Do you feel besieged, financially speaking?

[Alan]

I'm feeling a whole lot better now than I was 3 years ago. Now I have made it to ER and the first few months are pretty darned good financially with a very rosy future looking forward.

I'm so pleased I held on that extra few years to get plenty of cushion before pulling the plug.

 

[unclemick]

Sooo - after 16 yrs, I should start taking this ER thing serious? Nah. Katrina was a tad chewy BUT:

Saints finally won a Superbowl after what seems a lifetime AND weight down from 195 to 165, cholesterol police don't seem to have the house staked out anymore(176 down from 400). Did lose it over the weekend - chucked the nuts and twigs - ate BBQ steak, burger and hot dog, baked beans, three cheesemac, etc.

heh heh heh - agile, mobile and hostile - Target 2015 on full auto deduct, small pension and early SS. Not getting any younger(67) plus I hear you can't take it with you.

 

[Bimmerbill]

I guess I'm optimistic. My salary increases (until the public back lash about fed salaries hits) fairly regularly, my pension accrues (until the public back lash), and I have my health.

I'm doing pretty good, calculators show 100% chance of never running out of money, even without SS factored in.

I worry about getting taxed to death tho. Will all my saving be held against me and I'll get taxed at a higher rate, means tested SS, etc.

I have a ways to retirement (12 to 16 years) so a lot can happen. I guess that's what bothers me. Can't plan for everything...

 

[FUEGO]

I am very optimistic about my immediate family's financial future. I'm not quite 30 yet, so that colors my thinking some. We have a generous income that covers well more than what we live on, which allows a lot of savings and debt reduction (ie mortgage). We have two beautiful daughters, the eldest about to start Kindergarten. Our house is on track to be paid off in 7 years or so. We will probably be FI and just "padding the nest egg" in about +/- 5 years.

In the meantime, DW keeps making more money each year at a great job. My income has been stable and I have survived many rounds of layoffs. I have professional licenses in two different fields, either of which could lend itself to "hanging out a shingle" if times got really tough, or at the least fairly painlessly switching careers. We are young and healthy and have the rest of life ahead of us.

If the $hit hits the fan in a geopolitical sense, between DW and I we have enough language fluency to relocate to a few different continents and many many different countries. Our financial investments today could provide for a modest existence in many of these far flung places for quite a while.

Why waste time worrying? You only get one go-round at life. Focus efforts on things that you can control, and make plans based on those factors. For those things you cannot control, don't sweat it too much.

Our biggest stressor at the moment is reckless finances and spending decisions among the in-laws. To a certain extent it is "their business", but the second order effects blow back on us. I think the recent economic downturn has been a huge eye opener to some of the family. They are starting to see that the "savers" may have the right idea - storing away some resources during the good times really pays off in flexibility and reduced stress during the down times. My BIL was the latest one to come around. Last night he said "I wish I knew three years ago what I know now" meaning that he wishes he could have saved some of his income while he was making a lot because times are still tough in his industry and jobs are scarce. And he has a wife to support now. Even though no one wants to see people suffer, I do expect that the economic downturn has a silver lining. People will be reminded that economic prosperity and growth do not increase exponentially to the sky and that there will be periods of hard times intermixed with great economic recoveries. Credit does not flow like water and it can't hurt to have some money saved up.

 

[Prime]

I basically share FUEGO's views. We are young (mid-20s) and have been able to keep debt (only partial student loans) to a minimum while putting away for the future and still enjoying today.

 

[audreyh1]

I think it's really important to focus on living and enjoying your own life, no matter what is happening in the larger world. Otherwise you are robbing yourself of what could be the good times. Most things on the news are completely out of our control, and the media is just interested in keeping you anxious or mad so you will feel compelled to keep watching.

Then if (when) the cr@p hits the fan such that life is terrible, at least you can look back and be glad you made the best of the good times.

Audrey

 

[Gumby]

My current outlook is shaped quite a bit by my experiences early in life. As many know, in my 20's I was an officer on a Navy submarine. We spent months cruising around hundreds of feet underwater, and we all knew that if we sprang a big enough leak we would die. But if we worried about that possibility constantly, we would go crazy.

So, what we did was take reasonable precautions -- operate according to regular checklists (such as rigging compartments for dive), conduct regular equipment inspections, ensure that people were properly trained to operate the boat and its equipment, and practice what we would do if we really ever did have a flooding casualty. Then, we went about our business without worrying.

If you have taken appropriate precautions and have a plan, you might start to worry when you start taking on water, but you should be busy enough trying to solve the problem that you are not incapacitated.

Translating to the present -- I have taken what I think are reasonable precautions to protect my portfolio in a variety of situations, and I have an action plan for reasonably foreseeable negative events. Worrying will not help me and may hinder rational thinking, so I don't. If and when things head south, I don't plan to be paralyzed by fear.

 

[REWahoo]

Then if (when) the cr@p hits the fan such that life is terrible, at least you can look back and be glad you made the best of the good times.

Oh what's the fun in that? It much better to be able to tell everyone, "See, I told you we were headed for ruin but would you listen? Of course not. You wanted to be happy and enjoy life when I KNEW we were all doomed!!!"

 

[audreyh1]

Oh what's the fun in that? It much better to be able to tell everyone, "See, I told you we were headed for ruin but would you listen? Of course not. You wanted to be happy and enjoy life when I KNEW we were all doomed!!!"

I know! And you really should have been anxious and depressed all the time instead of living life well!!!!!!

Audrey

 

[kcowan]

I have revised our financial plans downward from when I retired in 2002. The major changes were reduced inflation and reduced portfolio returns. Partly because of that, we now spend half the year in Mexico and sublet our place up north. This has reduced our SWR to match the revised plan.

As far as all the gloom and doom in the news of the world, the lack of English-language newspapers keeps our focus on today and the enjoyment of it.

So we have adapted to the new economic reality and things look OK again. If things turn more positive again, we will be in great shape.

 

[donheff]

Wow. I go away to California for a week and come back to the market tanking again and the board on a manic binge. I guess I too have to weigh in on the optimism side. Like others a diversified portfolio and modest spending (compared to means) made the crash tolerable. Of course, a fed pension helps ease the worries. Like some others I do worry a bit about the kids but I hope to leave a substantial estate that would help them through the end game if things don't work out well for them.

 

[Pete]

Get nimble, get out of the way, relax, and enjoy the show. It appears the callers of a deflationary depression might be correct. Preserve capital, watch prices continue to decline, and feel richer. Profits are gonna take a little work and you will have to take a little more responsibility, but there is no reason to get hurt. Instead of diversification, targeted diversification will be the rule.

 

[Independent]

I'm feeling pessimistic, but it's not due to our own investments. We were very conservative and have rolled through the Great Recession (so far) with modest losses. However, our kids have all been hit badly by these events, and I see that coming back to us.

 

[FIREd]

Interestingly, a lot of you worry about your kids' future. Well, if you are older than 55, I am young enough to be one of your kids. Yet everyone tells me to chill...

 

[DeborahB]

I feel fine. I'm retiring in a few weeks and I've done my homework. I have a massive spreadsheet that indicates that over many years, even if my assets go down they have time to go up again.

That said, I do watch my investments closely (which I enjoy doing) to keep an income stream flowing - I don't have a pension. I do kind of count on SS... wheeeeeeeee.

 

[bbbamI]

Interestingly, a lot of you worry about your kids' future. Well, if you are older than 55, I am young enough to be one of your kids. Yet everyone tells me to chill...

Whew...I missed being your momma by 3 years!

Ehhh, but seriously, IMO most parents worry about their children regardless of how good/bad the times are. If I were your momma (but I'm not 'cause I'm waaaay too young ), I'd tell you to do the best you can; if you can change something for the better...then do it. The stuff you cannot change...well, chill and be grateful for all you have.

 

[aaronc879]

All is good right now. The only thing I worry about is job loss. As long as I keep my job for another 15 years there should be no worries. However, my employer is getting consistently worse to work for. A lot of people are either quiting or getting fired. It's pretty miserable but without a college degree i'd be lucky to find a job that paid more than half of what i'm making now. I could get by on half the income, ~$24K/yr, but wouldn't be able to save for ER.

 

[Nords]

Interestingly, a lot of you worry about your kids' future. Well, if you are older than 55, I am young enough to be one of your kids. Yet everyone tells me to chill...

We're mostly worried about having you boomerang back onto our doorsteps, perhaps with spouses/significant others and kids of your own in tow...

... otherwise we don't worry about you at all!

 

[FIREd]

We're mostly worried about having you boomerang back onto our doorsteps, perhaps with spouses/significant others and kids of your own in tow...

... otherwise we don't worry about you at all!

That's what I thought!

 

[bbbamI]

All is good right now. The only thing I worry about is job loss. As long as I keep my job for another 15 years there should be no worries. However, my employer is getting consistently worse to work for. A lot of people are either quiting or getting fired. It's pretty miserable but without a college degree i'd be lucky to find a job that paid more than half of what i'm making now. I could get by on half the income, ~$24K/yr, but wouldn't be able to save for ER.

I'm sorry your job situation is not going so well. However....

IIRC, you will have your home paid off in a year and you're only 30. This and the fact that you can live on $24k a year must give you peace of mind. I'm old enough to be your momma...and I'm very proud of you.

 

[Stevewc]

We're mostly worried about having you boomerang back onto our doorsteps, perhaps with spouses/significant others and kids of your own in tow...

... otherwise we don't worry about you at all!

I'm mostly worried about getting mine out of the house the first time.
That's when all the good tips on job opportunities from you guys come into play.
As soon as that happens the wife & I will disappear into the sun set and leave no forwarding address. Yep, thats the ticket !

Steve

 

[Moemg]

Interestingly, a lot of you worry about your kids' future. Well, if you are older than 55, I am young enough to be one of your kids. Yet everyone tells me to chill...

Parents always worry about their children . My Mom is 93 and still worrying about us .

 

[traineeinvestor]

I'm mostly worried about getting mine out of the house the first time.
That's when all the good tips on job opportunities from you guys come into play.
As soon as that happens the wife & I will disappear into the sun set and leave no forwarding address. Yep, thats the ticket !

Steve

You sound like my parents - as soon as my brother and I moved out they sold their house and traded down to a townhouse to make sure that there were no spare bedrooms for us to move back into. When my sister left home, they sold the townhouse for an apartment which they remodeled to ensure that there was no bedroom for her to move back into.

 

[REWahoo]

You sound like my parents - as soon as my brother and I moved out they sold their house and traded down to a townhouse to make sure that there were no spare bedrooms for us to move back into. When my sister left home, they sold the townhouse for an apartment which they remodeled to ensure that there was no bedroom for her to move back into.

Smart folks!

 

[Khan]

You sound like my parents - as soon as my brother and I moved out they sold their house and traded down to a townhouse to make sure that there were no spare bedrooms for us to move back into. When my sister left home, they sold the townhouse for an apartment which they remodeled to ensure that there was no bedroom for her to move back into.

About a month before my senior year in college, my parents told me they were moving from NY to AL. I had to declare myself financially independent (to keep my scholarship) and take out a federal loan for my last year.

They moved from a 3 bedroom house with a basement to a 2 bedroom house without a basement.

Didn't really bother me, I was already gone.