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Old 09-12-2014, 09:06 AM   #41
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This is my target too, although I don't have a specific timeframe in mind to RE.

Currently early 40s with 2 young kids and $1.7M in investment assets and a paid off house.

You already have enough saved to retire. A 3% SWR gets you $51K
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Old 09-12-2014, 10:05 AM   #42
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First post here!

I am 48 and hoping to be FIRE'd in 8-10 years
....
According to the Social Security Benefits, for me at 62 it will be $1800, for the wife $790. As I will fall 4 years short (58) and she will fall two short (60), I assume the benefits will be more like $25K instead of $30K? Either way, that hopefully will cover healthcare or a vacation property somewhere
Uh, just to clarify, SS is not payable under normal circumstances prior to age 62 (unlike some pensions). Perhaps your comment about being short was more a modeling assumption rather than expected cash-flow at your retirement age.

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Old 09-12-2014, 11:07 AM   #43
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Uh, just to clarify, SS is not payable under normal circumstances prior to age 62 (unlike some pensions). Perhaps your comment about being short was more a modeling assumption rather than expected cash-flow at your retirement age.

-gauss
I understand SS isn't payable until 62. What I was suggesting is my benefits currently show that at 62 our SS income would be $30K .

If we retire early, the SS benefit at age 62 will likely be reduced if we haven't hit the 35 year mark of contributing working years. Is that correct?

My $80K/yr retirement goal was based on $2mm in assets. The SS benefit at 62 of $25-30K that I was pointing out would be extra
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Old 09-12-2014, 02:05 PM   #44
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planning to retire in the next 10-12years with $50-60k post-retirement expenses … I figure I need about $1.2-1.5M
You may find that need more capital, especially if you are calculating your expenses in 2014 dollars. But you can fine tune things later, and presumably will be able defer your ER date if necessary.
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Old 09-14-2014, 08:44 AM   #45
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Just discovered this thread.

I'm roughly in the same category as OP. Total expenses somewhere $25k - $35k (single guy). Saved up about $800k. 34 years old.

Actually easing in to semi-retirement, but not yet. Sort of in OMY mode, but not really. Right now I'm winding down a small business I have with a partner. Probably will go free-lance consulting for a while after that.

The idea is to let the idea of "good chance I still need to work" go once and if I hit $1M (roughly). Would like to hit that within the next 4 years.

The biggest fail-scenarios for that are: wife, children, health failure, losing motivation to work at all and world economy crash (a real one, not like 2008). Most of these fails are under my control, so I'm not too worried
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Old 09-14-2014, 09:29 AM   #46
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It took about 10 years to the day for me to pull off my early retirement goal. Back in my early 30's I had figured it would take 15 years, but better than expected raises, early mortgage payoff, great investment returns (started investing in late 2009), no kids, made it happen in 10 years. We have over 50k in dividend income right now, with our expenses at around 30 - 35k annually. With my wife desiring to work a bit longer, there is going to be a fair bit of "buffer" added by the time she joins me in ER.

To be fully transparent, it took two excellent dual incomes and some disciplined LBYM to pull this off in ten years. On many forums (lookin' at you MMM) there appears to be a fair bit of naivety on what it actually takes to do it.

Tomorrow is the first Monday in 24 years that I don't need to be ANYWHERE. Tomorrow I can do ANYTHING.
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Old 09-14-2014, 09:49 AM   #47
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It took about 10 years to the day for me to pull off my early retirement goal. Back in my early 30's I had figured it would take 15 years, but better than expected raises, early mortgage payoff, great investment returns (started investing in late 2009), no kids, made it happen in 10 years. We have over 50k in dividend income right now, with our expenses at around 30 - 35k annually. With my wife desiring to work a bit longer, there is going to be a fair bit of "buffer" added by the time she joins me in ER.

To be fully transparent, it took two excellent dual incomes and some disciplined LBYM to pull this off in ten years. On many forums (lookin' at you MMM) there appears to be a fair bit of naivety on what it actually takes to do it.

Tomorrow is the first Monday in 24 years that I don't need to be ANYWHERE. Tomorrow I can do ANYTHING.

What are you talking about? If you just bike everywhere and ditch cable you can easily live on $13k like MMM
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Old 09-14-2014, 11:22 AM   #48
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Tomorrow is the first Monday in 24 years that I don't need to be ANYWHERE. Tomorrow I can do ANYTHING.
You made it!

Congratz and enjoy the blissful void
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Old 09-14-2014, 11:54 AM   #49
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To be fully transparent, it took two excellent dual incomes and some disciplined LBYM to pull this off in ten years. On many forums (lookin' at you MMM) there appears to be a fair bit of naivety on what it actually takes to do it.
It is not just naivety, but also misinformation perpetuated by financial writers selling the dream, not the reality.

In the The Millionaire Next Door and follow up books, which are based on broad market research validated by IRS estate tax data, and not on anecdotal selective postings, by one relatively young and healthy financial writer with a budget that leaves out many necessities or actual expenses, who in reality either went back to work full time or is currently self employed full time, and who amazingly has a largely stock portfolio that goes up even in major down years for the market, most of the households are very frugal as well as have high incomes.

Anyway, enjoy your kayaking.
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Old 09-14-2014, 02:14 PM   #50
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I'd like to be able to retire in 10 years - we are both 49 - but I'm not sure how realistic that is. We are doing just ok on saving for retirement and I am having a hard time saving more. In 3 years I'd like to adjust that to significantly increase savings by selling our current home and going much cheaper in housing. We are paying a lot to live in this place but I don't want to move until youngest is off to college.

401Ks just over $700K (we are at 65% stock/35% bond mix).
Home equity now about $280K (conservative estimate after realtor fees. This is low ball and I think it is probably at least $50K higher, but I like to assume .)

We did not do well in saving for college for our kids. Wish I could change a lot of decisions I made in my younger years to fix that. We are cash-flowing my older kid in college and so far we have managed to make that work. Two more years. For younger kid we have about $20k saved.

Biggest fear is losing either of our jobs. We are trying to build up our cash reserves, just in case. I never used to worry so much about job security, but I see so many layoffs (including engineers, computer programmers, network engineers, etc!) of folks in their early 50s in our area. Businesses are looking for younger, cheaper employees and also are hiring hb-1 visa computer tech and engineers. I am trying to stay relevant with my skill set and holding my breath we keep the job train rolling down the tracks.

I would love to hang up my working clothes in 2024, but it will take a lot of focus and a lot of luck.
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Old 09-14-2014, 09:01 PM   #51
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Retiring early is a dream IMO especially in view of the fact you might live to 99 and run out of funds long before you're in the box. Even 65 is too young with current levels of longevity...a point set when most people were dying at 67.

I'm into my 70s now with annual self directed registered retirement funds and annuity income just under $200k...plus about $250k a year from a business I haven't been able to sell yet for $2m. My non-registered investment portfolios are about $2m...and my paid off home worth $1.4m. Most of this estate growth came after age 60. Some would say I'm set...but owning a business with 20 employees holds back any thoughts of full time retirement for now.

Stats seem to say you'll live longer if you don't retire.
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Old 09-14-2014, 09:37 PM   #52
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Stats seem to say you'll live longer if you don't retire.
No, it just seems like those work days will never end.
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When I hit 70, it hit back

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More focus, less reliance on luck
Old 09-14-2014, 11:43 PM   #53
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More focus, less reliance on luck

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Originally Posted by Live Free View Post
I'd like to be able to retire in 10 years - we are both 49 - but I'm not sure how realistic that is. We are doing just ok on saving for retirement and I am having a hard time saving more. In 3 years I'd like to adjust that to significantly increase savings by selling our current home and going much cheaper in housing. We are paying a lot to live in this place but I don't want to move until youngest is off to college….

Biggest fear is losing either of our jobs. We are trying to build up our cash reserves, just in case. I never used to worry so much about job security, but I see so many layoffs (including engineers, computer programmers, network engineers, etc!) of folks in their early 50s in our area. Businesses are looking for younger, cheaper employees and also are hiring hb-1 visa computer tech and engineers. I am trying to stay relevant with my skill set and holding my breath we keep the job train rolling down the tracks.

I would love to hang up my working clothes in 2024, but it will take a lot of focus and a lot of luck.
Given your low savings and fear of job loss - which seems realistic, ten years is a long time to fight to stay relevant - I would recommend rethinking the decision to defer downsizing for three more years. While I appreciate that you'd prefer to remain in your current home until the younger child leaves, the opportunity cost is significant.

If you want to make more rapid progress with your savings, sacrifices will need to be made. Housing is one expense that is entirely within your control.
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Old 09-14-2014, 11:47 PM   #54
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Retiring early is a dream IMO especially in view of the fact you might live to 99 and run out of funds long before you're in the box. Even 65 is too young with current levels of longevity...a point set when most people were dying at 67.

I'm into my 70s now ... Some would say I'm set; but owning a business with 20 employees holds back any thoughts of full time retirement for now.

Stats seem to say you'll live longer if you don't retire.
In view of your circumstances and beliefs, perhaps this forum isn't a particularly appropriate one for you.
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Old 04-17-2016, 12:57 PM   #55
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OP here, after exactly two years since this thread. I'm now 41 and at $460k (vs. 320k). That includes $55k I maintain in cash. My hope was reaching $500k by mid 2016 but I'll be happy if it happens by the end of 2016. My major milestones have been:

$500k (I'm on track)
$750k (FU money)
$1M (Almost there)
$1.2M (FI, let's start the OMY phase)

Anything beyond that is icing on the cake. How're the rest of you folks doing two years later?
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Old 04-17-2016, 02:09 PM   #56
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In view of your circumstances and beliefs, perhaps this forum isn't a particularly appropriate one for you.
+1.

70 is too late late for early retirement.
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Old 04-17-2016, 03:44 PM   #57
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First post here!

I am 48 and hoping to be FIRE'd in 8-10 years

We have $430K in Retirement Accounts, $200K in Taxable accounts.
$30K is left on our mortgage which will be paid off in 4 years, no other debt.
We are saving $6666 per month. We spend $6000 per month.

I'd like to have $80K per year in spending.

Our asset allocation is:

Vanguard Total US Bond Market 22%
Vanguard Hi Yield Corporate Fund 8%
Vanguard Short Term Inflation Protected 8%
Vanguard Total US Stock Market Index 37%
Vanguard Total International Index 19%
Vanguard REIT Index 6%

I think we are on track, not positive though. Just trying to save as much as we can and hope the markets are kind!

This is the first time in my investing life that I've broken free from managed money and have taken the reigns on my investments. Hopefully my asset allocation will get me to goal sooner rather than later.

Our target goals with a 5% return are:

3 years end 2017 $1,000,000
7 years end 2021 $1,500,000
10 years end 2024 $2,000,000
Update from Sept 2014 $630K and $30K left on the mortgage....

We are at $808K and $19K left on the mortgage. We've been saving as much as we can, more than planned. I'm not so hopeful of a 5% average although this year we are off to a real nice start!

I've readjusted to plan for a 3% return and save $78K per year

So the new targets are at the end of:

2017 the goal is $973K versus $1M
2020 the goal is $1,311 versus $1.5M
2024 the goal is $1.681 versus $2M

To hit my original goal of $2M, the target is now 12/31/25
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Old 04-18-2016, 12:00 PM   #58
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Good progress there fmzip. You're at the point where I'd probably be in 4 yrs and finally start to feel at ease about my job situation vs. the nest egg. At that level the effect of contributions on the nest egg are probably smaller than the market gains.

What is concerning me a bit is all the talk about how the market has been so great since 2009 (wish I started then!) and that's why it's due for a relapse but I'm still continuing to add to the portfolios as much as I have been and don't plan to change anything.

My job situation feels volatile/riskier as the stress level has been through the roof for the last two years to the point that I worry about my health but I keep chugging along because I don't see better alternatives at this time.
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Old 04-18-2016, 01:39 PM   #59
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I originally thought it would take me till 50 to FIRE when I found this community, MMM, ERE, etc.

I then realized I could do it by 40......now with a healthy bump to income and a real grasp of expenses I think I can be done in 8-10 years. I will be ~36-38 years old.

Current portfolio is ~$170k.
Income is gross ~$120-150k/yr with expenses ~$30k.
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Old 04-18-2016, 06:57 PM   #60
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Good progress there fmzip. You're at the point where I'd probably be in 4 yrs and finally start to feel at ease about my job situation vs. the nest egg. At that level the effect of contributions on the nest egg are probably smaller than the market gains.

What is concerning me a bit is all the talk about how the market has been so great since 2009 (wish I started then!) and that's why it's due for a relapse but I'm still continuing to add to the portfolios as much as I have been and don't plan to change anything.

My job situation feels volatile/riskier as the stress level has been through the roof for the last two years to the point that I worry about my health but I keep chugging along because I don't see better alternatives at this time.
Keep in mind that even in retirement, we will experience big drops in the market. It's time in the market that prevails
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