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Old 06-21-2011, 02:46 PM   #41
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My conservative estimate is around $750,000 per person is required to FIRE with a 40+ year time horizon.
Really! I thought $1M wasn't enough.

3%/yr SWR is supposed to be "safe." On $750k that's $1875/mo. I wouldn't want to live on that. But if you add SS into the equation, it sounds do-able. Which means no ER until 66, which is not all that E.

If you can average just 5% on your savings, that's over $3100/mo, and no drawdown on your principal. But 5% could be hard to maintain over the long haul.

I had hoped for a comfortable retirement with travel & other enjoyments. When DW walked with over half our joint net worth, that put a big dent into those plans. I may have to scale back my ideas.
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Old 06-21-2011, 03:03 PM   #42
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Originally Posted by scrabbler1

1) No kids.

2) No debts; I paid off my student loans before I took on a mortgage which I paid off in 9 years. Never had a car loan. Never carried a balance on my credit card, I use it maybe once every 2 months.

3) LBYM.

4) Worked for a company whose company stock grew by 3,000% in the 11 years I was there when its ESOP existed. I cleared 75% of it after taxes when I cashed it out and invested it in a bond mutual fund whose dividends more than cover my monthly expenses.
Aha! The one person so far who has obtained his retirement income thru gains in the stock market. Actually, you worked for the company but I'll give it to you anyway. I knew there was somebody out there! The general theme seems to be to spend less than you make, use debt judiciously, and take care of windfalls, expected or not. Good stuff.
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Old 06-21-2011, 03:17 PM   #43
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@Sara in SC - I'm going to check out that blog later today. Thx!
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Old 06-21-2011, 03:32 PM   #44
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Originally Posted by GaryInCO View Post
Really! I thought $1M wasn't enough.

3%/yr SWR is supposed to be "safe." On $750k that's $1875/mo. I wouldn't want to live on that. But if you add SS into the equation, it sounds do-able. Which means no ER until 66, which is not all that E.

If you can average just 5% on your savings, that's over $3100/mo, and no drawdown on your principal. But 5% could be hard to maintain over the long haul.

I had hoped for a comfortable retirement with travel & other enjoyments. When DW walked with over half our joint net worth, that put a big dent into those plans. I may have to scale back my ideas.
I am thinking more like a 3.3% SWR, but...

It really depends how you want to live and what you value. I don't like to travel. I don't like to drive and am fine with a used car, or even no car if it makes financial sense. I am happy sharing a 2 bedroom townhouse with my wife. I don't want kids and neither does she. I get excited about finding a pound of strawberries at Aldi for 99 cents, or making a batch of chili and cornbread to eat for dinner all week. I work from home and love it, but my desk is a $20 folding table in the basement. I don't have an ipad, smartphone, or espresso machine.

I do have weakness for video games (got a PS3 AND a DS), delivery pizza (deep dish once or twice a month), beer (maybe a case a month) and weights (around 2000lbs of equipment). These are largely inexpensive activities, but I find them fun.

I prefer the simplicity that comes with a low cost lifestyle. I buy in very strongly to the idea that it is all relative.
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Old 06-21-2011, 04:01 PM   #45
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The problem with individual health insurance, is it is inexpensive until you need it. Once you have a condition, you will pay big money for insurance.
Everything I've heard says that's not true. They can raise the rates for the whole pool, but not for an individual.

Now, if enough people in your pool get sick, they can jack rates up enough that the healthy people leave, and those who are less insurable are forced to stay. Then with fewer healthy people in the pool, rates continue to spiral up as the pool has turned into a high-cost, high-risk pool, which it wasn't when you joined.

Someone more knowledgeable correct me if I'm wrong.
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Old 06-21-2011, 04:53 PM   #46
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Originally Posted by Gatordoc50 View Post
Aha! The one person so far who has obtained his retirement income thru gains in the stock market. Actually, you worked for the company but I'll give it to you anyway. I knew there was somebody out there! The general theme seems to be to spend less than you make, use debt judiciously, and take care of windfalls, expected or not. Good stuff.
I am not sure if you call it gains in the stock market. The stock was privately held, as the company had not gone public until after I left it. The stock's value rose every quarter I was there (including in the 2000-2002 down market) except for a small drop in the middle of 2007 and another in late 2008 just before I left, hardly mimicking the stock market.

I do agree with your last sentence (I bolded it), though.
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Old 06-21-2011, 04:58 PM   #47
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Everything I've heard says that's not true. They can raise the rates for the whole pool, but not for an individual.

Now, if enough people in your pool get sick, they can jack rates up enough that the healthy people leave, and those who are less insurable are forced to stay. Then with fewer healthy people in the pool, rates continue to spiral up as the pool has turned into a high-cost, high-risk pool, which it wasn't when you joined.

Someone more knowledgeable correct me if I'm wrong.
I don't know if the underlying cause is correct, but in my situation the insurer jakced up my rate by 20% in 2010 and another 25% in 2011, so I, a healthy person, just left, probably further contributing to the upward spiral of those who remain there.
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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.

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Old 06-21-2011, 05:22 PM   #48
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My approach different then most here. Very high paying job with lots of equity comp. Equity went up while my lifestyle did not. At some point realized that I had a lot of money while not enjoying the jpb anymore. So retired. Spend more in retirement than when working.
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Old 06-21-2011, 05:45 PM   #49
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I had the benefit of living on a submarine with little spare time or sleep, let alone personal space or privacy.
The same as being married and having kids?
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Old 06-21-2011, 06:59 PM   #50
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I did the standard stuff - saved prodigiously, LBYM'ed, didn't increase my lifestyle with my salary, did pretty well off and on in the market. But I would say the single most important thing was that I never owned a boat.
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Old 06-21-2011, 07:19 PM   #51
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Originally Posted by RunningBum View Post
Everything I've heard says that's not true. They can raise the rates for the whole pool, but not for an individual.

Now, if enough people in your pool get sick, they can jack rates up enough that the healthy people leave, and those who are less insurable are forced to stay. Then with fewer healthy people in the pool, rates continue to spiral up as the pool has turned into a high-cost, high-risk pool, which it wasn't when you joined.
Bingo. That is precisely how they do it. We had to jump insurance companies several times because they'd jacked up the rates in our pool. We were healthy so we could jump to a cheaper policy. If you aren't healthy, you're stuck.

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Originally Posted by pimpmyretirement View Post
I do have weakness for video games (got a PS3 AND a DS), delivery pizza (deep dish once or twice a month), beer (maybe a case a month) and weights (around 2000lbs of equipment).
PMR, I share your passion for pizza and beer. If you like to cook, I can share with you the recipe for the Pizza Of The Gods. It is deep-dish pizza to give deep-dish lovers wet dreams. It costs about $30-35 to make a 16" pizza, but you can easily feed 10 people with it. It is to die for.
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Old 06-21-2011, 07:37 PM   #52
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The same as being married and having kids?
Throw in comparisons to COs and XOs, plus a few ship's alarms, and I could get an entire three-minute standup blog post out of that...
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Old 06-21-2011, 08:23 PM   #53
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I did the standard stuff - saved prodigiously, LBYM'ed, didn't increase my lifestyle with my salary, did pretty well off and on in the market. But I would say the single most important thing was that I never owned a boat.
Ouch! No harbor cruises for you, Harley!
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Old 06-21-2011, 08:30 PM   #54
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Just a little pushback against the "no kids" comments. lol!
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Old 06-21-2011, 08:41 PM   #55
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Jack, if you liked Jacob's ERE book, you might like this fellow. I've enjoyed reading his blog for a bit. Mr. Money Mustache | Putting the Cash in your Stash
This has been one of my favorite blogs over the last few months. I'd recommend going back to post 1 (the blog is only a few months old) and starting from the beginning, it's worth it.
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Old 06-21-2011, 08:42 PM   #56
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Rents.
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Originally Posted by calmloki

+1
+2

Rents + LBYM is the bulk of our ER through RE plan.
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Old 06-21-2011, 08:51 PM   #57
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I had a profitable IT consulting business for years, giving me some interesting and profitable opportunities back in the early computer days before the PC's existed. Wife passed away years ago leaving sizable insurance proceeds which I invested. I received SS survivor benefits for my son for 8 years which I save for his college. My daughter got some good scholarships. I have been in the same house for 25 years w/mortgage paid off about 5 years ago. Everything just kind of added up.

I still work part time as a programmer to get my health benefits and earn a decent salary. I just turned 59 and will be eligible to collect Social Security widow survivor benefits at age 60 which is a charge against my late wife's work record. I can then defer collecting my own SS to a later date.
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Old 06-21-2011, 09:33 PM   #58
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I'm not quite retired yet (18+ months to go) but when I do, it will be after working almost 36 years for the federal govt., of which 33 of those I also spent as an Air Force reservist, so I'll retire at 55 on a federal civil service pension with COLA, and then at age 60, the military pension will kick in as well. Wife's employer only has a 401k, and her balance isn't real big, but is growing. She'll work maybe 3 yrs after I retire, during which time we intend to max her 401k, and continue to fund our ROTHS. I will get a very small SS payment at 62 due to being in a public pension system that does not pay into SS, although I did earn the minimum quarters years ago. It will be around $300 or less. Wife's SS will be more but not huge...currently estimated at around $700 per month. I have some money in a TSP/401k.
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Old 06-23-2011, 12:17 PM   #59
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Jack, if you liked Jacob's ERE book, you might like this fellow. I've enjoyed reading his blog for a bit. Mr. Money Mustache | Putting the Cash in your Stash
I just read a few posts on his blog and enjoyed it too. Good to see another family with kids that spends around $25000 a year (excluding the mortgage) and still seems to live a good lifestyle (including a vacation on a cruise ship).
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Old 06-23-2011, 05:12 PM   #60
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High income, low spending. Simple, not easy (judging by most people I know who are busy chasing happiness buying bigger houses, nicer cars and the latest gadgets/possessions - and they still haven't figured out why that doesn't work, so they buy even more...). Now that I'm retiring early long before they expected me to, they're mystified!
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