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Old 06-25-2015, 05:21 PM   #41
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I often think about coasting. I have a high percentage of my savings in retirement accounts. If I stopped contributing to them (actually I changed to do the minimum), in 25 years when I am 60, they will be worth a lot.

So I've been trying to build up non-retirement money, and basically hope to retire early and coast until 60.

An extreme example would just be to sell your belongings, invest all that money, go to prison for a few years, free room and board, weight lifting, still have to pay income tax, but eventually you will get out and your investment accounts should be fantastic.
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3/5/2012 - Total savings minus mortgage is about $110k.
3/19/2013 - $250k in my investment accounts and mortgage at $79.5k. Total : $170,500
7/2/2014 - $300k in my investment accounts and mortgage at $73k. Total : $227,000
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Old 06-25-2015, 05:31 PM   #42
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An extreme example would just be to sell your belongings, invest all that money, go to prison for a few years, free room and board, weight lifting, still have to pay income tax, but eventually you will get out and your investment accounts should be fantastic.
That's quite an interesting plan...
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Old 06-25-2015, 05:49 PM   #43
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You forgot to mention the free health care inmates get. What a deal!

There's a poster in another thread who was totally unimpressed when he was told that he could get ACA subsidy by doing Roth conversion to count it as income. But that means he has to pay some income tax, and he does not wanna. He wants totally free health care, and said he had figured it out but would not bother to tell the dumb people here in this "typical" forum. Maybe he stumbles across this same solution.

Now, one will have to research the law to do the right crime to get a sentence for the number of years or decades that he wants to coast. If you don't get that right and stay locked up too long, it would not be called ER when you get out.

PS. Pick a crime that gives you some additional money to add to your retirement stash before going to jail. That's a double bonus. Something like drug dealing.
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Old 06-25-2015, 05:53 PM   #44
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If we can make it a womens prison, helll, i just might try that for a year. :-)


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Old 06-25-2015, 05:55 PM   #45
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Sex change operation for you?
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Old 06-25-2015, 06:16 PM   #46
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Sex change operation for you?

Well that would defeat the purpose, now wouldn't it?


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Old 06-25-2015, 06:19 PM   #47
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Well, some women manage to entertain each other. You may figure out a way.
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Old 06-25-2015, 06:33 PM   #48
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We're about to start coasting. My DW and I have been married for 20 years, and she is seriously burnt out at her IT job. After long conversations, and running the numbers, we decided that after she collects a bonus in August, she'll quit and be a stay-at-home Mom to our 2 kids (8 & 11).

I think the whole family will benefit, because she'll take care of a lot of the household chores that we currently both do on evenings and weekends. The kids won't be stuck in after-school care and summer camps, as they are today. Effectively, we're trading her income/additional savings for more free time now. To make our budget work, our savings rate will be slashed by 3/4 (along with a lot of belt-tightening in other discretionary spending).

Based on our investment balances, we're only about halfway to FI today. I plan to work another 14 years, which would put my retirement age at 56. If I have to work another year or 2 at that point, I think I'd be fine with that trade-off. The one ace in the hole we have is that we'll have a paid-for house probably worth ~$1M at that point. If the stock market doesn't cooperate over the next 14 years, we should be able to downsize and extract a significant amount of equity to make up any shortfall. DW can always go back to work for a few years, too, especially once the kids are older.

For now, we're going to take it year-to-year. We'll try out what we're calling a "sabbatical" for a year, and adjust as we go. My DW is highly motivated to make this work, so I think it will.
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Old 06-27-2015, 09:09 AM   #49
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We're a few years older than the OP, but in a similar situation. We've had the hammer down on saving for a long time, but really were able to crank over the last few years. House paid, kids college fully funded, substantial emergency fund and enough retirement assets that if I get a 4% real return from now until I'm 55 I could retire then with a 2.75% SWR even without putting another penny into retirement savings from this point forward.

I'm not using this runway to coast, but I am using it to lighten up a bit. In particular, it gives me the option to consider different (more rewarding jobs) at a substantial pay cut. Combined with LBYM, we could take a 50% income cut and still LBYM without changing anything.

Ideally, I will find a new role that lets me continue saving but with a bigger smiler on my face. Continued savings at a decent rate should pull that RE age into 52 or so...and provide some dollar cost averaging should the market get manic again.

To the OP: one big risk of truly coasting from here is that the markets are quite high. You could have a sequence of returns risk and miss the opportunity to buy low over the next few years. Just a thought. Good luck.
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Old 07-06-2015, 02:47 PM   #50
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"I'm 37, planning to stop saving heavily at 40 and let compounding do the work while I either dial back work or dial up spending or both.

For others planning similar, how are you analyzing the numbers to decide when and how much you need?"


My analysis is based on how long it will take to hit my fully FI lump sum number. In my situation, if I keep grinding as is I estimate I will hit my number in about 11 years. If I scale back work in a few years and "coast", I estimate I will hit my number in about 14 years. I am leaning heavily toward "coasting", which for me equates to about 500 less hours of work a year but adds an extra 3 years to my FIRE date.
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Old 07-09-2015, 01:13 PM   #51
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"I'm 37, planning to stop saving heavily at 40 and let compounding do the work while I either dial back work or dial up spending or both.

For others planning similar, how are you analyzing the numbers to decide when and how much you need?"


My analysis is based on how long it will take to hit my fully FI lump sum number. In my situation, if I keep grinding as is I estimate I will hit my number in about 11 years. If I scale back work in a few years and "coast", I estimate I will hit my number in about 14 years. I am leaning heavily toward "coasting", which for me equates to about 500 less hours of work a year but adds an extra 3 years to my FIRE date.
Remember, life's not a race, but rather a journey. While achieving FIRE is important, life should still be lived along the way.
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