Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Arbitrary Savings Goals
Old 09-30-2005, 06:46 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: Arbitrary Savings Goals

I think I understand you now. *It certainly is a perception thing. *But more than that it sounds like one of those little rationalizations we sometimes make to ourselves when we try to justify doing something we know we shouldn't. *e.g. "I know spending that extra $100 will reduce my retirement portfolio by $10K but what's 10K compared to the $1 MM I expect to have saved?" *

Repeat that a bunch of times and before you know it that $1MM portfolio has moved completely out of reach. *
__________________

__________________
Retired early, traveling perpetually.
Gone4Good 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: Arbitrary Savings Goals
Old 09-30-2005, 07:08 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,615
Re: Arbitrary Savings Goals

I had a specific number in mind when I first started working.* I told my spouse and friends the number.* It was a big number, but it was not enough to retire on.* I had a spreadsheet (can you say VisiCalc?) that I had worked out how much of my income I had to save, what the return on investments had to be.* Anyways, I reached that goal ahead of schedule and by that time, saving for retirement was pretty ingrained.* And all the rest has been written by MasterBlaster above.

Quote:
Originally Posted by MasterBlaster
An amazing thing may happen when you hit your savings goal. That savings is your ace in the hole and a source of comfort.

Your attitude changes at work. Things don't bother you so much like they used to. The manager isn't an A-hole anymore (well less so anyway) he's just a guy doing his best considering the circumstances. Same with some of the difficult co-workers.

...

I feel like a lucky guy.
There is no doubt that having a specific number to shoot for and a specific age (40) to reach that number allowed me to save habitually.* Well, that, and a well-paid job.* But it has also made all the years since much more enjoyable because not only do I not think about saving anymore because it just happens, I also don't think about spending either.* That just happens as well.
__________________

__________________
LOL! is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-02-2005, 11:29 PM   #43
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Re: Arbitrary Savings Goals

In response to the original poster, I also chose $1mil ($40k/year) more ore less arbitrarily and for a while arbitrarily decided I could do it by age 45 or 50 (10-15 years). A little later I ran some online calculators and found that 15-20 years is more realistic, but 55 is still early I suppose, especially by many's standards.

However I wouldn't say I'm "doggedly pursuing" it. I am trying to find a balance between enjoying today and saving for the future, because after all the main reason for retiring early is to do what I want and enjoy myself more. Why wait? I may not live so long. (No immediate concerns, but not everyone lives to be 55, and many aren't fully able when they are 55...known many people with back and knee injuries hobbling them well before 50.)

But retirement is far enough off that I don't get seriously into the calculations of when and how much. There are way too many everyday-life things such as women and children that could happen between now and then to throw things off.

My first goal was to be debt free. I'm still coming out of the adjustment phase after that, and I think my next goal will be $100k liquid investments just for a milestone, but unlike the debt-free goal the new goal won't be a major focus in life. I'm 35, single and not clearly seeing the next step in my career, so really I have bigger things to ponder than savings and retirement at the moment. (Actually I'm quite content right now, like I was about 7 years go, but I realize now like then that I don't want to be in this particular content situation for the rest of my life so it's time to stir things around again.)
__________________
BigMoneyJim is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-03-2005, 09:06 AM   #44
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: Arbitrary Savings Goals

Quote:
There are way too many everyday-life things such as women and children that could happen between now and then to throw things off.
Understatement... :P
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-03-2005, 10:33 AM   #45
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Re: Arbitrary Savings Goals

A related subject might be - Can you save too much ? Or is too much savings a lifestyle detriment ?

I had an interesting discussion with my 77 year old mother this weekend about saving and spending. She has a sister who couldn't ever not save enough and has been wealthy for some time. Now that she (the sister) now 87 years old is very ill we wonder if all that saving was detrimental.

I am having a similar dialog with myself these days. After you hit your number, What is the point of continued savings ? Granted lifelong spending and savings habits don't easily change. Believe it or not, It's not that easy to suddenly change and start spending lots of money.

So perhaps the save as fast as you can so you can retire as early as possible model isn't optimal from a lifestyle perspective. Just maybe one should be a little more balanced and smell the roses along the way. After all you just get to live once.
__________________
MasterBlaster is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-03-2005, 12:19 PM   #46
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Arbitrary Savings Goals

Quote:
Originally Posted by MasterBlaster
A related subject might be - Can you save too much ? Or is too much savings a lifestyle detriment ?

I had an interesting discussion with my 77 year old mother this weekend about saving and spending. She has a sister who couldn't ever save enough and has been wealthy for some time. Now that she (the sister) now 87 years old is very ill we wonder if all that saving was detrimental.

I am having a similar dialog with myself these days. After you hit your number, What is the point of continued savings ? Granted lifelong spending and savings habits don't easily change. Believe it or not, It's not that easy to suddenly change and start spending lots of money.

So perhaps the save as fast as you can so you can retire as early as possible model isn't optimal from a lifestyle perspective. Just maybe one should be a little more balanced and smell the roses along the way. After all you just get to live once.
Oversaving is the reverse problem of overspending.* The problem with people that overspend is that they waste their money on things they don't need.* The problem with people that oversave is that they end up saving money they don't need.*

It takes a lot of intestinal fortitude to transition from saving to spending, but both saving and spending should be done with a reason.* You don't save just because you want a lot of money.* You save so you can have a needed amount that you can use to spend according to a plan.* Your plan may or may not work since things happen that can muck up the best of plans, but having a savings and spending plan is essential to a more successful outcome.
__________________
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: Arbitrary Savings Goals
Old 10-03-2005, 07:45 PM   #47
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Re: Arbitrary Savings Goals

Quote:
Originally Posted by MasterBlaster
A related subject might be - Can you save too much ? Or is too much savings a lifestyle detriment ?
I definitely think you can save too much. But there is a balance that is hard to strike just right. I'm struggling with this question of "how much is enough" at the moment. Currently I'm coming down on the side of "more is better" because I'm young and I value the security. I think I'd rather work an extra 10 years even if it meant I'd die with a ton of un-spent money than spend an extra 10 years retired but have to live the last 5 eating cat food. The problem with this line of thinking is that you can always work another 10 years. You'll never eat cat food, but neither will you retire. Hopefully someday I'll figure out what my "right number" is, but I can't tell you what it is right now.

__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-03-2005, 11:29 PM   #48
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 201
Re: Arbitrary Savings Goals

Ah the eternal question of "How Much is Enough". For me, the calculators, the portfolio theory and the rules of thumb only provide so much guidance. In the end, each person has to look inside themselves and "know" that the time is right. For many it will be the"time" rather than the amount that tips the scales in favour of pulling the plug. For others, it will only ever be the "amount", for if they don't feel they have enough, they will never be confortable with their decision. For most of us I think it is a composite of the two and when the time and amount stars line up then the plug is pulled.

Personally, it is the time for me. We probably have enough to retire now (although the assets would need some reallocation) but I don't feel ready. I have much more to achieve from a personal/professional perspective. That's just me.
__________________
Honkie is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 01:56 AM   #49
Thinks s/he gets paid by the post
 
Join Date: Feb 2003
Location: Mesa
Posts: 3,588
Re: Arbitrary Savings Goals

Quote:
Originally Posted by Honkie
Ah the eternal question of "How Much is Enough". For me, the calculators, the portfolio theory and the rules of thumb only provide so much guidance. In the end, each person has to look inside themselves and "know" that the time is right. For many it will be the"time" rather than the amount that tips the scales in favour of pulling the plug. For others, it will only ever be the "amount", for if they don't feel they have enough, they will never be confortable with their decision.* For most of us I think it is a composite of the two and when the time and amount stars line up then the plug is pulled.

Personally, it is the time for me. We probably have enough to retire now (although the assets would need some reallocation) but I don't feel ready. I have much more to achieve from a personal/professional perspective. That's just me.
Well said.
__________________
sgeeeee is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 11:22 AM   #50
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Re: Arbitrary Savings Goals

Quote:
Originally Posted by Honkie
For most of us I think it is a composite of the two and when the time and amount stars line up then the plug is pulled.

Personally, it is the time for me. We probably have enough to retire now (although the assets would need some reallocation) but I don't feel ready. I have much more to achieve from a personal/professional perspective. That's just me.
From what I've seen & experienced, you will know when it's time to go. If you have to ask the question then the answer is "Not yet".
__________________
*
*

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: Arbitrary Savings Goals
Old 10-04-2005, 12:38 PM   #51
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Re: Arbitrary Savings Goals

Quote:
Originally Posted by Nords
From what I've seen & experienced, you will know when it's time to go. If you have to ask the question then the answer is "Not yet".
I'm a little surprised to see this sentiment expressed twice here. So far I've found it difficult to break with the status quo--my comfort zone--even when I desire change. It's a struggle for me to make the necessary changes, but the first time although poorly executed worked well to my long term advantage, and I expect this time will, too. But each change is very difficult to effect, and I expect retiring early will be the same type of challenge.

Several people here have said they realized they didn't have to work after getting laid off or otherwise having a forced or subsidized boot from work. The few I recall offhand who left a job with no event other than their choice fretted about it, and at least one went back to work.
__________________
BigMoneyJim is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 01:06 PM   #52
Recycles dryer sheets
 
Join Date: Sep 2005
Posts: 97
Re: Arbitrary Savings Goals

Well said BigMoneyJim

DW and I were talking about this yesterday. If I get laid off tomorrow, we'll probably ER. If not, I'll probably keep working, for a bit ...

-D
__________________
Is this a good time to RE ? Ok, how about now...
Dry Socks is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 01:31 PM   #53
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Arbitrary Savings Goals

Quote:
Originally Posted by Nords
From what I've seen & experienced, you will know when it's time to go. If you have to ask the question then the answer is "Not yet".
Quote:
Originally Posted by BigMoneyJim
I'm a little surprised to see this sentiment expressed twice here.

Several people here have said they realized they didn't have to work after getting laid off or otherwise having a forced or subsidized boot from work. The few I recall offhand who left a job with no event other than their choice fretted about it, and at least one went back to work.
Almost seems ripe for a poll.

I am not sure about knowing when it is time to go. If you get laid off or something dramatically changes at work and you figure you have enough bucks, that's great, you know it was time to go. Or if you hit a pension date. Or military retirement age.

But if you keep plugging along in a job that doesn't really excite you anymore, but pays a decent amount of money and gives you security like health insurance, it is hard to know exactly when to take the risk and go. I doubt I will have an epiphany and know when to quit.



__________________
.


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

Martha is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 01:41 PM   #54
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: Arbitrary Savings Goals

My first ER was due to a RIF at my job. I was already looking to ER at 50 and had just interviewed for a new job in a city I had moved from 10 years before. DW and I both liked it there and talked about going back. She was old enough to ER also.

The job offer arrived the same day the RIF was announced. The timing was perfect. I got RIF'ed and employed back in the city we were going to move back to anyway all in the same week. The new company was more than happy to pay all moving costs, home sales and purchase fees and to give me a small bonus just for signing with them. How could I refuse?

I will soon be fully vested in the 401k of the new company and I know I can leave anytime I wish. It is an empowering feeling. I will know when the time is right and when it is... I will go. My boss already knows my next career goal is retirement and my personal goals reflect that fact.

Our savings goals for a conservative ER have already been met. We are in the gravy stage now and paying down the mortgage. I could work for as long as I want......I just don't want to work any longer than I care to.
__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 01:43 PM   #55
Thinks s/he gets paid by the post
greg's Avatar
 
Join Date: Jun 2005
Posts: 1,071
Re: Arbitrary Savings Goals

Quote:
Originally Posted by Martha
. I doubt I will have an epiphany and know when to quit.



DW: Don't worry! I let you know when you should have an epiphany.

--DH
__________________
Compounding: Never forget! Never not remember!
greg is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 01:49 PM   #56
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Arbitrary Savings Goals

Quote:
Originally Posted by Apocalypse . . .um . . .SOON
DW: Don't worry! I let you know when you should have an epiphany.

--DH
Thank you sweetie. I'm waiting.
__________________
.


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

Martha is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 01:49 PM   #57
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Re: Arbitrary Savings Goals


But if you keep plugging along in a job that doesn't really excite you anymore, but pays a decent amount of money and gives you security like health insurance, it is hard to know exactly when to take the risk and go.* I doubt I will have an epiphany and know when to quit.*

Martha,

Boy can I relate to that statement. * I hope when I do pull the plug that it's the right time, yet how is one really to know. *Some folks on this board have said that you'll know when the time is right. *I hope to find out soon.



__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 02:08 PM   #58
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Arbitrary Savings Goals

Quote:
Originally Posted by Martha
Almost seems ripe for a poll.


But if you keep plugging along in a job that doesn't really excite you anymore, but pays a decent amount of money and gives you security like health insurance, it is hard to know exactly when to take the risk and go.* I doubt I will have an epiphany and know when to quit.*



Martha, don't quit!

Greg has plenty of his friends to keep him company in the basement, and you get a "mental health" break every day at work.
__________________
Jarhead* is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 07:12 PM   #59
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Arbitrary Savings Goals

Quote:
Originally Posted by 73ss454

Martha,

Boy can I relate to that statement. I hope when I do pull the plug that it's the right time, yet how is one really to know. Some folks on this board have said that you'll know when the time is right. I hope to find out soon.
Joe, I think if I waited until I think "aha, the time is right" I would wait too long. After all, it took DH and I about 10 years to get married.
__________________
.


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

Martha is offline   Reply With Quote
Re: Arbitrary Savings Goals
Old 10-04-2005, 07:28 PM   #60
Thinks s/he gets paid by the post
Outtahere's Avatar
 
Join Date: Sep 2005
Posts: 1,677
Re: Arbitrary Savings Goals

Quote:
Originally Posted by Martha
Joe, I think if I waited until I think "aha, the time is right" I would wait too long.* After all, it took DH and I about 10 years to get married.*
I am right there with you, 8 years to marry dh.. probably could ER in the next year but having a hard time with it unless the investment sale comes thru.

C___
__________________

__________________

Dogs aren't our whole lives, but they make our lives whole. - Roger Caras
Outtahere 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
Automatic payments from a money market (savings) account a FIRE and Money 4 04-07-2007 01:14 PM
The Upside to Low Savings Rate? REWahoo FIRE and Money 0 03-29-2006 10:08 PM
Lowest Savings Rate Since 1933 Mountain_Mike FIRE and Money 15 01-31-2006 02:09 PM
EE bonds to ??? cute fuzzy bunny FIRE and Money 1 12-24-2003 01:33 PM
post-retirement goals wabmester Life after FIRE 0 12-10-2003 11:34 AM

 

 
All times are GMT -6. The time now is 08:58 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.