Interesting article

[mountaintosea]

http://finance.yahoo.com/retirement/article/103954/Can-You-Afford-Extreme-Early-Retirement

Thought some of you would enjoy this article.

 

[simple girl]

Thanks, that was a good read.

 

[VaCollector]

thanks....I too enjoyed the read!

 

[clifp]

Nice to read a positive ER article.

If Billy every unretires, I think he has a promising future in Public Relations . They seem to get a article about their early retirement every 6 months or so.

I really like his website, and he is a good writer, they "live" in Thailand, but I am curious why so many articles.

 

[unclemick]

The article totally sucks - makes me proud to be a Curmudgeon.

Billy and Akaisha lay it out about as complicated as it needs to be for a puff article - and the rest of the piece proceeds to ignore the advice.

1. Invest in a broad based low cost index fund - just one like duh 500Index.

2. Take out 4-5% or less.

3. Party till you puke (ok ok so I added that one) - ie ala the Late Joseph Campbell follow your bliss/do your thing.

The second half of the article hit all my hot buttons - PacNW, fixed income vehicles, environmentalists, financial advisors, etc.

grumpy, grumpy grumpy.

Oh well at least it's not a stupid book!

heh heh heh - I suppose 24k/yr is no longer the height of extravagence starting overseas and all/ time and inflation being what they are.

 

[haha]

All three traits apply to Aldridge and Lugenbehl, who retired more than a dozen years ago to an eight-acre parcel in Cottage Grove, Ore., with a starting nest egg of $135,000 each. They each contributed $50,000 to buy the land where they built their home, and the remainder is in CDs. They live on $400 a month, and have a health insurance policy with a deductible of $7,500.
The money has remained conservatively invested in CDs. "We like to sleep at night, so it's more important to us to know what's coming in, rather than to maximize the possible income," says Aldridge. "We've seen too many folks lose money rather than make money from their so-called investments."

Is anyone gullible enough to believe this? Or are these folks on state assistance? Does anyone here think he or she could live on $400 a month, and buy a health insurance policy? No matter what the deductible it would cost too much. Could you even buy groceries and toothpaste and tampons for $400/month? I am cheap as hell, and my food alone averages $375/mo for one person. It reminds me of hippies in the 70s who "lived off the land". Right, and the charity of more able neighbors, and welfare, and care packages from Mom and Dad back home, and dope dealing and prostitution. "Hey man, come on up to Mendocino man, it's really groovy up here."

Contrast this don't-worry-be-happy article with the many prudent people on this board who really hate work, yet are still working because they don't want to pull the plug with less than a pretty good sized nest-egg.

Pure Fantasy Island.

Ha

 

[mountaintosea]

Is anyone gullible enough to believe this? Or are these folks on state assistance? Does anyone here think he or she could live on $400 a month, and buy a health insurance policy?
Ha

I wondered about this particular couple also. However I thought the whole article was rather positive. Basically it seems to be saying it's OK to quit the rat race. It's acknowledging that the "work work work until you die mentality"
is not the only way to live.

Look at all the articles that encourage the average joe/josephine to at least work part time after retirement?

 

[NotSoonEnough]

"Hey man, come on up to Mendocino man, it's really groovy up here."
Ha

I haven't been to Cottage Grove for many years, but yeah, it was/is very groovy. I doubt it has changed much, anything close to Eugene is what we used to call, "fern picking country". The cover story was, "we're picking fern and selling it to the florists", it was some pretty expensive "fern". Doesn't the DEA call it "America's #1 cash crop"?

 

[haha]

However I thought the whole article was rather positive.

To put it mildly.

I haven't been to Cottage Grove for many years, but yeah, it was/is very groovy. I doubt it has changed much, anything close to Eugene is what we used to call, "fern picking country". The cover story was, "we're picking fern and selling it to the florists", it was some pretty expensive "fern". Doesn't the DEA call it "America's #1 cash crop"?

I suppose they didn't want to tell the nice lady from the magazine about that.

Ha

 

[unclemick]

Things get better if you peruse the links provided in the article.

heh heh heh - As a rah rah jump start - hmmm maybe okie dokie - but do your own due diligence. More than one way to skin a cat.

 

[NotSoonEnough]

I suppose they didn't want to tell the nice lady from the magazine about that.

Ha

On the other hand, perhaps they "shared" some of their herbal remedies...might explain the article's "good vibe"

 

[Moemg]

Is anyone gullible enough to believe this? Or are these folks on state assistance? Does anyone here think he or she could live on $400 a month, and buy a health insurance policy? No matter what the deductible it would cost too much. Could you even buy groceries and toothpaste and tampons for $400/month? I am cheap as hell, and my food alone averages $375/mo for one person..

Ha

Thanks Ha ,
I was wondering the same thing .

 

[Maurice]

Yeah, Ha, my sentiments exactly.

 

[cute fuzzy bunny]

Yep, our "other" budget category which just rounds up odds and ends runs between $3000-4000 per year.

I guess if you're signed up for all the subsidies for low income people, grow or raise most of your own food, heat with wood you cut and split yourself, and live like folks in the 1800's, you could get by on $400.

Good luck with that Dominguez-esque CD investing strategy though...although if they're living like the Waltons perhaps inflation will have very little effect on them.

 

[Billy]

clifp

If Billy every unretires, I think he has a promising future in Public Relations. They seem to get a article about their early retirement every 6 months or so. I really like his website, and he is a good writer, they "live" in Thailand, but I am curious why so many articles.

Thanks, Clifp. I doubt that Billy would want to 'unretire' any time soon, and his wardrobe of shorts and beach shirts might not go well in NYC... Were you asking about why there are 'so many' articles about us?

I would have to say that the media seeks us out because:

1.) we have a unique story

2.) we retired at the age of 38 in 1991 before there were ER Forums such as this one, or online calculators and support groups. We retired before it became fashionable or in common conversation.

3.) we are just 'regular blokes' who did it on their own by working hard and saving and without winning the lottery, or inheriting large sums of cash.

4.) we've survived the market crash of 1987 and the bear market of 2000-2002 without being forced to give up retirement

5.) we're going into our 18th year of retirement beginning January, 2008, so we are not a flash-in-the-pan - we have sustainability.


Unclemick

The article totally sucks - makes me proud to be a Curmudgeon. Billy and Akaisha lay it out about as complicated as it needs to be for a puff article - and the rest of the piece proceeds to ignore the advice.

Lots of people like to have things complicated. It has always been our position that Retirement isn't Rocket Science. I know that really rubs some people the wrong way, but it is the way we did it, and are still doing it after all these years. If you are one of those people who like complicated steps, more power to you. Whatever suits your style.

We answer all questions that the media put to us. We don't write the finished article, so if it 'puffs'... And we have made our lives fairly public as a service to others so if anyone wants to know more about what we do and how we do it, they can simply click on our website.

grumpy, grumpy grumpy.

Maybe you need more fiber in your diet? Unclemick! I'm sort of surprised here...

HAHA

Contrast this don't-worry-be-happy article with the many prudent people on this board who really hate work, yet are still working because they don't want to pull the plug with less than a pretty good sized nest-egg.

We never hated to work. Even now, we don't consider work to be a 'four letter word'. We have always applied ourselves and have been contributors to situations and people around us. I admire all the prudent people on the board who are still at their jobs and saving to make their retirement dreams come true. That doesn't make anyone on either side of retirement 'schmucks'. Everyone must be comfortable with their own plan and unplug date. And what constitutes a 'pretty good sized nest egg'? It is an individual matter.

Keep your dreams alive,
Akaisha
Author, The Adventurer's Guide to Early Retirement

 

[Nords]

ER'ing on a commune sounds like even more work than living in a cubicle...

 

[cute fuzzy bunny]

Hey, if you love your work...

 

[unclemick]

Unclemick
Maybe you need more fiber in your diet? Unclemick! I'm sort of surprised here...

Keep your dreams alive,
Akaisha
Author, The Adventurer's Guide to Early Retirement

Actually true.

I plan to be against everything for a while and start to live up to my Curmudgeon certificate - at least until the Pat's lose a game and I get to call my sister first!

BTW - PBS last night had the guy who stayed 35 yrs or so in his home built log cabin in the Twin Lakes area of Alaska - not my cup of tea - and they didn't say who footed the bill for the Bush pilot who flew in on occasion.

Of course I 'may' run out of grump before the Pats lose - but we'll see.

 

[cute fuzzy bunny]

He just noticed that we're flush with 60-something grumpy old men and wanted to up the ante a bit.

You better have a lot of grump UM...they're gonna win out all the way and keep going next year.

 

[sunshine]

The article gives me hope and an idea of alternitive lifestyles with a smaller nest egg. I plan to retire below the $1M "threshold" that some believe is required. I don't need much. =)

 

[wcv56]

I need and have all my life otherwise I would of been on a easy
sub-existing life style, maybe even with gov assistance.
I would rather be miserable at work than just getting by for
the last 20 years of my life. I have seen many expatriates on
the under 2K a month budgets. That is as good as it gets and deminishes gradually each year. Many of these types never had
savings their whole life so they have always just got by.
I guess for some living is budgetting every thing in life and quality is just one thing that was never important, then enjoy.
Hard turning back once in the 50's and the reason you don't mind
working a simple low paid job ( the ones you use to mock) is because you most likely become use to little quality, be it either life or work.

 

[Billy]

unclemick

Maybe you need more fiber in your diet? Unclemick! I'm sort of surprised here...

Actually true.

Love your sense of humor... Glad to see it!

Sunshine

The article gives me hope and an idea of alternitive lifestyles with a smaller nest egg. I plan to retire below the $1M "threshold" that some believe is required. I don't need much. =)

There are lots of ways to manage retirement -- and even if you decide you want to part time work or make money from your hobbies that doesn't mean you have 'failed' at retirement. Many ways to make some 'walk around money' hardly without trying.

Hold your dreams close, Sunshine!

Be well,
Akaisha
Author, The Adventurer's Guide to Early Retirement

 

[youbet]

Billy,

Would you be willing to share what percentage of your current income is derived from passive investments accumulated during working years and what percentage is derived from your current business endeavors?

 

[Maurice]

ER'ing on a commune sounds like even more work than living in a cubicle...

Word.

 

[FinanceDude]

The article gives me hope and an idea of alternitive lifestyles with a smaller nest egg. I plan to retire below the $1M "threshold" that some believe is required. I don't need much. =)

More power to you........ My plan is $2 million,just because I'll need some "mad money" and figure $2 million in 10 years is like $1 million today.........