Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Would You RE?
Old 06-21-2005, 05:41 PM   #1
Dryer sheet aficionado
 
Join Date: Nov 2004
Posts: 38
Would You RE?

40 Years Old
1.3 million in several top performing mutual funds, taxable account
1.5 million in several top performing mutual funds, SEP-IRA account
350K in equity in 700K home.
No other debts.
No Pension

Currently live on about $7K per month including home mortgage.

Happily married w/ 2 Children,* 10 & 12.
Work from home and wife is homemaker.
Kids are homeschooled.

Not an overly stressful job, but lots of other things you'd rather do with 45 hours a week.

Do you go for it?

How would you change your portfolio?*

Sell the home and buy one with cash from in lower cost of living area?

I'd be interested in hearing from anyone, especially those who retired real early as a couple w/family.

__________________

__________________
ktupper 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: Would You RE?
Old 06-21-2005, 05:47 PM   #2
 
Posts: n/a
Re: Would You RE?

Yes, I would go for it. Sell house, move to country, cut expenses to 55K, adjust portfolio to reduce volatility.
__________________
  Reply With Quote
Re: Would You RE?
Old 06-21-2005, 08:39 PM   #3
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Would You RE?

It sounds like a no-brainer, unless I'm missing something. If the job itself isn't a bother while working from home, is it a job that you could at least cut down to 5 or 10 hours a week and semi-retire for a few years before fully retiring?
__________________
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: Would You RE?
Old 06-21-2005, 08:41 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Would You RE?

Thats easy. If you dont want to work anymore and can/will cut your living costs by ~30%, and most certainly sell the mcmansion and move to a cheaper area, then you can do it.

If you dont mind the work, like spending the money, and like living in the 700k house, then you shouldnt do it.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Would You RE?
Old 06-21-2005, 09:47 PM   #5
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Re: Would You RE?

Quote:
Originally Posted by Notth
Thats easy.* If you dont want to work anymore and can/will cut your living costs by ~30%, and most certainly sell the mcmansion and move to a cheaper area, then you can do it.

If you dont mind the work, like spending the money, and like living in the 700k house, then you shouldnt do it.
Am I missing something here?
With 2.8million you want him to keep working when he lives on 7K a month.
Man am I in trouble if you think he should keep working.
__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Re: Would You RE?
Old 06-21-2005, 10:13 PM   #6
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: 42,150
Re: Would You RE?

Quote:
Originally Posted by 73ss454
Am I missing something here?
With 2.8million you want him to keep working when he lives on 7K a month.
Man am I in trouble if you think he should keep working.
Either that crying baby got to th or he needs to put more tinfoil in the lining of his hat...

REW
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Would You RE?
Old 06-22-2005, 11:48 AM   #7
Full time employment: Posting here.
bow-tie's Avatar
 
Join Date: Mar 2004
Posts: 687
Re: Would You RE?

I'm with '73, unless I'm missing something, he (FIRE ME!) looks good to go... although downsizing certainly wouldn't hurt.
__________________
Diggin' my way to financial freedom, one buck-at-a-time
bow-tie is offline   Reply With Quote
Re: Would You RE?
Old 06-22-2005, 11:53 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Would You RE?

He's 40 and half his money is in an IRA. Unless he 72t's it off, he's working on a portfolio that will produce perhaps 50k a year @4% BEFORE taxes. If he eats principal and waits for the IRA, then he could possibly pull out 100k a year that would turn into 70k after taxes, but I hate principal eating.

That was also a test that you guys ruined! He didnt sound like he was particularly incented to run away from the job, or that he was totally excited about selling his expensive house and moving to a cheaper area. I was pushing the button that said 'job might not be so bad, house good' to see if he was really wanting to go bye-bye. He sticks it out a little longer, he might not have to sacrifice as much.

But yeah, he could go and probably make it, if his home value doesnt drop a lot due to an RE bubble bursting, and equities dont take a drubbing.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Would You RE?
Old 06-22-2005, 12:20 PM   #9
Recycles dryer sheets
 
Join Date: Jul 2002
Posts: 420
Re: Would You RE?

He he - RUN! Cheers!
__________________
preben is offline   Reply With Quote
Re: Would You RE?
Old 06-22-2005, 12:32 PM   #10
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Would You RE?

Quote:
Originally Posted by Notth
He didnt sound like he was particularly incented to run away from the job, or that he was totally excited about selling his expensive house and moving to a cheaper area.* I was pushing the button that said 'job might not be so bad, house good' to see if he was really wanting to go bye-bye.
I got the same impression. That's why I recommended semi-retirement for a while to test the water.
__________________
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: Would You RE?
Old 06-23-2005, 10:24 PM   #11
Dryer sheet wannabe
 
Join Date: Jun 2005
Posts: 20
Re: Would You RE?

FIRE ME!,

Let me be the first to commend you on an awesome saving rate that you had to get at where you are... to get there by 40 - wow. I think that beats better than 97% of this board, especially when considering happily married, homeschooled children, a wife in a 700K home where she can stay at home because somehow you make enough to also spend at 82K after tax or like 150K annually salary without considering the savings you are admirably accomplishing ... whilie not even leaving home yourself and do something for 45 hours at home that generates this income.

Exactly what do you do Mr. FIRE ME!?
__________________
dimwit is offline   Reply With Quote
Re: Would You RE?
Old 06-24-2005, 02:04 AM   #12
Recycles dryer sheets
 
Join Date: Oct 2004
Posts: 325
Re: Would You RE?

Congratulations. You've won. Take the family to Disneyland and celebrate your ER.
__________________

__________________
"TEMPUS FUGIT"
LEX 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


 

 
All times are GMT -6. The time now is 08:51 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.