reducing your budget as you get older and need less, or by having your investments grow at a higher rate than anticipated (or both), you may have more total free time than if you worked full time those extra XX years to save that additional $300K before going to full retirement.

11-02-2005, 05:15 PM

Quote:

Originally Posted by ProfHaroldHill

Starbucks isn't too bad re health insurance.

HH

Just bad for coffee . . . *

*

SteveR · 11-02-2005, 05:19 PM

Quote:

Originally Posted by ProfHaroldHill

This is not true -- the $1000 from the job stops when the job ends, whereas the $1000 from the $25K portfolio goes on for 30 years, more or less.* Equivalently, every $1000 that you earn (and invest) provides a lifetime income boost of about $40 per year.

HH

The PT wage of $1000/month will provide a "savings" (not spending) to your retirement account by the amount required to fund the PT wage. In this case $25,000 is required to generate $1000 in income. As long as one works PT at this wage, they will "save" $25,000 in additional savings that would have to be used to create the $1000 income.

I think I said that right?

11-02-2005, 05:23 PM

Quote:

Originally Posted by retire@40

But if you do that until you can manage without the job, either by reducing your budget as you get older and need less, or by having your investments grow at a higher rate than anticipated (or both), you may have more total free time than if you worked full time those extra XX years to save that additional $300K before going to full retirement.

And if you sprout eight steel wheels and a couple of doors, you can be a boxcar.

HH

needtoretireearly · 11-02-2005, 08:29 PM

What a great response to my post!* I did not expect so much of a response.

Right now I have BC/BS of GA and my small company employer pays half.* It is a fancier plan than I would have chosen, but with him paying half it is worth it to me.* It is a ppo, with very low copays.* A while ago, I checked online at the ehealthinsurance site. The 50% I pay is not much more than I'd pay if I got a high deductable indemnity type plan.* I am paying around $170 a month, I forget the exact dollar amount but that is within a few dollars I know.

I don't have any major health probs but I do have to see the doctor at least once a year for some bloodwork for a minor hereditary thyroid condition which has to be treated with medicine*for the rest of my life(cost only $120 a year through canada meds).* It is nothing that will cause me probs later in life so long as I take the medicine....I could live to be very old and otherwise healthy.

I have noticed that there is a very long life span for many of the women in my family.* I'm not sure if this is good or bad, but regardless, I need to keep this in mind. If I'm not hit and killed by one of the crazy drivers around here I might end up living past 100.*

I really like BC/BS as I've had other plans in the past and in comparison this is a good company.

I was thinking about the pt work thing.* It would be possible to do my sales job pt from home, though I get a lot out of working in the office environment.* This would be my easiest option, and although I would have SOME stress from talking to difficult customers, it would be a lot less.

I was offered the chance to work from home when my growing company switched a lot of us over from independent contractors to employees 3 yrs ago. I declined, because I knew I would not get any house accounts, not to mention other benefits, if I were not there in that office.* Also, my condo can get noisy and I do not enjoy working here unless I have to.* I have worked here before due to snow days (which here in GA means just a tiny bit of snow) so I know I have the discipline to do it if I need to.

I have a feeling that if I went to the owner of my company in 10 years and wanted to work from home, pt, he would be okay with it.* I will have a house instead of this noisy condo.

I have enough accounts I could easily make $30000 a year (would be higher for inflation) working part time calling on my established accounts 15-20 hours a week from home.* I would not get the benefits of being in the office, but by that time I would have enough saved I could take the loss.*

Without opening many new accounts eventually my account base would die off, but I could sustain myself for a few years.* It would really depend how much I wanted to work.

However a lot can change in 10 yrs and who knows what the office will be like then.* But I just can't see my boss turning me down if I go to him, 10 yrs from now, and tell him this is what I want to do.*

I might be able to keep the company health insurance, but they are always changing their policies on that, for people who work outside the office, so it would depend what rules were in place at the time.*

About getting married, I do not know if I will or not.* I definatly could live without it.* But I would never say never.
I do not want to have kids of my own.* However I believe one day I will adopt an older (unwanted but relatively healthy) child or children.* By older I mean any age from school age to teen. There are so many out there.* I can't imagine going through my entire life with no kids at all.* It would be better if I were married but if I don't get married, I still will adopt an older child.* I figure if I'm in my mid 40's and still not married, I can adopt on my own.* By not adopting a baby or young child that would be doable.*

I will definatly keep the expenses in mind when I get closer to retirement.* But a lot could happen in 10 yrs, I don't know whether I'll be married or not, and how much I'll have saved.

just_hatched:* I have $15K "equity" in this condo but they are not selling well right now.* If I sold it now I might gain $5K if lucky.

That $100K figure was all my net assets, on paper.*
In reality it is lower than that, maybe 90K.

I was thinking of paying off my mortgage in 10 or so years. Getting a 15 yr mortgage and paying it off early. I'll check and see if the rate is much lower with a 10 yr mortgage, and if that would be a better option which it might.

wildcat: I was at work today and suddenly remembered your quote!!!!* About the walls and prison!!* It is so true, as I do have a sense of security from being in "prison".* That security is the money I am able to earn.....

my goal is to create my own security without having to rely on those "prison" walls.* But for now I need them or I would not survive.....

Jack_Key · 11-02-2005, 08:42 PM

Quote:

Originally Posted by needtoretireearly

I am so happy to have found this board.
I am 32, never married, female (not that that matters!) and have been saving for some time now.* My ultimate goal is retirement.* I have about $70000 saved in my 401K (maxed out each year since it started), Roth IRA (maxed out), and other mutual funds and savings accounts so far.* This doesn't include all my assets on paper which would add up to about $100000 at most, including the $70000.

Hiya. I'm 30 and my ultimate goal is to retire in 7 years. I have a blog (retireat37.blogspot.com) on which I detail my progress. I think it should be possible for you to reach your goal with $650000 (or even less than that). I also have cumulated about $100000 net assets to date and I earn about the same than you. Firecalc is a good start, but even better, if you are able to play with Excel, is to put down the numbers and try some scenarios. For instance, I put my real gain (gains minus inflation) on investments at 4% a year, then I try to estimate my salary increases (since I'm young, for instance, I plan bigger increases in the first years).

When you play with the numbers with your own sheets, you will likely notice something very important: playing slightly with any number will have very important results for the future. For instance, if I play with my expected investments yield rates, increasing it by 1% may be the difference between having $600k at 80 or nothing at all.

I think it is the most important part of very early retirement, like retiring at 37 with $350k or so: if things go well, you can die with more money than what you started with. But if things go bad, you can have nothing left in your nestegg at 55 or even sooner. Thus, have a plan B. My plan B is to consider working part-time if needed after retirement to cover the difference between planning and actual results.

Quote:

I did this site's calculator and it actually said if I have $650000 and lived modestly ($25,000 a year) I could retire right now.*

To me this makes sense as you figure 5% of $650000 is over $32000 interest.*

You would be okay, but figure approximately 4% safe withdrawal (which would give you $26k, still enough to retire with $650k). Asset allocation will be important at that time. After years of good stock market returns, for instance, you will be better withdrawing from stocks and put some money aside in the money market. On the other hand, if the market goes down, it would be better to withdraw from the money market, so not to give a double-hit to your stock portfolio. With proper asset allocation and rebalancing of your portfolio, a 4% withdrawal rate should be safe enough.

Quote:

Any suggestions or support would be appreciated.* I look forward to reading some good info on this board!!!!

As I said, I will yet again make a shameless plug about my blog. I'm not posting quite often on boards, but if you care, you can have a look to my ideas, suggestions, thoughts and share yours.

Good luck,

Jack

needtoretireearly · 11-02-2005, 09:12 PM

Jack,

That is a really great blog.* I normally don't like blogs as a lot of them are boring.* But I will be coming back to yours to read more.*

You think the same way I do, especially about your job.*

Sure I could quit and pursue art or writing, which would be fun.* But who knows if I would be able to survive at all on that.* Probably not.*

Better to suffer a few years at a stressful job and then have the rest of your life to enjoy doing what you please.

I do take at least 1 week vacation each year.* It is unpaid, but I feel it is necessary and healthy for me to take it.* I will be going next week actually, to a fitness spa which I really enjoy.

Life would be so much better, and yes I would be happy, if I could gain financial independence. Then I could spend more time doing things I enjoy like the fitness spa (which is pretty cheap to stay at).

If I found a man like you who was not married, and lived nearby, I might marry him!!* We would not argue over money because we would have the same goals in mind.* And think the same way.

But I don't know if there are many men (or people at all) who think like you.* At least not any I know.*

The friends I have are great but they definatly do NOT think like I do, about money.

Billy · 11-02-2005, 10:59 PM

SteveR said:

Quote:

Do you guys see companies that employ PT help actually offering health insurance?* I don't see much of it at all.* Maybe it is a geographical thing.*

needtoretireearly said:

Quote:

I might be able to keep the company health insurance, but they are always changing their policies on that, for people who work outside the office, so it would depend what rules were in place at the time.*

SteveR, it might be geographical, I think you are right. Certain coverage by insurance companies are offered "standard" in one state, and not in another. Some states have very high "standards" (like aromatherapy, acupuncture, massage, etc.) and whether you want those services covered or not isn't up to you. They are offered as the bottom standard -- and that is wh

11-02-2005, 02:28 PM	#21
justin Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 4,010	Re: 32 and wanting to retire in a few years Thanks for the clarification. I tend to agree with you HH. If you're truly FIRE, why go back to work just to get health insurance. It may be you didn't have enough saved in the first place to RE. I have considered enrolling in college to get cheap guaranteed health insurance if I was ever denied reasonable individual coverage. That's the back-up plan. I'm inclined to think a 3 credit hr class of your choosing once a year would be infinitely more fun than a part time job for health bennies.

11-02-2005, 02:42 PM	#22
wildcat Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,896	Re: 32 and wanting to retire in a few years I said consider P-T work if you can't stand your current job any longer and have an amount that is at the bottom end of the RE range, especially given the very long time horizon if a person were to retire @ 40. Just a safety net and to allow more time for the egg to grow. Maybe suggesting that one could use a P-T job for insurance was a bad idea but the income could certainly help a very long ER. __________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"

11-02-2005, 02:57 PM	#24
justin Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 4,010	Re: 32 and wanting to retire in a few years I think cutting back to part time work is a great idea, and if it comes with health ins. bennies, great! I just wouldn't personally recommend including "working a PT job forever for health insurance benefits" in my RE plan. There's a good chance I'll go PT for a while (and get health insurance) when the time comes to ER. But working PT seems like a big sacrifice just to get the health ins. I guess you do what you have to do. Half time work is only 1/4 as bad as full time (assuming disutility = (time spent working)^2 ). Just be honest with yourself about it and don't say "I'm ER'd, but still working for the health insurance benefits".

11-02-2005, 03:00 PM	#25
SteveR Moderator Emeritus Join Date: Jul 2005 Posts: 2,675	Re: 32 and wanting to retire in a few years Do you guys see companies that employ PT help actually offering health insurance? I don't see much of it at all. Maybe it is a geographical thing. __________________ Work? I don't have time to work....I'm retired.

11-02-2005, 03:11 PM	#27
justin Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 4,010	Re: 32 and wanting to retire in a few years The small engineering firm I work for does, if you're worth it. How good is the health insurance at Starbucks or Trader Joe's I wonder?

11-02-2005, 03:27 PM	#28
wildcat Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,896	Re: 32 and wanting to retire in a few years I think Costco is another __________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"

11-02-2005, 04:36 PM	#29
ProfHaroldHill Guest Posts: n/a	Re: 32 and wanting to retire in a few years A typical deal is that you can buy-in (at full price) if you work at least 20 Hrs per week; you might get a subsidy from the employer if you work at least 30 H/W. Your mileage may vary. BTW -- I've heard that Starbucks isn't too bad re health insurance. HH

11-02-2005, 05:03 PM	#32
HFWR Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: May 2005 Location: DFW Posts: 5,404	Re: 32 and wanting to retire in a few years I'm just po'd that I didn't think of it first... __________________ Have Funds, Will Retire Two turntables and a microphone...

11-02-2005, 08:29 PM	#37
needtoretireearly Confused about dryer sheets Join Date: Nov 2005 Posts: 9	Re: 32 and wanting to retire in a few years What a great response to my post!* I did not expect so much of a response. Right now I have BC/BS of GA and my small company employer pays half.* It is a fancier plan than I would have chosen, but with him paying half it is worth it to me.* It is a ppo, with very low copays.* A while ago, I checked online at the ehealthinsurance site. The 50% I pay is not much more than I'd pay if I got a high deductable indemnity type plan.* I am paying around $170 a month, I forget the exact dollar amount but that is within a few dollars I know. I don't have any major health probs but I do have to see the doctor at least once a year for some bloodwork for a minor hereditary thyroid condition which has to be treated with medicinefor the rest of my life(cost only $120 a year through canada meds). It is nothing that will cause me probs later in life so long as I take the medicine....I could live to be very old and otherwise healthy. I have noticed that there is a very long life span for many of the women in my family.* I'm not sure if this is good or bad, but regardless, I need to keep this in mind. If I'm not hit and killed by one of the crazy drivers around here I might end up living past 100.* I really like BC/BS as I've had other plans in the past and in comparison this is a good company. I was thinking about the pt work thing.* It would be possible to do my sales job pt from home, though I get a lot out of working in the office environment.* This would be my easiest option, and although I would have SOME stress from talking to difficult customers, it would be a lot less. I was offered the chance to work from home when my growing company switched a lot of us over from independent contractors to employees 3 yrs ago. I declined, because I knew I would not get any house accounts, not to mention other benefits, if I were not there in that office.* Also, my condo can get noisy and I do not enjoy working here unless I have to.* I have worked here before due to snow days (which here in GA means just a tiny bit of snow) so I know I have the discipline to do it if I need to. I have a feeling that if I went to the owner of my company in 10 years and wanted to work from home, pt, he would be okay with it.* I will have a house instead of this noisy condo. I have enough accounts I could easily make $30000 a year (would be higher for inflation) working part time calling on my established accounts 15-20 hours a week from home.* I would not get the benefits of being in the office, but by that time I would have enough saved I could take the loss.* Without opening many new accounts eventually my account base would die off, but I could sustain myself for a few years.* It would really depend how much I wanted to work. However a lot can change in 10 yrs and who knows what the office will be like then.* But I just can't see my boss turning me down if I go to him, 10 yrs from now, and tell him this is what I want to do.* I might be able to keep the company health insurance, but they are always changing their policies on that, for people who work outside the office, so it would depend what rules were in place at the time.* About getting married, I do not know if I will or not.* I definatly could live without it.* But I would never say never. I do not want to have kids of my own.* However I believe one day I will adopt an older (unwanted but relatively healthy) child or children.* By older I mean any age from school age to teen. There are so many out there.* I can't imagine going through my entire life with no kids at all.* It would be better if I were married but if I don't get married, I still will adopt an older child.* I figure if I'm in my mid 40's and still not married, I can adopt on my own.* By not adopting a baby or young child that would be doable.* I will definatly keep the expenses in mind when I get closer to retirement.* But a lot could happen in 10 yrs, I don't know whether I'll be married or not, and how much I'll have saved. just_hatched:* I have $15K "equity" in this condo but they are not selling well right now.* If I sold it now I might gain $5K if lucky. That $100K figure was all my net assets, on paper.* In reality it is lower than that, maybe 90K. I was thinking of paying off my mortgage in 10 or so years. Getting a 15 yr mortgage and paying it off early. I'll check and see if the rate is much lower with a 10 yr mortgage, and if that would be a better option which it might. wildcat: I was at work today and suddenly remembered your quote!!!!* About the walls and prison!!* It is so true, as I do have a sense of security from being in "prison".* That security is the money I am able to earn..... my goal is to create my own security without having to rely on those "prison" walls.* But for now I need them or I would not survive.....

11-02-2005, 09:12 PM	#39
needtoretireearly Confused about dryer sheets Join Date: Nov 2005 Posts: 9	Re: 32 and wanting to retire in a few years Jack, That is a really great blog.* I normally don't like blogs as a lot of them are boring.* But I will be coming back to yours to read more.* You think the same way I do, especially about your job.* Sure I could quit and pursue art or writing, which would be fun.* But who knows if I would be able to survive at all on that.* Probably not.* Better to suffer a few years at a stressful job and then have the rest of your life to enjoy doing what you please. I do take at least 1 week vacation each year.* It is unpaid, but I feel it is necessary and healthy for me to take it.* I will be going next week actually, to a fitness spa which I really enjoy. Life would be so much better, and yes I would be happy, if I could gain financial independence. Then I could spend more time doing things I enjoy like the fitness spa (which is pretty cheap to stay at). If I found a man like you who was not married, and lived nearby, I might marry him!!* We would not argue over money because we would have the same goals in mind.* And think the same way. But I don't know if there are many men (or people at all) who think like you.* At least not any I know.* The friends I have are great but they definatly do NOT think like I do, about money.