Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 05-18-2009, 09:23 PM   #21
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,846
Quote:
Originally Posted by trib1 View Post
To Want2Retire :-
Nest egg.
Sold home #2, now selling home #1. Expect to have (conservatively): Half million (in cash) split evenly in USD and EUROS. No debt! No IRA's, no 401K's, no equities, no bonds, no pensions at this time. Had desired $1M net worth, but alas that wasn't to be. Other factors: Single, Age early 40's. On a side note, it is possible, even likely, that in time, I will inherit the same or similar amount, to that above.
So, what kind of budget are you anticipating? If you can manage on $20,000 (before taxes) once you have that half million, and if your life expectancy is around 25-30 years or less, then I don't think you have a problem.

On the other hand, that might be pretty tough if you have to pay rent.

And, you should withdraw less than that from your portfolio if your life expectancy is longer; in your early 40's, if your health is good I would think that you might live another 40-50 years, in which case your withdrawal rate should be closer to $15K before taxes. Is that a budget you can handle?

How about health insurance? Your entire budget could go to health insurance as you get older.

I am not trying to discourage you - - just trying to see if I can find any problems with your plan.

As an aside - - I would strongly recommend to never, never never expect an inheritance. It sounds like you have that figured out already. Anything can happen, and if you don't expect anything then if you do inherit it will be a pleasant surprise.
__________________

__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   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 05-18-2009, 09:23 PM   #22
Dryer sheet aficionado
 
Join Date: May 2009
Posts: 26
In any event, I'm already doing it, going ahead, its unavoidable now, as its the only thing I want to do! The Mother- being a widow in recent years, and being unused to independent living without her hubby (with all other family having moved away, is possibly also a factor that's played a part in making me feel guilty, or apprehensive for the first time.

Before that it wasn't relevant, as I was too busy grafting, saving etc. I will undoubtedly miss some friends too that can't deal with it, and see me as flaking out, and deserting them. .

To Cattusbabe:-
That would be fun! But in my small circle it would also likely detonate something galactic!

To Nords & Donzo
Thanks, think I'll play it down, as you suggest: . . Tell them. .taking a break, rethinking ER outlook considering the downturn. In other words, point blank lie! (it gives them less ammunition for the moment).
__________________

__________________
Plans are what makes God laugh!
trib1 is offline   Reply With Quote
Old 05-18-2009, 09:45 PM   #23
Dryer sheet aficionado
 
Join Date: May 2009
Posts: 26
To REWahoo
I'm irish. Went to college in England (midlands) worked there for a bit too, but have now lived half my life in Chicago (just sold up there, now tying up loose ends, and saying goodbye to people).
__________________
Plans are what makes God laugh!
trib1 is offline   Reply With Quote
Old 05-18-2009, 09:48 PM   #24
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,077
I'm easily confused - thanks for the explanation.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 05-18-2009, 10:01 PM   #25
Dryer sheet aficionado
 
Join Date: May 2009
Posts: 26
To WantToRetire
Doing close readings of the posts on PTing in ASIA & Latin America, so am looking at doing 3 mth PT stints in each for next few years, (will see how that works out). I'm doing numbers as we speak.

That should help stretch monies, without becoming too homesick, while adding some spice to life. However for simplicity sake, lets assume, its Ireland only.

Minimum wage in Ireland is 17k euro. (gross). Expect to burn 10k Euro / year (very frugal), 12k Euro / year (with some convienances), and 15k euro/year (very comfortable). Which one?. . TBD. Ireland is rather backrupt! It makes it difficult to determine which spending model will apply, because the government here has only alluded to the barrage of taxes it plans to impose to bail out the banks, builders, and public sector workers / politicians!

On a side note, I have some written works. Its a total long shot if these will ever be sold, but Ireland is tax free for writers, but of course that could easily be revoked meantime! . .
__________________
Plans are what makes God laugh!
trib1 is offline   Reply With Quote
Old 05-18-2009, 10:32 PM   #26
Thinks s/he gets paid by the post
Rambler's Avatar
 
Join Date: Jul 2007
Posts: 2,243
My folks are pretty happy I'm well on the road and near to FIRE. In fact they hope to see it because they know and can see what my w*rk does to me sometimes. And Dad is painfully aware that he wished he could have retired earlier so he could have visited more with his kids who are now all over the states and in my case the world.

I have not told my brother nor one of my sisters that I intend to FIRE. The reason is that they don't think it is even fair that I have what I have worked for and earned. My other sister knows my intention to FIRE, but because they do not save much and because they see that we travel back to the states 4 times a year, and because we have a large/relatively expensive home, they think we are spending everything we earn and that there is no way I can FIRE.

They don't think there is any way to save the kind of money necessary to retire before 60 or 70, because no one they know has been able to do it.

I will say that you've got to have a lot of intestinal fortitude to retire in your 40s with a kitty set aside for retirement of only $500k. I'm sure some people could do it...it helps if you have a pension (kinda young for that), but I know that I could not do it unless I had a home with no mortgage and healthcare paid by some other entity than myself...and then only if I was single. I do wish you the best of luck. Keep us posted on how it goes.

R
__________________
Find Joy in the Journey...
Rambler is offline   Reply With Quote
Old 05-18-2009, 10:33 PM   #27
gone traveling
 
Join Date: May 2008
Posts: 3,864
Move.
__________________
Westernskies is offline   Reply With Quote
Old 05-18-2009, 10:35 PM   #28
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,036
Trib, when I first read about the harsh criticism you are facing from family members, it reminded me of some comments my parents made when I first suggested that I was contemplating early retirement. I, unlike many people who have answered so far, also care about what my parents think and even if I disagree with them, I would never dream of telling them to take a hike.

But now that you've said you grew up in Europe, it all makes sense because I grew up on the old continent too.

FIRE is just not a very popular concept over there and I don't expect them to understand it, especially if you are in your thirties and forties when you retire. Retiring in your mid-50's is probably OK since many public servants do. But any sooner and that's a huge red flag.

Someone who retires before the age of 55-60 might as well be called "unemployed" as far as my parents are concerned.

"Early Retirees" probably are people who are too lazy to work. They undoubtedly survive on government handouts. They is nothing glamorous about early retirement at all. It says nothing about your hard work and successes that have allowed you to ER, but it says everything about your laziness, selfishness, and irrelevance. That's how my parents see ER.
__________________
FIREd is online now   Reply With Quote
Old 05-18-2009, 10:45 PM   #29
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
FIRE may not be a very popular concept, but being on the dole is. I've sat next to many folks on UK commuter trains who told me they have had no job for years and are just living on the dole. They were definitely proud of that as well.
__________________
LOL! is offline   Reply With Quote
Old 05-18-2009, 10:46 PM   #30
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,036
Quote:
Originally Posted by LOL! View Post
FIRE may not be a very popular concept, but being on the dole is. I've sat next to many folks on UK commuter trains who told me they have had no job for years and are just living on the dole. They were definitely proud of that as well.
And they are the people who give a bad name to ER in Europe IMO... How can you tell whether that 40 year old guy who is not working is living on his savings or on the dole? Your can't. And since there are a lot more people living on the dole than living on their savings, it's quite easy to lump everyone in the "loser" category.
__________________
FIREd is online now   Reply With Quote
Old 05-19-2009, 12:08 AM   #31
Dryer sheet aficionado
 
Join Date: May 2009
Posts: 26
Thanks Rambler.
$500k or thereabouts is the bare minimum and it does make some assumptions, such as Ireland, or UK and Europe, continuing free healthcare. It also means topping up with some private coverage for certain things (to avoid long waiting lists).

I had wanted $1M, but cyclical downturns do sting! I know its risky, but my gut tells me do it now before I get too set in my ways, maybe get sick, or cannot travel, for some reason. What's your own magic number for ER?
__________________
Plans are what makes God laugh!
trib1 is offline   Reply With Quote
Old 05-19-2009, 12:16 AM   #32
Dryer sheet aficionado
 
Join Date: May 2009
Posts: 26
Thanks for the empathy and kind words FIREdreamer. Its nice to have someone on the same page as oneself.

You've solved the cultural difference methinks. In the US there's no social system to speak of (well, unless you're a bank these days)! So there's no free hand out, no safety net. So if someone says they're ER, you figure they've done good, they must have because there's simply no alternative! (legal alternative)
__________________
Plans are what makes God laugh!
trib1 is offline   Reply With Quote
Old 05-19-2009, 12:17 AM   #33
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
Now for a completely different approach.
If you want to 'offer" an acceptable reason for retirement try medical concerns. My Dad had a stroke @60 & another @62, retired, had a couple good years & died @70.
I had one night @57 in the cardiac ward. It turned out to be not too serious (low level a-fib). Anyway it seemed clear to me at the time that I had 'enough' and it was time to retire & enjoy life. When I deal with family & friends I just mention to them that I am concerned after 'that night in the cardiac ward' and they are all sympathetic and wishing I travel more & get on with life.
I expect I will actually outlive many of them.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Old 05-19-2009, 12:32 AM   #34
Dryer sheet aficionado
 
Join Date: May 2009
Posts: 26
Many of my Irish pals have been signing on (collecting dole) for years. They feel a certain sense of entitlement, because they're 'creative'! Lots of our well known writers, musicians and actors have done the same, and then gone and blown it in a single sitting on a bar stool!

That said Ireland could have a quarter of its citizens on the dole soon, at least that's one forcast. That's a lot of early retirees!
__________________
Plans are what makes God laugh!
trib1 is offline   Reply With Quote
Old 05-19-2009, 12:48 AM   #35
Dryer sheet aficionado
 
Join Date: May 2009
Posts: 26
To yakers :-
I can really relate to your post. Likewise thats a Big motivator for me, one I didn't mention before.

My dad had his 1st major heart attack at 50. His near death misses continued for the next 10-15 years at a severely reduced quality of life. He didn't make it to 70!

Always strikes me that life can be very cruel sometimes. You work honestly your whole life, only to be rewarded by not getting to enjoy your retirement.

Moreover my brother was killed in his twenties. $500k isn't much, but there ain't no guarantees to anything!

On a lighter note, I always liked that line from Raising Arizona: To Nicholas Cage's character: 'what ya gotta go and get job for?. . You're young. . .you got your health!'
__________________
Plans are what makes God laugh!
trib1 is offline   Reply With Quote
Old 05-19-2009, 02:58 AM   #36
Thinks s/he gets paid by the post
Rambler's Avatar
 
Join Date: Jul 2007
Posts: 2,243
Quote:
Originally Posted by trib1 View Post
Thanks Rambler.
$500k or thereabouts is the bare minimum and it does make some assumptions, such as Ireland, or UK and Europe, continuing free healthcare. It also means topping up with some private coverage for certain things (to avoid long waiting lists).

I had wanted $1M, but cyclical downturns do sting! I know its risky, but my gut tells me do it now before I get too set in my ways, maybe get sick, or cannot travel, for some reason. What's your own magic number for ER?
Some years ago I thought I could do it on a million. Unfortunately life has a way of expanding your needs and wants. When we left the states over 10 years ago for a 1-2 year assignment, I figured we could save some money and if it was extended to 3-4 years, maybe come back with that million and retire, or work a little longer and retire a bit later.

Since then, with a few extensions, promotions and nice bonuses thrown in, we bought some property, built the McMansion (no mortgage on it but high property tax), saved some more, got one kid in college and are now finishing HS on our youngest. In that time, the perception of what we need has changed, by about 4-5x. By my calculations, we'll be there in about 3-4 years. Megacorp has asked me to stay until the end of 2012, and with kids in college, a poor economy, and a rocky market, DW and I decided that we'd try to stick it out. Not everyone needs that much, and as I have said in other posts, we are already entry-level FI. I think we could make it on what we have. But, I am a belt and suspenders kinda guy, so I'm adding that "just in case" cushion.

Could I pull the plug on $1mill? I don't think I could anymore. If I sold the McMansion and kept the smaller home, I probably could do it on $1.5 mil., but we are beyond that and selling the big house would put another mill in the kitty (if it could be sold). But as I said, our tastes and spending patterns have changed, and I have seen in others that sometimes those spending patterns can be hard to change/reduce. I don't want to sell the McMansion, and I want to travel a bit and do some things that are impossible to do while I am working overseas. So I keep plugging away at it...according to my calculation, only 1,321 days to go (if megacorp does not tire of me first).

I do understand the health concerns though. My dad is fine as of right now, but had a bout with cancer 14 years ago. My uncle passed away a few weeks ago. He was forced to retire when he was about 57 or 58, due to a combination of problems that left him unable to drive at all or even walk without a cane. He had to give up his beloved woodshop. Then he had a stroke. Lost the ability to talk...words came out, but not the ones he was thinking. Essentially lost the ability to communicate. He lasted about 15 years in this condition. When he died, I seriously considered pulling the plug, but I let myself settle down emotionally, then remembered 2 kids in college and a wife to support, and decided to keep plugging for now.

R
__________________
Find Joy in the Journey...
Rambler is offline   Reply With Quote
Old 05-19-2009, 04:10 AM   #37
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,072
trib1 - ahh, the Irish - a huge expectation of loyalty as well, too. And, I find the Irish, while very funny, can have the most cutting criticism, cuts to the heart, especially with those closest to them. I think they attribute that behavior as one of caring, however, their style can really hurt.

So, as the others have said, water off a duck's back and move forward. As for your money amount, if you've done the math and the gut check is good, then go for it. The decisions you make now aren't necessarily cast in stone - who knows, you may end up working again, but much later in life.

Good luck!
__________________
Deserat aka Bridget
“We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm.” - George Orwell/Winston Churchill
deserat is offline   Reply With Quote
Old 05-19-2009, 07:55 AM   #38
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,638
Family and friends are generally viewed as important sources of support. In your case, they are the exact opposite. Maybe you should move - it is not like you would be losing your support group.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Old 05-19-2009, 09:13 AM   #39
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 223
Wow, this thread hits close to home. DW and I took a summer off 6 years ago. I quit my job (Contract Engineer) and my wife took a leave of absence from hers. The family was not supportive at all, and in fact, were making comments like "how dare you take the summer off. You can't afford that!" There is a lot of self judjment that goes on, when somebody sees somebody else capable not needing a job. Society measures success by what everybody else is doing, and when somebody is able to get by without a job, that is kind of a personal slam on self that needs a job. There were absolutely no well wishers for us, in fact, there were strong vibes for us to fail.

Next time we take a sabatical, we will not mention a word!!!!!! I'm sure ER creates strong jealousies, and makes others really look in the Mirror.
__________________
DAYDREAMER is offline   Reply With Quote
Old 05-19-2009, 09:24 AM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
Quote:
Originally Posted by Nords View Post
Sounds like you need a new set of family.
Could be good advise if the family is generally negative and not loving.

I read once that the most abusive organization we can be a member of is a family.

So, forgive them and get away from them.
__________________

__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex 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
Childhood friends & how their life went? Orchidflower Other topics 51 01-18-2009 04:19 AM
Post-election bitter medicine? pedorrero FIRE and Money 7 10-03-2008 10:40 AM
Telling family and friends: 1 day to go! walkinwood FIRE and Money 16 05-01-2008 03:09 PM
Financial Advice for Friends and Family - How to handle it? chinaco FIRE and Money 22 03-19-2007 02:06 PM
Does anyone feel jealousy from friends/family/others? FatBoy71 FIRE and Money 92 02-25-2007 10:54 AM

 

 
All times are GMT -6. The time now is 05:33 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.