Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
FI (theoretically) but won't pull trigger quite yet
Old 10-18-2010, 03:25 PM   #1
Recycles dryer sheets
madsquopper's Avatar
 
Join Date: May 2006
Location: Vienna
Posts: 92
FI (theoretically) but won't pull trigger quite yet

Well, ran the numbers using a variety of calculators (including Firecalc) and I'm pretty much there, although I'd like to have a bit more cushion given the uncertainty of the markets and the rest of the world right now. So won't quit just yet; job is relatively interesting, low stress (except for occasional commute hassles), pays great, and I'm only working 4 days a week (32 hours) anyhow. Might cut back to 3 days soon, and if management ever started being a pain in the ass I'd just bag it completely.

Some of the general assumptions I used were:
3.75% withdrawal rate, inflation adjusted
Live to 100, no need to leave anything
3% inflation average over time
Take SS at 66 (I'm 56) but only assume I'll get 75% of actual by that point
approx 65/35 equity/bond mix

Larry
__________________

__________________
madsquopper 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 10-18-2010, 03:41 PM   #2
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Sounds like you've got the bases covered if your actual numbers work for you.

What will you do for health insurance?
__________________

__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 10-18-2010, 04:41 PM   #3
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,675
Congratulations! Isn't it a wonderful feeling to be FI?

If you can live on 3.75% (inflation adjusted) until you take SS, will you be giving yourself a big raise then? I need to figure this out for myself too.

After 2008, I moved my AA balance from 65/35 to 60/40. The drop was just too gut wrenching for me when I wasn't earning. A much worse drop in my portfolio during the tech crash didn't bother me as much because I was working then & adding to it.

All the best.
__________________
walkinwood is offline   Reply With Quote
Old 10-18-2010, 06:06 PM   #4
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Hi Larry - My numbers are pretty similar except that I use 3.6% withdrawal rate, cut off 95, inflation 3.5% and I take SS at 62. Good idea to cut down to 3 days.

Quote:
Originally Posted by madsquopper View Post
Might cut back to 3 days soon, and if management ever started being a pain in the ass I'd just bag it completely.
__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 10-18-2010, 06:09 PM   #5
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 925
Congratulations!

Keep us posted on how/if this impacts your actions, life, attitudes, etc. (I am still trying to figure this out for myself.)
__________________
If there's one thing in my life that's missing; It's the time I spend alone
Sailing on the cool and bright clear waters; There's lots of those friendly people
Showin me ways to go; And I never want to lose your inspiration
CoolChange is offline   Reply With Quote
Old 10-18-2010, 07:33 PM   #6
Recycles dryer sheets
madsquopper's Avatar
 
Join Date: May 2006
Location: Vienna
Posts: 92
I'm piggybacked onto my spouse's health plan (she's a retired teacher with the state); not the cheapest plan but at least highly rated (Blue Cross Mid Atlantic). The main decision right now is what to do about the mortgage (when/if to pay off); we recently refinanced into a 15 year at 4%, 150K principal but the house is probably worth 650- 700K. For now I'm assuming no early payoff.

Larry
__________________
madsquopper is offline   Reply With Quote
Old 10-18-2010, 08:39 PM   #7
Thinks s/he gets paid by the post
Finance Dave's Avatar
 
Join Date: Mar 2007
Posts: 1,046
Congrats! Looks like you're in very good shape and your assumptions are very conservative, IMO, except maybe your asset allocation. Do you have long-term care? If not, may want to consider it.

Dave
__________________
Finance Dave is offline   Reply With Quote
Old 10-19-2010, 09:37 AM   #8
Recycles dryer sheets
madsquopper's Avatar
 
Join Date: May 2006
Location: Vienna
Posts: 92
Yes, decided to get LTC a few years ago. Ideally we'd never have to use it but after watching 3 out of 4 of our parents need it, probably not sorry.
__________________
madsquopper is offline   Reply With Quote
Old 10-19-2010, 10:39 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by madsquopper View Post
3% inflation average over time
Using 3% average inflation over time isn't a good idea as it's not very typical. For example, if your retirement has high inflation at the beginning followed by lower inflation later and that "averages" to 3% inflation, you'll have very different results than if inflation is near 3% every year. And also very different from having low inflation at the beginning followed by high inflation but also "averaging" 3%.

I'd suggest you let FireCalc run using historical inflation rates. And try to stay away from "average" returns on investment as well.
__________________

__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet 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
About to pull the trigger getoutearly Hi, I am... 18 04-22-2010 09:12 PM
Pull the Trigger and FIRE manchu9inf Hi, I am... 4 02-14-2008 06:44 AM
Getting ready to pull the trigger dm FIRE and Money 15 12-13-2006 01:32 PM
Why cant I pull the trigger? Blake Hi, I am... 21 11-19-2004 07:42 AM
Pull The Trigger notTwain FIRE and Money 8 08-13-2004 11:18 AM

 

 
All times are GMT -6. The time now is 10:20 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.