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06-14-2015, 08:59 PM
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#1
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Confused about dryer sheets
Join Date: Jun 2015
Location: Macomb
Posts: 3
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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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06-14-2015, 10:12 PM
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#2
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,171
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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.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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06-15-2015, 03:22 AM
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#3
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gone traveling
Join Date: Sep 2013
Posts: 1,248
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Quote:
Originally Posted by robertpsimpson
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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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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06-15-2015, 06:13 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2002
Posts: 1,581
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Quote:
Originally Posted by robertpsimpson
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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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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06-15-2015, 07:10 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
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Quote:
Originally Posted by robertpsimpson
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!
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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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06-15-2015, 07:33 AM
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#6
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Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
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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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06-15-2015, 07:45 AM
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#7
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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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.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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06-15-2015, 08:09 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,054
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Retirement is: R E L A X I N G
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06-15-2015, 08:38 AM
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#9
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Recycles dryer sheets
Join Date: Jun 2014
Posts: 337
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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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06-15-2015, 10:40 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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Quote:
Originally Posted by robertpsimpson
Retirement is being unemployed by choice
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fify
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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06-15-2015, 10:58 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,206
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Quote:
Originally Posted by robertpsimpson
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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One of the more exoensive definitions, but a definition nonetheless, and undoubtedly shared by some others.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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06-15-2015, 11:06 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Retirement is never having to lie about being sick to get a day off.
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06-15-2015, 11:10 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Nov 2009
Location: SF East Bay
Posts: 4,324
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Does it really matter how we define it, or what label we assign to our particular situation?
__________________
Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.
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06-15-2015, 02:39 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jun 2014
Posts: 1,069
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1.21 jigawatts
Sent from my iPhone using Early Retirement Forum
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06-15-2015, 02:52 PM
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#15
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Recycles dryer sheets
Join Date: Apr 2013
Posts: 252
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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.
Sent from my iPad using Early Retirement Forum
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06-15-2015, 04:59 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,878
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Sweet !
__________________
Earning money is an action, saving money is a behavior, growing money takes a well diversified portfolio and the discipline to ignore market swings.
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06-15-2015, 05:13 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
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Retirement is passive self employment.
__________________
_______________________________________________
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
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06-15-2015, 08:40 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,683
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Quote:
Originally Posted by robertf57
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
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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.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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06-16-2015, 06:47 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,354
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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.
Sent from my iPhone using Early Retirement Forum
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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06-18-2015, 04:53 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 4,629
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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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