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help in planing
Old 02-23-2005, 03:43 AM   #1
 
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help in planing

I would like some opinions to use as a sounding board. I have been a lurker here for a while.
Myself and my wife are 42, we have been married for 24 years, and both worked from the day we got married.
I have worked in construction and she in different jobs up to 9 years ago, she had an opertunity to be trained on the job in title closing,escrow,ect.
My back and knees are starting to show my work choice. I have been a floorcovering installer, and we owned our own store for 7 of the 22 years that I have been doing this type of work. she was given a management posistion of an office, but a rival company asked her to work for them, we talked about it, and decided that she would ask for 3 months off in the winter.
We live in the north and want to move south, but we are not quite ready financialy.
they gave her a raise so she will make aprox. what she made in 12 months,agreed to let her take out insurance pre tax to pay for the 3 months she is gone.
I had a partner till 4 years ago, that I worked with in instalations.
We borke up, and I have taken on smaller jobs to keep some money coming in.
togeather we have saved 835k cash, mostly kept in cd's of that appx. 45k is in stocks and mut. funds, 15k is cash another 5 in ee savings. I deposit 6k a year to ira's to get the tax write off. this year will be 8k.
As my income is speratic. I started to draw 1k a month from the cd intrest, my wife pays most of the bills from her income, and I save what I make in cd's, [some goes to my gun colection, as it stands now I have 99 firearms]
We have one rental that brings in 500 a month, we own it free and clear same with our house.
the rental is not pure profit, taxes,insurance, ect.
My idea was to keep doing what we are for 4 to 5 years. we are dinks, we were not able to have kids. this has been very good for saving money and doing what we want, we have been all over europe 2 times, and traveled all over the us. but we have not had the joy of watching children grow up. If it has not happened by now it will not, most likely.
My question is what do I need to do to get to a point of retireing early.
I got my realestate lice. and worked for an agency for appx 3 months, just before it went belly up. did not loose any money, but did not make any, not to bad as it is a great write off. millage on the car.
the company was purchased and is supposed to reopen this march, and my old broker wants me to join the team.
The problem is that realestate is not doing so good, at least in my area.
some parts of the country it may be but not here.
any way opinions are welcome. thanks
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Re: help in planing
Old 02-23-2005, 08:30 AM   #2
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Re: help in planing

Sounds like your shopping for a plan. You need to come up with a plan of your own, everyone here who is retirered did it different ways. Reading past posts here will give you lots of ideas. First you may want to get up on your finiacials, probably best to read some good books, like "The Four Pillars of Investing" by Berstein maybe some books by L. Swedroe, maybe "The Coffeehouse Invester". Then set down with your wife and decide how much you need, what kind of lifestyle you want, and how you will get there. Also what do you want to do? Travel? Fish? whatever you decide that will factor into your plan. Take your time, read, learn, plan, and make your dream come true. Best of luck...Shredder
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Re: help in planing
Old 02-23-2005, 09:19 AM   #3
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Re: help in planing

Quote:
The problem is that realestate is not doing so good, at least in my area.
some parts of the country it may be but not here.
any way opinions are welcome. thanks
You guys have put together a lot of savings. Congratulations to both of you. As for work going forward, you have the kind of background that places like Home Depot want in their sales associates. Still a pretty active job, walking around all day. But at least you are walking, not crawling!

Whatever you do, I would be inclined to go slow about making any big changes, especially in the investment area. You 've done well.

Mikey
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Re: help in planing
Old 02-23-2005, 09:41 AM   #4
 
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Re: help in planing

I totaly agree with you on going slow, that is why I like the idea of going south for three months a year for a while.
That way I can find a town that we feel comfortable in, and we dont rush to make a move before our time.
I just need to get out of the snow and cold, it makes my body ache.
I can still keep some contacts here to do some small jobs to support my hobbies.
And I really do love my home, we live on 80 acres and I have my own shooting range. nothing super but a nice little shooting booth and a 50 and 100 yd back stop.
but it is all to cold in the great white north in the winter. even though it is nothing like when I was a kid, global warming is coming way to slow for me, I will be 98 when the temps get nice enough to live here year round. lol
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Re: help in planing
Old 02-23-2005, 09:53 AM   #5
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Re: help in planing

It sounds like you are there already. At 4% yearly withdrawal, if you can live on $33,400, you've made it.

DH and I are 44 and 45, retired a little over one year. We were DINKS too - now just NKS, I guess. We own our home outright. A big stickler was health insurance. We got a $5,000 deductible policy for $193 per month for both. We are on high blood pressure and high cholesterol meds that we pay for outrigth.
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Re: help in planing
Old 02-23-2005, 11:36 AM   #6
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Re: help in planing

Quote:
It sounds like you are there already. *At 4% yearly withdrawal, if you can live on $33,400, you've made it.
I'm not sure that's so. With such a low allocation to equities the survival of the portfolio would be questionable. And that's for 30 years never mind a possible 50 years of retirement. I would suggest that the current 5% allocation to equities is far too low. The OP may not feel comfortable with 50-80% equities but 20% should probably be a bare minimum with 40-50% well diversified a much safer alternative.
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Re: help in planing
Old 02-23-2005, 11:54 AM   #7
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Re: help in planing

Take a hard look at Vanguard Target Retirement Series - it can be that simple - i.e. one fund.

taxable versus tax deferred issues? - check out the REHP here on any 72t issues you might have.
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Re: help in planing
Old 02-23-2005, 01:28 PM   #8
 
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Re: help in planing

I am puting in the 8k a year into our Ira [4 each account] If for nothing else a tax deduction as I am not using the income from the cd's at this time.
I have been puting it into the one fund from chase. it is a no load fund. that is a value index fund. so it fits well with my conservitive investments, that I feel comfortable with.
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Re: help in planing
Old 02-23-2005, 03:21 PM   #9
 
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Re: help in planing

I'm thinking of starting a new topic.....................................
"Stocks in ER, why bother?"

JG
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Re: help in planing
Old 02-23-2005, 03:35 PM   #10
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Re: help in planing

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I'm thinking of starting a new topic.....................................
"Stocks in ER, why bother?" *

JG
In which you will explain what asset allocation should be used by a 35 to 45 year old retiree without a working wife (who also doesn't want to work in "retirement" themselves) and who will want more than their social security may bring in 20 to 30 years. Note that even if they get SS it will be much reduced because of the low number of contribution years and with the current administration the odds of getting it are reduced . I'm waiting with anticipation for your "system".
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Re: help in planing
Old 02-23-2005, 04:03 PM   #11
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Re: help in planing

Since I know some of those cats - from raw land only buyers to small apartments only - I curious also, since in the past we can't seem to transend the "location, location, location" thing.

The best I know was back in Littleton, CO - my apartment building owner was an ex salesman for an aerospace company, had quit due to nerves, high BP.

Had eight apartment buildings at that time and gave his son one for his twenty first birthday.

His idea of work was to putz with laundry room machines - to keep busy. Hired out everything else. Talkative fella - almost convinced me. Stocks were trash in the early 70's.
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Re: help in planing
Old 02-23-2005, 04:17 PM   #12
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Re: help in planing

We own a 2 bedroom condo outright less than 1 hour from Manhattan. We've done well on our investment. We can always move to a less expensive area if needed.

We're about 75% stocks, 25% bonds/cash. Pension and, hopefully, SS in about 21-23 years.

We've taken care of heath insurance, fixed expenses. It's been scary doing this on our own - we're not from rich families. We read Your Money or Your Life in 1997 and started saving like crazy.

I was in Manhattan on 9/11 - this changed everything - it seemed very important to stop doing our stupid jobs.

So far so good. We're a little over one year into this and doing okay.

Sparky
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Re: help in planing
Old 02-23-2005, 04:24 PM   #13
 
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Re: help in planing

Hello Hyperborea! If I was young (which I am not)
my "system" would be "real estate, real estate, real
estate". No stocks! But, that's just me. I understand
all of the "pro equities" arguments and if I was
younger (which I am not), I might have gone that way myself. But, once I saw the Pot of Gold at the end
of the RE rainbow....................that was all she wrote,
equities-wise. The bottom line is that those who are
relying on equities to fund their retirement are relying
on a lot of "history". That's okay, but I don't have time to wait.

JG
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Re: help in planing
Old 02-23-2005, 04:45 PM   #14
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Re: help in planing

Hey John, correct me if I'm wrong - you are over 60, have $200K and a working wife, yes?

This is a far cry from a 40 year old doing ER.

Do you have a pension and SS as well as a working wife?

It's kindof unfair for you to be consistently omitting these facts - you make it sound as if anybody can RE on $200 at 40 - really not at all the case.
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Re: help in planing
Old 02-23-2005, 04:49 PM   #15
 
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Re: help in planing

I confess to omitting some facts as I am uncomfortable
sharing every detail of my life, even anonymously. If anyone thinks that is "unfair", I apologize. Unless I was
just screwing around, everything I have posted is as true as I could make it. I'm afraid that's the best I can do.

JG
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Re: help in planing
Old 02-23-2005, 04:59 PM   #16
 
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Re: help in planing

Hey, Mr Ayn Rand! As the previous poster said, stop dispensing your peter-pan advice to the whole world.

From what you have said about your age, etc and your WIFE STILL WORKING, guess what....you ain't E.R., you're just plain "R"!
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Re: help in planing
Old 02-23-2005, 05:10 PM   #17
 
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Re: help in planing

You're right. I am no longer "ERed", I am just plain "R".
I'm afraid I won't be able to comply with your request to stop dispensing "advice" though. That trait is hardwired

JG
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Re: help in planing
Old 02-23-2005, 05:14 PM   #18
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Re: help in planing

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We own a 2 bedroom condo outright less than 1 hour from Manhattan.
Sparky, can you reach Manhatten on a subway, or would you need a train or car? I turn over in my mind returning to NYC for a while. I would rent apt, but couldn't handle Manhatten rents.

Mikey
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Re: help in planing
Old 02-23-2005, 05:22 PM   #19
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Re: help in planing

There is only train service to Grand Central Terminal, no bus. We are in CT - you could drive but it's a bitch.

Sparky
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Re: help in planing
Old 02-23-2005, 05:23 PM   #20
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Re: help in planing

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And I really do love my home, we live on 80 acres and I have my own shooting range. nothing super but a nice little shooting booth and a 50 and 100 yd back stop.l
ed teach, this sounds very nice. I have a 25 yd pistol range. I have a nice backstop made from 1/2" plate. Nothing but woods behind for at least a mile. I kick myself because I had a chance to buy an adjoining piece with a canyon and a nice natural backstop. I was too cheap, and it has gotten real expensive recently.

Mostly I just shoot my old Colt Officer's Model .22 revolver. Sometimes my Sig or HK P-7 (9s).

Mikey
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