Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Know how much you need to retire?
Old 10-22-2009, 11:22 PM   #1
Full time employment: Posting here.
 
Join Date: Oct 2009
Posts: 943
Know how much you need to retire?

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.
__________________

__________________
LARS is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-22-2009, 11:51 PM   #2
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
Welcome to the forum, Lars.

Love the joke, it's also a good propaganda line to keep the young whipersnappers working and funding SS.

I'm curious how your portfolio has performed over these 14 years. I retired in Aug. 2008; am surprised that my PF is up by about 4% from retirement date, after 4% withdrawals.

Is your DW also retired?
__________________

__________________
CuppaJoe is offline   Reply With Quote
Thanks for the welcome.
Old 10-23-2009, 12:39 AM   #3
Full time employment: Posting here.
 
Join Date: Oct 2009
Posts: 943
Thanks for the welcome.

Wife is retired as well.

How the portfolio has done is a somewhat complicated question, because during retirement went from owning a house (saw the bubble on real estate coming) to renting though expect to buy again soon.

That having been said, we are very, very conservatively invested and I would guess net worth is up somewhere around 15% to 20% (i.e. after spending). We live quite comfortably off about 2% of portfolio.
__________________
LARS is offline   Reply With Quote
Old 10-23-2009, 08:28 AM   #4
Recycles dryer sheets
template's Avatar
 
Join Date: Aug 2005
Posts: 175
Welcome to the forum Lars. You mentioned that you were a very conservative investor. Same here. I lost less than 5% during the worst of the recession and have more than fully recovered this month.

Our financial assets have more than doubled since retiring 8 years ago (not factoring in inflation). My wife still works. She doesn't earn much, but it sure helps.

Medical insurance costs have been an area of uncertainty for us, but we have been able to cope with the increasing monthly premiums so far.

Enjoy the forum. There are lots of good folks here.
__________________
Retired in 2001 at age 49.
template is offline   Reply With Quote
Old 10-23-2009, 10:12 AM   #5
Recycles dryer sheets
JustNtime's Avatar
 
Join Date: Oct 2009
Posts: 150
Quote:
Originally Posted by template View Post
Welcome to the forum Lars. You mentioned that you were a very conservative investor. Same here. I lost less than 5% during the worst of the recession and have more than fully recovered this month.

Our financial assets have more than doubled since retiring 8 years ago (not factoring in inflation).
Made me look up mine and I'm very near the double milestone after 7yrs of full retirement(not factoring inflation or real estate values)... Verry conservative(lazy) investor more than half of our net worth (excluding real estate) is in I-Bonds purchased 7+ years ago... I know they won't be earning much for the next ~6 months due to 'deflation', but they've done well and if I sold now I doubt future I-bonds will be anywhere near as attractive.

The financial advisor I consulted with before I retired was even more pessimistic than your joke Lars... Obviously, I'm enjoying the last laugh!
__________________
JustNtime is offline   Reply With Quote
Old 10-23-2009, 11:38 AM   #6
Full time employment: Posting here.
 
Join Date: Oct 2009
Posts: 943
There is actually a lot of truth in the joke. For most mere mortals, the trick to early retiring is controlling the "wants". It is so easy to step up lifestyle to match (or exceed it would seem for many Americans of late) income that you can never achieve retirement.
__________________
LARS is offline   Reply With Quote
Old 10-23-2009, 11:44 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Question: Know how much you need to retire?

Answer: Enough.........


Welcome to the forum.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 10-23-2009, 09:47 PM   #8
Full time employment: Posting here.
 
Join Date: Oct 2009
Posts: 943
I'm guessing we have different definitions of conservative. To get a portfolio to double in 7 years you have to average a little over 10% after-tax per year.

And that is assuming ZERO withdrawals.

So if you guys are getting that kind of return without risk you have a secret you ought to let the rest of in on... not to mention you ought go back to work as a money manager because you'll make a fortune!
__________________
LARS is offline   Reply With Quote
Old 10-24-2009, 12:46 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
"Need" is not the issue.

I know what we have and I have figured out how to live within those limits, even if we had to pull the plug today. I reset that evaluation often.
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 10-24-2009, 03:11 AM   #10
Recycles dryer sheets
JustNtime's Avatar
 
Join Date: Oct 2009
Posts: 150
Quote:
Originally Posted by LARS View Post
I'm guessing we have different definitions of conservative. To get a portfolio to double in 7 years you have to average a little over 10% after-tax per year.

And that is assuming ZERO withdrawals.

So if you guys are getting that kind of return without risk you have a secret you ought to let the rest of in on... not to mention you ought go back to work as a money manager because you'll make a fortune!
Ahhh, NOT really much of a secret LARS - a modest portfolio can double, if you make contributions to it during those 7yrs... Here's my current allocation:

I-Bonds 50%
VALBX 10% (TRESURIES)
S&P 10% (INDX FUND)
IJS/SJT 10% (SMALL CAP /OIL GAS)
misc stock picks 10%
CASH 10%

Overall a current 30% exposure to the stock market seems conservative to me.

NO, I didn't make anywhere near 100% return in that period. According to MS Money, I did enjoy a 14.61% annual return on my stocks which only comprise 20% of current portfolio compared to 6% S&P index fund return. I-bonds returned 5% annually during this period and I did have a 7% CD for a while. These are all before tax returns. Most of the taxes are deferred (IRAs and I-bonds).

I receive a cola'd pension which continues to exceed our annual ER spending and adds to our portfolio monthly. I hadn't realized how well I did in stock picking (when I use to pay attention) until I looked to compose this reply. Luck I suppose - a few very good picks, a couple clunkers and some solid middle stuff. Still NOT all that confident in future stock outlook or my picking ability. Sooo, I imagine my portfolio will continue to get more conservative. I had my mother put her entire IRA in a PENFED 7yr CD at 6.25% a couple years ago - so she's happy and I don't have to listen to her complain about what the stock market is doing. Wish I had dumped some cash into that CD rate as well, since I think it will be hard to beat w/o alot of risk...

BTW: I don't need a yob, I don't want a yob, and I don't want to put 2 people out of work by taking their yobs.
__________________
JustNtime is offline   Reply With Quote
Old 10-24-2009, 11:38 AM   #11
Full time employment: Posting here.
 
Join Date: Oct 2009
Posts: 943
JustNtime,

I figured there must have been new money coming in. Having stopped work in late 30's I don't have the pension thing (which would be nice.... obviously). So we have to "hunt what we kill" so to speak.

By the way, I-bonds (notwithstanding current reset period) are I think an excellent place to put some money. Tax deferred, inflation protection (assuming Govt doesn't play too much with COLA) and once out of the holding period can be liquidated if need money even though it is a long term investment.

EE's weren't bad either until the Treasury changed the formula a couple of years ago.
__________________
LARS is offline   Reply With Quote
Old 10-24-2009, 12:55 PM   #12
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,677
Welcome to the board Lars. I think you'll enjoy it here and I look forward to learning from your experiences.
__________________
walkinwood is offline   Reply With Quote
Old 10-24-2009, 02:30 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Hey LARS.

Welcome here.

My simple pre-retirement plan consisted of saving as much of my net income as I could along the way (over the last almost 40 years). That's basically it. No $ goal, no retirement year goal~ just constant saving and investing over a 40 years period.

When I finally found myself out of work and saw no jobs around that would pay me what I was worth, I declared myself ER (early retired) and began to figure out how to spend it all during the next 40 years or so.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 10-26-2009, 03:08 PM   #14
Recycles dryer sheets
JustNtime's Avatar
 
Join Date: Oct 2009
Posts: 150
Quote:
Originally Posted by LARS View Post
JustNtime,

I figured there must have been new money coming in. Having stopped work in late 30's I don't have the pension thing (which would be nice.... obviously). So we have to "hunt what we kill" so to speak.

By the way, I-bonds (notwithstanding current reset period) are I think an excellent place to put some money. Tax deferred, inflation protection (assuming Govt doesn't play too much with COLA) and once out of the holding period can be liquidated if need money even though it is a long term investment.

EE's weren't bad either until the Treasury changed the formula a couple of years ago.
I wouldn't buy I-bonds now, but at the time I could use a credit card and earn an extra 2% upfront in CC rewards and then transfer CC balances to zero percent CC offers. Also higher limits. At the time I retired, I had 120k in Ibonds and 60k CC debt. Kept buying Ibonds until I got up to 97k CC debt and then started paying it down. Since I was using CCC zero percent money the effective yield was about double(half the money was the CCC) during the beginning of my ER and I had the Ibonds to cash in if I needed to pay down the debt quickly. Much more conservative now 16k CC debt. I have to go now - I'm traveling - more later...
__________________
JustNtime is offline   Reply With Quote
Old 10-26-2009, 03:23 PM   #15
Full time employment: Posting here.
 
Join Date: Oct 2009
Posts: 943
Ah yes the good old days when you could arbitrage on credit cards...

No question that current I-bonds are not as attractive, but they still provide tax-deferred earning and inflation protection (hopefully) which is not something to sneeze at in the current enviroment...

__________________
LARS is offline   Reply With Quote
Old 10-26-2009, 03:45 PM   #16
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
Just want to join in to welcome you to the boards, Lars. As someone who knows next to nothing about money management other than what works for DH and me (sort of like "I don't know what's good art but I know what I like") I look forward to your contributions to the boards, as I've learned so much from others who do know about money management.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 10-27-2009, 05:04 PM   #17
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
Quote:
Originally Posted by JustNtime View Post
I hadn't realized how well I did in stock picking (when I use to pay attention) until I looked to compose this reply
Ah yes, the coffee can approach.
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Old 10-28-2009, 09:33 AM   #18
Recycles dryer sheets
JustNtime's Avatar
 
Join Date: Oct 2009
Posts: 150
Quote:
Originally Posted by Milton View Post
Ah yes, the coffee can approach.
OR the don't sweat the small stuff and get a life approach... OR it's; 'only castle's burning' approach to investing... I wouldn't make much of a money manager for someone else I'm afraid, but i'm by far the best one I've ever had... (Single income family of five, moving to 12 locations in 25yrs including 3 countries overseas. Funded my masters degree and bachelor's for the 3 kids and still retired at 48 to travel the country).

Well we're in rainy Dubois, PA today - yesterday Niagara Falls, where a good time was had by all until we made a wrong turn into Canada. Paid toll, then proceeded to cross border w/o passports - received a verbal warning from Canuk customs - DON'T try that again or else and then proceeded in country - caught a view of the falls on the drive by (and the $14 parking fees) and continued on. Frankly, prefer US side to the touristy build up over there... Well we may go in search of the elusive Amish today, since it isn't exactly rock climbing weather...

The answer to how much was NEEDED to retire for me; was a whole lot less than the financial guru's told me I needed. YMMV (your mileage may vary)...
__________________
JustNtime is offline   Reply With Quote
Old 10-28-2009, 03:10 PM   #19
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
Quote:
Originally Posted by JustNtime View Post
made a wrong turn into Canada. Paid toll, then proceeded to cross border w/o passports - received a verbal warning from Canuk customs - DON'T try that again or else
The passport requirement is relatively new. It's an American requirement: specifically, the "Western Hemisphere Travel Initiative". Everyone entering (or re-entering) the US from Canada must now show a valid passport.

There is no reciprocal requirement for Yanks to present a passport when entering Canada; but in practice Canada Border Services will not allow a US citizen in unless they can show proper documentation allowing them to return home to the States.

So much for "the world's longest undefended border"!

TravelAddict.org Blog suggests that Canadian border people are generally much friendlier than their American counterparts, and that is certainly consistant with my own experience. But now that the union has won the right for Canadian customs agent to carry sidearms (why??), that may change ... hope not.

Quote:
Originally Posted by JustNtime View Post
Frankly, prefer US side to the touristy build up over there
Know what you mean re the touristy characterization. Still, it seems preferable to the US side: Niagara Fall NY is, and in my memory has always been, economicially depressed, with a downtown area full of boarded-up, abandoned buildings. Sad.

On the bright side, gas is cheaper over there!
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Old 10-28-2009, 04:39 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,019
Quote:
Originally Posted by Milton View Post
The passport requirement is relatively new. It's an American requirement: specifically, the "Western Hemisphere Travel Initiative". Everyone entering (or re-entering) the US from Canada must now show a valid passport.
Yup, you USians started this!

Quote:
Originally Posted by Milton View Post
But now that the union has won the right for Canadian customs agent to carry sidearms (why??), that may change ... hope not.
I think it was related to a recent incident at the BC-Washington State border.
__________________

__________________
Meadbh is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hi, I want to retire and need help steveduval Hi, I am... 1 06-06-2008 10:04 PM
Retire later, retire happier JustCurious Life after FIRE 20 09-17-2007 08:56 AM
Retire or Not Retire - Everyone has a choice! huutrinon Hi, I am... 1 05-04-2007 04:34 PM
September 19, a good day to retire, if I were to retire, but I am not Martha Other topics 26 09-20-2006 11:59 AM

 

 
All times are GMT -6. The time now is 10:13 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.