We Really Are Different

[DangerMouse]

After I recovered from the flash of terror at the thought of a 5k monthly mortgage payment, I was struck by how different the FIRE tribe is from the populace.

I nearly died when my neighbour confided in me that they were trying to refinance their mortgage but having problems getting the deal over the line. Their monthly mortgage payments were $9k a month which scared the crap out of me. I would not be able to sleep at night knowing I had that amount coming due on a monthly basis.

 

[Keim]

My 2200SF 1950 house on a regular city lot may not look like much. But my $700 monthly mortgage is to die for!

 

[Nords]

I nearly died when my neighbour confided in me that they were trying to refinance their mortgage but having problems getting the deal over the line. Their monthly mortgage payments were $9k a month which scared the crap out of me. I would not be able to sleep at night knowing I had that amount coming due on a monthly basis.

Acquaintances of ours overhauled a Coronado home and ended up with a one million dollar mortgage. Their home is worth more than that, but they're still paying principal & interest on a seven-figure balance.

Heck, even if it's a 6% jumbo 30-year fixed that's still $6000/month in P&I, before PMI & escrow. They're both getting military pensions and they both have full-time jobs, and they're both running just as fast as they can.

Every time I think about it the amount of that mortgage, Dr. Evil fires up in my brain... one m-m-M-MILLION dollars!!

 

[Walt34]

BTW, how are we bred to be self-destructive consumers? Who would the hot girl with the tantalizing, child-bearing hips rather go out with: the guy in the Porsche, or the guy in the '91 Civic?

The one with the Porsche gets her. And he can have her.

During my divorce my 15-year-old car finally gave it up and I bought a brand-new '85 Chevy 4WD pickup truck, partly because I did need a replacement vehicle, partly because it was a neat toy, and partly just to get something nice for myself without having to consult with anyone else.

One of the guys at work was surprised at my choice of vehicle, asking "You're going to go out on dates in a pickup truck?"

I said "Yeah. And if some girl won't go out with me because I drive a pickup truck that's fine. It'll save us both a whole lot of bother."

DW2B liked the pickup truck. It had air conditioning and her car didn't.

 

[Gumby]

This is quite common in Westchester, even worse in parts of Conn. With home prices in the “nicer areas” averaging more that 750K and taxes at 2.3%, lots of folks had $5K monthly and thought they were lucky. For a while, at least. Now all they need to do is keep their $250k jobs – for the next 20 years or so...

As a resident of the Nutmeg State, I can certainly confirm this little nugget. It's a fine place to live, but very expensive.

We bought our home during my first year out of law school, and we didn't overextend ourselves to do it. As my legal career progressed, we avoided the urge to "upgrade" to a bigger, more expensive house, like all of my peers at the firm did. (An interesting aside -- very early in my career, a wizened old partner told me "the firm likes you to have a large mortgage; it keeps you focused on the job"). That one choice has made a world of difference in our finances.

Like Nords, I also had an incompetent sociopath as a CO in the Navy (my very first CO). While I can't say it was the only reason I left the Navy, or even the main one, the desire to never again be in a job I could not quit (for whatever reason) surely played a part in my departure.

 

[chemist]

Our net worth will cross 1 mill before my 40th birthday in two years, and of course nobody that knows us will have a clue because we lack so many of the "status" items they feel they must have.

Good goal - I had the same goal but missed by a few years (46 y.o.). The 1st million in net worth is the hardest to achieve and the 2nd and 3rd are a piece of cake. Achieved that at 49 and 52. Once you reach that point your portfolio is earning a third of a million a year and you start wondering why you are working.

 

[Meadbh]

Good goal - I had the same goal but missed by a few years (46 y.o.). The 1st million in net worth is the hardest to achieve and the 2nd and 3rd are a piece of cake. Achieved that at 49 and 52. Once you reach that point your portfolio is earning a third of a million a year and you start wondering why you are working.

10% returns? What AA will get you there? And how did it do in 2008-09?

 

[LOL!]

Once again a thread turns into a KDWTJ love fest. Many folks here are working hard to keep down with the Jonesers.

We need a thread where posters have so much money that it doesn't matter that we drive our Lexuses, live in 3000+ sq ft homes, go out to eat many times a week, and work at great jobs that we love with reduced hours and high pay.

 

[WhoDaresWins]

I am not by nature frugal but I have become more thoughtful about the value that I get for my money. By which I mean, I don't have a love of money per se, but I can see the correlation between having the income to live as you want vs. being forever beholden to an employer who largely controls your life. Money equals freedom. How much you need is very individual. I have cut the spending to only what has meaning for me. I am also taking a good hard look at who makes money off me and whether or not it represents a value investment. Most times it doesn't. You have to look out for yourself because for d*mned sure nobody else will.

 

[clifp]

Once again a thread turns into a KDWTJ love fest. Many folks here are working hard to keep down with the Jonesers.

We need a thread where posters have so much money that it doesn't matter that we drive our Lexuses, live in 3000+ sq ft homes, go out to eat many times a week, and work at great jobs that we love with reduced hours and high pay.

Don't hold your breath.

 

[freebird5825]

Once again a thread turns into a KDWTJ love fest. Many folks here are working hard to keep down with the Jonesers.

We need a thread where posters have so much money that it doesn't matter that we drive our Lexuses, live in 3000+ sq ft homes, go out to eat many times a week, and work at great jobs that we love with reduced hours and high pay.

Ok, I confess...I confess...I went out to Denny's today and ordered pancakes I could have made at home.

 

[JPatrick]

.

Here on the ER Forum, I am pretty sure our priorities are different. No quantity of designer clothes, blackberries/iPhones, expensive hair salons,
Corvettes, home renovations, or travel could possibly even begin to replace the joy and satisfaction I have felt in the past few months.

Not so fast with the Corvettes
It's an investment
And it is going UP in value
No kidding--Really

 

[W2R]

Not so fast with the Corvettes
It's an investment
And it is going UP in value
No kidding--Really

You could offer me every Corvette in existence - - new, classic, grungy, modified, whatever - - and if getting all of them was contingent on me going back to work until the end of 2010 I wouldn't take them no matter what their present or future value. I really do value my retirement that much.

Life is SO good.

 

[brewer12345]

Once again a thread turns into a KDWTJ love fest. Many folks here are working hard to keep down with the Jonesers.

We need a thread where posters have so much money that it doesn't matter that we drive our Lexuses, live in 3000+ sq ft homes, go out to eat many times a week, and work at great jobs that we love with reduced hours and high pay.

These folks exist. At one point I worked for an extremely bright guy who had a net worth in the $50MM range. Personally, I would have hung up my spurs and lived a full life at well short of that figure. Instead, he was quite happy working 12+ hour days and trying to grow his business and his net worth. It takes all kinds, I guess.

As for me, I realized tonight that all of the regrets I have in life are directly related to my career. What more incentive does one need to try hard to get to FIRE?

 

[NW-Bound]

I guess some people find happiness in their work. Many forum members here don't. To each his own.

I have been vacillating back and forth, although I will never have the luxury of getting bored sitting on $50M and want to work to get out of ennui. It is possible that one can get bored with international travel, yachting, ballooning, safari hunting, etc, etc... Oh well, I will never find out.

 

[simple girl]

During my divorce my 15-year-old car finally gave it up and I bought a brand-new '85 Chevy 4WD pickup truck, partly because I did need a replacement vehicle, partly because it was a neat toy, and partly just to get something nice for myself without having to consult with anyone else.

One of the guys at work was surprised at my choice of vehicle, asking "You're going to go out on dates in a pickup truck?"

I said "Yeah. And if some girl won't go out with me because I drive a pickup truck that's fine. It'll save us both a whole lot of bother."

DW2B liked the pickup truck. It had air conditioning and her car didn't.

LOL. Reminds me of our story. DH had a red Ford F100 when we met in 1991...he picked me up in it for our first date. It had a big crack going all the way across the windshield. I was a bit taken aback, but he swept me off my feet!

 

[bbbamI]

LOL. Reminds me of our story. DH had a red Ford F100 when we met in 1991...he picked me up in it for our first date. It had a big crack going all the way across the windshield. I was a bit taken aback, but he swept me off my feet!

In 1976 I had my first date with DH and he drove up in a 1972 Vega station wagon that leaked oil so badly, he had to keep a case of oil in the back seat.

Regardless...I still said 'yes' when he asked me to marry him a year later.

 

[chinaco]

Most people do not have a personal plan for their future. Some have a very basic plan for their future. This seems to not be correlated with education level or even job success.

I had a plan for ER. It was basic but it seems to have worked. Planned ER at 55. LBYM, save diligently, and invest fairly conservatively (to grow assets over time).

As far as career (or work planning), I have made a few mistakes and done some things right. All in all it has turned out fine.

 

[rescueme]

In 1976 I had my first date with DH and he drove up in a 1972 Vega station wagon that leaked oil so badly, he had to keep a case of oil in the back seat.

Regardless...I still said 'yes' when he asked me to marry him a year later.

Hey - I owned a (used) '71 Vega (lime green hatchback ). Sure, the block was cracked (replaced under warranty), and it overheated in the summer.

But it was a fun car back in the 70's (and I was already married - no "first impression" to worry about...)

 

[brewer12345]

Heh, I made a dish last night that involves a half cup of capers in the sauce (over chicken). I had not made it in well over a decade. The last time I made it just after DW and were married it was a splurge dish because the capers were really not in the grocery budget.

 

[rescueme]

We need a thread where posters have so much money that it doesn't matter that we drive our Lexuses, live in 3000+ sq ft homes, go out to eat many times a week, and work at great jobs that we love with reduced hours and high pay.

I don't believe that any of us who fit that mold would respond, anyway. Those of us who are FI, and have a few "toys" are the same folks that didn't care what our friends/relatives/neighbors did (in a financial sense) along the way.

My DW/me live quite well and spend a lot on "wants" these days, rather than just "needs" during our accumulation years. However, I'm not going to list our "stuff"; that's just bragging - and that's not who we are ...

We're thankful for being "blessed" financially in our life's journey, but we would give it up in an instant if our son was not disabled.

Sometimes, "money & stuff" is not important, compared to some other things in life...

 

[RonBoyd]

Sometimes, "money & stuff" is not important, compared to some other things in life...

Amen to that.

 

[happy2bretired]

LOL. Reminds me of our story. DH had a red Ford F100 when we met in 1991...he picked me up in it for our first date. It had a big crack going all the way across the windshield. I was a bit taken aback, but he swept me off my feet!

Me too. My hubby drove an older little blue Chevy Luv truck when we met.

 

[chemist]

10% returns? What AA will get you there? And how did it do in 2008-09?

Good point. I should have said that a $3 MM portfolio is capable of earning a quarter of a million a year, not a third of a million. My bad, I was going off my own personal portfolio which includes leveraged employee stock options - when my company stock goes up 1% my options In-the-money-value goes up by 3.4%.

And I did quite well in 2008-2009, thank you. Had $1MM in cash, put $750K of it to work by November 2008. Had brown underwear in March 09 but looking good now, only 8% below my peak net worth of June 2008. Retiring in August this year so right now figuring out an asset allocation for the long haul - right now 90% in equities and as I mentioned some of that leveraged so am debating just how much I want in fixed income but it will be more than the current 10%.

 

[NW-Bound]

Sometimes, "money & stuff" is not important, compared to some other things in life...

Yes, when one is not healthy, all the money in the world does not mean much.

It should be obvious but most people, myself included, do not realize that old age and the attending poorer health creeps up on us without us noticing, as early as starting at the age of 40.