How we did it

[wabmester]

Did you get the 'Grumpy" part from telling your kids they couldn't have every toy all the other kids had? ;-) I am learning how to growl and do that and find I really enjoy it!

My kid is 18-months old and she's recently become very demanding. I asked myself "how would my mentors deal with this?" So, I borrowed a trick from Bugs Bunny:

her: "more!" me: "no more!" her: "more!" me: "no more!" ... me: "more!" her: "no more!" me: "ok."

 

[bow-tie]

BRILLIANT!

 

[ESRBob]

 This means I have added something over $400k net of new money.  So, it looks like it is about 50/50 appreciation vs. savings.

Grumpy,
thx for the follow-up,and for keeping great records over the years. Very instructive. So over 18 years, looks like you socked away 20-25k each year, on average and received more-or-less long term market returns (8%) on your investments.

I think this could make a very good set of targets for younger members of the forum looking to ER-- basically save 25k+ each year from income (probably want to be on the high end to account for inflation -- grumpy was putting the $ away in the 80s when a dollar was worth more).

What is inspirational is that it was done without hitting it big-time in the Nasdaq or inheriting $ or selling your company etc, but with a slow-steady approach over a reasonable (20 year or so) stretch.

Presumably you are also vested in a pension, but even a couple without any additional pension could live on the proceeds of a 1m financial portfolio, (maybe drawing at a full 4% instead of your very-safe 3%) especially if they were willing to relocate (inland?) to less expensive US-based digs.

Congrats again,
ESRBob

 

[grumpy]

Presumably you are also vested in a pension, but even a couple without any additional pension could live on the proceeds of a 1m financial portfolio, (maybe drawing at a full 4% instead of your very-safe 3%) especially if they were willing to relocate (inland?) to less expensive US-based digs.


ESRBob,

You are right. I am very fortunate to be covered by the old Civil Service Retirement System (CSRS) rather than the newer Federal Retirement System (FRS). I was able to retire at age 55 with 56% of my average high three salary years (indexed to the CPI). That pretty much will cover all of our regular expenses. Any withdrawals from our nestegg will be for the "extras". We will continue to be conservative in our withdrawals as it is our intention to fully fund 529 plans to cover the cost of college education for our grandchildren (when we have them).

Clearly my employment situation with Uncle Sam made all of this alot easier to accomplish. However, many of my peers at NASA, with the same opportunities, failed to take advantage of them. They will be working well into their late 60's and may never have the financial security they could have had.

Grumpy