Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 12-24-2014, 04:44 AM   #41
Thinks s/he gets paid by the post
 
Join Date: May 2014
Location: Utrecht
Posts: 2,213
Have been LBYM from childhood.

Had FIRE develop as priority when I started my Phd (age 20) and reality of the many poor options in corporate life sank in. It's also a reason why I didn't go for an academic "career" afterwards.

Didn't think FIRE was realistic though until late 20s, as I started accumulating quite a bit of cash from a well paying job.

Now actually semi-FIRE at 34, but will pick up some form of paid work I think as I don't feel secure enough (@ +/- 750k usd) and may have a bit of adventure in me left to try something that pays. May even try and start a new business.
__________________

__________________
Totoro 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!

Old 12-24-2014, 05:24 AM   #42
Full time employment: Posting here.
Golden sunsets's Avatar
 
Join Date: Jun 2013
Posts: 748
Quote:
Originally Posted by Hermit View Post
59 for me. I was just going down life's lane enjoying the ride. DW was over 10 years my junior and had goals she wanted to fulfill. Retirement was out there somewhere, but not a priority. When DD was born, I decided it was time to get serious about saving for college. I was not comfortable putting a bunch of money in a child's name and I would turn 59.5 the year she started college. I maxed out the 401(k) and kept it that way until I retired. It turned out that our income increased substantially and we would not need that money to fund college for the kids. Deciding to retire happened a few days after DW suddenly died. Sometimes God can speak very loudly. I was to move to the mountains and for as long as I am capable I will help out at the kid's camp close to the house I am building. The timing for this move took a lot of soul searching. I wanted to retire and move right away, but DD had just completed her first year of college and DS was starting his first year. I decided I would retire at the time the DS finished college. Little did I know at that time that the rigors of working a constantly changing night shift would take such a toll as I got older. DS transferred to a larger school and would not graduate at 4 years. I first planned to put off retirement, but after a month in the Colorado mountains, when I tried to do a night shift again, I knew that I just couldn't continue. I put in my papers to retire the next day which was right on the original schedule. Living comfortably on DW's SS and pension. Will move to my SS at 70. (BTW, DS is still going strong in college. Doesn't look like he will graduate until his seventh year!)
This is quite a story Hermit. So sorry for the loss of your DW at such a young age. Congrats on navigating those years immediately after her passing. It sounds as though your DS and DD are doing well and you have transitioned well.
__________________

__________________
"Luck favors the prepared mind"
Pasteur
Golden sunsets is offline   Reply With Quote
Old 12-24-2014, 05:42 AM   #43
Full time employment: Posting here.
Golden sunsets's Avatar
 
Join Date: Jun 2013
Posts: 748
DH and I always contributed to our IRA's(before 401K's were developed). In the beginning the max one could contribute was $2,000/yr. Premarriage, we also squirreled away more after tax but without a plan. Then when children arrived, I took a 10 year hiatus from work. We prepared for this period by practicing living on one income from our marriage until the birth of our first. That period, when we were socking away 100 percent of my net salary was the genesis of our journey to FI. We also chose to buy less house than we could afford and consequently had growing down payments as we bought and sold four homes over the course of our careers. The mortgage on our final home purchase was less than 50 percent of value, which we financed for 15 years and paid off in 12, making one extra payment per year. Our FI plans I think came into focus in 1991 when we started our spreadsheet. That spreadsheet is now 48 pages long and contains every aspect of our financial life from the original sheet which updates our Assets and Liabilities semi-annually, to detailed pro forma taxes going out to 2025 to anticipate taxes based on Roth conversions. Many other additional sheets have been incorporated including home cost basis, current investments updated for current value( one for each year) and detailed expense records. I feel like our whole financial life is contained in this living record.
__________________
"Luck favors the prepared mind"
Pasteur
Golden sunsets is offline   Reply With Quote
Old 12-24-2014, 07:14 AM   #44
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,653
The RE part was one factor in why I elected to pursue a Federal career. That was at 23 years old. The interest in FI (apart from the pension) came when DW and I reached our mid 40s. That is when we began saving in earnest.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is online now   Reply With Quote
Old 12-24-2014, 09:03 AM   #45
Recycles dryer sheets
 
Join Date: Apr 2008
Posts: 332
In 2006 when my DF passed. He was a carpenter and didn't have a pension or paid vacation time and often missed time in the winter. We always went on a summer vacation camping, even though DF didn't get paid. My DM was a home maker and then worked part time after we were in high school. They managed to save over $300k. That and SS lasted them until he passed at 87. My three siblings and I each got an inheritance of $16k plus a paid off family lake place worth >$500k. I used the inheritance to start taxable and Roth accounts. We also maxed out our 401k's until DW retired in 2008 and I was let go in 2010. That last 4 year push increased our NW by about 40%.
__________________
Idnar7 is offline   Reply With Quote
Old 12-24-2014, 09:28 AM   #46
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 2,147
Quote:
Originally Posted by Golden sunsets View Post
This is quite a story Hermit. So sorry for the loss of your DW at such a young age. Congrats on navigating those years immediately after her passing. It sounds as though your DS and DD are doing well and you have transitioned well.
Thank you, Golden

Hermit
__________________
Hermit is offline   Reply With Quote
Old 12-24-2014, 10:00 AM   #47
Recycles dryer sheets
 
Join Date: Feb 2013
Location: San Jose
Posts: 173
I liked the university environment and didn't want to leave, but I didn't want to be a professor struggling for tenure. Professional student would have been my gig of choice, all it takes is enough of a nest egg.

After I graduated and hired into MegaCorp I knew I had a poor fit my first week on the job. I was fine with living on a graduate student's stipend, so I figured it wouldn't take long to accumulate enough savings for passive income to cover my needs. My starting salary was modest but the 90s bull market was a great tailwind. Hit my milestone after 12 years on the job.

Over the years the allure of academia faded and I started to tolerate and even enjoy my job. I think this led to goalpost creep to the point where I'm now way past what I can realistically spend. No regrets because I believe FI made it possible to focus on the fun parts of my work and ignore the rest. Management gives me a pass because my specialty is rare and fairly important to the business at the moment. I'm a naturally anxious person so depending on a paycheck at my age in my line of work amid continuing layoff rounds would probably have stressed me out long ago. Even in good times a forced promotion into a supervisory role would have been ugly.

So even though my original reason for pursuing FI was to RE, hitting it early has actually extended my career. Most new hires don't realize how often the bigwigs in the positions they aspire to are aching to get out. It's all a matter of who's in control of your financial future, you or your employer.
__________________
dunkelblau is offline   Reply With Quote
Old 12-24-2014, 02:12 PM   #48
Confused about dryer sheets
Kraftwerk's Avatar
 
Join Date: Dec 2014
Posts: 3
Quote:
Originally Posted by UnrealizedPotential View Post
For me it was 40. Surely I saved alot in my 30's but to be honest I also blew alot of money. No regrets. It would not matter anyway, nothing that I can do about it now. I am curious to know at what age FIRE became important to you and the reasons why if you want to give it. For me, age 40 was the time in my life when I realized my dreams just were not going to come true unless I tried to save and invest money alot harder than I did in my 30's.
Spot on with me too.
__________________
Kraftwerk is offline   Reply With Quote
Old 12-24-2014, 02:22 PM   #49
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 2,147
Quote:
Originally Posted by dunkelblau View Post
I liked the university environment and didn't want to leave, but I didn't want to be a professor struggling for tenure. Professional student would have been my gig of choice, all it takes is enough of a nest egg....
I'm afraid my son is in total agreement on gig of choice. Unfortunately, it has been my nest egg so far!
__________________
Hermit is offline   Reply With Quote
Old 12-24-2014, 03:01 PM   #50
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
Two ages, actually....at 30 first, then at 46 for real

Retirement was always something I always thought about, but was not too focused on it. Saving for FI was always a habit. 1980 was not a great year to hit the j*b market when I graduated college. I always w*rked, so I thought in terms of standard SS retirement benefits.

I didn't realize any serious salary level until I got a govt j*b at age 30, 9 years after college graduation. I had a few decent j*bs with defense contractor companies from age 21 to age 30, but nothing that looked long term or had potential to have any sort of decent pension. There was no such thing as a 401(k) at that time.
I saw people who had been in those j*bs, for 10+ years, changing companies every few years and ending up with next to nothing all in one place. Hmmmm...not for me.

So I bit the bullet and applied for a govt j*b in 1988 at age 30 during a temporary hiring freeze easement. BINGO ! I now had the federal TSP Plan in my court. I started at 5%, then ramped it up to 10%, then gradually to 15% as permitted. I bought EE bonds through payroll deduction. I got a Roth IRA going.

I intended to w*rk until my age 50 and do an early out within the FERS system when my husband retired at age 55 under CSRS.
Great plan, right ?
My husband passed suddenly 5 years before he was eligible to retire, leaving me with his modest pension and health benefits at my age 46.

Talk about having to adapt quickly to Plan B...whew!

The more I thought about it, the survivor health benefits meant I had the means to decide if I wanted to keep doing what I was doing as a GS-13 Engineer. It was becoming a real mental struggle to keep at that, facing ugly politics every damn day.

Was the money worth it ? Nope...

So I maxed my TSP out to the IRS limit for 2.5 years, achieved a target principal amount, and said adios at age 48.

No regrets.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 12-24-2014, 04:06 PM   #51
Recycles dryer sheets
 
Join Date: Nov 2014
Posts: 147
Right about my 39th b'day. Megacorp's waves of layoffs & re-orgs had yanked my chain and moved my cheese enough to push me into thinking, "what if..." Things have kinda settled down at w*rk, but I'm awake now and plotting each move/year towards FI and ER. Knowing I've got Another Plan in the works helps so much in dealing with w*rk jibba jabba. Now if only I can accelerate DW's onboarding to LBYM... we've got a seriously fat double-income lifestyle balloon to deflate and redirect into powerful savings power. Crawl, walk, run - its all progress!
__________________
growerVon is offline   Reply With Quote
Old 12-24-2014, 04:40 PM   #52
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,579
I'm impressed with so many thinking about this in their 20's. I just stumbled into RE by picking a career (law enforcement) in a spot that had a good pension plan. I was hired the week before turning 23 years old. I didn't give the pension plan much thought until my mid 30's and found myself recently divorced and deep in debt because of a house mortgage and new pickup truck. This meant that I could, theoretically, fully retire at age 48. And believe me, with some very rare exceptions you don't want 60-year-old people in law enforcement. Or for most even mid to late 50's.

The house mortgage was a good decision in that time and place, the pickup not so much. At the time normal retirement was 50% of the last year's pay at 25 years service. I was liking my job so I figured on staying 30 years and going out at 60% but I knew I'd better have zero debt or very close to it.

Astonishingly, the deal got better (think local Black Swan event, long story) and I went out at 72% of final pay at 29+ years, COLA'd pension, I pay 30% of medical insurance premium for myself and DW for life, it becomes secondary to Medicare at 65. When I retired my net income went up slightly, not paying into the retirement system, SS, maxed out 457, and a few other items. Oh, and I never got seriously injured so exited with my limbs and mind more or less intact.

They stopped offering this plan back in the early 1980's. So basically, I feel like I won the lottery.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 12-24-2014, 05:03 PM   #53
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 2,147
Quote:
Originally Posted by freebird5825 View Post
Two ages, actually....at 30 first, then at 46 for real

Retirement was always something I always thought about, but was not too focused on it. Saving for FI was always a habit. 1980 was not a great year to hit the j*b market when I graduated college. I always w*rked, so I thought in terms of standard SS retirement benefits.

I didn't realize any serious salary level until I got a govt j*b at age 30, 9 years after college graduation. I had a few decent j*bs with defense contractor companies from age 21 to age 30, but nothing that looked long term or had potential to have any sort of decent pension. There was no such thing as a 401(k) at that time.
I saw people who had been in those j*bs, for 10+ years, changing companies every few years and ending up with next to nothing all in one place. Hmmmm...not for me.

So I bit the bullet and applied for a govt j*b in 1988 at age 30 during a temporary hiring freeze easement. BINGO ! I now had the federal TSP Plan in my court. I started at 5%, then ramped it up to 10%, then gradually to 15% as permitted. I bought EE bonds through payroll deduction. I got a Roth IRA going.

I intended to w*rk until my age 50 and do an early out within the FERS system when my husband retired at age 55 under CSRS.
Great plan, right ?
My husband passed suddenly 5 years before he was eligible to retire, leaving me with his modest pension and health benefits at my age 46.

Talk about having to adapt quickly to Plan B...whew!

The more I thought about it, the survivor health benefits meant I had the means to decide if I wanted to keep doing what I was doing as a GS-13 Engineer. It was becoming a real mental struggle to keep at that, facing ugly politics every damn day.

Was the money worth it ? Nope...

So I maxed my TSP out to the IRS limit for 2.5 years, achieved a target principal amount, and said adios at age 48.

No regrets.
I can identify with a lot of your post, including the death of my spouse. The difference is I started with the government and at the time I had 15 years service, I quit and went to work for defense contractors. I cashed in all my government pension just to make sure that bridge was completely burned when I left. Never harbored any regrets about leaving and had a good career as an engineer in the defense industry. Retired at 63.

Hermit
__________________
Hermit is offline   Reply With Quote
Old 12-24-2014, 07:51 PM   #54
Full time employment: Posting here.
 
Join Date: Jul 2014
Posts: 616
Having a financial cushion was always important to me, and I started saving and LBYM at my first job. But my main concern was being able to handle unexpected curves such as a job loss or health issue. It's only recently that I've started to think about FI and RE .
__________________
Katiek is online now   Reply With Quote
Old 12-25-2014, 08:43 AM   #55
Thinks s/he gets paid by the post
Huston55's Avatar
 
Join Date: Jul 2011
Location: The Bay Area
Posts: 1,803
This thread is an interesting read. I'm actually surprised at the number of E-R.org members who didn't start seriously planning for ER until into their 30s or later. I'd have thought, on this forum, that would be rarer. But, it's a good lesson.

I see a bit of many of you in my and DW's path. We didn't start saving seriously until into our 30s, due largely to DW being in grad school. But, we made good financial decisions along the way. Paid off student loans immediately after school, had a car loan for only a couple years (owned that car for 18 yrs) and never again bought a new car, and stretched to buy our first house just before turning 30. So, looking back on it, even though we didn't have a lot of money invested before our 30s, we had built a solid financial foundation.

We started 401k contributions in our early 30s, as soon as eligible after leaving active duty Air Force. I remained in the Air Force Reserves long enough to retire, a decision I made primarily for financial reasons: the pension & the health care, mostly the health care. For the next decade, we were pretty much on financial auto-pilot: contributing (now the max 15%) to our 401k, starting IRAs, and earning "good" years for an Air Force Reserve retirement. Then, a seminal moment occurred for me; at age 42, I read "Your Money or Your Life." I was introduced to the concepts it contained, and things haven't been the same since...in a good way. That was really the first time that FIRE was a priority for us; it was also the time when I set the goal of retiring before age 60. Not sure why I picked 60, other than a mix of hope and pragmatism, and it seemed young to me.

Since that time, we've continued to max out all our tax-deferred investments but, also pumped up our after-tax accounts to the point that they are a substantial proportion of our NW. We (mostly me since I'm the more investment and finance oriented one) have gone through an 'active', individual stock picking phase (value investing) and, evolved to our current 'low cost passive index' approach. At age 51/49, we finalized a NW goal (with intermediate yearly milestones) that we were certain would provide the lifestyle we wanted in retirement, and committed to do whatever was necessary to meet that NW goal in 6 yrs by age 57/55, including cutting expenses and pumping up savings. We were going along smoothly, slightly above our NW growth curve, then 2008 came along...OUCH! But, we stuck to our commitment, socking away every extra $$$ we could, and didn't panic (but did have lots of restless nights). With a little help (well, a lot) from Mr. Market, we achieved our NW goal on schedule, at age 57/55. Then, a combination of OMY syndrome and finding the right circumstances to exit, extended us to where we are today: FI and Semi-FIREd (I plan to do some consulting for 2-3 yrs, primarily for the mental stimulation). I now understand why retired people say, "I don't know how I ever found enough time to work." And, I have to thank Joe Dominguez for helping get me there.

Happy Holidays!
__________________
You may be whatever you resolve to be.
Huston55 is offline   Reply With Quote
Old 12-25-2014, 01:26 PM   #56
Recycles dryer sheets
 
Join Date: Jul 2013
Location: Villa Grande
Posts: 259
For me, about 40. By then, I had worked about 10 years in my law career and knew that I wanted to work at most only 10 years more.
__________________
TimSF is online now   Reply With Quote
Old 12-25-2014, 01:33 PM   #57
Recycles dryer sheets
swakyaby's Avatar
 
Join Date: Feb 2011
Location: Northern Cal
Posts: 229
At age 18, my mother would say, "You need to learn how to cook! How are you going to get married if you can't cook?!" That was when I decided FI was my goal.

After getting married (despite my questionably domestic skills), it took until age 39 to pay off my educational debt (>$200K). By age 43, my income was enough to max out tax-deferred and substantial amounts to after tax savings. At that rate, I realized I could ER in my early 50s. The cost of health care is the only question mark that keeps me working another year or two.
__________________
swakyaby is offline   Reply With Quote
Old 12-26-2014, 08:57 PM   #58
Recycles dryer sheets
eyeonFI's Avatar
 
Join Date: Mar 2005
Posts: 101
I've been focused on FI since before I understood the concept. Mom took me to open a bank account when I was about 7, I started finding ways to earn $, saving, and never looked back.

I guess my first inkling of RE may have been when I opened my first IRA at 15. I'd say I got more seriously focused on FIRE at 29, when I put together my first spreadsheet forecasting my spending, saving, and net worth. I saw I could probably retire in my 40s, and set that as my goal. (I'm setting the pieces in place to call it quits next year, at 44.)
__________________
eyeonFI is offline   Reply With Quote
Old 12-27-2014, 08:34 AM   #59
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,050
From the first day of work FIRE has been a priority.
__________________
jim584672 is offline   Reply With Quote
Old 12-27-2014, 03:29 PM   #60
Dryer sheet wannabe
 
Join Date: Dec 2013
Posts: 19
I was 27 and going through a particularly challenging time at work. I started maxing out all my retirement accounts and haven't looked back in the 4 years since. DW and I are saving about 40% of our income while she is in graduate school and plan to increase that dramatically when she finds employment in a few years.

Not having options is what did it for me.
__________________

__________________
FIREontheMountain 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
Poll:Age when you became a millionaire David1961 FIRE and Money 145 12-26-2014 11:31 AM
any members here became FIRE with less than 300K? 97guns FIRE Related Public Policy 12 01-04-2012 12:46 AM
So, do you feel your age? Act your age? Like your age? vickko Life after FIRE 84 04-10-2010 02:47 PM
US Priority Mail. Negative Experience MJ Life after FIRE 37 11-30-2007 07:50 AM
PT & vacations-- not a priority. Nords Life after FIRE 0 04-06-2005 07:55 AM

 

 
All times are GMT -6. The time now is 08:58 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.