Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-05-2015, 10:53 AM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,324
This is what we did - we stumbled across the Consumer Expenditure Survey and realized we were FI if we cut expenses. We just added up current / future pensions, future SS and TIPS type returns and realized we could live a middle class life or better on that amount and not have to work any more unless we wanted to.

We didn't count on spending any types of future income like stock market gains that may or may not ever materialize or count on interest rates going back up - just could we live well on a matching strategy type portfolio with very conservative investing and the answer for us was yes.

We've had a number of friends die in the last few years so we have never regretted that decision. One person in particular I used to discuss investments and retirement with. He died before he ever got to enjoy even one day of retirement.
__________________

__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort 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 11-05-2015, 04:06 PM   #22
Recycles dryer sheets
 
Join Date: Jun 2014
Posts: 433
The death rate thing is on my mind.

At 40 my death rate is about 24/1000... At 45 its 35/1000. So while my firecalc number stays at 100%, my chance of dying number keeps going up... Exponentially.

When I think about omy I often think of the financial risk of running out of money in a very concrete way but think of my chance of dying in an abstract way. But that's not really what's happening is it .

Sent from my HTC One_M8 using Early Retirement Forum mobile app
__________________

__________________
petershk is offline   Reply With Quote
Old 11-05-2015, 04:09 PM   #23
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: 42,065
Quote:
Originally Posted by petershk View Post
When I think about omy I often think of the financial risk of running out of money in a very concrete way but think of my chance of dying in an abstract way. But that's not really what's happening is it .
You are dead right about that.
__________________
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 11-05-2015, 04:14 PM   #24
Thinks s/he gets paid by the post
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 1,668
Quote:
Originally Posted by petershk View Post
The death rate thing is on my mind.

At 40 my death rate is about 24/1000... At 45 its 35/1000. So while my firecalc number stays at 100%, my chance of dying number keeps going up... Exponentially.

When I think about omy I often think of the financial risk of running out of money in a very concrete way but think of my chance of dying in an abstract way. But that's not really what's happening is it .

Sent from my HTC One_M8 using Early Retirement Forum mobile app

The longer you live the greater your chance of dying. Eventually it's got to happen...


Sent from my iPhone using Early Retirement Forum
__________________
Dash man is offline   Reply With Quote
Old 11-05-2015, 05:09 PM   #25
Recycles dryer sheets
 
Join Date: Jun 2014
Posts: 433
Quote:
Originally Posted by Dash man View Post
The longer you live the greater your chance of dying. Eventually it's got to happen...


Sent from my iPhone using Early Retirement Forum
Exactly!
So imagine if Firecalc had a line that just showed "chance of death" based on your age/gender as a similar series of lines . So then you'd have a range of monetary outcomes against a range of "non monetary" outcomes.

To me:
95% chance that you wont run out of money vs. running out of money
is very different than
95% chance that you wont run out of money vs. a 1% chance you'll die vs a 1.5% chance you'll die.

So if OMY increases my safety by 1% (99% to 100%) but increases my chance of dying by 10% (i.e. from 24/1000 to 26/1000) that's very different than if OMY increases financial safety by 10% (85% to 93%) with the same increase to death rate.

I'd probably take the 10% increase in financial safety against the small increase in death rate but the 1% increase seems less obvious. When you're at 100%... well... it really starts to become a bit nutty :P.

Of course this is an "all things being equal" scenario. And they never are. A person who hates his 80hr/week job and desperately wants to spend time with his family is not equal on this graph to a person who loves his job and would lose his mind at home. But then... we use firecalc a ton, and it's not an "all things being equal" measure either... it's just one (albeit very important and more objective) way of measuring an element of FIRE.
__________________
petershk is offline   Reply With Quote
Old 11-05-2015, 07:31 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,324
I've suggested this before on other threads, but if you have not read it yet, I really found good advice for my household in the book What Happy People Know. There is a lot of focus in that book on how most people think they would be happy with just a bit more money - but it holds true no matter how much people make. And up to a certain point, more money does seem to make people happier (up to $75K in one study), especially if you have to worry about basics like housing or health care at lower income levels. But after a certain income level the free time to spend on hobbies, family and friends, bonding with pets, creative pursuits, cultural activities, being out in nature and your health may be worth more than the extra money.
__________________

__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort 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
fire calc vs other calculators // checking your account daily !!! wstu32 FIRE and Money 7 01-09-2007 01:55 PM
pension and fire calc ricthemic Hi, I am... 3 10-24-2006 09:31 AM
Fire Calc Results modhatter FIRE and Money 2 08-12-2006 12:56 PM
FIRE Calc vs TRowe Calc lbymfire FIRE and Money 12 06-13-2006 11:52 AM
How do you use Pension money in the Fire Calc? newguy88 FIRE and Money 4 05-31-2006 10:34 AM

 

 
All times are GMT -6. The time now is 06:28 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.