Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 04-19-2015, 10:45 PM   #61
Recycles dryer sheets
 
Join Date: May 2014
Posts: 342
I am amazed that people are willing to spend a lot of time to discuss the action of two particular persons to such a great depth. There are billions of people in the world and there are many actions that different people can take. These two guys want to retire at 30 with $1M in banks. Another two guys want to retire at 30 without money in banks and decide to rob the banks. Every one has his/her choice of life.
__________________

__________________
flyingaway 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 04-20-2015, 07:44 AM   #62
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,690
Quote:
Originally Posted by flyingaway View Post
I am amazed that people are willing to spend a lot of time to discuss the action of two particular persons to such a great depth. There are billions of people in the world and there are many actions that different people can take. These two guys want to retire at 30 with $1M in banks. Another two guys want to retire at 30 without money in banks and decide to rob the banks. Every one has his/her choice of life.
That is why this is a retirement forum, to discuss retirement ideas! From reading various individuals retirement ideas one can better formulate or modify their own retirement, this to me is the purpose of the forum.

As for the couple, with present ACA and college funding, I do not see why if the spending can be held to 40K per year it would not work out. ACA will only be 242 per month for a family of 3 and if there is after tax money and can hold income recognized to 30K you are only talking about 100 per month. Additionally there would be no need to save for college for the child as present rules would most likely make grants available in the 10K per year range.

Downside would be lack of qualification for Social Security but whether or not the 4% withdrawal rate would work would be known pretty much by the time the couple was 40 and still able to work.

As long as the expense could be controlled to 40K and flexibility if work force reentry was an option, I see no reason to not give it a go.
__________________

__________________
Running_Man is offline   Reply With Quote
Old 04-20-2015, 08:26 AM   #63
Thinks s/he gets paid by the post
David1961's Avatar
 
Join Date: Jul 2007
Posts: 1,076
Personally I wouldn't do it.

But I did enter into FireCalc a portfolio of $1M, withdrawal of $40k per year and a 60 year time period and it gave a probability of success of 82% (which seems high to me). This used the default FireCalc settings. But like others have said, there are so many variables for a potential 60 year retirement that I would not feel comfortable.
__________________
David1961 is offline   Reply With Quote
Old 04-20-2015, 08:29 AM   #64
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
I"m with Brewer and Fuego (and Fermion) on this: sure, I'd have done it, knowing that I'd probably have to do something for a few coins most years, and not have a problem with that. The kids thing is different for me, but it would seem you can raise them without spending exorbitant amounts of cash if need be.

The catastrophic events like major health problems would certainly worry me, and there's no question that money makes those kinds of things easier to deal with, but it would again probably be a gamble I'd have taken if I could.

I guess I wouldn't call it retirement, as such, but more of a lifestyle change to intermittent work. The old Travis McGee, if you will.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 04-20-2015, 09:59 AM   #65
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: Following the nice weather
Posts: 6,428
I have a couple of old friends/cow*rkers who sort of did this, although not exactly. In their early 40s they "retired" to the beach in FL with the intention of living off their savings as long as they could, sort of like "retirement is wasted on the old". They lasted a decade or so, partly due to a fairly large payoff at the track. But last I heard they both have had to go back to work, and I don't think retirement is in their future for a long, long time. To each his own, but at 59 and having been retired for 9 years, I would be absolutely miserable going back to work.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam Clemens
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 04-20-2015, 10:47 AM   #66
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,906
Quote:
Originally Posted by harley View Post
I have a couple of old friends/cow*rkers who sort of did this, although not exactly. In their early 40s they "retired" to the beach in FL with the intention of living off their savings as long as they could, sort of like "retirement is wasted on the old". They lasted a decade or so, partly due to a fairly large payoff at the track. But last I heard they both have had to go back to work, and I don't think retirement is in their future for a long, long time. To each his own, but at 59 and having been retired for 9 years, I would be absolutely miserable going back to work.
What?

How is this story of two people gambling at a racetrack at all related to someone investing $1m in a diversified portfolio and trying to live on 4% of it?

I heard a story about a guy who worked until age 60, retired, then lost all of his money on a bad business venture. I guess that proves that working until 60 doesn't work either.
__________________
Fermion is offline   Reply With Quote
Old 04-20-2015, 10:53 AM   #67
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Quote:
Originally Posted by Fermion View Post
What?

How is this story of two people gambling at a racetrack at all related to someone investing $1m in a diversified portfolio and trying to live on 4% of it?

I heard a story about a guy who worked until age 60, retired, then lost all of his money on a bad business venture. I guess that proves that working until 60 doesn't work either.
I might have read it wrong, but I took the story to mean that this couple tried to retire early when they thought they had enough money, but weren't able to sustain themselves. Perhaps they budgeted wrong or some big expense, or something came up. But then, they lucked out at the race track, and that was able to sustain them a bit longer. But in the end it wasn't enough to keep them retired, so they had to go back to work.

At least, that was my take on it.
__________________
Andre1969 is offline   Reply With Quote
Old 04-20-2015, 10:56 AM   #68
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,906
Quote:
Originally Posted by Andre1969 View Post
I might have read it wrong, but I took the story to mean that this couple tried to retire early when they thought they had enough money, but weren't able to sustain themselves. Perhaps they budgeted wrong or some big expense, or something came up. But then, they lucked out at the race track, and that was able to sustain them a bit longer. But in the end it wasn't enough to keep them retired, so they had to go back to work.

At least, that was my take on it.
They lasted one decade. There has not been ANY financial event in the markets of the past 60 years where a diversified portfolio of stocks/bonds in a reasonable mixture (say 60/40) failed at a 4% SWR in just 10 years.

This means they really didn't have enough money to even sustain a 4% SWR retirement and were counting on something else (gambling) to make their retirement work.

That is my take on it
__________________
Fermion is offline   Reply With Quote
Old 04-20-2015, 11:14 AM   #69
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: Following the nice weather
Posts: 6,428
What, we're not allowed to off topic anymore? I must have missed the rule change. Sorry, please stop beating me massa! I...can't...breathe!
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam Clemens
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 04-20-2015, 11:39 AM   #70
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,906
Quote:
Originally Posted by harley View Post
What, we're not allowed to off topic anymore? I must have missed the rule change. Sorry, please stop beating me massa! I...can't...breathe!
You posted a story and then made the statement "To each his own, but at 59 and having been retired for 9 years, I would be absolutely miserable going back to work."

I thought your story was told as an attempt to reinforce that statement. I am sorry if you were just telling a story and making a separate statement and the two were unrelated.

I had a hamster once. He ate a marble and died. I do not think Social security will be cut.

Confused?
__________________
Fermion is offline   Reply With Quote
Old 04-20-2015, 11:59 AM   #71
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,456
Why not just agree to disagree and keep it friendly.
__________________
MichaelB is online now   Reply With Quote
Old 04-20-2015, 12:36 PM   #72
Recycles dryer sheets
 
Join Date: May 2014
Posts: 342
Quote:
Originally Posted by Running_Man View Post
That is why this is a retirement forum, to discuss retirement ideas! From reading various individuals retirement ideas one can better formulate or modify their own retirement, this to me is the purpose of the forum.

As for the couple, with present ACA and college funding, I do not see why if the spending can be held to 40K per year it would not work out. ACA will only be 242 per month for a family of 3 and if there is after tax money and can hold income recognized to 30K you are only talking about 100 per month. Additionally there would be no need to save for college for the child as present rules would most likely make grants available in the 10K per year range.

Downside would be lack of qualification for Social Security but whether or not the 4% withdrawal rate would work would be known pretty much by the time the couple was 40 and still able to work.

As long as the expense could be controlled to 40K and flexibility if work force reentry was an option, I see no reason to not give it a go.
OK. I get it. Everyone can retire regardless. One can have ACA for health care, and grants for kids' college education. Please don't forget there are food stamps (and churches) for people when they run out of money.
__________________
flyingaway is offline   Reply With Quote
Old 04-20-2015, 01:15 PM   #73
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,456
Alright y'all. No reason for such crankiness on a Monday morning, especially the already retired ones. I'm the one still working, at least I have an excuse.
__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC is offline   Reply With Quote
Old 04-20-2015, 01:20 PM   #74
Recycles dryer sheets
 
Join Date: Dec 2011
Location: Chicago area
Posts: 427
Quote:
Originally Posted by thefinancebuff View Post
Depends on the definition of retiring. If it's like MMM just switching to self-employment on their own terms the answer would be yes.
+1

Sent from my SM-T237P using Early Retirement Forum mobile app
__________________
AnIntentionalRoad is offline   Reply With Quote
Old 04-20-2015, 01:55 PM   #75
Recycles dryer sheets
 
Join Date: Dec 2011
Location: Chicago area
Posts: 427
I think more people should take the route of extreme early retirement from "career" positions and live life, supplementing along the way, doing lower paid work that is more enjoyable or less stressful, when needed/wanted.

Even with kids. Raise your kids, teach them, be part of your community.

Maybe this is a generational perspective shift but I don't see any particular honor earned or bozo buttons handed out for putting in 30 years at megacorp, having strangers raise your kids, and living life through purchased products and annual vacations at the all-inclusive resorts, while looking at your best years and health fade in the rear view mirror.


Sent from my SM-T237P using Early Retirement Forum mobile app
__________________
AnIntentionalRoad is offline   Reply With Quote
Old 04-20-2015, 02:03 PM   #76
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,461
I think everyone should do what works best for them individually. Some people would not be able to sleep with that plan.
__________________
Teacher Terry is offline   Reply With Quote
Old 04-20-2015, 02:07 PM   #77
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,702
Quote:
Originally Posted by jim584672 View Post
A frugal person could retire with $1,000,000 at 30.
Living in a van under a bridge maybe?

But they're missing the main point of the 4% calculation, I think. Doesn't the 4% rule sort of stop working beyond 35-40 years or so?
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is online now   Reply With Quote
Old 04-20-2015, 02:10 PM   #78
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,326
Quote:
Originally Posted by AnIntentionalRoad View Post
I think more people should take the route of extreme early retirement from "career" positions and live life, supplementing along the way, doing lower paid work that is more enjoyable or less stressful, when needed/wanted.

Even with kids. Raise your kids, teach them, be part of your community.

Maybe this is a generational perspective shift but I don't see any particular honor earned or bozo buttons handed out for putting in 30 years at megacorp, having strangers raise your kids, and living life through purchased products and annual vacations at the all-inclusive resorts, while looking at your best years and health fade in the rear view mirror.
Well said. I am the older generation but I wish I had realized to do this years ago, though partly why we couldn't were concerns over health insurance and pre-existing conditions. The ACA has made this kind of life more of a reality.

The traditional American Dream is the dream we have been spoon fed from billions and billions of dollars in marketing our entire lives.
__________________
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
Old 04-20-2015, 02:11 PM   #79
Thinks s/he gets paid by the post
nash031's Avatar
 
Join Date: Jun 2013
Location: Coronado
Posts: 1,486
I wouldn't have retired w/ $1M at 30. I won't retire with $1M at 40. I may retire with somewhat more than that plus a pension at 42, however!

That kind of money that early would've led me to a different career path, I think. Just like that kind of money at 42 will allow me to do something I want to do rather than finding a "real job" to make ends meet, if I decide to find a job at all.
__________________
"So we beat to our own drummer in the sun;
We ask for nobody's permission to run.
I just wanna live in a world like that;
Now I'm gonna live in a world like that!" - World Like That, O.A.R.
nash031 is offline   Reply With Quote
Old 04-20-2015, 02:20 PM   #80
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,050
Quote:
Originally Posted by marko View Post
Living in a van under a bridge maybe?

But they're missing the main point of the 4% calculation, I think. Doesn't the 4% rule sort of stop working beyond 35-40 years or so?
Thinking more like - van down by the river.
__________________

__________________
jim584672 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
Poll: If you were in my situation, when would you retire? Tom52 FIRE and Money 44 02-10-2012 06:34 AM
Would you retire, if it were you ? rkser FIRE and Money 20 05-05-2011 10:20 AM
Would you Retire your pool rkser Life after FIRE 63 08-14-2009 04:42 AM
Would you retire on this? chinaco FIRE and Money 25 08-26-2007 04:17 PM

 

 
All times are GMT -6. The time now is 06:44 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.