35, curious about ER

[Symbiotic]

Quote:

Originally Posted by manny The fact is though that I don't feel comfortable hanging out in stocks or solely relying on investments for the rest of my life and so need a larger margin of safety.

There's nothing wrong with either of those things, but any form of early retirement means you'll have "investment" by definition. Aside from managing your costs and assessing the value of your human capital backstop, in case you need to unretire, pretty much the only other thing that matters is how you allocate your capital. You should expect people on this forum to tend to want to discuss that last topic, regardless of whether it's also your day job.

The math and history suggest that most people should balance expectation and risk by allocating across a blend of asset types. Once you turn off the corporate money spigot and you remember to account for inflation, there is no free lunch.

[NanoSour]

All these big numbers make me feel crazy to ER on my paltry numbers.

You high net worth folks are so money, you don't even know you're money!

Nano

[escape_nyc]

I hear you and I agree with you, there is no free lunch. One of the first things I learnt and continue learning it every day! Which is why I believe its important to be proactive about asset allocation instead of allocating a fixed % to stocks depending on your age, years to retirement etc. The markets don't move just for you, and its important to respect that.

Quote:

Originally Posted by Symbiotic There's nothing wrong with either of those things, but any form of early retirement means you'll have "investment" by definition. Aside from managing your costs and assessing the value of your human capital backstop, in case you need to unretire, pretty much the only other thing that matters is how you allocate your capital. You should expect people on this forum to tend to want to discuss that last topic, regardless of whether it's also your day job. The math and history suggest that most people should balance expectation and risk by allocating across a blend of asset types. Once you turn off the corporate money spigot and you remember to account for inflation, there is no free lunch.

[escape_nyc]

Nano- there is no need to be sour! As they say - 'Mo money, mo problems!'
High net worth is all relative, you could have nothing and need nothing and delight seeing the sun rise and set everyday and be the richest man! And trust me those of us who are fortunate and have all these first world problems (most people on this board) appreciate our luck and fortune.

Quote:

Originally Posted by NanoSour All these big numbers make me feel crazy to ER on my paltry numbers. You high net worth folks are so money, you don't even know you're money! Nano

[meekie]

Quote:

Originally Posted by manny We would also love to move to a low(er) cost area that has good weather, is low-key, avoids the rat race and has good access to good education, some culture and diversity, natural beauty, the outdoors.

Welcome Manny!

I think if you could make a short list of a few areas you're interested in, and start collecting typical costs for those areas, the rest would fall into place pretty easy.
I live in San Diego, and while it's not cheap, it's not as expensive as NY. DH and I are aiming for $2.5m to retire, figuring that'll get us around 80k per year. That's plenty for the two of us, and if your kid is in public school, could probably cover that as well. But it really depends on your lifestyle.
I visited Denver a few years back, and it also seems like it would fit a lot of your qualifications, except for the weather part - but good weather to me might mean something quite different than good weather to you. There's also places out of the country if you're that adventurous, spending a few years in another country is one huge way for kids to get some culture and diversity.

[escape_nyc]

I've been to Denver before as well, its great. The weather there is not too bad, but its nothing like San Diego. I've been to San Diego a few times myself, and its been a dream of mine to live there for the longest time. You are lucky to be able to retire in San Diego! We are very adventurous when it comes to places, but with a little kid in tow, schooling is a whole new can of worms, and the USA seems to be the safest bet.

Quote:

Originally Posted by meekie Welcome Manny! I think if you could make a short list of a few areas you're interested in, and start collecting typical costs for those areas, the rest would fall into place pretty easy. I live in San Diego, and while it's not cheap, it's not as expensive as NY. DH and I are aiming for $2.5m to retire, figuring that'll get us around 80k per year. That's plenty for the two of us, and if your kid is in public school, could probably cover that as well. But it really depends on your lifestyle. I visited Denver a few years back, and it also seems like it would fit a lot of your qualifications, except for the weather part - but good weather to me might mean something quite different than good weather to you. There's also places out of the country if you're that adventurous, spending a few years in another country is one huge way for kids to get some culture and diversity.

[rodi]

I'm in San Diego and plan to retire here in a few years - I'm done as soon as the mortgage is paid off (next year.)

If you do end up picking this part of the woods - pick your school district carefully, or learn the system of choicing into the school you want. (San Diego Unified program that is lottery driven, but you can work some factors in your favor.) I've done the choice thing successfully for my elementary age kids - and my oldest moves to middle school next year - and I just learned I got the "choice" school I want to send him to.

House values in San Diego are very much tied to school districts. So similar houses, just a mile or two apart - can be hundreds of thousands of dollars apart in price - all because of school boundaries and district maps.