Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
MSN on ER (the "lite" analysis)
Old 04-06-2004, 10:30 AM   #1
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
MSN on ER (the "lite" analysis)

http://moneycentral.msn.com/content/...96.asp?Printer

I think the article's a few years old since it mentions 11% investment returns and 8% mortgages. But the psychological/lifestyle points are timeless.

I have a hard time agreeing with the advice to accumulate 35 years of earnings for SS. Even starting at age 16 would mean working into our 50s!

Then there's the guy whose plan was to have his summers off. "I made up my mind not to do a darn thing all summer"...
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords 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: MSN on ER (the "lite" analysis)
Old 04-06-2004, 02:34 PM   #2
 
Posts: n/a
Re: MSN on ER (the "lite" analysis)

I'm not sure working into "your 50s" is bad. I opted out
at 49, and Terhorst notwithstanding, very few can do it
earlier. On the other hand, if you get your head in
the right mode, most anyone can opt out, especially
in the USA.

John Galt
__________________
  Reply With Quote
Re:  You might be right...
Old 04-06-2004, 07:06 PM   #3
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Re:  You might be right...

Speaking from the lower side of 50, I don't think that I could have stayed at work one day longer than I had to. In fact, I took all the leave I could get instead of sticking it out for the extra cash. But that military pension gives me some thinking room.

From the higher side of 50, with rose-colored glasses, I might decide that I coulda hacked it a while longer. But I remember getting a surprise $75K job offer and realizing that I had no motivation to fight rush-hour traffic, wear shoes & socks, or stand the occasional midwatch.

I wouldn't have consoled myself with the thought of the extra SS benefits, either. The most important lesson here is that you know when it's time to go!
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-07-2004, 05:59 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
Re: MSN on ER (the "lite" analysis)

I took one of those temp. 75k jobs in 95 after being 'unemployed/ER'd' two years. A tornado took the roof off(no insurance) and used the money to remodel. After that - 'knew it was time to be ER' and dropped the unemployed moniker. BTY - the job wasn't that bad - just that ER is better, way better.
__________________
unclemick is offline   Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-07-2004, 06:21 AM   #5
 
Posts: n/a
Re: MSN on ER (the "lite" analysis)

Knowing "when it's time to get out" is a key to ER.
No question. I knew with absolute certainty. I suspect
many have to agonize a bit over this. As I have said before, I could have continued on and made a big pile of
money. I wanted the time instead. Lots of reasons
really, but a heightened sense of my own mortality
and the unknown time I had left was my primary
motivator.

John Galt
__________________
  Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-07-2004, 11:42 AM   #6
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: MSN on ER (the "lite" analysis)

I didnt agonize at all.

After thinking about it (seriously) for a couple of days I just figured

"Oh well, I can ALWAYS go back to work anytime I want to, a month from now, a year from now, or ten years from now".

As some have pointed out, some skills may deteriorate, but I dont think any of us are one dimensional savants.

I do however believe I could step right back into my old job now, or 10 years from now and within a month or two (mostly absorbing the changes and new political dynamic), be just as effective at what I used to do.

Or I can sell stuff...plenty of sales jobs pay pretty good money.

Then there's always the quick-e mart.
__________________
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: MSN on ER (the "lite" analysis)
Old 04-07-2004, 01:29 PM   #7
Thinks s/he gets paid by the post
Hyperborea's Avatar
 
Join Date: Sep 2002
Location: Silicon Valley
Posts: 1,008
Re: MSN on ER (the "lite" analysis)

Quote:
As some have pointed out, some skills may deteriorate, but I dont think any of us are one dimensional savants.
Not 1D savants but I know that if I was 10 years into retirement and wanted to start doing software again there would be serious difficulties with finding employment that pays what mine does now. I might be able to find something but it would be at a lot lower level and in one of the less desirous and almost assuredly lower paying jobs. Perhaps not even that depending on how well I've kept up with technology.

Quote:
Then there's always the quick-e mart.
There are quite a lot of 9-5 jobs that require not too much in the way of skills or intelligence (though a little of each makes them much easier) to fall back on. The biggest difference for an early retiree with a failed portfolio is that we wouldn't be requiring that $15K/annum job to provide all our living expenses. We would have some fraction of our original portfolio to top up our income or to save aside until we reach "regular" retirement age. Most also would own their home outright and so there would be no mortgage or rent costs.
__________________
Hyperborea is offline   Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-07-2004, 03:14 PM   #8
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: MSN on ER (the "lite" analysis)

[quote]I didnt agonize at all.


"Oh well, I can ALWAYS go back to work anytime I want to, a month from now, a year from now, or ten years from now".

I think that if you are over 50, or maybe even 40, and have been out of the workplace for a number of years, it is going to be tough to get a job. There is a lot of age discrimination out there. Employers think you are not up on current developments, are probably set in your ways and can't be molded into the employee they want, and will make their insurance costs go up. Maybe this problem will pass as boomers retire and there is more need for workers.

Martha
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-07-2004, 04:26 PM   #9
 
Posts: n/a
Re: MSN on ER (the "lite" analysis)

Hi Martha! I don't ever plan to go back to work, and
doubt anyone would hire me anyway. I don't care
of course! Even though my energy/motivation is low,
I could still produce big time results. I recall back in the
70s, an employer accused me of "doggin' it". I told them
they were better off having me at 50% than having
almost anyone else at 100%. Not only that, I wasn't
kidding.

John Galt
__________________
  Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-07-2004, 06:01 PM   #10
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Re: MSN on ER (the "lite" analysis)

John, I'd hire you in a heartbeat! Of course, I won't have a job myself, but if I did...
__________________
Bob_Smith is offline   Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-15-2004, 12:18 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 1,318
Re: MSN on ER (the "lite" analysis)

I think a few years into ER and we are pretty much unemployable. You'd never be able to stomach the BS of a workplace, and they wouldn't want us around -- the whiff of freedom makes the other animals restless. However, you could make money if you needed to -- plenty of ways being self-employed, making stuff and selling it, getting paid to tell people stuff that they don't know, investing in real estate or private companies -- that sort of thing.
__________________
ER for 10 years; living off 4.3% of savings (and a few book royalties ;-)
ESRBob is offline   Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-15-2004, 12:22 PM   #12
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: MSN on ER (the "lite" analysis)

I've been daydreaming about what it'd be like to have my old job back, but to be able to say and do absolutely whatever I thought was the right thing with absolutely no fear of consequences, since I dont need the job or the money.

In the fantasy, the whole thing is liberating and contagious.

Then my alarm clock goes off and I realize that by lunchtime of my first day I'd have been affixed to a pole out in the parking lot, tarred and feathered, and left as an example.

A mighty fine description of my old workplace:

http://news.yahoo.com/news?tmpl=stor...seethinginside
__________________
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: MSN on ER (the "lite" analysis)
Old 04-15-2004, 03:41 PM   #13
Thinks s/he gets paid by the post
charlie's Avatar
 
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: MSN on ER (the "lite" analysis)

You know how some types of dreams repeat
themselves? Like you have to take a final
after cutting the whole semester? Well one
of my dreams that still comes back 16 years
into ER is wandering the halls of my old workplace
and suddenly realizing I don't have a badge
anymore or wandering into a once familiar
building and getting lost. Some shrink could
probably have fun with this. During my waking
moments I never look back and don't even think
about what once was.

Cheers,

Charlie (aka Chuck-Lyn)

__________________
charlie is offline   Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-15-2004, 05:28 PM   #14
 
Posts: n/a
Re: MSN on ER (the "lite" analysis)

I've had a few dreams about working, even though
I've been retired for years. Usually they
are pretty benign but a couple have turned into nightmares, like "How do I get out of this?" Then
I wake up. What a relief!

JOhn Galt
__________________
  Reply With Quote
Re: MSN on ER (the "lite" analysis)
Old 04-15-2004, 07:11 PM   #15
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Re: MSN on ER (the "lite" analysis)

This reminds me of a movie scene in "Top Secret": the hero is in high school with his friends scurrying in a panic; he asks what's going on and it turns out it's finals day and he hasn't studied. He starts panicking himself and awakes to realize he's strung up in irons and being bareback leather-whipped by East Germans. He sighs "thank God!"

I imagine some of you would prefer the whipping to being back at work. . . .
__________________

__________________
BigMoneyJim 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
A Decision Analysis approach to SWR choices Rich_by_the_Bay FIRE and Money 27 03-09-2006 09:18 AM
Vanguard Retirement Analysis vs. 4% withdrawal analysis familyretired FIRE and Money 3 08-26-2005 03:33 AM
Great DFA vs Vanguard Analysis in Index Investor ESRBob FIRE and Money 2 12-10-2004 08:03 PM
POPR analysis wzd FIRE and Money 11 02-19-2004 09:13 PM
MSN Retire Early Board moguls Other topics 6 07-17-2003 12:08 PM

 

 
All times are GMT -6. The time now is 04:32 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.