Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-07-2010, 02:27 PM   #61
Recycles dryer sheets
OrcasIslandBound's Avatar
 
Join Date: Mar 2010
Location: Poway, CA
Posts: 441
Well? Did you do retire? Did you keep 2/3 in cash? Would've been brilliant if you had...
The last posting was 8-19-07, 2 1/2 years ago. I'm curious how this retirement worked out so far?
__________________

__________________
OrcasIslandBound 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 03-07-2010, 03:28 PM   #62
Recycles dryer sheets
 
Join Date: Aug 2007
Posts: 401
Quote:
Originally Posted by sbwitte View Post
Well? Did you do retire? Did you keep 2/3 in cash? Would've been brilliant if you had...
The last posting was 8-19-07, 2 1/2 years ago. I'm curious how this retirement worked out so far?
I worked on and off (semi-retired) as a computer programmer contract worker until June 2009 and then I quit my job, not so much because I wanted to retire, but because I was really burnt out on computer programmer type of work after doing it for about 30 years. My net worth is up about 40 grand from 8/19/07 and I'm sitting at about 75% in cash right now, the majority of the cash in CD's. I actually increased my cash investments in Oct/Nov 2008 by selling some stock mutual funds right before the stock market downturn. I feel as though my high percentage of cash helped me in weathering that stock market downturn fairly well. My spending budget is $30,000 per year but my current spending rate is closer to $25,000 per year. All in all retirement is working out pretty well. With a withdrawal rate of about 2%, I'm probably pretty confident that my money will outlast me and my decision to retire last year was a good one. But if interest rates stay as low as they are now, I may be looking around for other types of cash investments soon since I have several CD's maturing this year.
__________________

__________________
DallasGuy is offline   Reply With Quote
Old 03-07-2010, 03:43 PM   #63
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,103
Quote:
Originally Posted by sbwitte View Post
Well? Did you do retire? Did you keep 2/3 in cash? Would've been brilliant if you had...
The last posting was 8-19-07, 2 1/2 years ago. I'm curious how this retirement worked out so far?
Welcome to the forum

Quote:
Originally Posted by DallasGuy View Post
I worked on and off (semi-retired) as a computer programmer contract worker until June 2009 and then I quit my job, not so much because I wanted to retire, but because I was really burnt out on computer programmer type of work after doing it for about 30 years. My net worth is up about 40 grand from 8/19/07 and I'm sitting at about 75% in cash right now, the majority of the cash in CD's. I actually increased my cash investments in Oct/Nov 2008 by selling some stock mutual funds right before the stock market downturn. I feel as though my high percentage of cash helped me in weathering that stock market downturn fairly well. My spending budget is $30,000 per year but my current spending rate is closer to $25,000 per year. All in all retirement is working out pretty well. With a withdrawal rate of about 2%, I'm probably pretty confident that my money will outlast me and my decision to retire last year was a good one. But if interest rates stay as low as they are now, I may be looking around for other types of cash investments soon since I have several CD's maturing this year.
Thanks for updating us, and congratulations on stepping out and ER'ing
__________________
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
Old 03-08-2010, 04:22 AM   #64
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
It sounds like the OP is is pretty good financial shape. If the income needs are $40k, I think they are ready. Just make sure that medical/insurance expenses are factored in.


Here are my approaches/rationale:
  • In retirement, I am more worried about capital preservation than hoping to get a lot wealthier. Of course, I would like to grow our money so I will take some measured risk in terms of volatility of security prices. I also want to beat inflation. Therefore, I will invest some percentage of money in broadly diversified equity mutual funds. Our goal is to spend our money and enjoy it while we are younger and save some for when we are older. We are not planning to leave a large estate.
  • I will keep enough near-term money in high quality cash equivalents and medium term fixed securities (including TIPS) (5-7 years of projected income needs). This money will ensure we have a reliable income stream.
  • IMO - Deferring SS till 66.x or 70 is the best deal available to mitigate the risk of outliving your money. It is the highest quality inflation adjusted annuity most of us can get. For married couples, this is essentially a Joint Life Annuity. Since we have enough bridge money we will defer taking the largest SS income amount till 66.x or 70 (depending on the situation at the time).
__________________
chinaco is offline   Reply With Quote
Old 03-08-2010, 03:06 PM   #65
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,103
Quote:
Originally Posted by chinaco View Post
It sounds like the OP is is pretty good financial shape. If the income needs are $40k, I think they are ready. Just make sure that medical/insurance expenses are factored in.


Here are my approaches/rationale:
  • In retirement, I am more worried about capital preservation than hoping to get a lot wealthier. Of course, I would like to grow our money so I will take some measured risk in terms of volatility of security prices. I also want to beat inflation. Therefore, I will invest some percentage of money in broadly diversified equity mutual funds. Our goal is to spend our money and enjoy it while we are younger and save some for when we are older. We are not planning to leave a large estate.
  • I will keep enough near-term money in high quality cash equivalents and medium term fixed securities (including TIPS) (5-7 years of projected income needs). This money will ensure we have a reliable income stream.
  • IMO - Deferring SS till 66.x or 70 is the best deal available to mitigate the risk of outliving your money. It is the highest quality inflation adjusted annuity most of us can get. For married couples, this is essentially a Joint Life Annuity. Since we have enough bridge money we will defer taking the largest SS income amount till 66.x or 70 (depending on the situation at the time).
That pretty well describes our approach almost exactly. This is the first year of ER and we expect the expenses to be much higher in the earlier years while we are still fit and able to do a lot of living in different fun places.

We've also decided at this point for DW to take her SS at 62 and then me at 67 or 70.
__________________
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
Old 03-08-2010, 03:13 PM   #66
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
...we expect the expenses to be much higher in the earlier years while we are still fit and able to do a lot of living in different fun places.
Exactly the reason we decided to buy the motor home now instead of waiting until we were in our late 80's and absolutely positive we could afford it.
__________________
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 03-08-2010, 11:05 PM   #67
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
Quote:
Originally Posted by Alan View Post
This is the first year of ER and we expect the expenses to be much higher in the earlier years while we are still fit and able to do a lot of living in different fun places.
Don't forget to pencil in enough funding to buy the necessary services to keep on partying in your later years. DW and I, in our early 60's, are already using guides on remote fishing/camping trips and that sort of thing so that we can "keep on doing" instead of throwing in the towel. So, our expenses for some of our activities have actually increased (some substantially) compared to when we were younger and could do robust outdoor activities without any help.

Another example might be REWahoo and DW bringing along a combo driver/cook/go-fer on RV trips to handle everything except the fun.

It's just another way of handling growing older and becoming less physically fit. You throw in the towel on some activities and go sit in the rocker or you simply hire the appropriate help and keep on rockin'!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 03-09-2010, 01:32 PM   #68
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,103
Quote:
Originally Posted by youbet View Post
It's just another way of handling growing older and becoming less physically fit. You throw in the towel on some activities and go sit in the rocker or you simply hire the appropriate help and keep on rockin'!
Brilliant - I don't suppose I'd have thought of that. We certainly want to keep as active as we can for as long as we can.
__________________
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
Old 03-09-2010, 01:38 PM   #69
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,667
Quote:
Originally Posted by youbet View Post
So, our expenses for some of our activities have actually increased (some substantially) compared to when we were younger and could do robust outdoor activities without any help.
That's one of the reasons I could never swallow the idea of planning to spend less as you get older.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 03-09-2010, 01:58 PM   #70
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Quote:
Originally Posted by Alan View Post
Brilliant - I don't suppose I'd have thought of that. We certainly want to keep as active as we can for as long as we can.
That's why I have expenses for "nurse Nancy" in my later years retirement plan allocated ...
__________________
rescueme is offline   Reply With Quote
Old 03-09-2010, 02:02 PM   #71
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,103
Quote:
Originally Posted by Onward View Post
That's one of the reasons I could never swallow the idea of planning to spend less as you get older.
I agree.

I monitored what we actually spent in the last few years before ER and budgeted to spend no less in ER. It looks like we can afford to spend more but it's early days yet.
__________________
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
Old 03-09-2010, 02:08 PM   #72
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,103
Quote:
Originally Posted by rescueme View Post
That's why I have expenses for "nurse Nancy" in my later years retirement plan allocated ...
I also have a fund outside of my ER investments for "nurse Nancy" but for some reason it hadn't occurred to me to also spend money on someone to help me when I'm not actually sick, just not as physically capable to do the things I want to do.
__________________
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
Protect Your Self
Old 03-09-2010, 06:16 PM   #73
Dryer sheet aficionado
angelbaby's Avatar
 
Join Date: May 2008
Posts: 27
Protect Your Self

Quote:
Originally Posted by DallasGuy View Post
My question is: Do I have enough savings/investments to retire on?

I know it's very specific to each individual, but I'd just like a few opinions on my situation.

I'm single, 51 years old, have about 1.2M in savings/investments with about 2/3 of it invested in cash investments (yes, I know this is probably too much in cash at my age, but I can sleep at night, so I don't want to discuss this part...I know the pros and cons of this) and the rest invested in individual stocks (not that much) and mutual funds. My house is paid off, I have no debt, I live in a fairly low cost area (Dallas, TX), and my yearly cost of living is about $30,000. This cost of living includes paying for all of my insurance (health, auto, house, etc.), taxes, 2-3 trips a year as well as all other living expenses. I'm guessing I could probably increase my spending to about $40,000 if unexpected expenses arose with little trouble. Compared to most people I'm guessing I live pretty cheaply and don't feel like I'm suffering at all. From all of the retirement calculators I've run the numbers through, I "appear" to be safe in taking my my early retirement now.

What is your gut feel? Is early retirement a fairly safe bet for me at this point? Thanks in advance for any opinions.

Take about $120K of that money (10%) that's in cash and immediately move it to some physical gold and silver. Trust me, it's rather small and compact, so storage shouldn't really be a problem. It'll all fit inside of a small shoebox.

Why do I suggest this? Well, it's your backup plan in case the government gets stupid and we end up with serious inflation down the years. The Fed has printed a lot of money... A LOT! I wouldn't feel too comfortable sitting on all of that cash.

Look at it this way: If precious metals plummet to the basement, you've only risked 10% of your portfolio. If inflation skyrockets, like many very noted world economic authorities predict, you're adequately hedged against the risk.
__________________
"There's nothing sadder in this world than to awake Christmas morning and not be a child. I Lost Everything in the Post-Natal Depression." - Erma Bombeck

"How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving and tolerant of the weak and strong. Because someday in life you will have been all of these." - George Washington Carver
angelbaby is offline   Reply With Quote
Old 03-09-2010, 08:56 PM   #74
Full time employment: Posting here.
 
Join Date: May 2008
Posts: 589
I think inflation is a serious risk coming up, but I also think gold/silver (which is clearly recognized, at the very least, as not historicly underpriced right now), is not the only way to protect cash needs against inflation. Right of the top of my head, TIPS do the same thing, without a significant risk of losing your shirt on that portion of your portfolio. Stable value funds, and then switching possibly to CDs once rates drastically increase, would be another approach.
__________________
plex is offline   Reply With Quote
Old 03-11-2010, 11:55 AM   #75
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 1,012
Quote:
Originally Posted by angelbaby View Post
Take about $120K of that money (10%) that's in cash and immediately move it to some physical gold and silver. Trust me, it's rather small and compact, so storage shouldn't really be a problem. It'll all fit inside of a small shoebox.
not if most of the $120k is used to buy silver
__________________
jdw_fire is offline   Reply With Quote
Old 03-11-2010, 02:01 PM   #76
Recycles dryer sheets
 
Join Date: Sep 2009
Posts: 353
Quote:
Originally Posted by angelbaby View Post
Take about $120K of that money (10%) that's in cash and immediately move it to some physical gold and silver.
Is that much safer than buying GLD? Is it worth the extra premium and less liquidity and extra insurance to buy physical commodities?
__________________
smjsl is offline   Reply With Quote
Old 03-11-2010, 03:03 PM   #77
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,077
Quote:
Originally Posted by smjsl View Post
Is that much safer than buying GLD? Is it worth the extra premium and less liquidity and extra insurance to buy physical commodities?
There are pros and cons to both options.
__________________

__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton 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 Retire Early Home Page Old Admin Forum Admin 79 05-19-2006 08:58 AM
I thought I'd post a Picture of my Wife naked..... TromboneAl Life after FIRE 13 10-19-2005 10:14 AM
Can I retire early? Grover Hi, I am... 13 08-15-2005 11:14 PM
How to Retire early and FAST? saverspender Hi, I am... 19 07-31-2005 07:38 AM

 

 
All times are GMT -6. The time now is 02:39 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.