Who's got the least?

[dallas27]

Who around these parts had the guts to retire on the least amount of money? Would love to hear yhose stories.

While saving up a couple mill and retiring is impressive, i think the person who maximizes time over money wins. Thats a gamble of course as you try to cut it razor thin to being a pauper.


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[springnr]

Playing you bet your life... prudent might be good.
My fallback progression is, sell the house for funds, and then if needed move to a lower cost location. That could be Arkansas, Panama, Thailand...

I should have a lot of company if things go that far. Although I might do this anyway because I would rather be traveling, seeing the world.

 

[scrabbler1]

I ERed in late 2008 when the markets were crashing (which was a huge windfall for me BTW). I had about $830k at the time with $600k of it in my taxable accounts, the accounts I have been living off for the last 5 1/2 years. That $600k which is about 2/3 bond funds has grown to $860k while the $830k overall amount has grown to $1.3M.

 

[rodi]

You don't ask about other income streams.
Those with pensions or rental income don't need as big a stash as those funding their ER with nothing but their nest egg. There are a couple of posters here who have been pretty upfront that their nest egg is small, but have a pension that more than covers their spending.

I'm sure I'm not the lowest. My plan assumes SS will be there (there are lots of folks who refuse to include SS). My plan assumes our rental income from our granny flat will reduce the WR. Without those two factors my firecalc run goes from 100% to about 50%.

And my plan has the plan-B option of a paid for house that can be cashed out and add a HUGE sum to our stash. Cali real estate is obscenely expensive... but we don't plan to sell.

 

[ERD50]

... i think the person who maximizes time over money wins.

Really? I don't. I would think the person who finds the right personal balance between time/money comes the closest to 'winning' - but we may never know until the game is over.

Thats a gamble of course as you try to cut it razor thin to being a pauper.

Gambling with becoming a pauper does not sound like 'winning' to me.

And as rodi said, w/o taking pensions/SS into account, there is no real comparison.

-ERD50

 

[jkern]

I ERed in mid 2009 with $900K ($540K after tax, $360K 403b). Age 51 with no pension. Annual cost of living $55K.

With the Real Estate crash, I was able to purchase three rental properties for $290K yielding a net return of $25K per year.

Five years later, I know have $925K ($200K after tax, $725K 403b) and three rental properties worth $500K.

It was cutting close early, but now all is ok.

 

[Totoro]

I think the person who maximizes time over money wins.

Bill Gates and Warren Buffet must be the biggest losers in your book

Haven't FIREd yet, but consider myself roughly able to. A bit over $800k usd total assets last count. No pension, no SS to speak of. 34 years old.

If I had 1 mil right now, I'd FIRE for sure.

 

[Totoro]

With the Real Estate crash, I was able to purchase three rental properties for $290K yielding a net return of $25K per year.

In Belgium (home country) it is impossible to find real estate yielding anything over 7% gross right now. Most actually yield 4% gross or so.

Waiting for the inevitable meltdown there.

Wish I could short the Belgian housing market somehow ..

 

[AnIntentionalRoad]

I applaud those who RE on a shoestring. I couldn't of done it, though. I enjoy creature comforts and a sense of financial security.

I think the ideal is to maximize the following:

Portfolio at retirement / Age at retirement

 

[aaronc879]

I'm not FI or RE yet but I quit my full-time job and now do very limited contract work to cover my low expenses. I work about 80 days per year to earn $20K which covers my regular expenses plus a little extra to go towards future large expenses like a car. I have less than $250K in investable assets. I'm 34, single, and have a paid off home in low cost of living area.

 

[NW-Bound]

To find account of people who retire on a shoestring, search the Web for blogs of full-time RV'ers who live in small RVs, even vans and cars. They boondock in national forests to avoid camping fees.

The posters above would all be considered rich by these hardy RV'ers. I am sure I do not want to live like the poorest of them, but the better-heeled among them are not doing so bad, and spend about the same as the thriftiest posters here. I think many survive on not much more than SS when they get older and exhaust their own stash.

 

[razztazz]

You don't ask about other income streams.
Those with pensions or rental income don't need as big a stash as those funding their ER with nothing but their nest egg. There are a couple of posters here who have been pretty upfront that their nest egg is small, but have a pension that more than covers their spending.

I guess I'm one. My funding, including the market value of a small pension, totaled a sneeze under $650,000.00. I once calculated the market value of the medical insurance at ~ $200,000.00 but that was a long time ago and I no longer have the details on that.

John Greaney, the retired engineer who has his own blog says he retired with $500,000.00 all his own stash and was paying for his own medical insurance from that.

As far as a pension goes, I consider it the money they were supposed to pay me anyway to secure my future but decided to withhold it hoping I would die instead. I didn't die so now they're just paying me those wages after all.

 

[daylatedollarshort]

I'm not FI or RE yet but I quit my full-time job and now do very limited contract work to cover my low expenses. I work about 80 days per year to earn $20K which covers my regular expenses plus a little extra to go towards future large expenses like a car. I have less than $250K in investable assets. I'm 34, single, and have a paid off home in low cost of living area.

That is a very interesting concept. I suspect with not needing a full time job for health insurance these days, the ACA will allow more people to choose to live this way in the future, valuing free time over a standard 40+ hours work week.

 

[haha]

Who around these parts had the guts to retire on the least amount of money? Would love to hear yhose stories.

While saving up a couple mill and retiring is impressive, i think the person who maximizes time over money wins. Thats a gamble of course as you try to cut it razor thin to being a pauper.


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You first, Amigo.

 

[aaronc879]

That is a very interesting concept. I suspect with not needing a full time job for health insurance these days, the ACA will allow more people to choose to live this way in the future, valuing free time over a standard 40+ hours work week.

I'm considered self employed so I can deduct expenses. My "official" income will likely be around $15000 per year. I currently pay $34/mo for a silver plan from the ACA. It has a $500 deductible. If I make just a couple thousand more it changes a lot so no incentive to make more since i'm used to living on $15K/yr.

 

[aaronc879]

I'm considered self employed so I can deduct expenses. My "official" income will likely be around $15000 per year. I currently pay $34/mo for a silver plan from the ACA. It has a $500 deductible. If I make just a couple thousand more it changes a lot so no incentive to make more since i'm used to living on $15K/yr.

On the down side, since my state doesn't have medicaid, I have to make at least $12K/yr to qualify for a subsidy. If I make less than $12K then I have to pay the full $250/mo for my policy or go without healthcare. If I make $17K+ then my premium more than doubles and my deductible goes way up. So I have to try to plan my contracts so I make between $12-17K/yr after expenses. That's a pretty small window.

 

[robnplunder]

Certainly an inspirational thread for those (me included) who are afraid to pull the trigger. 10 years ago, I was thinking about RE'ng at age 42 with just $1M. I am pretty sure I would have not made it. It's good to see others have made it with less.

 

[akck]

My goal number was $250k and I retired with $350k, but both of us have pensions (wife still working). When SS streams and wife's pension come online, income is expected to exceed expenses for 15 years. So the pot just needs to cover the early years and inflation in the later years. We actually have another hedge in that I don't include the excess income during the 15 years in my plan.


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[martyb]

Our portfolio amount is only currently $400k. I am retiring next Thursday. I will have 2 pensions, both COLA'd. One is federal civil service, the other one doesn't start for another 3 1/2 yrs, and is military reserves. The pensions will more than cover living expenses, including a mortgage. Wife will continue to work until just before the military pension begins. I may or may not do some contract or part-time work. More likely not. I have too many fish to catch..... Wife will get smallish SS in another 9 yrs at 62. I'm affected by WEP, and will only see maybe $250/mo. SS at 62.

 

[Animorph]

My MIL is living off of SS only as far as I know. Along with half of an inherited house, for which she is still making payments on the other half I believe. Definitely no portfolio. However she is doing fine and has family around. Not what I would chose, but something I could live with.

 

[kcowan]

I have a friend in PV MX who retired in 2008 with $50k investments and $750k in property including his house and 2 rental properties. He has the 2 rental properties on the market today so he can relax a little. But he runs a budget that is amazing. And his much younger Mexican wife tows the line.

He also gets SS. And he has US Medicare and also qualifies for VA services in the US.

 

[daylatedollarshort]

I'm considered self employed so I can deduct expenses. My "official" income will likely be around $15000 per year. I currently pay $34/mo for a silver plan from the ACA. It has a $500 deductible. If I make just a couple thousand more it changes a lot so no incentive to make more since i'm used to living on $15K/yr.

A light bulb moment for me was seeing the dorm room for one of our kids. I realized most these kids in the dorm live pretty happy lives in Southern California with a small housing space and small budgets but lots more free time than a 40+ hour a week job with commute, less stress, low financial overhead, time for socialization and low cost activities like biking, surfing, beach valley ball, cook outs and playing Frisbee in the park for fun.

Low overhead and part time or part year work is certainly an interesting lifestyle to consider.

 

[rodi]

My MIL is living off of SS only as far as I know. Along with half of an inherited house, for which she is still making payments on the other half I believe. Definitely no portfolio. However she is doing fine and has family around. Not what I would chose, but something I could live with.

Good point. My MIL's income dropped when FIL passed away last year. Her total income is about $24k. That's SS (wep reduced), Federal Pension, and RMDs from her IRAs and TSP.

Somehow her savings keeps growing. She's spending about $13k all in. and banking almost $1k/month.

Her house is paid for. She has no vices. She doesn't spend on anything but groceries and utilities and cable tv.

We were worried that losing FIL's SS would make it so she started eating into the nest egg - but that hasn't happened... nest egg is growing at age 87.

 

[FUEGO]

$1.35 million in investments plus a mostly paid off house ($40k remaining). RE'd at 33 with 3 kids.

Roughly a $32k/yr retirement budget.

Plan B is to cut expenses as necessary. Plan C is to pick up some part time work. Plan D is to head back to full time work. I don't have a Plan E yet, but I figure I have plenty of time to try out Plans A-D first.

 

[NW-Bound]

Good point. My MIL's income dropped when FIL passed away last year. Her total income is about $24k. That's SS (wep reduced), Federal Pension, and RMDs from her IRAs and TSP...

My mother lives very well on a bit more. I said "very well" because she was out shopping for clothes all the time.

So, as a geezer with Medicare and no dependents, one can retire with $20-30K, and that can come from SS or pension with no market risks. It is a lot scarier for an early retiree totally dependent on investment returns.