Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Book Review - "The Number"
Old 12-31-2006, 11:19 AM   #1
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Book Review - "The Number"

Greetings!

The subject book has come up in some conversations on this board. Some were positive, some negative (imagine that ).

Anyway, my DW gave me the book (one of many) concerning my upcoming retirement in '07 (won't list the others - they will be for other discussions).

What struck me most of all was how this book actually "met" my own "number". It was much like reading the "Millionare Next Door" after achieving the subject target (I wanted to know how others did it; of course, readers of this forum already know the LBYM mantra).

Here's a blog of the author's site for your information:

http://www.thenumberbook.com/thebook/bloggers.php

Let the comments begin... (be nice )...

- Ron
__________________

__________________
rs0460a 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!

Re: Book Review - "The Number"
Old 12-31-2006, 12:14 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,881
Re: Book Review - "The Number"

I recall reading that book about a year ago and I think that it was a pretty interesting read. I do not recall that I gleaned a great deal of new information from it, but I thought that the information was presented well and, since I read it cover-to-cover, I must have liked it.
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 01:30 PM   #3
 
Posts: n/a
Re: Book Review - "The Number"

Quote:
Originally Posted by Ron'Da
Greetings!

The subject book has come up in some conversations on this board. Some were positive, some negative (imagine that ).

Anyway, my DW gave me the book (one of many) concerning my upcoming retirement in '07 (won't list the others - they will be for other discussions).

What struck me most of all was how this book actually "met" my own "number". It was much like reading the "Millionare Next Door" after achieving the subject target (I wanted to know how others did it; of course, readers of this forum already know the LBYM mantra).

Here's a blog of the author's site for your information:

http://www.thenumberbook.com/thebook/bloggers.php

Let the comments begin... (be nice )...

- Ron
JUst curious Ron, since you have computed your "number" and it matches the book, I am wondering how close your number is to the formual that I came up with.

My formula is: (( Bare Bones annual spending * 2) - Annual Pension Amt) * 25 = NEST EGG

Bare Bones is really Bare - (No cleaning lady, No travel, No hobby spending, No Eating out etc. etc.)

Annual Pension Amt includes Social Security, Company Pensions etc.
__________________
  Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 02:53 PM   #4
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Re: Book Review - "The Number"

Quote:
Originally Posted by Cut-Throat
I am wondering how close your number is to the formual that I came up with.
If you go to one of the "bottom line" indicators (there are several in the chapter, on how to "compute the number", as you have proposed), on page 234 there is one option. Of the four "lifestyles", I/DW meet the criteria of "being OK" (in a financial sense for what I/DW have planned).

Using your method of calculation, I would have to change your "Bare Bones annual spending" factor to 3 (rather than two) to actually meet what is outlined in the book (and meet our "target"). Also, have you considered all options (such as an increase in the value of your holdings after year one) for your calculation? Also, how each of us view "bare bones" will be different. I pulled mine directly from my retirement budget, which DW/me have broken down into essential and discretionary (how anal is that ).

BTW, page 251 comes up with an eight-step alternative way of computing how much you can "safely" spend in retirement. I won't list them here (due to copyright infringement) but if you have the book, you can give that a "spin".

An additional comment (based upon some of the "youngsters" on this forum). The numbers (in the book) may seem "high", but they are based upon "common" lifestyles. I constantly read from folks (here) that they are in their 30's/40's and will have their mortgage and car paid off in x years (shortly!) and expect to retire at that point. Since I/DW have been in our early 30's, we are in our third house and "many" cars later (yes, we do have a car payment in our retirement budget, but since our current home is paid for, we do not plan on "moving up" - 4 bedrooms / 2.5 baths for just the two of us). Probably would be a good topic for another thread...

- Ron
__________________
rs0460a is offline   Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 03:36 PM   #5
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Book Review - "The Number"

Quote:
Originally Posted by Cut-Throat
JUst curious Ron, since you have computed your "number" and it matches the book, I am wondering how close your number is to the formual that I came up with.

My formula is: (( Bare Bones annual spending * 2) - Annual Pension Amt) * 25 = NEST EGG

Bare Bones is really Bare - (No cleaning lady, No travel, No hobby spending, No Eating out etc. etc.)

Annual Pension Amt includes Social Security, Company Pensions etc.
I'm getting concerned about my plan. My current assets put me at 3 times "bare bones." My problem is the "bare bones" is far lower than my desired lifestyle.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 03:41 PM   #6
 
Posts: n/a
Re: Book Review - "The Number"

Quote:
Originally Posted by 2B
I'm getting concerned about my plan. My current assets put me at 3 times "bare bones." My problem is the "bare bones" is far lower than my desired lifestyle.
Well Yeah! - That is why you multiply it by 2!
__________________
  Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 03:51 PM   #7
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Book Review - "The Number"

Quote:
Originally Posted by Cut-Throat
Well Yeah! - That is why you multiply it by 2!
Even mutiplying by 3 doesn't get me where I'd prefer to be. My "bare bones" is effectively the trailer by the trout stream but I substitute the grass flats. Grilled redfish on the half shell taste better than any freshwater trout.

"Bare bones" for me is safely less than my SS and damn near the total amount of my pathetic pensions.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 03:53 PM   #8
 
Posts: n/a
Re: Book Review - "The Number"

Quote:
Originally Posted by 2B
Even mutiplying by 3 doesn't get me where I'd prefer to be. My "bare bones" is effectively the trailer by the trout stream but I substitute the grass flats. Grilled redfish on the half shell taste better than any freshwater trout.

"Bare bones" for me is safely less than my SS and damn near the total amount of my pathetic pensions.
Well, Bare bones by my formula definition, is where you are currently living, your current property taxes, Heat bill, groceries etc. It is not meant to be a drastic lifestyle reduction. ONly those things in your life that are non-deiscretionary.
__________________
  Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 03:58 PM   #9
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Book Review - "The Number"

Quote:
Originally Posted by Cut-Throat
Well, Bare bones by my formula definition, is where you are currently living, your current property taxes, Heat bill, groceries etc. It is not meant to be a drastic lifestyle reduction. ONly those things in your life that are non-deiscretionary.
Then, it's safe to say I'm not there yet but I'm getting close. Doubling my current "necessaries" is pretty luxurious by my standards. I'll have to keep working longer with your formula. Are we perhaps married to the same woman? Nope, not possible. Your wife has a paying job.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 04:17 PM   #10
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Re: Book Review - "The Number"

Quote:
Originally Posted by 2B
I'm not there yet
Big question - how old are you? Second question - when is your target ER year?

- Ron

__________________
rs0460a is offline   Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 04:40 PM   #11
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Book Review - "The Number"

Quote:
Originally Posted by Ron'Da
BTW, page 251 comes up with an eight-step alternative way of computing how much you can "safely" spend in retirement. I won't list them here (due to copyright infringement) but if you have the book, you can give that a "spin".

- Ron
Without using the author's words (which could be copyright infringement), can you give us a rough idea of how he suggests calculating your number? (Ideas are not protected by copyright, only expressions of ideas.)
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 04:46 PM   #12
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re: Book Review - "The Number"

Quote:
Originally Posted by Martha
Without using the author's words (which could be copyright infringement), can you give us a rough idea of how he suggests calculating your number? (Ideas are not protected by copyright, only expressions of ideas.)
We did an eight-page thread on this a while back. If I remember correctly from reading the book, he writes over 200 pages without ever actually coming up with a damn number. It's all about the journey and the angst, not about the actual calculation.

We have to take into account that the author's still working... it doesn't matter whether his calculations are right or not!

But FWIW:
http://early-retirement.org/forums/i...p?topic=5422.0
http://early-retirement.org/forums/i...p?topic=5452.0
http://early-retirement.org/forums/i...p?topic=5454.0
http://early-retirement.org/forums/i...p?topic=7267.0
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Book Review - "The Number"
Old 12-31-2006, 05:31 PM   #13
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Book Review - "The Number"

Quote:
Originally Posted by Nords
If I remember correctly from reading the book, he writes over 200 pages without ever actually coming up with a damn number. It's all about the journey and the angst, not about the actual calculation.
I agree with Nords. I found the book interminable. I did read the whole thing but never felt like I really learned anything other than reinforcing my belief that people are always afraid they need more -- just like me.
__________________

__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B 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
Book report: "The Little Book of Value Investing" Nords FIRE and Money 5 01-08-2007 12:00 AM
Book Review: AgeLess wabmester Other topics 26 08-15-2006 10:39 AM
Book report: "The Complete Idiot's Guide to Early Retirement" Nords Other topics 0 06-21-2006 02:49 PM
Selling "The Number" intercst FIRE and Money 5 01-07-2006 08:40 PM
Book report: "The Way We Never Were" Nords Other topics 9 05-17-2005 10:57 AM

 

 
All times are GMT -6. The time now is 02:52 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.