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Retirement is:
Old 06-14-2015, 09:59 PM   #1
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Retirement is:

Retirement is when one has enough interest flowing in pay all expenses flowing out. One must know ones projected expenses and compare that to ones projected income to figure out if he/she is able to say they are retired!

That is my view of the situation:

In my opinion,
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Old 06-14-2015, 11:12 PM   #2
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Ok... That first line suggests no consumption of principal.... I'm not sure I'm with you there.

I would say - starting with your subject line:
Retirement is: contentment.
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Old 06-15-2015, 04:22 AM   #3
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Quote:
Originally Posted by robertpsimpson View Post
Retirement is when one has enough interest flowing in pay all expenses flowing out. One must know ones projected expenses and compare that to ones projected income to figure out if he/she is able to say they are retired!

That is my view of the situation:

In my opinion,
That would be definition of FI as long as you replace interest with dividend yield.

I don't like "interest" since that almost automatically does not provide for any inflation protection.
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Old 06-15-2015, 07:13 AM   #4
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Quote:
Originally Posted by robertpsimpson View Post
Retirement is when one has enough interest flowing in pay all expenses flowing out. One must know ones projected expenses and compare that to ones projected income to figure out if he/she is able to say they are retired!

That is my view of the situation:

In my opinion,
One man's opinion. Way to limiting for me as I prefer to use dividends and many other sources of income. By this definition, I would never be retired......but.....but, I left my career job at age 50 fifteen years ago and provided for family with two toddlers, only work at when and what I enjoy. All this time I thought I was retired!!!

Retirement is when every day is a Saturday.
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Old 06-15-2015, 08:10 AM   #5
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Originally Posted by robertpsimpson View Post
Retirement is when one has enough interest flowing in pay all expenses flowing out. One must know ones projected expenses and compare that to ones projected income to figure out if he/she is able to say they are retired!
Wait, I thought we were supposed to "move the allocation around" among the TSP funds periodically, based on 12 month price history? Some of those funds don't produce any "interest" at all. And the plan says that if we don't have overall portfolio gains in a particular year, we don't take any money out that year, right? 2009 might have been a tough year for spending levels . . .
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Old 06-15-2015, 08:33 AM   #6
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The OP theory means that one should maintain capital assets forever.
By those principles, I should still be unretired!
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Old 06-15-2015, 08:45 AM   #7
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Well, right now I am retired by his definition (if you include dividends as equivalent to interest). However I will be spending more than interest on the day when I buy my dream home later this summer, since I prefer to pay for it in cash. So, maybe on that day I won't be retired. But then after that, with a smaller nestegg, I will still be retired by his definition.

But, I find that different members here have vastly different definitions of retirement.

To me, being retired means that you don't work at all any more and won't ever have to work again. But many of our members choose to work, often at some easier job, just to keep busy. And if they feel retired, who am I to contradict that? It's helpful to try to keep an open mind about the definition of retirement.
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Old 06-15-2015, 09:09 AM   #8
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Old 06-15-2015, 09:38 AM   #9
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Financial independence is having accumulated enough assets to live out the remainder of your life in a style acceptable to you without the need to engage in work for compensation.

Retirement is ceasing to engage in regular work for compensation's sake

I am of the camp that working less than full-time for purposes other than pecuniary doesn't disqualify you from the ranks of the retired.
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Old 06-15-2015, 11:40 AM   #10
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Retirement is being unemployed by choice
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Old 06-15-2015, 11:58 AM   #11
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Quote:
Originally Posted by robertpsimpson View Post
Retirement is when one has enough interest flowing in pay all expenses flowing out. One must know ones projected expenses and compare that to ones projected income to figure out if he/she is able to say they are retired!

That is my view of the situation:

In my opinion,
One of the more exoensive definitions, but a definition nonetheless, and undoubtedly shared by some others.
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Old 06-15-2015, 12:06 PM   #12
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Old 06-15-2015, 12:10 PM   #13
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Does it really matter how we define it, or what label we assign to our particular situation?

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Old 06-15-2015, 03:39 PM   #14
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Old 06-15-2015, 03:52 PM   #15
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Congrats on retirement robertpsimpson, I see many take some exception to the word interest in your definition, however being on here awhile I see the trend is Safe Withdraw Rates near 3%, so they are in essence not pulling from capital until streak of market bad returns occur. They do for the most part subscribe to the total return theory, treating interest, dividend and appreciation all the same in their SWR total.


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Old 06-15-2015, 05:59 PM   #16
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Sweet !
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Old 06-15-2015, 06:13 PM   #17
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Retirement is passive self employment.
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Old 06-15-2015, 09:40 PM   #18
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Originally Posted by robertf57 View Post
Financial independence is having accumulated enough assets to live out the remainder of your life in a style acceptable to you without the need to engage in work for compensation.

Retirement is ceasing to engage in regular work for compensation's sake
I agree with both statements. That being said, I happen to meet the OP's definition, too, about using only the interest (i.e. dividends) from my investments to cover my expenses, something I have been doing since 2008 when I first ERed. I would substitute "Financial independence" for "retired," though. If I were to return to work (BLECH!), I wouldn't be retired any more but would still be FI because I'd still be living off the interest and dividends.
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Old 06-16-2015, 07:47 PM   #19
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To me it is working because you want to, not because you have to. Although this may be better defined as financially independent, rather than retirement.


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Old 06-18-2015, 05:53 PM   #20
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"Retirement" means that you've quit paid work, you aren't interested in going back to paid work, and you are still alive.

The OP has a very restrictive definition of "financially independent". I quit my paid job nine years ago, we've spent more money than we did when I was working, and we've never had enough interest to cover all our spending.
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