Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Do you have a "Plan B"?
Old 02-12-2009, 10:04 AM   #1
Recycles dryer sheets
 
Join Date: Dec 2008
Posts: 129
Do you have a "Plan B"?

My "Plan A", to retire comfortably on the portfolio I was accumulating (and foolishly leveraged) in a few years is a plan I have had to abandon.
My mother and aunt both died young, a few years older than I am now, so I am becoming increasingly conscious of my mortality.
I have to delay retirement. For how long I don't know, one would be a fool to try to predict anything in this global financial upheaval.

So....it is time for Plan B

And here it is: I have taken most of my money out of the market and have purchased my retirement condo. A block away from the ocean, you can see the water at the building's entrance. Premature and foolish? Maybe. But I have my reasons. I hope to live there 6 weeks this summer and various times throughout the year.

My DH and I still live in our home close to our work, but we will be using the second residence as often as possible. It is a two bedroom and my neice rents the one room as it is close to her university. Her rent covers the taxes/heat and modest condo fee.
I have someone to take care of the place when I am not there. I have arranged a self-funded sabbatical in three years time and will have at least one year to savour the FIRE lifestyle. After that I will see about perhaps working less (job share?).

Regretting my previous financial missteps does not do any good. I have paid off my debts and mortgage and I will continue to set aside 50% of my take home pay to buy ETF stocks or low MER mutual funds regularly over the next few years to build back my investment portfolio. Anyone else have a "Plan B"?
Frugalityisthenewblack 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 02-12-2009, 10:08 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
My plan B is as follows -- instead of planning a full ER at (say) 50 or 55, I may plan a career change doing something I find a bit more enjoyable until (say) age 60 or so.

I can pull the plug on the Megacorp rat race sooner if I'm willing to work longer and for lower pay doing something different and somewhat fulfilling.

And the more I watch my retirement portfolio melt down, the more I'm thinking I may need a plan C...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 02-12-2009, 10:17 AM   #3
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
I probably retired from “Plan R” or was it “Plan T”? Never mind, I’m not a detailed planner. Sounds like FITNB and Ziggy are on the right track, finding a way to enjoy the ride.
CuppaJoe is offline   Reply With Quote
Old 02-12-2009, 10:25 AM   #4
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 838
Plan B: win the lottery.
Plan C: find a big bag of money that fell off an armored truck.

Seriously, the only change in my plan is to delay retirement a bit. Meanwhile, I'll keep saving and investing pretty much as before.

I'm not sure I understand why you abandoned your Plan A, cashed in your investments and bought a condo. Won't that just hurt you in the long run? Sorry to hear about the deaths in your family, and I'm starting to be more conscious of my own mortality too, but it sounds like you've decided to delay your retirement just so you can have a 2nd home by the Ocean now. But only you can say if that's worth the trade off.
DayDreaming is offline   Reply With Quote
Old 02-12-2009, 10:37 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,294
My plan B is getting a part-time job....for a "need" only and not a "want".
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 02-12-2009, 10:42 AM   #6
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
I *always* have a Plan B, since it is in my nature to overthink these things. Right now I am pretty well set for retirement from a financial standpoint, but you never know what could happen and hence the Plan B.

I do plan to retire in November, come h*ll or high water, as long as HR doesn't tell me I can't for some reason. I am determined.

Plan B, in event of catastrophic economic collapse: retire to an area with a low cost of living, grow vegetables, maybe barter, and live off my fixed income, frugally.

Plan A is pretty much the same thing, except for the bartering and living off fixed income frugally. When push comes to shove, basically I would rather work on the expenditure end of things than work on the income end of things. Instead of working, I'd rather do some major penny pinching.

Right now I need free time more than I need things.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is offline   Reply With Quote
Old 02-12-2009, 10:45 AM   #7
Recycles dryer sheets
 
Join Date: Dec 2008
Posts: 129
Joe-here is the question though.....how long is "the long run". I am realistic. I try to live a healthy lifestyle, hopefully I will live a long life. But what if I don't?
I've moved my investment $ into real estate, an investment that unlike my stock portfolio, I can get use and enjoy. I am still going to remain an active investor, and still want to achieve an early retirement date. I will have to patiently rebuild my portfolio.
Frugalityisthenewblack is offline   Reply With Quote
Old 02-12-2009, 10:49 AM   #8
Gone but not forgotten
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
I'm living my Plan B . My original plan was to retire in my early 50's but my husband's death derailed that plan so I decided I was still going to retire in my 50's just not my early 50's . I retired at 59 and now I'm living plan B . Plan C is to sell my house when the housing market starts to recover and buy a smaller house and invest the profit .
Moemg is offline   Reply With Quote
Old 02-12-2009, 10:50 AM   #9
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
I'm already retired so.... Plan B, in event my portfolio drops to a level that my current lifestyle is unaffordable:

Sell all (non monetary) assets. Purchase RV trailer and tow vehicle. Hit the road full time.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 02-12-2009, 10:52 AM   #10
Dryer sheet aficionado
 
Join Date: Aug 2007
Posts: 47
Points 8 and 9 are very relevant to this discussion... Ziggy, his words are almost the exact same as yours from above. I always thought his investing style was way too conservative (until now of course).

Tips for Financial Independence and a Good Life by Mark Gallagher
hova22 is offline   Reply With Quote
Old 02-12-2009, 10:52 AM   #11
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 17,773
I like your plan B, Frugality. Perhaps it is just your plan A in a different order--you've bought the retirement home now instead of later, and are still socking away half your paycheck?

We are already in plan A, which overbudgeted our expenses, so we are enjoying having a little more disposable income than anticipated, although we are not disposing of it.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 02-12-2009, 11:01 AM   #12
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,645
My original plan was to retire at my minimum retirement age of 56ysr 4 months with gov't pension (reduced a bit).

I have the option to work longer, to maybe 60 and retire with a pension, not reduced. Also my national guard pension will start at age 60.
Bimmerbill is offline   Reply With Quote
Old 02-12-2009, 11:05 AM   #13
Recycles dryer sheets
 
Join Date: Dec 2008
Posts: 129
Yes, I intend to rebuild my financial assets. What has happened in the past few months has made me focus on investing. I watch the business channels daily now, I never took much notice of the markets/economy before, I had automatic mutual fund purchases every month.
The carnage of the markets and all the money that I've lost has not put me off investing. I will be buying more funds/stocks....Now that there has been a correction I am not fearful of buying over-priced securities. I will be better informed. If I was only thinking about the money I would keep my assets in the market, I know that the markets will recover. Buying the condo is a lifestyle shoice, and because my niece pays rent it is revenue neutral. The rent covers all associated costs.
Frugalityisthenewblack is offline   Reply With Quote
Old 02-12-2009, 11:07 AM   #14
Dryer sheet aficionado
 
Join Date: Sep 2007
Posts: 26
My family also has a history of passing around 60yrs old.

Recently we have had too many friends pass, mostly heart attacks 45-55 yrs old. Sure gets you thinking.

The economy completely changed my plans also.

Right now I'm in all cash situation and I hate my job. I can't fully retire but I can make a change. I want to trade quantity($) for quality of life.

We've poured all that we can into our 401K's just to lose 50% of it like others.

I'm pretty sure I'm going to make a change, question is should I pay for my house when I do move or finance it based on the current economy.

I can't honestly say that I'll get back into the market. I know it will come back but then we'll just lose it again in the next scam the crooks come up with.
cletis is offline   Reply With Quote
Old 02-12-2009, 11:10 AM   #15
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Of course I have a plan B: Eat only instant noodle and drink just tap water.

If plan B fails, the proceed with plan C: Get a job! ;-)
Sam is offline   Reply With Quote
Old 02-12-2009, 11:12 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Quote:
Originally Posted by Want2retire View Post
Right now I need free time more than I need things.
That's so true. I wonder how many people out there not knowing it?

Sam
Sam is offline   Reply With Quote
Old 02-12-2009, 11:13 AM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
Quote:
Originally Posted by Frugalityisthenewblack View Post
I watch the business channels daily now, I never took much notice of the markets/economy before, I had automatic mutual fund purchases every month.
This is a big part of why sentiment is so awful right now. I'm not saying it's a good idea to ignore macroeconomic trends, but I think constant reinforcement of how bad things are, are only making things a lot worse.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 02-12-2009, 11:18 AM   #18
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
Quote:
Originally Posted by Want2retire View Post
....

Right now I need free time more than I need things.
Now that I'm retired with lots of free time, I'm appalled and annoyed by all the stuff I have. For example, lots of nice polo shirts that maybe were too faded for work are now perfect for a more casual lifestyle.
CuppaJoe is offline   Reply With Quote
Old 02-12-2009, 11:26 AM   #19
Moderator Emeritus
 
Join Date: May 2007
Posts: 12,894
Plan A: The "everything worked out" plan. Retire before 50 with a portfolio capable of producing enough income to continue living like we are living now (which includes plenty of money for discretionary spending).

Plan B: The "oops, I forgot about healthcare" AKA the "thanks for nothing Mr. Market" plan. Postpone retirement age (assuming it's possible) until we can accumulate a portfolio capable of producing enough income to continue living like we are living now.

Plan C: The "better than nothing" plan. Retire on about 2/3 of Plan A and a paid for home. Retirement income would easily cover the basics plus a bit more. Less discretionary income than Plan A or B, but still enough to enjoy life.

Plan D: The "$@%^$@!" plan. Retire on about 40% of Plan A and a paid for home. This one would require a simpler lifestyle, i.e. cutting some of the basics (smaller home, 1 car instead of 2, etc...), or moving abroad. It could also mean working part-time in the early years to reduce the chances of portfolio failure. In one possible scenario, I envision moving back to Europe and farm the land I own there to reduce expenses and even perhaps make some money on the side and live in a modest, energy efficient dwelling (500-700 sq.ft.) on the premises. This is also the base I use to envision retirement after a costly divorce (hopefully it won't happen).
FIREd is offline   Reply With Quote
Old 02-12-2009, 11:44 AM   #20
Recycles dryer sheets
 
Join Date: Sep 2006
Posts: 312
Plan A: I'm FI, but due to golden handcuffs, "maybe I'll work a few more years, as long as I can make the job pay off on my terms."

Plan B: FI is seriously winged, and suddenly the golden handcuffs are encrusted with diamonds: "I'm happy to work, on their terms if necessary, until the markets recover, if not longer."
Grep is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
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
Vanguard Free "Financial Plan" - Another Story tomz FIRE and Money 7 03-01-2007 09:25 PM
Senator Wyden's "health care plan for all Americans" REWahoo Health and Early Retirement 81 12-19-2006 08:04 AM
withdrawal plan "layer cake" JohnEyles FIRE and Money 4 10-11-2006 04:58 PM
Bernicke "Reality Retirement Plan" 2B FIRECalc support 3 05-21-2006 05:10 PM
How do YOU plan to ER? -sister topic to "How Did You RE?" on the FIRE section.. mangodance Young Dreamers 11 07-06-2005 04:44 PM

» Quick Links

 
All times are GMT -6. The time now is 07:11 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.