Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-20-2010, 09:30 AM   #21
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by travelover View Post
I'm so grateful for that ignore function. It is time.
...

But he be so funny in his statements ...

And yes, that's my opinion.
__________________

__________________
rescueme 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 08-20-2010, 09:38 AM   #22
Recycles dryer sheets
 
Join Date: Aug 2010
Posts: 68
Quote:
Originally Posted by friar1610 View Post
And still others choose occupations which, while not paying extraordinarily high salaries, offer reasonably good lifetime pensions after 20 - 25 years. I refer to occupations such as law enforcement, fire fighting, the military, etc.
*raises hand*

Yep, that's kind of what I'm looking at. I figure that the Army may not offer the highest paid retirement out there, but it does provide a pension I won't have to wait until 60 for, and being a veteran will mean I don't have to worry about where my health care is coming from.

In theory, I could settle down with only my pension check and still be able to get by, but there's nothing that says I can't pack away a solid chunk of self-growing change to pad out my income when it's time to hang up the boots. Based on how low a person's expenses are while on active service, I could potentially save a lot of money even though I don't necessarily make a whole lot compared to other folks in other lines of work.

Also, the feasibility of early retirement is heavily dependent on what you consider necessary for the "good life." When someone says you need 60k a year income as a bare minimum to retire with and enjoy yourself, well, that's based on one set of standards. I used to live on much less than half of that, and I didn't think it was too unusual. When you're raised in a poor rural area on a few hundred dollars a week, anything that pays you money on a regular basis but doesn't require you to show up to work sounds like pure magic.

It reminds me of a conversation from the Dilbert comic:
Boss: "I can't afford to fire you, so I'm going to reduce your working conditions until you're forced to quit."
Wally: "Ha! I'd like to see you try. My standards are lower than you can possibly imagine!"

Josh
__________________

__________________
Joshua is offline   Reply With Quote
Old 08-20-2010, 09:51 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
401k Withdrawal

No penalty

"You stop working and begin taking out regular payments based on a schedule that will make equal payments for the rest of your expected life; these must last for 5 years or until you turn 59 1/2, whichever is longer "
__________________
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
Old 08-20-2010, 10:49 AM   #24
Thinks s/he gets paid by the post
kyounge1956's Avatar
 
Join Date: Sep 2008
Posts: 2,171
Quote:
Originally Posted by HsiaoChu View Post
(snip)
And, its hard to pull this off in a normal working life of 40 years unless you lucked out into one of the few remaining DB ponzi pension schemes(all DB pension schemes are some kind of ponzi scheme, IMO) and add SS.

Just my opinion.
Here's another definition you appear to have missed.
Pension: a fixed sum paid regularly to a person: a (archaic): wage b : a gratuity granted (as by a government) as a favor or reward c : one paid under given conditions to a person following retirement from service or to surviving dependents. (italics added)

Ponzi scheme: an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks.

The fact that some pension funds have been mismanaged doesn't make all DB pensions a swindle.
__________________
kyounge1956 is offline   Reply With Quote
Old 08-20-2010, 11:47 AM   #25
Full time employment: Posting here.
ronocnikral's Avatar
 
Join Date: Apr 2010
Posts: 852
to answer the op, it's what everyone has said so far. taxable accounts and 72t. oh, and i have a ponzi pension. and while i don't save $60k/year, i do save about $50k. that's my plan.

i had a roommate who volunteered at a homeless shelter. one day, he was doing his volunteer work and a homeless guy came in and said, "you're young. let me give you some advice, you need to invest in commodities! that's the only way you'll ever make it!"
__________________
ronocnikral is offline   Reply With Quote
Old 08-20-2010, 12:08 PM   #26
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,100
Quote:
Originally Posted by travelover View Post
prinĚciĚpal

Finance. a capital sum, as distinguished from interest or profit.


prinĚciĚple


an adopted rule or method for application in action: a working principle for general use

Quote:
Originally Posted by HsiaoChu View Post
Picky picky picky. Is there any intelligent human being on this forum who didn't know what I was talking about? I think not.
HC, during your long career in education did you never correct your students? Since you are posting lots of financial advice travelover was just checking that you understood the difference between principle and principal.

Be nice, be happy
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 08-20-2010, 12:28 PM   #27
Full time employment: Posting here.
friar1610's Avatar
 
Join Date: Jun 2002
Posts: 820
Quote:
Originally Posted by HsiaoChu View Post
These DB ponzi schemes are coming to an end soon. Sure I lucked out on one in education(though I could not retire until I had at least 30 years in and was at least 59.5 year of age), but that not ER.

Those in the military need to be officers to get the really decent money at the end of 20 years. And the same exists for the others. There are really only limited positions for advancement to the serious money for a quick 20 years out and ER. Very very few don't take some other job.

Yeah, it can be done, but the sacrifice in doing it has to be recognized. 99+% of Americans either cannot make that sacrifice either due to not enough income or not willing to constrict their lives in that way.

Money is not everything, but it almost has to be to make these numbers early.
I acknowledged in my post that most people work in a second career for a while. Although not all do; I know a number who didn't.

One scenario: Join the military at 18 out of high school. Stay in 20 years, retiring as an E-7. Age 38. Work for 10 - 12 years in a second career and save. Retire for good at about 50.

Another scenario: Join the military at 22 out of college. Stay in for 24 - 26 years, retiring as an O-5 or O-6. Work 10 years. Retire for good at 56 - 58.

I suppose it's subjective whether those are "early" retirements but I was simply pointing out another route to the goal. Worked for me.
__________________
friar1610
friar1610 is offline   Reply With Quote
Old 08-20-2010, 12:33 PM   #28
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by friar1610 View Post
I acknowledged in my post that most people work in a second career for a while. Although not all do; I know a number who didn't.

One scenario: Join the military at 18 out of high school. Stay in 20 years, retiring as an E-7. Age 38. Work for 10 - 12 years in a second career and save. Retire for good at about 50.

Another scenario: Join the military at 22 out of college. Stay in for 24 - 26 years, retiring as an O-5 or O-6. Work 10 years. Retire for good at 56 - 58.
Though not an early retirement per se, when I worked for an aerospace/defense company we had a LOT of "triple dippers." It was actually very common. These folks joined the military probably out of high school, put in their 20 and then went to work for the defense contractor. After another 15-20 years there, they would retire (now collecting two pensions and having health insurance taken care of) and re-up as contractors making a much higher hourly rate (since they don't really need the bennies at this point).
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 08-20-2010, 12:34 PM   #29
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,100
Quote:
Originally Posted by friar1610 View Post
I acknowledged in my post that most people work in a second career for a while. Although not all do; I know a number who didn't.

One scenario: Join the military at 18 out of high school. Stay in 20 years, retiring as an E-7. Age 38. Work for 10 - 12 years in a second career and save. Retire for good at about 50.

Another scenario: Join the military at 22 out of college. Stay in for 24 - 26 years, retiring as an O-5 or O-6. Work 10 years. Retire for good at 56 - 58.

I suppose it's subjective whether those are "early" retirements but I was simply pointing out another route to the goal. Worked for me.
A good friend of ours did just that and at 58 he retired with a teacher's pension plus his military pension. His wife retired at the same time with her private pension so they are doing very well even though they were never earning 'big bucks'.

I don't see private pensions as ponzi schemes since these days they are pretty well regulated and have reasonable protection in the mandatory insurance protection scheme run by the government (PBGC).
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 08-20-2010, 12:38 PM   #30
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Alan View Post
I don't see private pensions as ponzi schemes since these days they are pretty well regulated and have reasonable protection in the mandatory insurance protection scheme run by the government (PBGC).
Ponzi scheme or not, I'd much rather have one than not...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 08-20-2010, 12:43 PM   #31
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,100
Quote:
Originally Posted by ziggy29 View Post
Ponzi scheme or not, I'd much rather have one than not...
I've got 4 of the b*ggars so I certainly hope they don't implode, otherwise I'll be saying "Do you want fries with that?" during my senior years.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 08-20-2010, 12:49 PM   #32
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by Alan View Post
I've got 4 of the b*ggars so I certainly hope they don't implode, otherwise I'll be saying "Do you want fries with that?" during my senior years.
Just let us know what window and Micky D's you're located at, and we'll stop off and say hi ...
__________________
rescueme is offline   Reply With Quote
Old 08-20-2010, 12:52 PM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
A pension does add some peace of mind. I worked 20 years for a GE company and will get 12K/yr at 60 - probably no increases over the years. That plus SS at 62 will provide me with close to 100% of my estimated budget at 62. That percentage falls to 60% in 23 yrs.
__________________
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
Old 08-20-2010, 12:53 PM   #34
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,100
Quote:
Originally Posted by rescueme View Post
Just let us know what window and Micky D's you're located at, and we'll stop off and say hi ...
That's what I love about this community - lots of folk willing to give their support
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 08-20-2010, 12:55 PM   #35
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: 42,107
Quote:
Originally Posted by Alan View Post
That's what I love about this community - lots of folk willing to give their support
Hey, we expect you to slip us some extra fries!
__________________
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 08-20-2010, 12:57 PM   #36
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Alan View Post
That's what I love about this community - lots of folk willing to give their support
Just pay me back by supersizing it for me, okay?
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 08-20-2010, 12:57 PM   #37
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,100
Quote:
Originally Posted by dex View Post
A pension does add some peace of mind. I worked 20 years for a GE company and will get 12K/yr at 60 - probably no increases over the years. That plus SS at 62 will provide me with close to 100% of my estimated budget at 62. That percentage falls to 60% in 23 yrs.
3 of my pensions are not COLA'ed and I'm taking them now, topping up from regular savings, so (going back to the OP) I won't have need of the tax deferred savings before they can be withdrawn without penalty.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 08-20-2010, 12:58 PM   #38
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,100
Quote:
Originally Posted by REWahoo View Post
Hey, we expect you to slip us some extra fries!
Quote:
Originally Posted by ziggy29 View Post
Just pay me back by supersizing it for me, okay?
You can count on it !!
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 08-20-2010, 12:59 PM   #39
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by dex View Post
A pension does add some peace of mind. I worked 20 years for a GE company and will get 12K/yr at 60 - probably no increases over the years.
Yeah, my frozen pension will be about $8000 a year -- not adjusted for inflation -- if I take it at 65. By 2030 I figure that will buy a Happy Meal once a month when I go past Alan's drive through.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 08-20-2010, 01:31 PM   #40
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 2,676
... and others choose to live a very frugal life while earning a reasonable salary.
... and others have ER'd with kids

There are many ways to achieve ER, but they all take commitment and patient execution.
__________________

__________________
walkinwood 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
The other side of the "thou shalt not retire early" coin DblDoc Other topics 4 04-28-2008 11:59 PM
"Book" report: The Adventurer's Guide to Early Retirement, 2nd edition Nords Life after FIRE 16 10-13-2006 11:27 AM
Book report: "The Complete Idiot's Guide to Early Retirement" Nords Other topics 0 06-21-2006 02:49 PM
MSNBC: "Few" people in their early 60s can afford retirement SLC Tortfeasor Young Dreamers 7 07-29-2005 08:46 AM

 

 
All times are GMT -6. The time now is 10:54 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.