Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-03-2016, 05:36 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 4,966
Quote:
Originally Posted by Markola View Post
Also, who says one has to add the inflation rate every year? Inflation can be controlled and reversed with lifestyle choices, eg the "Move to a LCOL area" option.


Sent from my iPad using Early Retirement Forum
how much inflation effects someone is tied to the amount of discretionary income they have as they age .

typically we end up spending in a smile shape ,we spend more in the beginning of retiring , less through our middle older years and more at the end .

what we no longer buy or do pays for the increases in a lot of what we still buy and do .

but if everything in the budget is a need and not a want there is little that gets cut back .

most of these retire very early forums are based on cutting spending to a minimum and kind of living bare bones lives for the most part .

those folks will not likely have a whole lot of discretionary spending in the budget .
__________________

__________________
mathjak107 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 09-03-2016, 07:08 AM   #22
Recycles dryer sheets
 
Join Date: Nov 2015
Posts: 307
The writer of the post concedes very early that his expense calculation was wrong, and he hadn't planned for the foreseeable costs associated with having a young child. So he didn't have 25x "expenses" when expenses was off by 30% (the wrong way). Doesn't matter what size nut you think you need, if your expenses aren't solid and accounting for variance.
__________________

__________________
Aerides is offline   Reply With Quote
Old 09-03-2016, 09:01 AM   #23
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,470
Quote:
Originally Posted by Aerides View Post
The writer of the post concedes very early that his expense calculation was wrong, and he hadn't planned for the foreseeable costs associated with having a young child. So he didn't have 25x "expenses" when expenses was off by 30% (the wrong way). Doesn't matter what size nut you think you need, if your expenses aren't solid and accounting for variance.
The systemic issue is that 25x uses historical returns and those might be a bit optimistic with the yield on 10 Year Treasuries being so low. So you might be better to use 33x......and of course do your expense planning accurately and then add a factor for unknown expenses.
__________________
Occupy ER <=>
“So we beat on, boats against the current, borne back ceaselessly into the past.”
"The needs of the many outweigh the needs of the few, or the one." - Spock
Current AA: 60% equity funds / 20% Bonds / 15% cash & Stable Value / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is online now   Reply With Quote
Old 09-03-2016, 09:17 AM   #24
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,159
Quote:
Originally Posted by Gumby View Post
That's a deliberate choice, Joe. You still don't "need" one. And the same applies to many of the other technological lifestyle upgrades you list.
+1.

One of my tennis colleagues still has no cellphone, no internet and no email. He can only be contacted on his landline.
__________________
Corporateburnout is online now   Reply With Quote
Old 09-03-2016, 09:20 AM   #25
Recycles dryer sheets
 
Join Date: Aug 2009
Posts: 391
Quote:
Originally Posted by Corporateburnout View Post
+1.

One of my tennis colleagues still has no cellphone, no internet and no email. He can only be contacted on his landline.

And his landline is probably more expensive than a monthly cost of having a cellphone with unlimited calls, texts and 1G data..


Sent from my iPad using Early Retirement Forum
__________________
bmcgonig is offline   Reply With Quote
Old 09-03-2016, 09:24 AM   #26
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,159
Quote:
Originally Posted by bmcgonig View Post
And his landline is probably more expensive than a monthly cost of having a cellphone with unlimited calls, texts and 1G data..


Sent from my iPad using Early Retirement Forum
Have you heard of Vonage?
__________________
Corporateburnout is online now   Reply With Quote
Blogger Joe Udo says 25x expenses not enough for early-retirees
Old 09-03-2016, 09:26 AM   #27
Recycles dryer sheets
 
Join Date: Aug 2009
Posts: 391
Blogger Joe Udo says 25x expenses not enough for early-retirees

Quote:
Originally Posted by Corporateburnout View Post
Have you heard of Vonage?

Yes. But it's VOIP and it kept going down on me during a call. I'm assuming that the guy has a real voice landline. And even Vonage is $25/mo if I remember.


Sent from my iPad using Early Retirement Forum
__________________
bmcgonig is offline   Reply With Quote
Old 09-03-2016, 09:33 AM   #28
Recycles dryer sheets
 
Join Date: Sep 2014
Posts: 437
So if I understand correctly this guys wife still works?
So how is he retired if he still has Family income coming into his household?

This guy is just a stay at home dad with a working spouse .

Thank you Mr. Money mustache
__________________
purplesky is offline   Reply With Quote
Old 09-03-2016, 09:36 AM   #29
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: On the road again
Posts: 21,812
Quote:
Originally Posted by Gumby View Post
That's a deliberate choice, Joe. You still don't "need" one. And the same applies to many of the other technological lifestyle upgrades you list.
Yes, it is a deliberate choice. One that can add to the overall material well-being of the owner. It should be considered as a contribution to an improving standard of living. Like air conditioning, which is another choice. Seat belts and children's car seats (no choice there). Some, such as cable TV, are indeed dubious, but others, such as high speed internet access, add considerable value.

These all cost money, increase one's cost of living, but when first introduced into the budget are not part of the "inflation rate" because they improve the standard of living. In fact, our standard of living is continuously improving, but to fully participate and enjoy those improvements, they must be paid for over and above the usual changes in average cost of living.

This is something the "SWR" discussions usually don't include, because it is difficult to quantify the cost of our improving standard of living. It also has a different impact on a 70 year old retiree vs a 50 year old. But it is real.
__________________
MichaelB is offline   Reply With Quote
Old 09-03-2016, 09:38 AM   #30
Thinks s/he gets paid by the post
Big_Hitter's Avatar
 
Join Date: May 2013
Location: In the fairway
Posts: 3,469
Quote:
Originally Posted by purplesky View Post
So if I understand correctly this guys wife still works?
So how is he retired if he still has Family income coming into his household?

This guy is just a stay at home dad with a working spouse .

Thank you Mr. Money mustache
yup
__________________
Swing hard, look up
Big_Hitter is offline   Reply With Quote
Old 09-03-2016, 10:10 AM   #31
Recycles dryer sheets
 
Join Date: Nov 2012
Location: Yonder
Posts: 224
If you read his blog, Joe says their monthly expense is mostly covered by their passive and online incomes, and they save her income. She also provides the health care insurance through her work.

I agree the blog is not quite as interesting, since there are many households with one spouse working, while the other doesn't. I'm not sure the blog would gain as many readers if his wife decided to "retire" instead.
__________________
tfudtuckerpucker is offline   Reply With Quote
Old 09-03-2016, 11:44 AM   #32
Thinks s/he gets paid by the post
 
Join Date: Feb 2013
Posts: 4,669
Quote:
Originally Posted by tfudtuckerpucker View Post
If you read his blog, Joe says their monthly expense is mostly covered by their passive and online incomes, and they save her income. She also provides the health care insurance through her work.

I agree the blog is not quite as interesting, since there are many households with one spouse working, while the other doesn't. I'm not sure the blog would gain as many readers if his wife decided to "retire" instead.
Most of the ER blogs I have come across have either one spouse working or the household has investment income / wife's part-time income / husband's part-time income which is not much different than having one full time income in a two parent plus kids kind of household, which is not exactly newsworthy.

Really retiring on $600K for two people and not working at all ever again and "retiring" on $600K plus even $24K in annual earned income is a pretty huge difference in overall lifetime retirement funding. $24K in annual earned income over 50 years adds another $1.2M in lifetime earnings to the initial $600K, plus higher SS payments at normal retirement age.

The extra earned income by continuing to work even part-time is the difference between $600K and $1.8M ($600K + $1.2M) in total lifetime retirement funding, even more with investment returns and higher SS benefits factored in.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 09-03-2016, 11:55 AM   #33
Thinks s/he gets paid by the post
ExFlyBoy5's Avatar
 
Join Date: May 2013
Posts: 1,444
Quote:
Originally Posted by purplesky View Post
So if I understand correctly this guys wife still works?
So how is he retired if he still has Family income coming into his household?

This guy is just a stay at home dad with a working spouse .

Thank you Mr. Money mustache
How you define retirement is how YOU define it. How Joe defines it is how JOE defines it. I don't work but my DW does. She has no financial reason to do so, but refuses to quit all out working at 38 years old...she fears boredom, so she keeps toiling away in the salt mines. Those variables would lead you to call me UNEMPLOYED to which I say...um...NO. I am and will continue to be RETIRED.

Sent via mobile device. Please excuse any grammatical errors.
__________________
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 at the Ripe Age of 40.
ExFlyBoy5 is online now   Reply With Quote
Old 09-03-2016, 12:16 PM   #34
Recycles dryer sheets
 
Join Date: Sep 2014
Posts: 437
Quote:
Originally Posted by ExFlyBoy5 View Post
How you define retirement is how YOU define it. How Joe defines it is how JOE defines it. I don't work but my DW does. She has no financial reason to do so, but refuses to quit all out working at 38 years old...she fears boredom, so she keeps toiling away in the salt mines. Those variables would lead you to call me UNEMPLOYED to which I say...um...NO. I am and will continue to be RETIRED.

Sent via mobile device. Please excuse any grammatical errors.
So millions of Americans are currently retired early and they don't even know it?
I think most stay at home spouses would be offended if you called them retired

People with Mr. mustache fever might call themselves retired but that's a shortcut or fantasy that's not going to end well
__________________
purplesky is offline   Reply With Quote
Old 09-03-2016, 12:23 PM   #35
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 2,915
Quote:
Originally Posted by purplesky View Post
People with Mr. mustache fever might call themselves retired but that's a shortcut or fantasy that's not going to end well
It will end well for him though, if the traffic and revnue from his site is anything to go by.............
__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is offline   Reply With Quote
Old 09-03-2016, 12:41 PM   #36
Recycles dryer sheets
 
Join Date: Sep 2014
Posts: 437
Quote:
Originally Posted by Major Tom View Post
It will end well for him though, if the traffic and revnue from his site is anything to go by.............
If he's lucky he will become a millionaire like Mr. mustache and be able to sell the fantasy of frugal lifestyle While taking your family on international trips making 30 K a year

Not.
__________________
purplesky is offline   Reply With Quote
Old 09-03-2016, 12:44 PM   #37
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 2,915
Quote:
Originally Posted by purplesky View Post
If he's lucky he will become a millionaire like Mr. mustache and be able to sell the fantasy of frugal lifestyle While taking your family on international trips making 30 K a year

Not.
I was talking about MMM. Not sure about this guy.
__________________
ER, for all intents and purposes. Part-time income <5% of annual expenditure.
Major Tom is offline   Reply With Quote
Old 09-03-2016, 12:45 PM   #38
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,257
Quote:
Originally Posted by tfudtuckerpucker View Post
If you read his blog, Joe says their monthly expense is mostly covered by their passive and online incomes, and they save her income. She also provides the health care insurance through her work.

I agree the blog is not quite as interesting, since there are many households with one spouse working, while the other doesn't. I'm not sure the blog would gain as many readers if his wife decided to "retire" instead.
The f his wife's health insurance coverage from her job is probably more valuable than her income. If he had to cover HI premiums for a family with kids his expenses would be a LOT higher.
__________________
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.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   Reply With Quote
Old 09-03-2016, 12:49 PM   #39
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 7,256
Quote:
Originally Posted by purplesky View Post
So millions of Americans are currently retired early and they don't even know it?
I think most stay at home spouses would be offended if you called them retired

People with Mr. mustache fever might call themselves retired but that's a shortcut or fantasy that's not going to end well
When my husband reached age 62 and chose to not work anymore... and even let his architectural license lapse - did he not retire? (Because I was still working?) I think if you've worked for decades and now are withdrawing from investments and/or pension rather than drawing a salary, you're retired in my book.

When I retired a few years ago - I had (and still have) kids at home. Does that make me a SAHM rather than retired? Or did I retire from a career of several decades? I am drawing from my investments rather than cashing a paycheck. Sure - I have responsibilities to parent my kids - but I had those responsibilities while working as well.

This whole arbitrary "that person isn't REALLY retired" argument drives me nuts. If you worked a career and drew a salary, and now don't and have to tap retirement resources (pension and/or savings).... then you're retired!!!!
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
rodi is offline   Reply With Quote
Old 09-03-2016, 01:24 PM   #40
Recycles dryer sheets
 
Join Date: Sep 2014
Posts: 437
Quote:
Originally Posted by rodi View Post
When my husband reached age 62 and chose to not work anymore... and even let his architectural license lapse - did he not retire? (Because I was still working?) I think if you've worked for decades and now are withdrawing from investments and/or pension rather than drawing a salary, you're retired in my book.

When I retired a few years ago - I had (and still have) kids at home. Does that make me a SAHM rather than retired? Or did I retire from a career of several decades? I am drawing from my investments rather than cashing a paycheck. Sure - I have responsibilities to parent my kids - but I had those responsibilities while working as well.

This whole arbitrary "that person isn't REALLY retired" argument drives me nuts. If you worked a career and drew a salary, and now don't and have to tap retirement resources (pension and/or savings).... then you're retired!!!!
I am talking specifically about the Mr. mustache crowd

I've listened to many Podcasts and Watch many YouTube videos and these people to crack me up

There is a whole community of people that are trying to convince me that they're retired

It's a job for them

They think they found a magical shortcut To get out of working
__________________

__________________
purplesky 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
Hello from an Early retiree blogger 2HourAppreneur Hi, I am... 25 01-08-2016 03:28 PM
"25X Spending" variations Midpack FIRE and Money 11 05-01-2013 01:34 PM
Blogger lists 14 reasons not to retire early Gerbil Wheel Young Dreamers 21 02-15-2012 09:02 AM
Joe Dominguez's Wife Says Frugality Ain't So Hot intercst FIRE and Money 24 11-15-2005 09:48 PM

 

 
All times are GMT -6. The time now is 01:21 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.