Few more months, then riding the freedom train...

[Spartacus]

Been reading this forum for a long time. Looking forward to learning more and getting to know you guys! We're a family of 4, I'm 40, and ready to stop working for the man.

 

[bbbamI]

Welcome to the forum Spartacus.

I am bbbamI.

 

[CuppaJoe]

Hi, Spartacus.

Tell us more! That's pretty impressive to stop working for the man so early.

 

[Spartacus]

Hi Joe

I was one of those kids their parents told them to start saving at a young age and actually listened. (about the only thing I listened to)
My father was so "cheap" he'd cut open the toothpaste tube to get one last brushing out of it.
I'm not that bad....
Married a girl who was as frugal as I was. Saved money since I was 20. Got a pretty good job, kissed enough behind, kept saving...
Have a $270,000 house paid off, two cars paid off, and about $500,000 split between tax deferred stuff and cd's.
Live on about $25,000/year.
Gonna follow the Work Less/Live More plan, sort of semi retire, just can't be "corporate" anymore.
Want to earn about $10k to $15K in any job just for some extra money, hopefully doing what I love to do.
Love this forum, love firecalc. Still concerned about Healthcare and my two little one's college, but will find a way.
Hope to learn from you guys. You are my heroes!

 

[Spartacus]

Work Less. Live More....

How do you folks feel about Bob Clyatt's Rational Investing Portfolio and strategy for SWD rates for the long term and safety, versus just battening down the hatches and going with a 30 year treasury?
I'm torn between two lovers.....Beating inflation and safely protecting my hard earned dough

 

[cardude]

How do you folks feel about Bob Clyatt's Rational Investing Portfolio and strategy for SWD rates for the long term and safety, versus just battening down the hatches and going with a 30 year treasury?
I'm torn between two lovers.....Beating inflation and safely protecting my hard earned dough

Just got through re-reading his book and I think his rational port is interesting, but a little too complicated for me with the venture capital money and hedge funds. I think his SWR calculation, with no inflation adjustment and using the 95% rule when needed, is pretty bulletproof, but at your age I would try to keep it around 3% if possible.


At your age I don't see any way you could come out putting all your eggs in 30 year treasuries. I'm 44 and retired, and I'm working on getting my AA to 50/50 bond/stock. That may seem low to some on the stock side for my age but I have a little different situation and need more bonds to dampen the volatility of my stock side.

 

[walkinwood]

I ER'd in May '08 and follow Clyatt's 4% rule.

Bob Clyatt suggested in this post
http://www.early-retirement.org/forums/showpost.php?p=781617&postcount=14
to avoid the 95% back-stop in the early years.

 

[Spartacus]

thanks walkinwood and cardude...

I had thought about 3.5% swr, but decided like you said to stick with a 3%. I think that should be as you said "bulletproof". I'm quite ok with earning any remaining money I may need, just can't work for "the man" anymore. I've worked for At&t (formerly SBC) for too long. Scott Adams, the creator of Dilbert worked for them, how else would Dilbert become so accurate?
Anyway, I'll sell lemonade before staying there.

I appreciate your advice more than you know.

 

[freebird5825]

Welcome aboard
Love your online name.

 

[WB52]

Congratulations on your decision. I've read your post with great interest, especially because I am in a similar situation. I am a year or three behind you. While I like many of my cow*rkers here, I find the cumulative effect of 25 years on the rock-pile to be increasingly toxic. I like your plan to be at a SWR of 3% - 3.5%. I am not there yet. However, if you are confident that your family of four can live on the $25k for the long-haul, you should be in great shape.

Best wishes.