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Trying to retire in our 40s...
Old 12-23-2012, 10:29 AM   #1
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Trying to retire in our 40s...

... but we'll see.

Hello, been lurking here for ~2 months, but DH and I have been planning early retirement since we started working 15 years ago! I also recognize a few names from the old REHP board on the Motley Fool, I went by the handle "Katty" over there.

So yeah, DH and I are in our late 30s and are hoping to be FI by ~45. We're not counting on it though, since the stock market has shown us its power to throw a monkey wrench into our plans over the last decade. We may RE once we're FI, or may do periodic contracting gigs to pay for nicer vacations, etc. We have a good idea of our living expenses right now, but need to add in periodic home repairs, new or new-to-us cars, health insurance*, etc.

Most of our investments have been Vanguard S&P Index, but I'm open to adding in bonds to reduce volatility and risk, so it's good to read what others are doing here. And I LOVE reading everyone's stories about leaving their jobs, the "Class of 2012/2013" threads, etc.

Nice to meet you all!



*Not sure how much things will change in 2014.
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Old 12-23-2012, 11:09 AM   #2
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At your age (late 30s) I would hold off on bonds, but if I were in your shoes I would first expand into mid/small cap equities and into international equities. As you probably know, the S&P index fund is large cap domestic equities.

One suggestion is that you log into Vanguard and go to Portfolio Watch, set a AA (either 100% stocks or 90/10) and see what Portfolio Watch suggests.
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Old 12-23-2012, 11:28 AM   #3
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Welcome aboard. Since you're relatively young I tried to think of a grumpy reply, but it just wasn't warranted IMO. Nothing wrong with your POV.

I'm much older than the OP, but I'm holding almost 50% bonds for the yields. But when interest rates rise (not soon IMO), bonds will take a NAV hit, so bonds may not be 'set it and forget it.' I've shortened duration in case I miss the inflection (likely). There's no place to hide these days that I know of...
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Old 12-23-2012, 06:33 PM   #4
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Since you're relatively young I tried to think of a grumpy reply
Eh, I'm sure I'll say something stupid enough to justify it sooner rather than later...
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Old 12-23-2012, 10:09 PM   #5
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Pretty hard to retire in your 40's although some manage to do it. Good luck. Wish I could have done it.
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Old 12-23-2012, 11:02 PM   #6
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Eh, I'm sure I'll say something stupid enough to justify it sooner rather than later...
Great sense of humor! Welcome to the forum.
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Old 12-24-2012, 09:24 AM   #7
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Pretty hard to retire in your 40's although some manage to do it.
Really? Are you trying to discourage the RE attempt?

I would say the opposite. Easy to do if it is what you want...go for it!!!! My goal was 45, took until I was 46.
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Old 12-24-2012, 09:27 AM   #8
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Easy to do if it is what you want...go for it!!!!
Statistics would indicate otherwise, but I agree it is doable if one is dedicated, frugal, and fortunate.
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Old 12-24-2012, 09:30 AM   #9
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Really? Are you trying to discourage the RE attempt?

I would say the opposite. Easy to do if it is what you want...go for it!!!! My goal was 45, took until I was 46.
I'm sure everyone got the drift, but maybe a good place for 'simple, not easy'...
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Old 12-24-2012, 10:25 AM   #10
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Really? Are you trying to discourage the RE attempt?

I would say the opposite. Easy to do if it is what you want...go for it!!!! My goal was 45, took until I was 46.

I doubt many can do it. But as I said some can. The earlier you retire the harder it is to do. Less years to earn and less years to compound earnings. More years to fund in retirement. Ought to be obvious that the difficulty increases.

If its so easy why not do it at 35 or 25?

Retiring early may be easier to do than to maintain also. More time for inflation to work on you.
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Old 12-24-2012, 03:03 PM   #11
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First, I was making a bit of a joke with the reattempt thing.

Second, I started when I was 24, knowing I wanted to retire early. OP said they have been planning to FIRE for 15 years, and had been on other boards talking about it. They are not starting out in their late 30s...apparently they have been planning/preparing this since their early 20s.

I might agree with most here if they were starting in their late 30s. Given the few facts we have, my guess is they will make it and I stand by my original response...go for it!
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Old 12-25-2012, 09:26 PM   #12
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I am convinced that most people do not want to be free. In fact they fear it.

When I retired I told my co workers to look upon a free man. You won't see many of them. I think it was lost on almost all of them.

Comments like: You are too young. What will you do? You will go back to work. (Well only if I have to, not out of boredom.)

Six months now. I have never been happier since I was a child.
Lazarus, this quote is from another thread. [MOD EDIT] In one breath, you indicate how hard it is and in another, you indicate that you get comments that you are too young.

Make up your mind.

I don't understand why this board would discourage anyone from retiring early...that is the point of the forum.

I think it is sour grapes from those that didn't make it in their 40s.
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Old 12-25-2012, 11:48 PM   #13
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One advantage to a plan to FIRE in your 40's is that if your plan works, you get a lot of years to be retired. Another advantage is that if something goes wrong with your plan, you can try try again and still ER, maybe in your late 40's, or 50's, or whenever - with a lot better options than if you hadn't been shooting for the earlier date.
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Old 12-26-2012, 07:54 AM   #14
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Lazarus, this quote is from another thread. [MOD EDIT] In one breath, you indicate how hard it is and in another, you indicate that you get comments that you are too young.

Make up your mind.

I don't understand why this board would discourage anyone from retiring early...that is the point of the forum.

I think it is sour grapes from those that didn't make it in their 40s.
I am not discouraging anyone. As I said before the younger you try it the harder it is to do. Obviously.

As far as the comments that I am too young. I am younger than a lot of people still working but I am not in my 40's or younger. If I could have went then I would have.
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