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Old 11-24-2008, 03:59 PM   #21
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I do not believe most panhandlers clear $50K a year.
If they do, i'll have to change careers. I'll never clear that much with my current career.
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Old 11-26-2008, 04:46 PM   #22
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You can rent a nice modest home in downtown PV MX for that. Think outside the USA and you might be able to do it. Health insurance is $350/yr each. Most basic food items are 80% cheaper. Just avoid processed/packaged items. Meats are about 50% cheaper.
Oh we're most *definitely* going to spend a lot of time outside the U.S. Just saw some numbers on some of the older towns in Ecuador. It's ridiculous. So many places, so little time...
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Old 11-28-2008, 08:04 PM   #23
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Dixonge, I've been curious, who is that in your avatar? Where is his neck?
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Old 11-28-2008, 10:39 PM   #24
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Dixonge, I've been curious, who is that in your avatar? Where is his neck?
Self-portrait - built-in camera on my MacBook - no lights on in the room but the screen.
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Old 11-29-2008, 01:16 AM   #25
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Self-portrait - built-in camera on my MacBook - no lights on in the room but the screen.
You look like Gordon Liddy without the 'stache. Good picture.

Ha
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Old 11-29-2008, 06:31 AM   #26
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You look like Gordon Liddy without the 'stache. Good picture.

Ha
either that or the big floating head from the original Star Trek series

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Old 11-29-2008, 11:15 AM   #27
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Self-portrait - built-in camera on my MacBook - no lights on in the room but the screen.
Thanks for letting me be snoopy. Very good picture for one taken from a computer.
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Old 11-29-2008, 01:28 PM   #28
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You remind me of that guy from Lost.

Terry O'Quinn
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Old 11-29-2008, 01:28 PM   #29
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Thanks for letting me be snoopy. Very good picture for one taken from a computer.
I prefer this one, but the avatar restrictions here won't allow decent quality photos (this one was also taken via MacBook I think)

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Old 05-29-2009, 08:03 PM   #30
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UPDATE!

The plan is still crazy, but maybe not quite so insane as we'd first thought.

Throwing money into our investment account has gone well. We've deposited an average of over $4000/month since November 2008. Of course the trick is to *keep* it there or, to be really different, maybe actually have some *gains* for once!

I switched strategies starting in November. First I began utilizing credit spreads, an options technique that allows you to receive a credit up front. Then you try not to lose it. You only have to pick one direction that the market *won't* move, instead of which way it will. (ok, that's an oversimplification, but still)

Unfortunately I was still selling credit spreads on individual stocks, Apple in particular, and the volatility made it tricky. I lost 1-3% per month for Nov.-Jan. In early January I ran across a service that provided some guidance regarding market direction and range and that utilized credit spreads almost exclusively on market indexes like the S&P 500 and the Russell 2000. For the last four months I have averaged a gain of 5% per month, including February when the markets were dropping like a rock.

The overall net result is that between contributions and gains we've doubled our money since Feb. Our account balance is now about 15% above the amount we have deposited. I have run projections out to the future using conservative monthly averages for both deposits and gains and we might be able to walk away from our jobs at the end of next year with over $150,000 in the bank. Further projections, assuming a cessation of deposits and the beginning of monthly withdrawals of $2000 still gets us to an account balance of $1,000,000 by June of 2014. I suspect that before we get there we'll loosen up on the budget a bit, but just the fact that it's a possibility gives me hope. And then the pensions and SS start kicking in, right when we don't need 'em any more.

OK, probably more than any of you cared to know. But that's our plan.
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Old 05-29-2009, 08:42 PM   #31
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Okay, so here's what you do. Take that last post and drag it out into a 200 page book. Tour the country (world?) with that strategy and viola, $1,000,000 by next Christmas, free travel by the publisher, what's not to like?

In all seriousness, do what you love with the person that you love. I think you're plans crazy but you may say the same thing about mine.
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Old 05-29-2009, 08:59 PM   #32
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Our account balance is now about 15% above the amount we have deposited. I have run projections out to the future using conservative monthly averages for both deposits and gains and we might be able to walk away from our jobs at the end of next year with over $150,000 in the bank. Further projections, assuming a cessation of deposits and the beginning of monthly withdrawals of $2000 still gets us to an account balance of $1,000,000 by June of 2014.
That is an excellent gain, according to your projections. Obviously, other people who use this unnamed service to provide market guidance would have the same result. It sounds awfully good to be true, but I wish you well.
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Old 05-30-2009, 10:22 AM   #33
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Glenn,

Have you decided what you are going to do about health insurance yet?

Concerns about catastrophic health issues are the main thing preventing me from implementing your crazy, insane perfectly reasonably ER plan for myself. Even though I am currently in good health, I have quite the family history of heart disease, cancer as well as a few other obscure issues.

Thanks.
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Old 05-30-2009, 12:56 PM   #34
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Pre-existing conditions are going to be an issue no matter what type of insurance you choose.

Looks like WorldNomads.com can give me and my wife coverage for about $86/month. They only cover those under 61 though.

For other info you might check Billy and Akaisha's site:

Medical Options

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Glenn,

Have you decided what you are going to do about health insurance yet?

Concerns about catastrophic health issues are the main thing preventing me from implementing your crazy, insane perfectly reasonably ER plan for myself. Even though I am currently in good health, I have quite the family history of heart disease, cancer as well as a few other obscure issues.

Thanks.
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Old 05-30-2009, 02:20 PM   #35
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Looks like WorldNomads.com can give me and my wife coverage for about $86/month. They only cover those under 61 though.
Careful, that WorldNomads only covers when you're traveling outside your country of permanent residence, and if you use USA as your permanent residence, they'll only cover emergency treatment and evacuation (i.e. they don't cover anything that can wait for your return to the U.S.). Or if you are planning to live in another country, again it excludes treatment in that country and excludes anything their "health consultant and your physician" decide can wait the 10 hours to return there.

That's why it's so cheap!
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Old 05-31-2009, 07:04 AM   #36
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Careful, that WorldNomads only covers when you're traveling outside your country of permanent residence, and if you use USA as your permanent residence, they'll only cover emergency treatment and evacuation (i.e. they don't cover anything that can wait for your return to the U.S.). Or if you are planning to live in another country, again it excludes treatment in that country and excludes anything their "health consultant and your physician" decide can wait the 10 hours to return there.

That's why it's so cheap!
Well, I can tell them I live in the U.S. and plan on traveling in the U.S. and still get a quote, but it does have to be 100 miles from my residence. And yes, it's primarily emergency treatment.

It appears that this particular topic has been given an FAQ thread. Lots of reading here:

(FAQ archive) Buying Private Health Insurance
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Old 05-31-2009, 09:06 AM   #37
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dixonge,
I say go for it. Just wish I had the same:
1. Confidence to give up a warm fuzzy blanket (your jobs)
2. Trepidation to embark on that journey into the unknown.
3. Willingness to do whatever it takes if the plan doesn't work.

If you really have that then you have the tools to make your plan work, the rest will be circumstances.

PS: Not sure if panhandlers in any city "average" $50k a year but I know one who makes almost double that. So it can be done.
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Old 06-17-2009, 01:27 PM   #38
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One other update to our plan - instead of just immediately moving overseas we are now planning on purchasing a used vehicle and travel trailer and exploring the nation's sights. Lots of time will be spent in national parks, BLM land, etc. Disneyland, no. Yosemite, yes. This will hopefully allow for acclimation to retired life first, then we can do the international thing later after we've got all the other issues resolved.
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Old 06-26-2009, 08:28 PM   #39
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I have run projections out to the future using conservative monthly averages for both deposits and gains and we might be able to walk away from our jobs at the end of next year with over $150,000 in the bank. Further projections, assuming a cessation of deposits and the beginning of monthly withdrawals of $2000 still gets us to an account balance of $1,000,000 by June of 2014.
Am I reading this right. With "conservative" returns you're going to turn $150K into $1MM in 3.5 years while drawing $24K per year?

You need an 80% annual return to do that.
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Old 06-27-2009, 12:01 AM   #40
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Am I reading this right. With "conservative" returns you're going to turn $150K into $1MM in 3.5 years while drawing $24K per year?

You need an 80% annual return to do that.
5% per month = 79.58% annual returns (1.05^12).

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For the last four months I have averaged a gain of 5% per month, including February when the markets were dropping like a rock.
See? All you need is 5% average per month.

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Unfortunately I was still selling credit spreads on individual stocks, Apple in particular, and the volatility made it tricky. I lost 1-3% per month for Nov.-Jan.
Volatility is what "makes it tricky", but w/o volatility, the premiums you get will be too low to make much money. VIX is at very high levels historically.

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In early January I ran across a service that provided some guidance regarding market direction and range and that utilized credit spreads almost exclusively on market indexes like the S&P 500 and the Russell 2000.
Of course, this means that this "service" knows something the rest of the "the market" trading options doesn't know. Otherwise, "the market" would not price the options favorably for you, if they knew the same thing you knew about market direction. And if you have some certainty over market direction, why not buy options rather than sell them?

Expect to see a reversion to the mean over time. You might make something slightly higher than Buy&Hold, but I sure would not expect 5% over the market each month for long.

Please report how you do each option period, it should be interesting. Good luck.

-ERD50
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