Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-11-2006, 02:44 PM   #21
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 247
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
Just curious whether your "RE now" plan includes 2 college educations fully funded at inflation adjusted out of state school rates ? Are you capping the amount set aside?
TargaDave - I have set aside a substantial amount for the 2 kids for college. May not be fully enough, given rising costs and where they may go. I'm assuming that they may need to work/have some loans. It's tough to tradeoff their future debt vs. my retirement! They're also in private schools right now, which is also substantial. I've also accounted for those amounts, including expected tuition increases.

Of course, if the investments do better than expected over the next 2 years we could end up with a greater cushion.
__________________

__________________
Surfdaddy 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!

Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-11-2006, 03:28 PM   #22
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
Re: How many of you can RE now, but are saving to raise your std of living?

I seem to have a third bucket:* non-work interests.* BS hasn't been too bad in my corner of Megacorp, just your normal, everyday BS.* Retirement asset bucket has been filling pretty much as per plan.* But the call of non-work interests, hobbies and just doing something different, is now very, very strong.

Maybe it's just a point of view.* It worked better for me and my mental/physical health to not hate work but rather love being away from work and doing other things.* instead of*

Since Megacorp is cooporating with severance packages and involuntary layoffs (picture me in the back of the room jumping up and down waving my arms and screaming "me, rif me!") the pressure of making a final decision was taken off my shoulders.*
__________________

__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-11-2006, 03:29 PM   #23
Recycles dryer sheets
JonnyM's Avatar
 
Join Date: Mar 2004
Location: Modesto
Posts: 334
Send a message via AIM to JonnyM Send a message via Yahoo to JonnyM
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
Originally Posted by Surfdaddy
Am I unique? As much as I want to retire now, there is a certain *security* about working a bit longer. I keep saying to myself... "just 2 more years!"
Ah the trap. Just a bit more... I don't think you're even close to unique. We all have made that decision, based on some criteria of our own, i.e. no more mortgage, health coverage figured out, income more than estimated expenses, I just can't take it any more, etc.

You have to pick the place in space and time that "works" for you. My advice though, is to choose it now, and work to get there. Then you can enjoy the count-down process. Hell for my last year I ran a countdown timer right in my sig on this board, so everytime I logged in I could check my progress. Doesn't really matter what interval you choose, DW and I had a 7 year plan, just determine when you'll have expenses covered with a cushion for the unexpected, set the date, and live a full and enjoyable life getting there, then Break on Thru to the Other Side
__________________
It's about the music
JonnyM is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-11-2006, 03:35 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,456
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
Originally Posted by youbet
But the call of non-work interests, hobbies and just doing something different, is now very, very strong.
Great point! That's what ultimately motivated me. I wanted to spend a LOT more time OUTSIDE.

Audrey
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-11-2006, 03:58 PM   #25
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Re: How many of you can RE now, but are saving to raise your std of living?

Surfdaddy,

Your situation is not uncommon. Our kids are little bit older, 17 and 14. We like to work for another 4 years until the younger one is in college. We too have concerns about health insurance.

Spanky
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-11-2006, 04:48 PM   #26
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
I'm concerned that even if I buy medical insurance today, it might go up so fast that it harms my standard of living in a few years.
When we applied for healthcare we learned the younger the better ... even had to apply in DW name to get the best rate (she's younger). As far as the "might go up" ... that'll always exist: today, in two years, in 20 years ...

One thing FOR SURE, your rate will be ALOT higher with bunch of pre-existing conditions ... the longer you wait, the higher the risk. IMHO.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-11-2006, 11:42 PM   #27
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 247
Re: How many of you can RE now, but are saving to raise your std of living?

Regarding health insurance, can you get policies (similar to flat term life) that guarantee rates for some period? Or even guarantee rate of increase?

I envision a nightmare scenario where I retire, and say, my insurance for family of 4 is $10K/year. I then start having heart trouble, need a bypass surgery. Insurance pays their part, but then my $10K/year goes to $30K/year! Or can they cancel me at any time?

(I have no heart problems, just considering possible scenarios )
__________________
Surfdaddy is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 01:25 AM   #28
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Location: North Bay
Posts: 1,026
Re: How many of you can RE now, but are saving to raise your std of living?

I've got a wife, kids of 18, 15, and 11, and a house with no mortgage. I set a target many years ago, saved over the years, and then recently got a severance package and achieved the target. Part of the package was reasonably priced health insurance until Medicare kicks in. I'm now working on contract for the same company and find myself asking the "Am I really ready for this at 47?" and "Was the target I set really high enough?" questions. I hope that a year from now I can say that I was simply in a transition period, but right now it feels like very uncertain times. After 22 years working for the man, as ashamed as I am to admit it, the prospect of no man seems a little frightening.
__________________
scrinch is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 04:50 AM   #29
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: How many of you can RE now, but are saving to raise your std of living?

This is a great thread.* I love the buckets analogy.

I decided about a month ago I could ER today.* I started with the forum asking about the possibility of taking 6% (Guyton article) and have read ESRBob's book amongst many others.* My decision was that DW and I could get by on our assets and pathetic pension (change jobs a few times and you don't get much).* Our lifestyle would be crimped at current levels but we could control spending.

Why not ER now?* DW is dealing with her parents.* One is in a nursing home and the other should be.* Trying to keep up with the one that isn't is worse for her than a full time job and it keeps us from doing much of anything.* There's no point in ERing if we're not going to be able to go and do. Also, having to go to work is the best excuse to not get sucked into the elder care.*

I also just got a new job that's still on the interesting and fun side.* The BS bucket is currently empty.* I've been around the track a few times so I know it will eventually start to fill.* Maybe the timing will be right soon.* FIL will be "resolved" and the BS bucket becomes noticeable at the same time.* In the meantime, every month I work increases my annual retirement income by $900.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 05:18 AM   #30
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
Originally Posted by 2B
every month I work increases my annual retirement income by $900.
Sorry, but I don't understand. Assuming the 4% withdrawl rate (my target) are you saying you are contributing $22.5K to your retirement "fund" every month?

- Ron
__________________
rs0460a is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 05:32 AM   #31
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 116
Re: How many of you can RE now, but are saving to raise your std of living?

rs0460. I am not sure if this is what 2b meant, but in my case every month I work we save max in retirement plans, save outside of retirement plans, we don't touch what we have and our social security contributions go in. Not touching what we have and watching it grow has become more significant than what we put in. In our case, we don't increase $900 annual income per month but we do have a significant increase in our yearly annual retirement income when you add everything together. DH also gets a pension contribution, which we are crossing our fingers does not get frozen. He will get something at least after almost 30 years.
__________________
shorttimer is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 05:43 AM   #32
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: How many of you can RE now, but are saving to raise your std of living?

shorttimer has it almost perfectly. Where my increase comes from is the reduced amount needed to offset SS since I'm getting closer to "retirement," more personal savings (but not $22K), slightly higher private pension because I wait to draw on it longer but, most significantly, my portfolio is projected to grow without me taking any withdraws.

Because of my mix of income streams, I am assuming a 5% withdrawl rate from my "residual" portfolio after annuitizing (in laddered CDs and bonds) for SS and paying off the house. If there is a "crash," I could substantially cut spending and survive without becoming a Wal Mart greeter living on only SS and pension.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 05:50 AM   #33
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
Originally Posted by 2B
without becoming a Wal Mart greeter living on only SS and pension.
Then what are U going to do all day?

- Ron
__________________
rs0460a is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 07:14 AM   #34
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
Or can they cancel me at any time?
This is illegal .... fortunately.

Quote:
Insurance pays their part, but then my $10K/year goes to $30K/year!
This is legal ... unfortunately.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 08:52 AM   #35
Confused about dryer sheets
 
Join Date: Oct 2002
Posts: 5
Re: How many of you can RE now, but are saving to raise your std of living?

This topic really hits home. There's a running joke in my family - I'm always saying to the wife, "3 more years, honey, and we won't have to worry no matter what happens". I've been saying that for maybe 7 years.

What happens is that the vision of how we could live/how much we need to live keeps shifting. Although how we actually live doesn't change. It's not that 2 more years of work and saving wouldn't make us more secure, it's that I worry about giving up the possibility to raise our standard of living - if we want to. Making the decision to RE means that were locked in to how we live today - which is totally comfortable for us TODAY. But I worry that we'll feel differently in the future.

I don't want or need to live better (we live quite well actually). I think it is just fear of change (and giving up job related status).

Ranger

__________________
scott is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 10:52 AM   #36
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Location: North Bay
Posts: 1,026
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
I don't want or need to live better (we live quite well actually). I think it is just fear of change (and giving up job related status).
Exactly! Hopefully just a transitory (but not ten year transitory) feeling. :P
__________________
scrinch is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 11:08 AM   #37
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
Originally Posted by Ranger
There's a running joke in my family - I'm always saying to the wife, "3 more years, honey, and we won't have to worry no matter what happens".* I've been saying that for maybe 7 years.
Reminds me of a quote in The Godfather II...

Kay: It made me think of what you once told me: "In five years the Corleone family will be completely legitimate." That was seven years ago.

Michael Corleone: I know. I'm trying, darling.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 05:11 PM   #38
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: How many of you can RE now, but are saving to raise your std of living?

Quote:
Originally Posted by rs0460a
Then what are U going to do all day?
Hopefully, I won't be looking for a real job. That's something I really do have to think about. This week I created a computer program to modify pump operating curves based on higher viscosity feeds. It wasn't anything fancy but I felt good about getting it done. I'm getting back into more technical work which I always enjoyed but got away from when I went "manager." I think becoming a manager was a big mistake except for the money. Looking back it probably wasn't all that much extra money anyway.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-12-2006, 08:47 PM   #39
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,079
Re: How many of you can RE now, but are saving to raise your std of living?

I've just been reading this thread and it certainly resounds with me.* In 4 years, at 55, I can retire on full benefits, but I could quit now, and work at something a lot less stressful.* DD is graduated, married and working, DS should graduate in a few months, we have no debt, no mortgage, a million $ portfolio so what keeps me at work??*

a) the BS is flowing in faster than ever but it is a lot easier to handle simply knowing that I could walk out any time - and they know it.

b) DW and I are both extremely fit and come from families with mostly long-lived relatives, so we really feel we need to plan for long lives.

c) I don't care about the company or the management team, but I have a lot of people I work with and who work for me that I really like and don't want to let them down.

d) Uncertainty, fear of the unknown, etc.

So I plan for what jobs I might do if I leave, watch my portfolio grow, and run financial models every month to assure myself I'm in good shape financially as well as physically.* DW RE'd 2 years ago and we sold the big house and moved to a great apartment so I have more time outside of work to "play".

... and I sort of hope that the day of reckoning is forced on me so I can tell them to stuff it.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Re: How many of you can RE now, but are saving to raise your std of living?
Old 04-15-2006, 12:31 AM   #40
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 143
Re: How many of you can RE now, but are saving to raise your std of living?

I will never fully retire because I will always be doing something to keep me busy.* Since I'm an entrepreneur, money is the way I use to keep score, so much of what I will be doing for the rest of my life will generate income of one kind or another.

But I have taken "early semi-retirement" now so that my time is my own.* I have enough portfolio income that I don't have to worry anymore about earned income (i.e., having a job).* But the more diverse my income base becomes, the less pressure there is on any particular investment to pay my expenses.
__________________

__________________
rogersteciak 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
Living Check To Check: Saving Too... MYPROcheckGRESS Young Dreamers 38 02-16-2006 04:36 PM
Scott Burns - High Cost of Living as a Family intercst Young Dreamers 6 08-23-2005 10:06 AM
My job? Living here preben FIRE and Money 38 07-17-2005 10:09 AM
"What are you saving for?" redux Nords Life after FIRE 60 05-17-2005 07:14 PM
Yet another revocable living trust question. Nords Other topics 14 11-30-2004 02:45 PM

 

 
All times are GMT -6. The time now is 02:49 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.