HI Bill
Thinks s/he gets paid by the post
- Joined
- Dec 26, 2017
- Messages
- 2,573
While there are a broad diversity of individuals and philosophies on this forum, I’m going to take a stab at what we, as an average group believe. Please feel free to add constructively to the list.
We believe that for most here:
We believe that for most here:
- Early retirement means retiring at 55 or earlier.
- Hope is not a strategy.
- Living below your means prior to retirement is the key to attaining ER.
- FireCalc can give you one of the best predictions as to whether you’re ready financially to retire, but that you should use multiple retirement calculators and/or Monte Carlo simulators to confirm your results.
- Follow the 4% rule or better yet, make it the 3-3.5% rule (confirmed by FIRECALC).
- You need to know your budget prior to retirement.
- You need to know your budget in retirement, and ensure you’ve accounted for everything, including health insurance and possibly LTC.
- Diversified investments diversify risk.
- Asset allocation is king.
- Maintain a solid asset allocation, especially in retirement. Most include some equities (50-60%+ with some % of international funds), some bonds/bond funds (10-60%), and cash/money market/CD reserves (1-3 years living expenses).
- Invest in mutual funds, not individual equities (which carry higher risk).
- Timing the market does not work as effectively as long-term investment with AA.
- Save and invest with withdrawal strategies in mind (including taxes). This means having both taxable and tax-deferred investments.
- Determine the best time for you and your spouse or SO to take SS.
- Plan for a decrease in SS benefits (say, 25%).
- Plan for the elimination of the ACA in its present subsidized form.
- Have something to retire to.
- Plan to maintain or exceed one’s pre-retirement standard of living in retirement.
- Avoid annuities.
- Avoid speculative ‘investments’ with no basis in value.
- Your investable assets are what matters, along with any debt. The value of your house or classic car collection are not investable assets, unless you are going to sell them.
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