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Old 03-08-2019, 11:30 PM   #1
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New to the FIRE party, probably.

Enjoyed reading this forum for a few years now. I'm 57 and DW is 56. I "stopped working" last summer and my wife just completed an early retirement deal from mega-corp. I say "stopped working" because it's been bothering me not working of late, but it bothers me more to work so something of a purgatory that hasn't played out yet. It bothers me to be idle and it bothers me to pull from savings to buy day to day stuff. Anyone have this problem? Maybe I'll do something very part time. Anyway, here's our numbers:

Total NW of $5.0MM as:

> $1.80MM Retirement accounts, mid to large cap Funds, stocks, ETF's.
> $2.30MM Investment accounts, ETF's, mid/large stocks, one mutual fund.
> $300k SFR, owned for 30 years, no mortgage.
> $600k Residence, no mortgage.

The investment accounts pay $70k dividends and net rent income after tax is $12k. I will be able to draw on the retirement accounts in two years but likely won't for awhile. We'll probably get $40k SS or less if taken early. Our biggest expense is my son's college, two more years at $25k/yr, then our medical subsidy ends, so we'll be paying out of pocket ~$15k/yr until medicare. We're likely to move to AZ in a couple years too.

I only invest in dividend paying mid and large caps that are growing earnings, growing the dividend and are highly unlikely to halt or even cut the dividend during times of crisis. This considered, I still think an overall reduction of dividends for my portfolio would be likely within my lifetime so we plan to be able to live on <2% WR, but plan on pulling 3% and maybe go to 4% once in awhile.

No LTC insurance, no bond allocation, no annuities, no pensions, no life insurance. My thinking is that if the SHTF to the point that the S&P tanks beyond recovery, then bonds, etc won't be far behind and our biggest problems will be elsewhere.

Btw, I'm an ex-CPA, preferring to manage companies operations. I spend ~1 hour a day on my investments with particular attention to diversification and minimizing taxes. Thanks for reading and commenting.
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Old 03-08-2019, 11:42 PM   #2
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robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,641
Given the situation, your children (if you have them) will likely end up with 10s of million dollars. I think you know money is not the issue. The issue I see is that you may have been a workaholic. Even if you are not, you don't have ER mindset (enjoy what you accumulated, be as lazy as you can be, have fun with your life, ..., you get the picture). My advice is, go back to work, and enjoy your life that way. If I appeared to be a bit abrasive in my answer, I meant to shake you up a bit. Life is too short then you die. Incidentally, I am 57 years old and consider my life at least 2/3 done. I don't want to work another day of the other 1/3. Did I mention life is too short and then you die?


Quote:
Originally Posted by DSC800 View Post
Enjoyed reading this forum for a few years now. I'm 57 and DW is 56. I "stopped working" last summer and my wife just completed an early retirement deal from mega-corp. I say "stopped working" because it's been bothering me not working of late, but it bothers me more to work so something of a purgatory that hasn't played out yet. It bothers me to be idle and it bothers me to pull from savings to buy day to day stuff. Anyone have this problem? Maybe I'll do something very part time. Anyway, here's our numbers:

Total NW of $5.0MM as:

> $1.80MM Retirement accounts, mid to large cap Funds, stocks, ETF's.
> $2.30MM Investment accounts, ETF's, mid/large stocks, one mutual fund.
> $300k SFR, owned for 30 years, no mortgage.
> $600k Residence, no mortgage.

The investment accounts pay $70k dividends and net rent income after tax is $12k. I will be able to draw on the retirement accounts in two years but likely won't for awhile. We'll probably get $40k SS or less if taken early. Our biggest expense is my son's college, two more years at $25k/yr, then our medical subsidy ends, so we'll be paying out of pocket ~$15k/yr until medicare. We're likely to move to AZ in a couple years too.

I only invest in dividend paying mid and large caps that are growing earnings, growing the dividend and are highly unlikely to halt or even cut the dividend during times of crisis. This considered, I still think an overall reduction of dividends for my portfolio would be likely within my lifetime so we plan to be able to live on <2% WR, but plan on pulling 3% and maybe go to 4% once in awhile.

No LTC insurance, no bond allocation, no annuities, no pensions, no life insurance. My thinking is that if the SHTF to the point that the S&P tanks beyond recovery, then bonds, etc won't be far behind and our biggest problems will be elsewhere.

Btw, I'm an ex-CPA, preferring to manage companies operations. I spend ~1 hour a day on my investments with particular attention to diversification and minimizing taxes. Thanks for reading and commenting.
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Old 03-09-2019, 05:52 AM   #3
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I understand your feelings and we all have some of the same motivations and goals that is why we are here. I beleive a very competitive, hard working, LBYM, get things done person, just don't stop on a dime and go the other direction.

If work makes you happy you go work or find the love and balance of free time. I always believed when I didn't have fun at something anymore I stopped that journey.
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Old 03-09-2019, 06:00 AM   #4
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What rob said. ^^^

I get a great deal of joy in volunteering (many do not). It gives me a balance and sense of purpose in my otherwise hedonistic retirement lifestyle. Work another day for $$? Just NO.

My volunteer stuff plugs me in with many retirees that are in late 70's and 80's. As someone 60(+), I realize that I may never see that age (and may not want to). So, my remaining (and unknown) "good years" are to be cherished more than any possession that I have.

Figure out what you love and get after it. Just choose carefully. You get one go-round. One.
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Old 03-09-2019, 07:09 AM   #5
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DSC800,


We're within 100k of investible assets and have the same theory on bonds, annuities, pensions. I don't spend as much time managing my assets, I buy & hold three VG equity funds and keep a year cash on hand. Living expense is covered by the sale of my former business (year 4 of a 10 year buyout). We live just fine on $50k after taxes and health insurance. We also pay all of our own HI, about $15k a year. Finances haven't been a problem in ER.


I ER'd 3 years ago at 50 and was worried about what I would do all day. I took a part time job early on. BIG mistake. I realized that I like working, but didn't want a JOB again. I wouldn't get a job if I were you unless you could control every aspect of it, that's hard to find. I do a lot of volunteering now, maybe too much. I'm slowly getting into the routine of being retired without feeling guilty. I understand where you're at. Give it time.
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Old 03-10-2019, 05:08 PM   #6
Dryer sheet wannabe
 
Join Date: Mar 2016
Location: San Diego
Posts: 23
Thanks for the comments. I have a little paranoia knowing that at my age it will be harder to work as time goes on. I stopped working last July due to ethical issues with ownership but was planning on two more years. I enjoyed the social aspects of the company but it wasn't a hard decision.

Quote:
Originally Posted by robnplunder View Post
Given the situation, your children (if you have them) will likely end up with 10s of million dollars. I think you know money is not the issue. The issue I see is that you may have been a workaholic.
Lol, no one calls me a workaholic, at least not since 2006. I took 2007 off work (bad timing due to the financial crisis) and also 2012, and haven't worked full time since 2011. I did work hard though but averaged about 30 hours a week the last ten years. I got to spend time with my son. I do have a loose target of $10MM worth in my lifetime, but we'll see.

Quote:
Originally Posted by street View Post
I believe a very competitive, hard working, LBYM, get things done person, just don't stop on a dime and go the other direction.

If work makes you happy you go work or find the love and balance of free time. I always believed when I didn't have fun at something anymore I stopped that journey.
Definitely LBYM, hence the plan to be able to live on 2% WR as a baseline. I did enjoy those I worked with, but ownership had problems.

Quote:
Originally Posted by Red Badger View Post
I get a great deal of joy in volunteering (many do not). It gives me a balance and sense of purpose in my otherwise hedonistic retirement lifestyle. Work another day for $$? Just NO.
Red- I haven't had the urge to volunteer much, yet. My wife did a lot while working and will do more now, so I might get involved with her projects.

Quote:
Originally Posted by Stormy Kromer View Post
We're within 100k of investible assets and have the same theory on bonds, annuities, pensions. I don't spend as much time managing my assets, I buy & hold three VG equity funds and keep a year cash on hand. Living expense is covered by the sale of my former business (year 4 of a 10 year buyout). We live just fine on $50k after taxes and health insurance. We also pay all of our own HI, about $15k a year. Finances haven't been a problem in ER.
Stormy - yup, no bonds, CD's, gold, etc. It surprises some I know that I don't have bonds but I'd rather invest in stocks and ride out the ups/downs. Even if I did make a small allocation to fixed income, it wouldn't be enough to make a difference overall. I look at the market as many markets and have transitioned to the dividend payers in most sectors and avoiding high-flyers. Not owning the likes of Amazon may cost me, but I should sleep well (or better) at night when things go south. I do spend a fair amount of time on my investments, but not an active trader. My goal is to get right to the limits of maximum dividend and LTCG income, minimum taxes.
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