|
An actual GOOD article on retiring early
03-14-2007, 10:21 AM
|
#1
|
Recycles dryer sheets
Join Date: Nov 2004
Posts: 117
|
An actual GOOD article on retiring early
Here is an article on how to retire early:
http://finance.yahoo.com/retirement/...-you-will-need
They hit on the important points: you need a large nest egg, you'll have to save a large proportion of your income, invest wisely, etc.
The "start your own business" advice seems silly, though. The entrepenuer doesn't plan on retiring anyway. I can't reconcile throwing yourself heart-and-soul into work (even if its your own business) if your goal is to stop working all together. No balance there. And what if you get hit by a bus tomorrow?
Never-the-less, its a pretty good article.
-Mike M.
|
|
|
|
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: An actual GOOD article on retiring early
03-14-2007, 10:43 AM
|
#2
|
Recycles dryer sheets
Join Date: Dec 2006
Posts: 63
|
Re: An actual GOOD article on retiring early
Well, I'm not sure it is such a great article b/c it uses Shawn Larson as its chief example. He LBYM and saves more than half of his salary -- seems exemplary. But then you learn his salary is $180k. Woudn't be hard for many to get to FIRE earning that kind of money....he's LBYM on $90K! I'm happy for him but unhappy that the article holds him up as an example for everyone else on how to get to FIRE....
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 11:02 AM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,155
|
Re: An actual GOOD article on retiring early
Ditto! Plus the guy will have a 30K annual pension, and plan to splurge only occasionally, like a 75K expedition.
It's LBYM, but the B might not stand for below.
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 11:24 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
|
Re: An actual GOOD article on retiring early
The advise and examples I'm interested in involve average earners whose FIRE status depends on their personal savings and investments. Reading about folks with generous COLA'd pensions or folks who saved half of an enormous salary, received an inheritance, etc., just doesn't seem like the real deal. I mean, those are surely fortunate situations, but not a very interesting read. Now someone who was able to put together FIRE while earning average bux, no pension and raising a family.........that's interesting.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 11:33 AM
|
#5
|
Recycles dryer sheets
Join Date: Dec 2005
Posts: 137
|
Re: An actual GOOD article on retiring early
That's funny. Shawn posted all of his details here a month or two ago, and his name, occupation and everything. Several people suggested he take down all that personal information.
Looks like the article author saw that posting too, and then looked him up to profile.
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 11:46 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Posts: 12,880
|
Re: An actual GOOD article on retiring early
Quote:
The "start your own business" advice seems silly, though. The entrepenuer doesn't plan on retiring anyway. I can't reconcile throwing yourself heart-and-soul into work (even if its your own business) if your goal is to stop working all together.
|
That's exactimundo what I did.
Thanks for the article!
__________________
Al
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 11:57 AM
|
#7
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,719
|
Re: An actual GOOD article on retiring early
I agree that there is a great deal of pie-in-the-sky thinking/examples in the article. Someone who is earning $180k as a single guy shouldn't have any problem retiring in 3 years. Yet someone with a full family and its attendant costs probably can't imagine the idea of retiring at that age, especially on a household income of ~$100k per year. This is especially the case for people who wait until their early-30s to get married (which is becoming very common today).
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 12:07 PM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
|
Re: An actual GOOD article on retiring early
Quote:
Originally Posted by winnie
Well, I'm not sure it is such a great article b/c it uses Shawn Larson as its chief example. He LBYM and saves more than half of his salary -- seems exemplary. But then you learn his salary is $180k. Woudn't be hard for many to get to FIRE earning that kind of money....he's LBYM on $90K! I'm happy for him but unhappy that the article holds him up as an example for everyone else on how to get to FIRE....
|
He must be a top scientist since most do not command a $180K salary ( http://www.jupiterscientific.org/sci...esalaries.html). Anyway, I do not think he can save $90K since his net (after tax) is probably about $90K.
__________________
May we live in peace and harmony and be free from all human sufferings.
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 12:07 PM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
|
Re: An actual GOOD article on retiring early
Quote:
Originally Posted by youbet
The advise and examples I'm interested in involve average earners whose FIRE status depends on their personal savings and investments. Reading about folks with generous COLA'd pensions or folks who saved half of an enormous salary, received an inheritance, etc., just doesn't seem like the real deal. I mean, those are surely fortunate situations, but not a very interesting read. Now someone who was able to put together FIRE while earning average bux, no pension and raising a family.........that's interesting.
|
Could not AGREE MORE...........who would write such a book.........other than someone on here??
I would DEFINITELY READ about the real life story of what you suggest.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 12:23 PM
|
#10
|
Full time employment: Posting here.
Join Date: Apr 2006
Posts: 529
|
Re: An actual GOOD article on retiring early
Quote:
Originally Posted by slepyhed
The "start your own business" advice seems silly, though. The entrepenuer doesn't plan on retiring anyway. I can't reconcile throwing yourself heart-and-soul into work (even if its your own business) if your goal is to stop working all together. No balance there. And what if you get hit by a bus tomorrow?
|
It doesn't have to be that way. It might be for most people starting their own business; for others (you!) it could be just a tool to retire early.
I understood early in the business process that I could spend all day finding new markets hire secretary, other employees and grow the business... But that would be at a personal cost of less time for hobbies, family, vacation... Also one needs to be careful about what remain after expenses are taken out.
In short - for the moment I am keeping the consulting business low for the above mentioned reasons (and maybe I am not ready psychologically and didn't find the right partners to grow the business with). The business started by necessity (didn't want to be an employee after being laid off, wanted to stay put rather than relocating). It has been good financially but as you can see by the fact I am on this board: I will be ready to pull the plug when it will be possible. (Well I hope Maybe I will chicken out )
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 01:17 PM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,691
|
Re: An actual GOOD article on retiring early
Quote:
Originally Posted by Jay_Gatsby
I agree that there is a great deal of pie-in-the-sky thinking/examples in the article. Someone who is earning $180k as a single guy shouldn't have any problem retiring in 3 years.
|
Reminds me of the old joke; How do you become a millionaire?, first get a million dollars.
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 01:40 PM
|
#12
|
Full time employment: Posting here.
Join Date: Mar 2005
Posts: 927
|
Re: An actual GOOD article on retiring early
Quote:
Could not AGREE MORE...........who would write such a book.........other than someone on here??
I would DEFINITELY READ about the real life story of what you suggest.........
|
I bet a lot of folks would read that.
Ok, so here's the plan. Everyone here who wants to can write up their own FIRE story -- limit X-thousand words, whatever. Maybe create some rules to keep the right tail of the income / inheritance distribution from being over-represented, so the average folks among us can tell their tales.
Someone adds the introduction and edits the stories (I can see the fur flying now), another one flogs it to publishers, and everyone divides proceeds after a generous cut to Dory, who started the whole thing.
Uh oh... I just realized the irony! This plan looks a lot like wo... wo... WORK! ;-D
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 01:59 PM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Re: An actual GOOD article on retiring early
Quote:
Originally Posted by winnie
Well, I'm not sure it is such a great article b/c it uses Shawn Larson as its chief example. He LBYM and saves more than half of his salary -- seems exemplary. But then you learn his salary is $180k. Woudn't be hard for many to get to FIRE earning that kind of money....he's LBYM on $90K! I'm happy for him but unhappy that the article holds him up as an example for everyone else on how to get to FIRE....
|
Actually, based on polls on this forum, Shawn has a pretty typical income and expenses to most of the folks answering polls around here.
Full disclosure: I'm a scientist. Science can be lucrative.
Quote:
Originally Posted by teejayevans
Reminds me of the old joke; How do you become a millionaire?, first get a million dollars.
|
I thought is was, "How do a make a million in the stock market?"
Start with two million.
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 02:05 PM
|
#14
|
Recycles dryer sheets
Join Date: Nov 2004
Posts: 117
|
Re: An actual GOOD article on retiring early
I agree that the earnings of the folks cited in the article are atypical. But the responses I see here remind me of a story...
When I first entered the workforce, I had a pretty good salary as an entry-level engineer. It was $33k per year in 1995. Plenty of money for a single guy with no mortgage and no student loans. Ahhh, those were the days.
However, I wasn't rich. The very thought of achieving financial independence never crossed my mind. Sure, maybe if I made $50k per year, I'd be able to sock it away bigtime.
Well, time passed and eventually my salary climbed to $50k per year. Except there was no way I could sock tons of money away, or so I thought at first. I thought about it for several months before I reached the conclusion that unless I took action, my spending would always match my income. It just doesn't matter how much you make, there's always plenty of ways to spend it.
So I don't think its valid to say, "If I made that kind of money, I'd be able to save huge amounts too!" No one just falls out of the sky into a certain job that pays a certain salary. They work their way into it. If they don't control their spending, it will easily ramp up right along with their salary.
It was a valuable revelation to me, anyways.
-Mike M.
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 02:21 PM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
|
Re: An actual GOOD article on retiring early
My My - how times change - 1966 went from a hungry student to a big bucks engineer $8k. UW in Seattle was probably the most expensive state school(I ran approx $1500/yr all in expenses).
300k financial plus rental duplex in 1993 at age 49 'retirement' counting her money also. The principles don't change much:
1. save as early as possible.
2. Dollar cost average
3. Investing costs matter - be cheap
4. Diversify.
heh heh heh heh - time in the market was my biggest winner. Power of compounding - all that rot.
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 02:29 PM
|
#16
|
Recycles dryer sheets
Join Date: Jan 2007
Posts: 50
|
Re: An actual GOOD article on retiring early
Let's call it like it is: The article SUCKED the big one. Made me depressed that I am only a few years away from this guy's age and wasn't even close to his numbers. Pension, huh? Retiree health benefits? Yea, right. Not in my picture. Besides, the amount he "needs" in his retirement is based on x% of salary--doesn't even consider actual expenses. If this is the "typical" early retiree then I absolutely can't relate.
__________________
No time for day dreamin.'
|
|
|
Re: An actual GOOD article on retiring early
03-14-2007, 03:03 PM
|
#17
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,331
|
Re: An actual GOOD article on retiring early
I know a lot of people making far more than that guy who will never be able to ER. It is easy to burn up a small fortune with expensive houses, vacations, cars, clothes, etc. Add in private schools and colleges and many of those big earners would not believe that the typical story on this board even falls in the realm of the possible.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|