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View Poll Results: Are you FI but not yet RE? Is there anyone? (Choices below are yearly expenses as a percent of inv
3.75-4.0% 28 50.00%
3.5-3.75% 4 7.14%
3.0-3.5% 7 12.50%
2.5%-3.0% 6 10.71%
<2.5% 11 19.64%
Voters: 56. You may not vote on this poll

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Re: Are you to chicken to RE?
Old 03-09-2007, 03:53 PM   #21
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Re: Are you to chicken to RE?

I did not vote because my SWR is higher than on the poll and will be for a few years in ER. This is by design.

I have been FI (under a variety of definitions) for over 5 years. ER was actually done in 2002 but I choose to prostitute myself for one more year in exchance for them paying all my moving expenses, closing costs on my house, closing costs on my house in the new location, the headhunter fee, and a nice sign-on bonus all for 12 months of slavery w*rk. Things changed in my personal life and I found I needed the job to keep my mind occupied.

Things changed again and I decided to hang on for a few more months.

This year is it! No more "helping out". No more being willing to go "just one more month" to tie them over.

The planets appear to be aligning and things are falling into place that will actually lower my expenses and SWR by a significant amount. The cabin is set to close the end of March. We will payoff the mortgage, the RV loan and still have plenty left over to finish funding the kitchen remodel and fund a new car for DW. What is left will fund our expenses for over 18 months.

Once the deal closes I will give my notice. We have already made plans and have several trips already lined up.

The only thing that could slow this down is if they come back and want me to consult for a few months. I would actually like that as it would allow me to leave on my own terms and still be able to save a few more pesos while the market continues to hop around on one foot.

So, the short answer is no I am not chicken, I have just had some personal issues that have delayed my ER.
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Re: Are you to chicken to RE?
Old 03-09-2007, 04:56 PM   #22
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Re: Are you to chicken to RE?

Quote:
Originally Posted by SteveR

So, the short answer is no I am not chicken, I have just had some personal issues that have delayed my ER.
I should add to my original post that even if I decided Bernicke was good enough my personal situation makes me want to have a structured activity and I'd just as soon get money to be there. My in-laws are consuming DW's life and if I wasn't playing with colored pencils I'd get sucked into doing fun things with dentia patients.

There has been a recent triumph but I'll do that in a separate post.
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Re: Are you to chicken to RE?
Old 03-09-2007, 06:22 PM   #23
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Re: Are you to chicken to RE?

Today I reached my financial goal. (of the last few years)

I am 54 and am now less than 2.5%

Man am I chicken. For example here are some excuses:

1. I worry about having no one to talk to except my wife and kids and the occaisional dinner out with my still working friends.

2. I worry I will feel like a bum and will start to get depressed, and maybe turn to drink.

3. I have 3 kids in college, and I am paying their way. ( I dont want them to have debt)

4. I mentally think I am still about 40ish. Retiring would be an acceptance that I am OLD

I'm sure Ive got lots of other fears too, thats me, fearful but a hard worker and planner
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Re: Are you to chicken to RE?
Old 03-09-2007, 07:10 PM   #24
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Re: Are you to chicken to RE?

Quote:
Originally Posted by chip2
Today I reached my financial goal. (of the last few years)

I am 54 and am now less than 2.5%

Man am I chicken. For example here are some excuses:

1. I worry about having no one to talk to except my wife and kids and the occaisional dinner out with my still working friends.

2. I worry I will feel like a bum and will start to get depressed, and maybe turn to drink.

3. I have 3 kids in college, and I am paying their way. ( I dont want them to have debt)

4. I mentally think I am still about 40ish. Retiring would be an acceptance that I am OLD
Here is one other very important fact you need to include to help counterbalance the above: You may not live long enough to enjoy even one day of retirement. For a reality check, take a look at what life insurance will cost you...it darn sure isn't the same as that "40ish" person in your head. There's a reason for this, of course: You're a heck of a lot closer to being dead than you were 14 years ago!

And even if you do mange to live long enough to work beyond you fears, the possibility of a severe decline in health is likely to spoil many if not all of those retirement dreams.

But look at it this way - whether you retire because you die or get too decrepit to work, either way you'll no longer have to worry about being too chicken to pull the plug.

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Re: Are you to chicken to RE?
Old 03-09-2007, 07:52 PM   #25
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Re: Are you to chicken to RE?

We are FI at 4% SWR but anticipate expenses will be higher for the next 4 to 6 years when both kids will be in college. We plan to RE in 4 to 6 years.
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Re: Are you to chicken to RE?
Old 03-09-2007, 08:25 PM   #26
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Re: Are you to chicken to RE?

THANK -YOU REWahoo, I really need some of that input. (REALLY!)
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Re: Are you to chicken to RE?
Old 03-09-2007, 08:38 PM   #27
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Re: Are you to chicken to RE?

Quote:
Originally Posted by chip2
THANK -YOU REWahoo, I really need some of that input. (REALLY!)
I was a bit rude, but after a co-worker died in the middle of a megacorp meeting last year at age 42, it made me very grateful that I made it to retirement alive and in good health. I didn't get to FIRE (~4% SWR) until age 58, but if I were in your situation and could have done it at age 54 with a lower SWR, I would have left skid marks peeling out of the parking lot!

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Re: Are you to chicken to RE?
Old 03-09-2007, 09:14 PM   #28
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Re: Are you to chicken to RE?

About 30 voters said they are FI and not RE, but most did not say why, so here goes for me:

no pension or health insurance
talk about college, our youngest will not be out of college until 20 years from now
either or both of us could easily live another 50 years (and need to fund that)

I have 2 goals: RE in 4 years while still in my late 40's and at 2% SWR.

While I am still working, it takes the edge off knowing deep down I probably don't need to. I don't worry about future promotions or making bonus or what my next raise will be. In an average year the growth in our portfolio is about twice my salary anyway. So why am I working? Is the job that great? No. If I had a crazy amount of money, like tens of millions, would I still be there? No. So I guess I am chicken.

But I can say one thing: this board, more than anything else, will help get me there...
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Re: Are you to chicken to RE?
Old 03-09-2007, 10:30 PM   #29
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Re: Are you to chicken to RE?

Well after posting the survey last night I was worried that I would log on today and find that there wasn't anyone that was FI and not REed.

I'm 49 and have still have two kids in school.

My number is currently about 3%. It increases to a little above 4% when both kids are in college (assuming they go to a state school) but eventually drops down to a little less than 3% without SS and pensions and a little less than 2% if SS and pensions are included.

So I figure I can go anytime. (Another factor is that DW also works and we can easily live off of either salary.)

But like firewhen and chip2 something just hasn't clicked yet that I can and should RE. Maybe I need a kick in the butt from RE-Wahoo?

Work is OK. I easily (in my opinion) have the best job of anyone in the company in my area of expertise and also have a lot of flexibility with regard to hours but to tell you the truth I don't find it particularly rewarding. I'm a "technical expert" in a non-core technology and that limits the opportunities to do the "fun and exciting stuff" which in my opinion is what counter balances the negative aspects of working for a mega-corp. Management has become increasingly resistance to doing anything that does not obviously and immediately impact the bottom line even if there are clear future benefits for the company and in my area what is left is pretty mundane.

But I do want to stay active in my field. (Maybe to much ego?) I have thought about part-time consulting and think I could generate some time from my current mega-corp and perhaps a couple of other organizations. That's basically what I do now anyway. Part of my time is spent running small R/D programs and part is spent in a consulting role helping engineers with various problems.

On the financial side although the rational side of my brain says we're fine I have some of the same nagging feellings that other have expressed. Such as: What if the kids get in to Harvard and I have to pay for it? What about rising heath care costs? We only have 150 years of market history and what if we have a 1000-year bear market? What if H**** is right?

DW hasn't quite grasped the ER concept either although she took a long leave of absence from her company a couple of years ago and really enjoyed it.

ME: You know we can retire right now!
DW: Laughs
ME: No, really, all the number look good!
DW: What would you do all day?

(She then points out that she does a lot more volunteer work than I do and therefore will be doing something socially valuable even if she isn't working while I just want to spend my time training for triathlons and wandering around the mountains and beaches in a semi-perpetual traveler mode )

MB
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Re: Are you to chicken to RE?
Old 03-09-2007, 10:34 PM   #30
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Re: Are you to chicken to RE?

Wow, four people at less than 2.5%! What are you waiting for?
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Re: Are you to chicken to RE?
Old 03-09-2007, 11:02 PM   #31
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Re: Are you to chicken to RE?

Quote:
Originally Posted by mb
Wow, four people at less than 2.5%! What are you waiting for?
The first of October.
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Re: Are you to chicken to RE?
Old 03-10-2007, 12:01 AM   #32
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Re: Are you to chicken to RE?

For the folks whose budget represents significantly less than 4% of their financial assets, please help me understand.......

Do you just lack the creativity to add fun things to your budget until it becomes large enough to consume something closer to 4%? Or, are you saying your "basic" budget is below 4% and you'll figure out what to do with the extra money later? Or?

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Re: Are you to chicken to RE?
Old 03-10-2007, 07:54 AM   #33
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Re: Are you to chicken to RE?

Quote:
Originally Posted by youbet
For the folks whose budget represents significantly less than 4% of their financial assets, please help me understand.......

Do you just lack the creativity to add fun things to your budget until it becomes large enough to consume something closer to 4%? Or, are you saying your "basic" budget is below 4% and you'll figure out what to do with the extra money later? Or?

No lack of creative things to spend the money on here. I guess it's excess money (I don't like to use that term) but that's what it amounts to.

Here's the plan in a nut shell, or better, an egg shell. We're using the four egg approach.

Egg #1 is DW's SS
Egg #2 is my SS
Egg #3 is my pension
Egg #4 is the nest egg

DW is currently taking her SS which allows us to max out the 401K and IRA's.

When I retire in October the plan is to add the pension egg and fill in the gaps with the nest egg. I'll be 61 1/2.

When I turn 62 I'll have the option of adding my SS egg or staying the course with nest egg wd's. Currently the pension egg check is growing at a dollar a day. The nest egg is growing at $2100 a month.

Using egg #1 and egg #3 in combination with egg #2 or egg #4 will take us over our yearly budget by about 40%. Add all four eggs together and we could almost double our yearly burn rate for a while.

If we keep expenses below about $55K a year the nest egg should last a long time.

UH

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Re: Are you to chicken to RE?
Old 03-10-2007, 08:13 AM   #34
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Re: Are you to chicken to RE?

For me, I think there's 3 "employment periods" in life:

1. Working because there is no other choice
2. Able to say "take this job and shove it"
3. Not working

I'm trying to get to stage #2 above and see what that feels like - and will decide from there.
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Re: Are you to chicken to RE?
Old 03-10-2007, 08:54 AM   #35
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Re: Are you to chicken to RE?

Quote:
Originally Posted by youbet
For the folks whose budget represents significantly less than 4% of their financial assets, please help me understand.......

Do you just lack the creativity to add fun things to your budget until it becomes large enough to consume something closer to 4%? Or, are you saying your "basic" budget is below 4% and you'll figure out what to do with the extra money later? Or?

No, it is simply wanting to not have to make a large adjustment later. We worked hard for 30 years and live a nice life. The last thing we want to do now is cut back below our LBYM earlier life due to some extended bear market or something. I guess it is some kind of weird reverse risk tolerance. We have always been heavy on equities (age and posters here have tempered that attitude a bit) and don't lose any sleep when the market takes a dive ala 2000-2002. But the idea that we could have to cut back significantly in our mid-70s or, god forbid, go back to work is scary. So we have a low SWR. We would also be happy to leave a pile to the kids and grand kids. In terms of creativity, our travel and dining out budget is huge. But no super luxury cars. To each their own.
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Re: Are you to chicken to RE?
Old 03-10-2007, 09:38 AM   #36
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Re: Are you to chicken to RE?

Interesting topic.

I'm worried about retiring, my wife is also not making any leanings towards me retiring, which is worrisome.

I think society does not like ER people. You should "feel guilty" if you are not working.

However a friend I lunch with regularly has recently had a heart attack and is now in rehab and working half days. He is the same age as me, 54. A couple we dine with on occaision, the husband died last Tuesday of a heart attack at 52. He lived for health and fitness, had a personal trainer.

I guess that the statistics kick in once you are in your 50s. A hundred years ago, not many people made it past their 50s so we should take our window of opportunity.

Now Im thinking, maybe on my 55 birthday?.............
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Re: Are you to chicken to RE?
Old 03-10-2007, 09:53 AM   #37
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Re: Are you to chicken to RE?

Yup, and then Brad Delp dies at 55. A vegitarian for 4 decades.

Sad day here in Boston.
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Re: Are you to chicken to RE?
Old 03-10-2007, 09:55 AM   #38
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Re: Are you to chicken to RE?

Quote:
Originally Posted by chip2
Now Im thinking, maybe on my 55 birthday?.............
Chip2, did you see this thread from "Best of the Boards"?

http://early-retirement.org/forums/i...p?topic=6482.0

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Re: Are you to chicken to RE?
Old 03-10-2007, 10:04 AM   #39
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Re: Are you to chicken to RE?

I could FIRE and support my (non-health insurance pre-retirement expenses). I have not worked the numbers, but my work related expenses might cover the health care premium I would nee to pay for insurance.

We are waiting till 55 for 2 reasons:

1) Company Covered health care at ER (age 55)
2) We anticipate spending more in the early years of retirement... (we intend to travel). Leting market gains accrue a few more years and stashing away a little more will help.


Working a few more years will better outfit us with the financial resources to FIRE with out 1st choice lifestyle.

That said: I feel confident that we could make it work with a LBYM lifestyle and less travel... or travel on a more spartan budget.
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Re: Are you to chicken to RE?
Old 03-10-2007, 10:55 AM   #40
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Re: Are you to chicken to RE?

Quote:
Originally Posted by youbet
For the folks whose budget represents significantly less than 4% of their financial assets, please help me understand.......
Some years we exceed 4%-- like updating our rental property or replacing a car or completing a major home-improvement project. The capital expense is part of the overall plan and it's just a variable SWR that most of the retirement calculators don't consider.

But overall we can't find creative & fun ways to spend our money. We don't feel the need to care for more material possessions or to inflict affluenza on our offspring. As for the experiences that we consider "fun", many of them don't require enough money to put a dent in the SWR...
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