Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
How do you live after FIRE ?
Old 05-19-2019, 08:07 PM   #1
Dryer sheet wannabe
 
Join Date: Nov 2018
Posts: 12
How do you live after FIRE ?

For those with no more jobs(Not while one spouse still has PT/FT jobs), is it through dividends/interest ? Rental income ? What else ? Trying to get some idea what successful FIRE people do to live before SS.

What about health insurance(Again not if one spouse still has a job and covers insurance) before Medicare ?
__________________

NewToEverything 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 05-19-2019, 08:11 PM   #2
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 3,956
I have my equities broker sweep all my dividends to my checking account. I have my bond broker do it with a phone call. If I need more dough I sell equities.
__________________

__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 05-19-2019, 08:18 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 23,716
My wife quit work at 50, and myself at 55.

We lived off after-tax investment until 59-1/2, then started IRA withdrawal. My wife started SS at 62, while I am waiting till 70 before taking SS.

Due to the bull market, our stash grew despite the withdrawal, which was not excessive at 3.5%/year, and down to 2% now.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 05-19-2019, 08:46 PM   #4
Dryer sheet wannabe
 
Join Date: Nov 2018
Posts: 12
Do you mean traditional IRA ? I can start withdrawing traditional IRA penalty-free at 59.5 ? What about taxes - is this withdrawal taxed at ordinary rate ?
NewToEverything is offline   Reply With Quote
Old 05-19-2019, 08:50 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 23,716
IRA withdrawal is penalty-free at 59.5, but you have to pay regular income tax.

401k may be withdrawn penalty-free at 55 under the right conditions, and taxed as above.

PS. We rolled over our larger 401k's into the traditional IRA accounts. Due to specific circumstances, we could not tap our 401k at 55 anyway. Else, it would be better to keep the 401k separate from the IRA.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
How do you live after FIRE ?
Old 05-19-2019, 08:54 PM   #6
Moderator Emeritus
Ronstar's Avatar
 
Join Date: Aug 2007
Location: A little ways southwest of Chicago
Posts: 10,945
How do you live after FIRE ?

I have lived on after tax investments since I retired 5 years ago. Probably going to start taking enough out of IRA to stay within 12% bracket this year - income will be half from ira and half after tax for the next 2.5 years when I will start SS at fra. DW has a pension and we are on her retirement health insurance.
__________________
The wilderness is calling and I must go.
Ronstar is offline   Reply With Quote
Old 05-19-2019, 08:57 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 23,716
Regarding health insurance, we initially bought our own private insurance which was possible because we were healthy with no pre-existing conditions.

With ACA, it is a lot easier to get insurance now.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is offline   Reply With Quote
Old 05-19-2019, 09:13 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 4,926
I live off 12 monthly bond fund dividends and 4 quarterly stock fund dividends which pay my expenses including my ACA individual health insurance policy I buy through the state marketplace. I have been living this way for most of the last 11 years after I ERed in 2008 at age 45.


These 16 dividend payments provide me with a surplus, or cushion, which allows me to cover any smaller, unforeseen expenses.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 05-19-2019, 09:38 PM   #9
Thinks s/he gets paid by the post
Just_Steve's Avatar
 
Join Date: Apr 2016
Location: Dutchess County
Posts: 1,264
Pension and 401k bridge to FRA SS, healthcare provided by former employer.
Life is easy peasy.
Just_Steve is online now   Reply With Quote
Old 05-19-2019, 09:51 PM   #10
Recycles dryer sheets
 
Join Date: Apr 2015
Posts: 185
Almost embarrassed to say and I certainly don't bring it up in casual conversation with friends and family. Retired at 54 with a state retirement pension paying 100% of my final years pay including a 2% yearly COLA. Retirement also includes 100% paid medical and dental through employer for myself and spouse. Also, just over a million in cash and various investments.

And before you jump all over me, this retirement system no longer offers this overly generous retirement, I'm lucky I started when I did. Newer employees have a much different plan now and Yes, I know how lucky I am.
Drake3287 is offline   Reply With Quote
Old 05-19-2019, 09:59 PM   #11
Thinks s/he gets paid by the post
Just_Steve's Avatar
 
Join Date: Apr 2016
Location: Dutchess County
Posts: 1,264
Quote:
Originally Posted by Drake3287 View Post
Almost embarrassed to say and I certainly don't bring it up in casual conversation with friends and family. Retired at 54 with a state retirement pension paying 100% of my final years pay including a 2% yearly COLA. Retirement also includes 100% paid medical and dental through employer for myself and spouse. Also, just over a million in cash and various investments.

And before you jump all over me, this retirement system no longer offers this overly generous retirement, I'm lucky I started when I did. Newer employees have a much different plan now and Yes, I know how lucky I am.
I worked for the wrong state.
Just_Steve is online now   Reply With Quote
Old 05-19-2019, 10:10 PM   #12
Recycles dryer sheets
 
Join Date: Dec 2018
Location: Wheaton
Posts: 160
both retired at 55, both took SS at 62. until SS we lived on our pensions and a small inheritance. we had minor PT jobs that amounted to pocket money. wife had no-premium health coverage from employer. i had employer health coverage but had to pay single premium (~$550 p/m). zero debt at retirement.
rk911 is online now   Reply With Quote
How do you live after FIRE ?
Old 05-19-2019, 10:11 PM   #13
Recycles dryer sheets
swakyaby's Avatar
 
Join Date: Feb 2011
Location: central California
Posts: 422
How do you live after FIRE ?

No pension or retiree health benefits. All investment earnings go into my checking account. Additional funds come from liquidating equities or bond funds or money market funds to bring my asset allocation back to 60:35:5, while keeping withdrawals to 3-3.5%. Upon reaching 70.5, begin required minimum withdrawals from IRAs and social security. First 12 months, paid for COBRA health insurance $2,100/month for 2. Currently paying $545/month for subsidized ACA ppo plan.
swakyaby is offline   Reply With Quote
Old 05-19-2019, 10:17 PM   #14
Full time employment: Posting here.
 
Join Date: Jul 2015
Posts: 688
DW and I retired without pensions or retiree healthcare. We are burning taxable savings (equity and bond index funds as well as cash) and managing income for ACA health insurance. We're recently started tapping an IRA, but slowly to minimize impact on ACA subsidy. Our withdrawal rate has been 4-4.5% over the last several years. We plan to pull early SS, although may hold off if the economy remains strong. Even with SS, our IRA's will fund most of our expenses. With SS online, we hope to get our withdrawal rate down to about 3.5% given that we have 36+ year planning horizon.

As a practical matter, we sell bonds or equities in our taxable accounts roughly twice a year, with some effort to time for market peaks. We hold 1-2 years in cash, in part to wait for these peaks, but mainly to sleep better at night. Most of the cash is with an online savings bank yielding 2%+, with monthly transfers to a brick & sticks checking account for bill pay.
__________________
Living the dream...
FreeBear is offline   Reply With Quote
Old 05-20-2019, 04:04 AM   #15
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 2,547
Small pension, interest and dividends, sell off a little as needed. No SS for 10 more years.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 05-20-2019, 04:48 AM   #16
Moderator
FIREd's Avatar
 
Join Date: May 2007
Posts: 11,512
At the moment, I live on interests and eating through my capital.
__________________
45 years old. Exited the job market in 2010 (age 36). Have lived solely off my investments since 2015 (age 41).
Current AA: real estate 30% / cash 70%
Current WR: < 2%
FIREd is offline   Reply With Quote
Old 05-20-2019, 05:37 AM   #17
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 1,955
We currently live on pension + cash. We set enough enough cash so that we are not forced to sell equities before we choose to take SS.

My pension hits our checking account the first of the month. All bills are paid with a day or two of that event. This shows up how much we may have to withdraw from cash for our planned expenditures for the month. It looks like we will only spend about 30% of the cash we thought we would for this first year of FIRE. We are still reinvesting most of our dividends and capital gains

For health insurance we have cheap COBRA through the end of this year. My pensions makes us ineligible for any ACA subsidy. We are willing to pay a little more for retiree insurance through Megacorp than any ACA plan, as we will not have to change our current doctors. Included in our cash is roughly $100K in anticipation of health insurance/expenses for the 3 years before we are eligible for Medicare (it likely will come it less than that, we will see once we know what our premiums are for next year).
__________________
FIREd date: June 26, 2018 - wwwwwwhat a rush!
jollystomper is offline   Reply With Quote
Old 05-20-2019, 05:48 AM   #18
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 3,161
Cash. withdraw as needed.
__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider is offline   Reply With Quote
Old 05-20-2019, 06:25 AM   #19
Recycles dryer sheets
 
Join Date: Feb 2017
Posts: 142
I call myself 70% retired my DW says I am 95% retired. She's probably right and usually is. She still works 3 days a week and we run a small home based business we started 21 years ago. I doesn't make a ton of money, but gives us good write offs. We live mainly on dividends from investments. Next year I can start withdrawing from my Keogh and IRA as I turn 59-1/2. I may let it ride since we don't really need the extra income.
nativenewenglander is offline   Reply With Quote
Old 05-20-2019, 06:29 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Nov 2015
Posts: 1,562
Quote:
Originally Posted by Drake3287 View Post
Almost embarrassed to say and I certainly don't bring it up in casual conversation with friends and family. Retired at 54 with a state retirement pension paying 100% of my final years pay including a 2% yearly COLA. Retirement also includes 100% paid medical and dental through employer for myself and spouse. Also, just over a million in cash and various investments.

And before you jump all over me, this retirement system no longer offers this overly generous retirement, I'm lucky I started when I did. Newer employees have a much different plan now and Yes, I know how lucky I am.
Wow.... Must be from IL... saying this as they have a big pension mess on their hands.
__________________

bobandsherry 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
Ready to Live the Life After Fire!!! 1242Vintage Life after FIRE 22 04-04-2019 01:08 PM
Tesla Model S fire reignites 6 hours after car fire deemed out aja8888 Other topics 27 12-21-2018 07:21 AM
Would you live in a place you didn't like if it meant you could FIRE? Kathryn48 Life after FIRE 66 07-18-2008 12:58 PM
Live long enough to live forever (book) JJac Health and Early Retirement 10 11-25-2006 07:41 PM

» Quick Links

 
All times are GMT -6. The time now is 11:03 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.