Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Making the Decision...
Old 03-07-2008, 06:42 AM   #1
Dryer sheet aficionado
 
Join Date: Mar 2008
Location: Midwest
Posts: 30
Making the Decision...

I only recently registered for this forum, but had been "lurking" for some time before that. I appreciate people taking the time to provide their thoughts and perspectives. Hopefully I can provide contributions going forward.

I have "interviewed" several financial planners in the past, including fee-only planners. My conclusion? I haven't been particularly impressed, or convinced that the value they can provide is worth the costs. As a result, I continue to read and learn everything I can about managing finances - which is how I originally came across the forum.

I'm currently 53. For some time I have tracked a window where I felt I could FIRE. I'm now entering that window. Looking toward it was easy. Now that I am there, it is a totally different situation. It brings a whole new level of dealing with uncertainty, both for me and for DW. And once done, the feedback loop on whether it was a good decision is not real quick.

So, I'm interested in how people dealt with making such a huge decision. Thanks!
__________________

__________________
Gsquared 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 03-07-2008, 07:06 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
welcome to the board...i know i'm learning a lot from the discussions.
lacking other resources, and not knowing any better , i did my FIRE planning on a budget spreadsheet customized from a generic one found at a major software company's template library.
basically, i used the Point A (baseline) to Point B (new datum) method. it was winter and i had time on my hands.
Point A was my current income while enslaved, oops employed and ALL expenses going out. I use automatic bill payment thru my bank account and ATM for all cash so it was easy to get the data. i went thru my checkbook and a year's worth of credit card stmts (requested from cc company) to get an idea of non-periodic expenditures, toys, mad money, memberships, subscriptions, car repair & tires, eyeglasses, once a year stuff, etc
Point B was a duplicate of that info, with the income data changed to the FIRE situation. the next step of ID and trimming frivolous expenses naturally followed.
sounds obvious, but this baselining your budget exercise is crucial to the FIRE decision. i think the experts would call it a cash flow anslysis. i had a major insurance co rep offer to do this exercise for me for $300-$500. HA!
i know there are better ones out there, and the folks here will point you to that.
any financial wizards here on the board ? i'm certainly not.
__________________

__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
me too!
Old 03-07-2008, 07:09 AM   #3
Dryer sheet wannabe
 
Join Date: Jan 2008
Posts: 10
me too!

I am 54 and in the same place. Every calculater I check says I am OK financially (over 95%), but it is still hard to go from producing income to mainly consuming it. I too am interested in how to consumate this decision. I have been a steady worker since I graduated from college at age 20.
__________________
lonnie is offline   Reply With Quote
Old 03-07-2008, 07:15 AM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,117
Gsquared and lonnie, welcome to the board. If you haven't already seen it, here is a thread that might interest you: http://www.early-retirement.org/foru...ome-20091.html
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 03-07-2008, 07:53 AM   #5
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
I've found FireCalc (see link at bottom of the window) to be the most useful tool and you can work all the assumptions over and over to test your readiness.

The reality is that there will always be uncertainty. Unless you have such large savings or spartan lifestyle that it virtually doesn't matter, you just have to accept that reality. Market behavior, inflation, health insurance, social security, geopolitical crises, etc. etc. - there is alway a wildcard out there.

IMHO, the antidote is flexibility in your future life plans and expenses. Viewed another way, it's having enough cushion in your planning that the worst plausible scenario would result only in cutting back your pleasures and not so much you basics. Figuring out that number is your homework assignment .
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 03-07-2008, 08:31 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Quote:
Originally Posted by Rich_in_Tampa View Post
I've found FireCalc (see link at bottom of the window) to be the most useful tool and you can work all the assumptions over and over to test your readiness.

The reality is that there will always be uncertainty. Unless you have such large savings or spartan lifestyle that it virtually doesn't matter, you just have to accept that reality. Market behavior, inflation, health insurance, social security, geopolitical crises, etc. etc. - there is alway a wildcard out there.

IMHO, the antidote is flexibility in your future life plans and expenses. Viewed another way, it's having enough cushion in your planning that the worst plausible scenario would result only in cutting back your pleasures and not so much you basics. Figuring out that number is your homework assignment .
ReWahoo: Drop that weighted dougnut off your bat, you're warmed up enough.

You're up!
__________________
Jarhead* is offline   Reply With Quote
Old 03-07-2008, 08:39 AM   #7
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,117
[...stepping up to the plate]

Rich old buddy, for some reason the phrase "physician, heal thyself" comes to mind.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 03-07-2008, 09:15 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Quote:
Originally Posted by REWahoo View Post
[...stepping up to the plate]

Rich old buddy, for some reason the phrase "physician, heal thyself" comes to mind.


If tag-teaming our friend Rich gets him off the "dime", our work on this board is almost done.
__________________
Jarhead* is offline   Reply With Quote
Old 03-07-2008, 09:15 AM   #9
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Who, me? Only thing I'm waitin' on is for gas to drop to $1.25 a gallon.

I'm picking up a new set of clubs tomorrow, a hot date with Big Bertha. Is that a good sign?

Heck, just one more year. Or thereabouts.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 03-07-2008, 09:16 AM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,117
Quote:
Originally Posted by Rich_in_Tampa View Post
Heck, just one more year. Or thereabouts.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 03-07-2008, 10:30 AM   #11
Thinks s/he gets paid by the post
DblDoc's Avatar
 
Join Date: Aug 2007
Posts: 1,224
Hey give Rich a break. He did dip his toe into the water. He's still trying to figure out if the water is fine...

DD
__________________
DblDoc is offline   Reply With Quote
Old 03-07-2008, 10:45 AM   #12
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Quote:
Originally Posted by DblDoc View Post
Hey give Rich a break. He did dip his toe into the water. He's still trying to figure out if the water is fine...
A break? From these guys? Right... But thanks for the pat on the back.

So what's your plan, DD? You're still a puppy, but mighty suspicious that you're sniffing around an early retirement board.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 03-07-2008, 02:23 PM   #13
Thinks s/he gets paid by the post
DblDoc's Avatar
 
Join Date: Aug 2007
Posts: 1,224
Puppy? I wish. We do still have ~ 10yrs to go based on our conservative plan which will have me ~ 56yo. Late start etc and it wasn't until DW discovered this and the Diehards site that we got our act together and started planning.

DD
__________________

__________________
DblDoc 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
Future Decision Help Retireinmy40s Young Dreamers 5 01-19-2008 03:49 AM
Big decision please help Letj FIRE and Money 8 06-08-2007 10:49 PM
Job decision maggieddd Young Dreamers 39 06-30-2006 10:27 AM
have to make a decision... slj455 FIRE and Money 3 12-03-2005 06:58 PM
Anyone made this decision? SpaceTraveler FIRE and Money 21 06-04-2005 08:31 PM

 

 
All times are GMT -6. The time now is 09:50 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.