7 year itch... :)

[CUinFl]

I am addicted to this site. Since I found this site a few weeks ago, I have read various threads and pieces of advice... I am much smarter today on ER because of all of you. Thank you....

I now have a conundrum; I am 7 years away for ER, and need to either stop reading this site, as i will go bonkers over the next seven years, or constructively ask for and apply advice from you.

That said, here is my attempt at the latter. For those who are retired, or imminently will be, if you had one piece of advice you would give to someone with 7+ years left before retirement, what would it be?

Also, does anyone know if Dory36 still peruses and responds on these boards?

[REWahoo]

Quote:

Originally Posted by CUinFl Also, does anyone know if Dory36 still peruses and responds on these boards?

No, Dory36 fell off the wagon and returned to work. He hasn't been heard from for a couple of years.

[bob boag]

Quote:

If you had one piece of advice you would give to someone with 7+ years left before retirement, what would it be?

Put $17500 in your 401k/403b each year, or $23000 if you're over 50.

[Meadbh]

Pace yourself. Take pride in small victories and milestones (e.g. hey, as of today, investable assets are at 80% of my target!) and try to live a balanced life. Take all your vacations and get out of town. Do your w*rk well, but don't get sucked into mindless projects ("What would you like me to give up doing if I take this on?").

That's what I did for close to 7 years after I found this forum!

[Moscyn]

Keep saving and investing - even after you reach your financial goal. And don't deprive yourself of vacations now. You should enjoy yourself even as you work towards ER.

[Lcountz]

How old are you and are you married, and do you have kids who will still live at home in 7 years?

I SO agree with Bob Boag's advice above re: 401k contributions, for both you and spouse if applicable.....also, think about Roth IRA if you can, so you will have some relatively accessible money to live on if you go before 55 ( at 55 you can access your 401K if needed.) Then you wont have to deal with conversions later on.

And if you have a HDHP, put the maximum in your HSA too....what a gift of a tax write off, and if you don't need to use it, it's like another savings account for when you turn 65. Check Indiana's state tax rules too, here in PA we can also take ALL the HSA contribution straight off income!!!!!

As for keeping sane for 7 more years.....just try thinking BACK 7 years and how fast that time has gone!!!! And when you are those mindless meetings, look attentive but be thinking about your future....and nod or aha at appropriate times. If you're in management you know these deadly boring all day staff meetings generally dont come to much anyway, because another crisis will pop up the next day.

It'll happen!!!! And soon you too will be sipping coffee on a gorgeous late spring morning like today. enjoying the cool morning air, hopefully looking out at the woods and lake...and NOT have to leave to go to work!!!!!! (Like I'm doing right now!!!!!)

So get to work! Make YOUR ER the priority and Super Save as much as you can toward that day!!!

Good luck!!!!!

[Dawg52]

Quote:

Originally Posted by Moscyn Keep saving and investing - even after you reach your financial goal. And don't deprive yourself of vacations now. You should enjoy yourself even as you work towards ER.

Agree. Seven years is a long time if your focus is ER only. You need to have short term goals along the way and then reward yourself with a nice vacation or long weekend somewhere. Although there is nothing like retirement, enjoy the ride to your goal.

[frayne]

Become debt free if you aren't already, max out tax deferred contributions as mentioned above, downsize if you are in the big house, read every book by John Bogle, learn how to DIY when it comes to investing. Plan ahead and have goals, benchmarks, etc. but live and enjoy each day.

[Onward]

Save and invest like mad. Avoid anything that could possibly put you across the table from a divorce lawyer.

[HighRoller]

Quote:

Originally Posted by Onward Avoid anything that could possibly put you across the table from a divorce lawyer.

Sounds like really good advice. I hope it's not from practical experience.

[CUinFl]

Thank you all for the great advice, keep other ideas coming if there are more thoughts..... I have a few takeaways.

To address a few of the posts:
- if anyone still chats with Dory36, tell Dory I said thanks for creating a great community of mentors


Here is the advice I took away
- maxing out deferred is the way to go; save as much as you can (Roth, Ira, etc)
- seven years I will have a DW (6 yrs younger) and two children in their very early teens
- enjoying what life has to offer now is just as important as post retirement
- set mini goals
- pay down debt - I will not be able to pay off the debt
- downsize where possible
- keep the family unit whole
- learn other ideas through reading and research.


Thank you... I do recognize no one threw out a measure like 4% for 30 years, or 80% of you pre-retirement income... In thinking through that fact, is realize there is more to life then "a number" (although you should have a target) or a retirement date(although you should have a plan). Thank you again

[David1961]

1 LBYM
2 Max out contributions to your 401k plan.
3 If you haven't done so already, read up on investments.
4 LBYM
5 You still have 7 years left, so it's much too early to cruise. But you also have 7 yrs to maybe adjust better to the job (if you haven't done so already). You might find that in 7 years you love your job (stranger things have happened).
6 Exercise if you are not doing so.
7 And make sure you LBYM (or did I already say that?)

[ICNTR]

It may be a fun exercise to plan new ideas, interests, hobbies, etc.
June will mark my 1 year of ER anniversary and I have not been bored in the least. However, I have also not made a lot of progress pursuing my new interests and hobbies.
Depending upon what you plan to do with your time, it may be good to start putting the pieces together of the next few years. As an example only, if you wanted to have a small acerage hobby farm, then there is lots to learn and property/equipment that may be more easily and efficiently procured as the opportunities present themselves prior to ER. A side benefit is that these little steps along the way can be rewarding milestones to mark progress towards your ultimate ER goal. Weigh the risks and your assumptions though. It is possible that what we think may enjoy doing may not in fact be reality once we find ourselves actually in ER.
Good luck and congratulatioins.

[CUinFl]

Thanks David, I think you were trying to push LBYM, exercising was the item which created the most pause for me.

ICNTR, thanks for the advice, I really need to consider this as a person should "retire to" something versus "retire from" a job.

[walkinwood]

Great advice above - especially the "enjoy your life now" piece. You have to be happy on the way to ER - you can't just expect to turn it on after a set date/event. Doesn't happen. Happiness is the path. (I try to live by that maxim)

Develop a hobbies/interests that will keep you engaged after ER. Financial success, in the bigger scheme of things, is only a very small part of ER. There are a number of good books on the subject of happiness/engagement in retirement.

Take care of your health so you can enjoy ER. Tend to your social network.

If you plan to move, consider doing it before you ER.

Live on your planned ER budget & catalog your expenditures.

[ls99]

Slowly and deliberately distance yourself from any w*rk related labels or titles. Practice being who you are. OK, that is two from me, even though you only asked for piece of advice

[gauss]

CUinFl,

How attached are you to the 7 more year number?

The reason that I ask is that originally I planned to work until the age of 55 to get 30 years of service with the MegaCorp, full retirment etc.

A funny think happened along the way.
#1) MegaCorp eliminated post-Medicare supplemental health insurance

#2) MegaCorp decided to freeze all contributions to pensions (ie I could work another 7 years, or quit today and the pension amount would be the same)

#3) I became FI along the way.

I moved up my date, originally in 2019 to this year (April 2013) when I finally pulled the plug and resigned. Sure it is not a genuine retirement, but with changes made to the pension plan and post-65 medical benefits, the issue was essentially moot. I found it interesting to see my co-workers expressions when I explained my logic to them as to why I was leaving (ie the fact that the times have changed seemed to be sinking in for the first time...)

-gauss

[CUinFl]

Thank you Walkinwoods, is99 and gauss. I agree with your advice that flexibility and adaptability, along with good health, is the best way to push forward.

While I am not attached to 7 years, it is the guidepost I use based on what I know today. I agree if fundamentals change, so will my timing estimates, so building / maintaining my social network and envisioning retirement is a great set of efforts I should do now.


As an aside, a topic came up in a leadership forum I was in this week.... The retired P&G motivational speaker mentioned that after 3 years of retirement, nearly 40% of retirees are clinically depressed. I was surprised by that comment and stat and immediately thought to the advice you all are giving me as I plan for ER.


Thanks for your advice.

[Onward]

Quote:

Originally Posted by CUinFl The retired P&G motivational speaker mentioned that after 3 years of retirement, nearly 40% of retirees are clinically depressed.

Not so bad when you consider that probably 80% of full-time employees are clinically depressed.

[CUinFl]

Quote:

Originally Posted by Onward Not so bad when you consider that probably 80% of full-time employees are clinically depressed.

Onward, I wish I had your quick witted humor during the session. .


His point, and the session was not around retirement, so there was not a discussion.


My point for putting that comment in this thread is that if you take the retirement approach of working towards a better day, you may never get there. What you need to do instead is make each day your best day as you work to Retire Early. That is the advice I pulled from this thread and took away from the speaker's comment