Introduce yourself here!

[sgeeeee]

Hi, Salaryguru here. Some of you might remember me from TMF days before they went over to the dark side. I have spent some time on the MSN Retire Early boards since then. I achieved FIRE this past April (age 49) but am still using a couple of safety nets at this point. 1) I am able to take advantage of my company's group medical insurance plan till November 2003 so I haven't had to start paying those monstrous medical insurance premiums yet. And 2) My wife will be working till the end of August 2003 so we are still increasing our investment portfolio and not having to live off of it yet.

Back in the late 90's I had set a target date for FIRE of April 2001, but after US economy setbacks starting in April 2000, I decided to hang on till my portfolio stopped it's apparent freefall. I expect my initial withdrawal rate to be ~3.5% and I have lots of interests that have been keeping me very busy. So far, I'm extatic with my early retirement and waiting anxiously for my DW to join me.

 

[Telly]

Hi salaryguru,

If you are going to have to come up with your own health insurance after your work coverage runs out, don't wait too long to get the process started. It can take up to 2 mos. with filling out forms, sending them in, the underwriting process, then the questions the underwriters will have can require you getting in touch with doctors offices to have copies of requested records faxed to the underwriters, then more waiting for the underwriters OK, then waiting for the insurance package - whew! And that is if it is successful. If not, all that elapsed time was lost.

And it is possible that an ins. co. that looks good on the internet may not insure one of your family members. Regardless even if it was the same ins. co. that you had a group plan with at work, that "knows you". At work, you're protected in a group plan. Buying it yourself, you're a suspicious individual.

The bar is different on the individual plans. You could be rejected outright even before submission if someone exceeds the ins. co. personal policy arbitrarily set BMI chart maximum. Not all companies use BMI, but a common one does! Also expect underwriters to put a pre-existing condition no payment for x years clause on any item they very well see fit to (even if it was resolved in the past).

I guess what I am saying is start early to avoid unpleasant surprises and running out of time. You can always set the effectivity date of the coverage out into the future. You can be in great health, and they will still find something to pick at. I think it's just the nature of it. They are trying to predict your future, and seem to be doing it using a sicker general profile.

 

[Mr._johngalt]

Hey salaryguru! In my quest for affordable health
insurance post ER, I was very frustrated to spend
big chunks of my time and then wait, only to be rejected.
Two different times I came back to companies which had once insured me and was turned down, even though my health siituation was basically unchanged. To be clear, I don't feel anybody should be forced to
cover me. Plus, the all the insurance in the world is useless if you can't pay the premium. As usual, with
hindsight I would have handled this much differently.
Good luck.

 

[unclemick]

Don't do this! I self insure. No house insurance - 7.5 miles from the nearest levee over water - no medical for me (she and my mother have medical) - I have reasonable health and so far it's not renting too much space in my brain (worry).

If you want a trip in frustration go in with a sprained wrist and tell them you live in a fishing community and pay cash for everything - not checks, CC, insurance - just cash. The story could fill pages.

 

[dory36]

Another option -- if you were in the service, sign up for VA care. 1000% better today than it was 20 years ago -- easily on a level with "civilian" care from my observations.

Free if you have a service-connected disability, or a reasonable co-pay otherwise:

Prescription copayment charges were established by Congress. The charge is $7 for each 30 day or less supply of medications provided on an outpatient basis for nonservice-connected conditions.

Outpatient - The copayments will be based on primary care visits ($15) and specialty care visits ($50).

Inpatient - Congress determined the appropriate inpatient copayment should be the current inpatient Medicare Deductible Rate ($840 in 2003) for the first 90 days that you remain in the hospital plus a $10 per diem charge.

In 2003 (for the first time ever) they stopped signing up veterans whose income exceeded some level -- high $20s to low $30s I think, depending on area. No idea whether they will open it up again for 2004.

But those already in the system didn't get dropped -- they were grandfathered.

It costs nothing to sign up, so sign up if eligible even if you don't use it. You never know!

Dory36

 

[Goat55]

Just Registered

I have enjoyed lurking in the background and reading all of your posts. Decided it was time to register and contribute, if I can. I have a plan in place to retire in 8 years at age 55 (hence GoAt55). By then the kids will be done with college, house will be paid for and I can draw on my pension. It is nice to find an online community that shares my feelings on early retirement and financial independence.

After reading Your Money or Your Life my Wife and I have spent the last several years eliminating debt and learning to live below our means. We've made over the debt hurdle as we've paid off everything but the house and dont plan to borrow ever again. But we still occasionally struggle with buying decisions as our wants still sometimes overtake our common sense.

2 problems I struggle with:
Not living fully in the present and wishing it was 8 years from now... I want to be retired NOW.

and, although I'll be FI at 55, I take a 40% reduction in my pension by taking at 55 instead of 60. So... although I can go at 55 and be comfortable, if I waited to 60 I could be extra comfortable. Even though I know I value the extra 5 years of retirement more than the additional $'s, this issue still eats at me.

As a ER wannabe, I look forward to learning from those of you that have made the leap.

 

[Mr._johngalt]

Take it at 55. You may not be here at 60. I could have kept working and made piles of money. Would I be happier today? I don't think so. If I'd gotten serious
at an early age, I'd have retired even earlier. Not
complaining though, and I'll be in the SS office on my 62nd birthday.

 

[Gib]

Re: Just Registered

Hi Goat55 - your post looks like it could have been written by me - except the part about the kids and college - I'm childless. But everything else fits. I read YMOYL when I got divorced about 10 years ago, and have been dreaming of ER ever since. At that time (age 40), I had done absolutely nothing about retirement planning. But Joe Dominguez et al got me moving. I cut back drastically and started saving feverishly. The original plan was to go out at 50, but I'm there now, and still working. I'll blame it on the stock market (instead of where it truly belongs, squarely on my shoulders). So now I'm looking at 55 also. My pension will be enough at that point (and they'll pick up most of my health insurance premiums). Waiting longer would also make it more comfortable for me, without a doubt, but honestly it doesn't take much to make me happy (free time will do it) and sacrificing any more time is out of the question. The sooner I'm out of this rat race, the better. Like you, I have trouble being content in the meantime.

Best of luck,
Gib

 

[Cut-Throat]

Gib,

Welcome to the Board! - You say you are not content now. Let me ask you a question. - If you were retired today what would you do ? Lot's of people say travel. If that is what you'd say, I say take the 2 week vacation now - I'll bet after a couple of weeks you're ready to come home.

After being retired for over 2 years now. I can tell you that life does not really change all that much. I was content working and am content now. I have a lot more time for my hobbies now and don't have to put up with the dreaded office politics. But really, I had a routine then and have a routine now.

You really have to ask yourself why you're not content now.

 

[Simplygib]

If you were retired today what would you do ?
......
You really have to ask yourself why you're not content now.

Hi Cut-Throat,

I've asked myself the same question many times. But don't get me wrong - I don't mean to say I'm miserable or anything like that. I'm not. I'd just rather be not working at a traditional "job."

I remember this from when I was a teenager. The idea of getting up by an alarm clock, and trudging down to some place of employment where I'd spend the most productive and energetic hours of the day fulfilling the needs of someone else never appealed to me. But I went down that road anyway, since I didn't see an alternative.

I've been in the computer industry for the past 13 years. I enjoy it. I like computers and I like programming them, as well as troubleshooting them and their related software problems (my current job). What I don't like is the associated paperwork and red tape, the rigid work schedule, the politics, the necessity of prioritizing my activities according to the judgment of someone else (bosses), and the 40-hour work week (way too much time dedicated to "work").

Well, this is a subject that I could go on and on about. Maybe I'll just put down a few things I'd rather be doing (without a job):

1. Getting up whenever I feel like it (which would probably be early anyway, but without an alarm clock), and taking an afternoon nap.

2. Travel? Yes, definitely, but not constantly. I'd love to travel to some of the towns of my ancestors, to look for any traces they may have left. I'd like to trace the route of the pioneers as they came out west. I'd like to visit many, many places of geologic or scenic interest that I've never seen. I'd like to travel some in Mexico, Central and South America.

3. Getting in a couple of hours of exercise every day without feeling like working and exercising is all I can accomplish in a day.

4. Reading more, learning more, accomplishing more, and being more creative.

5. Yes, I'd still like to work with computers, but on my own time, at my own pace, and only on projects that interest me.

6. Writing. I've started a book and would love to have more time to spend with that.

7. Maybe I could FINALLY learn the piano, or guitar, or...??

8. I'm pretty mechanically inclined, so I'd love to be able to fiddle around more with household construction and repairs, car or motorcycle repairs, appliance repairs, etc. I do some of that now, but there's so little time...

9. And it would just be great to be able to have some flexibility with activities - to spend as much or as little time on them as I feel like at the time.

I hope I've explained myself well. It's sometimes difficult to put down in print exactly what one is feeling. Regardless, thanks for the welcome - this is a great site and I'm looking forward to trading ideas here.

Gib

 

[Cut-Throat]

Hi Gib,

Yes you explained yourself well. I was also in the computer industry. Mfg Software Developer. And my take on work is basically the same as yours.

I do still work at home about 20 hours per month on average. But, I view this as an interruption more and more. You do tend to fill up your days with more hobby related activities.

Now that I have been retired for 2 years, it's very odd how fast time flies. The freedom is wonderful, but it made me a bit uncomfortable the first year. Not being 'on task' all of a sudden is very different and every one that I know of that has retired goes through a certain period of restlessness the first year.

I always recommend seeing the Jack Nicholson Movie 'About Schmidt' just to see how people with no passion for life handle retirement. There are a lot of people in the U.S. that when work ends, life ends.

 

[sgeeeee]

. . .I always recommend seeing the Jack Nicholson Movie 'About Schmidt' just to see how people with no passion for life handle retirement. There are a lot of people in the U.S. that when work ends, life ends.

Now that's just mean. I don't hate anyone enough to put them through that awful, boring movie.

Actually, my wife and I went to see that movie right after I retired and just before she took the plunge. As we walked out of the theatre, I commented that anyone who didn't find that movie boring should probably avoid retirement.

 

[Cut-Throat]

SG,

If you thought 'About Schmidt' was boring, don't go see the new Bill Murray movie 'Lost in Translation' a message about 'Loss' which is what 'About Schmidt' was also.

The Bill Murray is truly boring.

 

[ronin]

Howdy all,

Enjoy reading your posts and thought I'd come out of the shadows for a moment to introduce myself.
I'm TW and am still a wage slave/salaryman (actually public school teacher), but see the light about 6 years down the tunnel.
I really enjoy personal finance and investing activities and am very active in planning in this area.
Fortunately, most of our ducks are in a row and, short of some nasty catastrophe, my wife and I will retire early. We aren't in any particular rush, though, as life right now is actually quite enjoyable.
Sorry, don't have any questions or new topic to post.
I look forward to listening to all your various discussions, and maybe tossing in my few cent's worth on rare occasions.

 

[Cut-Throat]

Hi TW,

Welcome to the board!

- Actually a lot of my friends are education type folk. Principals and School Teachers. With their pensions they did not have to plan quite as much as myself.

I assume you're in the same boat, and a good boat to be in these days!

 

[ronin]

Hello Cut-Throat,

Thanks for the welcome. I hope your user name refers to the fish and not some darker side! Just kidding.

Most of my friends are not teachers, as they never seem to have much to going on besides their jobs and I leave mine at the office when I leave each day. Seriously, teachers are the worst to be around at parties, especially elementary (I teach high school and adult). Get a life!

As for the pension, yes, the State Teacher's Retirement System is an excellent benefit. Hard to imagine anyone doing this 30 years if they didn't really enjoy the work, but knowing there's income for life (with a COLA) is great. My wife's a teacher as well and has even more coming than me as far as pension benefits go. Luckily for her, her side of the family tends to live upwards of 100 yrs. So retirement could be an awfully long time.

What did you do before retiring, if you don't mind me asking?

 

[Cut-Throat]

Hi Tw,

Yes the moniker refers to one of my favorite fish. But I to those who don't know this, it may make them think twice


I was in the Computer Software Buisness for around 27 years. Mostly Manufacturing Systems - Software Development. I retired 2 years ago at 50, when my boss decided that he was going to change my position. He had not anticipated my move and it was fun seeing the expression on his face.

I had planned on ER since turning age 30, so I saved and Invested consistently. Did not eat rice and beans and lived very nicely, but always saved 30%. Invested in stocks but stuck to companies that actually made money and were not overvalued.

Wife still works as she is 8 years younger than I. For medical coverage and before my SS kicks in. We're still stashing over 30 G's a year and we have no debt. Mortgage is also paid.

 

[ronin]

Hey Cut-Throat,

Hopefully, nobody's going to get too steamed if we chat a while longer in this particular thread, since it's in the vein of getting acquainted. Don't mean to exclude anyone else.

Never caught a sea run cut, though I tried a couple of times, up in Oregon. Did get lucky and landed a steelie once. Mostly, used to go out in the ocean. Don't fish anymore (just one of those things, no major reason). Still go in the ocean regularly, but for the waves.

Sounds like your ER is doing very well indeed! That's great. We can ER at 55 in the Calif. STRS. Probably go 2 years more than that due to some incentives for having 30yrs. We also have no mortgage or other debt and sock away approx 40% at this time.
Just leased a half acre of my backyard to a wholesale nursery guy for $600 a month, so that should be pretty nice (plus I don't have to deal with the weeds!).

Hopefully, the Soc Sec windfall provision will change, as I qualify for benefits from a dozen or so years in the private sector and am presently going to get screwed (pardon my value judgement) out of most of it.

We allocate at 70/30 (stk/bds) right now. We use 403b and IRAs, as well as a taxable account. Try to keep very little in cash, just enough to get through the summer months when the paychecks disappear. Have a couple months emergency $ as well. Seems to be a reasonable approach for us.

 

[unclemick]

Dumb question - is a 'Harvest Trout' local slang for a cut-throat - seems to me that's what we caught coming up the Columbia as a kid in late summer/fall?

 

[Cut-Throat]

unclemick,

A 'Harvest Trout' is any trout that has been stocked to a stream or lake and is intended to be 'Harvested' by an angler to eat. They could rainbows, cut-throats or brown trout.

They also call these 'put and take' fisheries.

I am totally against these stocking efforts however, because the hatchery trout cause disease in the natural wild populations. Infringe on wild trout habitat and contaminate the wild gene pool.

Much better efforts are in habitat improvement, Catch and Release fishing and tough environmental regulations. Wild Trout don't think much of poluted water.

 

[Mr._johngalt]

Hi Cut-Throat! IMHO most of man's tinkering with
nature ends up being a mistake, and this includes
planting trout. However, just like in most areas of
life, mankind seems unable to learn from past mistakes.
Someone said insanity is doing the same thing over and over and expecting a different result.

 

[unclemick]

I shall remain semi-silent - especially herein the land of sports verus commercial fishing - shall we say heated discussions - not to mention imported seafoood. I will say this - growing up in the Pacific NW you could sure tell the difference when you hooked a 'native' verus a stocked fish.

 

[Howard_Roark]

Greetings all!

I am a perhaps one of the younger ones of the group here, but as I've read in a few posts regarding what some would do financially if they could go back 30 years, I feel fortunate to have found this site, but more so to have found this mentality at my age. I look at people in their 20's now and give the same advice that a few gave me at their age, which was be smart with your money early in life. I'm not sure what it is exactly that triggers someone into this intelligent thought process, and perhaps it's something we're not supposed to know. I say this as I now do try to help those "youngsters", and have trouble understanding their (and most likely what was my) confused look on their faces as I tell them they could be set for life if they just started now. I'm 32, just married last month to my beautiful wife of age 34, and quite proud to say we're doing fairly well. We're eliminating the last of our small credit card debt, paying off her car within the next 2 years, own our own home with a very modest mortgage payment (didn't buy what we could afford, but what suit our needs and we liked), and within 4 years will be close to debt free aside from that mortgage. We both agreed that investing early and being debt free is far more attractive than paying $400 or more per month on fancy cars could ever be, and with the hope of children in a few years we're working on the plan for early retirement now. My job allows me to travel around our city quite a bit, absorbing the interesting thought process of many individuals my age and what they value as important. For instance, I arrived at a particular apartment complex I needed to visit the other day, only to see a gentleman in his early 30's pulling up his brand new $70K Hummer...while unlocking the key to his apartment which rented for no less than $900 a month.
I could only count my blessings as I had read The Millionaire Next Door about 9 months prior, and focused my attention on designing our lives instead of making a living. I look forward to learning from all of you, and appreciate everyone's feedback of what they would have done differently, and especially of how good life is retired, and doing what we should be....that is living!

 

[John Galt]

Hello! Wish I had all this figured out at your age.
Alas, I never gave retirment a thought until very late
in life. Still makin' it work, but it would have been a
hell of a lot easier had I started earlier. BTW,
nice sign-on name.

John Galt

 

[John Galt]

This is for Howard_Roark.

To show where I was before the ER bug bit, about 10 years ago I pulled up in front of my $1750 per
month apartment in my Cadillac Seville, so I've been
there/done that. Seems really stupid now. Older
people tell us our whole lives how fast the time will
fly by. Alas, most don't "get it" until they are the
"older people". Now I am faced with trying to
squeeze in all that I can before my demise, or at least
before I am too old to do it. No regrets though, as
at least I finally woke up and
smelled the coffee.

John Galt