Early Retirement - New Normal

I did it that way except I had no children. No pension, No post-retirement health care provided, no inheritance, no business, just a tiny amount of stock options. I was an engineer who started out at a good salary and that rapidly went to a great salary. I went from minus $45K net worth (school loans) to millionaire in less than a decade. I still wonder how I did this . . . It was obviously a good sequence of returns during the accumulation phase and at the time I was a bit focused on emerging markets which did very well.

I didn't start college until age 23 and didn't finish until age 29 with a Master's Degree. I received zero financial help from my family. I retired at age 41. No regrets . . .
 
truenorth418 said:
This is basically the case with me. I do have a small pension awaiting me at the age of 65, but did not include that in my plan for ER. I consider my small pension and Social Security as "reinforcements".
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Heyyyyyyyyyy, you stole the word I have posted here for years, describing the money sources I cannot access now but will be able to when I am old enough to be eligible for! :D:D:D:D:D:D I also include unfettered access to my Rollover IRA as one of my "reinforcements."

While I had a large chunk of money (but a miniscule share of ownership; it is not like I ever "voted" my shares on any corporate decisions) in my company's stock (ESOP) when I ERed 4 years ago, I never felt like I "owned" a business. I just thought of it as an extra employer match in my 401(k) but one which grew at a huge rate.

No retiree health benefits. No inheritance (okay, I got about $8,000 from my grandfather).
 
Shanky said:
With many of the post, the are many folks who have retirement income or benefits that are no longer "normal" for most folks. This would include pensions, health care benefits in retirement, and inheritance.

How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)
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I have not ER'd yet but when I ER in 2014, it will be w/o a pension, or any health care benefits from former employer, or inheritance. Worked a corporate job, do not own a business. Funding ER 100% from savings --- that is my plan.
 
Retire2014 said:
I have not ER'd yet but when I ER in 2014, it will be w/o a pension, or any health care benefits from former employer, or inheritance. Worked a corporate job, do not own a business. Funding ER 100% from savings --- that is my plan.
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Not even Soc Sec and Medicare?
 
Shanky said:
How many of you early retired without having owned a business, no pension, no health care benefits in retirement, no inheritence. Basically the new normal. A job, and LBYM. (And Children.....)
Click to expand...

No pension, no health care, no business ownership, no inheritance. A job with a growing salary, expenses that I did not allow to grow. No children probably helped with those expenses. 16 years of LBYM, but lots of fun along the way. Maybe SS in 20 years, but my ER doesn't depend on it.
 
Small pensions from me and my ex, pay for health care myself, 30 years working in corporate america, maxing out 401K's. Ex and I paid for #2 son's ridiculously high tuition (did not qualify for financial aid) out of savings for that purpose. Thankfully he graduated in 3 years! Hurray for AP credits and a private university where kids can finish early by getting the classes they need. #1 son is highway patrolman, no college expenses there.

I think we lived below the average "means" of fellow dwellers in affluent suburbia, and we did save more than most neighbors as well.

ER'ed at 56, am 59 now. Been working parttime, sold my place, will probably rent the rest of my life.
 
I took a pension because my lump sum would have been punie, plus health care which I pay more into than when I worked..

Don't most of you w/o a pension have a lump sum? That would be considered a pension to me, plus the tax rate is cheaper when you w/drawl.
 
We're in this category. We've saved like crazy people for 15 years now and budget on $2,500 / month (or less) living in Mexico (living well, I might add). This allows us not to touch our principle an maybe grow a little.

Even living in CA we got our expenses down to $3,500 / mo in LA.

Our dividends cover about half and CD's cover the other half. We don't touch our tax deferred accounts and DW gets a whopping $10k / yr in 17 years...pension

We count on reduced SS as we're 20-23 years away on this. In the next 20 years, we'll pay out of pocket on healthcare and are currently paying $300-350/mo for this.

Definitely need to be on the same page with your spouse and try to communicate expectations often. DW is always the money worrier. I'm the spreadsheet nerd who shows the numbers (in a conservative way)...
 
I suppose no pension is the new normal but there are still loads of people working in jobs with defined benefit pension plans.
 
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