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So far to go
Old 04-01-2011, 07:29 PM   #1
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So far to go

I should be happy at my financial position in life, however in updating my quarterly NW, it just got me more depressed than anything. I am planning a modest retirement in about 10-15 years with a 3.3% withdrawal rate (30X expense - not comfortable with 25X and think 33X is excessive). Anyways this means that I need $1.x million saved up to retire. I realize today that I've gotten the .x part or very close to it, but I still have the $1 part to go. $1 as in $1,000,000. I don't care what anyone says but that is still alot of $. Seems like I'm at the bottom of a very long hill. Don't mind me, I'm just going to go pinch some pennies..........
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Old 04-01-2011, 07:35 PM   #2
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You are only 35 for crying out loud!

Compared to most people, myself included, you have not suffered enough!
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Old 04-01-2011, 08:04 PM   #3
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For many of us, the key is figuring out how to reduce our expenses in retirement. So maybe you can attack the problem from both ends - - on the one hand, increasing the nest egg, and on the other hand, decreasing the expenditures a little. Maybe you will only need ($1.x)/2 instead of $1.x
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Old 04-01-2011, 08:08 PM   #4
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For many of us, the key is figuring out how to reduce our expenses in retirement. So maybe you can attack the problem from both ends - - on the one hand, increasing the nest egg, and on the other hand, decreasing the expenditures a little. Maybe you will only need ($1.x)/2 instead of $1.x
Currently I'm living on less than 20K per year so I don't have much too cut. I do expect my needs to go up in retirement as I would like to take at least 2 vacations a year (rather than one) and some of my hobbies cost some $ - golf mainly. I am aiming for about $45K per year in retirement in today's dollars.
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Old 04-01-2011, 08:12 PM   #5
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Currently I'm living on less than 20K per year so I don't have much too cut. I do expect my needs to go up in retirement as I would like to take at least 2 vacations a year (rather than one) and some of my hobbies cost some $ - golf mainly. I am aiming for about $45K per year in retirement in today's dollars.
That's a lot of money in retirement for someone used to living on $20K.
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Old 04-01-2011, 08:20 PM   #6
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That's a lot of money in retirement for someone used to living on $20K.

Well $20K are my bare bones living expenses. This does not include auto replacement and home repairs that can range from $0 to alot. So let's say another $10K for that...that is $30K total and then $5K in taxes and then only $10K in "fun" $ in retirement.
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Old 04-01-2011, 08:30 PM   #7
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You are only 35 for crying out loud!
+1

You are way ahead of most people in terms of saving and you own your own home.

Keep on doing what you are doing. A few increases in income and some compounding of the return on your investments and you'll be surprised how quickly a nest egg can grow. Of course, if you do something silly like day trading futures contracts or having children......
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Old 04-01-2011, 08:56 PM   #8
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You are only 35 for crying out loud!

Compared to most people, myself included, you have not suffered enough!

First Noble Truth - life is suffering.
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Old 04-01-2011, 08:59 PM   #9
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.. some of my hobbies cost some $ - golf mainly.
Take up tennis - it's cheaper.
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Old 04-01-2011, 09:14 PM   #10
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First Noble Truth - life is suffering.
“He who suffers much will know much” - Greek proverb

I think I have obtained sufficient knowledge to last me a while.


“What is the noble truth of suffering? Birth is suffering, ageing is suffering and sorrow and lamentation, pain, grief and despair are suffering.” - (Hindu Prince Gautama Siddharta, the founder of Buddhism, 563-483 B.C.)

Obviously, there were no megacorps in those days, else Buddha would have added "working for stupid megacorps" to the list. Look how Dilbert is suffering.
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Old 04-01-2011, 09:16 PM   #11
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First Noble Truth - life is suffering.
Anyone who says differently is selling something.
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Old 04-01-2011, 09:35 PM   #12
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Seems like I'm at the bottom of a very long hill. Don't mind me, I'm just going to go pinch some pennies..........
I think the operative word here is 'seems'.

You're 35 years old? Well, before you start gettin' all 'hang dog' take advice from an old phart like me (I'm 53). You will reach your goal; but in the meantime, enjoy your youth. Regardless of how much money you have when you retire, you'll never be able to buy your youth back.

IMO, you're way ahead of most people your age. Be proud of what you have....continue to save and enjoy life in the meantime.
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Old 04-02-2011, 08:14 AM   #13
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If you don't like your nest egg number, you might want to really think about your expenses, now and in the future. You might be surprised at what your expenses really need to be. The most important things in life are not things. What expenses are essential, and which are more ego driven. If you're like most people, it might be enlightening when you really think about it.
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You're an ant, quit thinking like the grasshopper...
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Old 04-02-2011, 08:52 AM   #14
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Isn't that the reason accounting sucks? It takes time and you have time on your side.

Since you were able to save .X over the last 2 not so nice market hits, having X isn't all that bad. It's better than having a negative net worth!

Perhaps you can enjoy more of the enjoyments in life now vs. saving every penny now. I've increased family vacations to offset some of the everyday suffering (w*rk).
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Old 04-02-2011, 10:05 AM   #15
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Keep saving, have a good asset allocation, and let the power of compounding interest do the work. You have time on your side.
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Old 04-02-2011, 10:12 AM   #16
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Take up tennis - it's cheaper.
Tennis? That is for rich people. I hike.
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Old 04-02-2011, 12:08 PM   #17
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Tennis? That is for rich people. I hike.
Hiking is cheap also, I agree. Tennis is quite affordable if you play outdoor and do not participate in league, competitions, and lessons. Public courts are free. The major costs are balls (ever 4 games), shoes (once a year), and racquets (every 2-3 years - mine are 20+ years old).
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Old 04-02-2011, 01:01 PM   #18
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It seems like you are pinching pennies to try and reach the end goal (retiring early). While this is good, it also makes every work day seem unbearable since the long term goal seems so far away don't you think? Personally, I would try to enjoy life a bit more along the way and stop and smell the roses every once in a while.

Just my 2 cents to a fellow Canuck .
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Old 04-02-2011, 01:02 PM   #19
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I should be happy at my financial position in life, however in updating my quarterly NW, it just got me more depressed than anything. I am planning a modest retirement in about 10-15 years with a 3.3% withdrawal rate (30X expense - not comfortable with 25X and think 33X is excessive). Anyways this means that I need $1.x million saved up to retire. I realize today that I've gotten the .x part or very close to it, but I still have the $1 part to go. $1 as in $1,000,000. I don't care what anyone says but that is still alot of $. Seems like I'm at the bottom of a very long hill. Don't mind me, I'm just going to go pinch some pennies..........
I hope you're not excessively sacrificing today for FIRE tomorrow........

The real goal is to live a pleasant live NOW and still make it to a secure FIRE position at a reasonable age. That is, a lifestyle you find entertaining, enjoyable, an interesting career, friends or family as desired, activities you enjoy, etc. In the midst of this, you manage finances and retirement planning to enable your post-career years to continue on the same track. And, hopefully, perhaps FIRE can begin before, maybe long before, "normal retirement age."

But if you're really not happy now and life is a drag, maybe a little evaluation of your goals and how you're trying to achieve them is in order. Life goes by and you don't want to look back at decades of having spent your time in ways you regret later.

Oh..... and on the portfolio growth thing..... Don't forget that percentage increases are larger in absolute dollars as your portfolio grows.
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Old 04-02-2011, 05:46 PM   #20
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