FUEGO
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 13, 2007
- Messages
- 7,746
I'm thinking along the lines of semi-retirement. But instead of part time work on a fairly steady basis, intermittent ER would consist of working full time at a regular job for a while and then taking off for a year or two.
The idea would be to make enough in 2 or 3 years working to live on for another few years after that while you weren't working. Maybe 3 on, 2 off or 3 on, 1 off. I'm thinking the plan would be a nice way to finish up accumulating whatever size portfolio you desire. For example, if you reached 60-80% of the desired portfolio value, then began the intermittent ER lifestyle, you should be able to make enough from working to fund a year or two off every once in a while, plus throw a little into the ER portfolio. Small contributions to ER portfolio plus earnings from the portfolio itself would eventually give you 100% of your targeted portfolio value (in theory anyway ).
Does this idea sound crazy? Has anyone ever intentionally done this?
One way to "juice" this idea a little is to stagger your start dates and end dates to make sure you work a partial calendar year on either end of your working stints to take advantage of much lower tax rates for lower income individuals.
There are obviously a number of upsides and downsides to this type of plan. Con: Establishing a patchy work history could hurt your job prospects in the future (if it matters and you aren't FIRE anyway). Patchy work history could also hurt your reputation among your network, since folks would be less likely to go out of their way to help you get a job if they thought you would just quit it after a few years. Seems like the reality is you couldn't "take a year or two off" more than 2x without establishing a history and reputation as a perpetual slacker. Unless you switched careers or moved to a new geographic location. Another con: Delay in receiving benefits after starting a new job, like health insurance, 401k participation and vesting, profit sharing plans/matches, etc. Long term salary potential MAY be hurt, or maybe not since getting a new job is frequently a good way to get a salary bump, especially if hired with the tailwind of a strong economy and thin labor supply in your market.
Pro: lots of free time off earlier than you would have otherwise. And while you are still young. And it may fit in just right with your personal life (ailing parents, young children, etc). Husband and wife team could take turns intermittently "ER'ing". You may also have time to refine marketable skills that boost your earning potential. Or serendipitously stumble upon something you excel at that you can monetize, and even enjoy doing. Another pro for the idea is if you can combine a buyout package, layoff w/ unemployment insurance, nice severance package, etc with the period of intentional unemployment.
I have considered the idea personally. Not quite at that magic 60-80% of my target portfolio value yet though, so still at least a few years away from implementing something like this. And DW has said "no" to the idea of husband-wife intermittent ER tag teaming. We do have young children though, so I think I have an easier explanation (for 16 more years at least) than some male peers if I do ever decide to intermittently ER - ie "I took a year off to take care of the kids and be a househusband".
Thoughts?
The idea would be to make enough in 2 or 3 years working to live on for another few years after that while you weren't working. Maybe 3 on, 2 off or 3 on, 1 off. I'm thinking the plan would be a nice way to finish up accumulating whatever size portfolio you desire. For example, if you reached 60-80% of the desired portfolio value, then began the intermittent ER lifestyle, you should be able to make enough from working to fund a year or two off every once in a while, plus throw a little into the ER portfolio. Small contributions to ER portfolio plus earnings from the portfolio itself would eventually give you 100% of your targeted portfolio value (in theory anyway ).
Does this idea sound crazy? Has anyone ever intentionally done this?
One way to "juice" this idea a little is to stagger your start dates and end dates to make sure you work a partial calendar year on either end of your working stints to take advantage of much lower tax rates for lower income individuals.
There are obviously a number of upsides and downsides to this type of plan. Con: Establishing a patchy work history could hurt your job prospects in the future (if it matters and you aren't FIRE anyway). Patchy work history could also hurt your reputation among your network, since folks would be less likely to go out of their way to help you get a job if they thought you would just quit it after a few years. Seems like the reality is you couldn't "take a year or two off" more than 2x without establishing a history and reputation as a perpetual slacker. Unless you switched careers or moved to a new geographic location. Another con: Delay in receiving benefits after starting a new job, like health insurance, 401k participation and vesting, profit sharing plans/matches, etc. Long term salary potential MAY be hurt, or maybe not since getting a new job is frequently a good way to get a salary bump, especially if hired with the tailwind of a strong economy and thin labor supply in your market.
Pro: lots of free time off earlier than you would have otherwise. And while you are still young. And it may fit in just right with your personal life (ailing parents, young children, etc). Husband and wife team could take turns intermittently "ER'ing". You may also have time to refine marketable skills that boost your earning potential. Or serendipitously stumble upon something you excel at that you can monetize, and even enjoy doing. Another pro for the idea is if you can combine a buyout package, layoff w/ unemployment insurance, nice severance package, etc with the period of intentional unemployment.
I have considered the idea personally. Not quite at that magic 60-80% of my target portfolio value yet though, so still at least a few years away from implementing something like this. And DW has said "no" to the idea of husband-wife intermittent ER tag teaming. We do have young children though, so I think I have an easier explanation (for 16 more years at least) than some male peers if I do ever decide to intermittently ER - ie "I took a year off to take care of the kids and be a househusband".
Thoughts?