Senator
Thinks s/he gets paid by the post
Do not wait too long to retire or quit work. My last job was the only job I ever quit, without a new job to go to.
Looking back, I could have definitely FIRE'd sooner, but I am glad I have the financial resources that I need. I have not missed work for even one day, and have no second thoughts. My former boos even offered a position for me to come back. No dice. Hard work does indeed pay off. I have been thoroughly enjoying the last third+ (hopefully) of my life.
After one year of retirement, I have fared pretty well, at least in my own mind. My strategy of assuming my expenses would be double of what I expected, and my income would be half of what I projected, has worked. Almost too good. It does leave me with a surplus I need to start spending quite a bit more.
Healthcare
My healthcare costs are still $0, as I use the VA Medical Center for all my healthcare needs. There is a $0 premium, and a $0 deductible. If I need any medications, it’s $8 per month, per prescription – or less if Walmart is cheaper. So far, I am healthy and any needs I have are met. My healthcare costs are less than when I was working. The DGF has an even better deal.
Spending
I currently live 100% on rental income and have not taken out any investment account money. A 0% withdrawal rate. My 401K, Roth IRA, traditional IRA and after-tax account have all increased in value by over $300K in the past year. Property values have also increased. I could take $25K+ per year in dividends if I wanted. At some point, I will have to, after I change my residence to a lower tax state. At some point, the market will taketh away what it has given. Hopefully not all.
I have paid an extra $6,000 each month on my rental property mortgages (5.375%), or $72K in additional principle payments, since I quit work. I had been paying extra for a while, and continued it. The mortgage will be paid off in just a few more months. Once that mortgage is paid off, I will have the $6,000 plus another $960 in P&I payment each month in increased cash flow. I have saved a bit on top of that extra mortgage payment amount, probably another $4,000+ a month or so. With a higher cash flow, I avoid bonds and get better returns.
I have not really skimped on buying anything. I did almost buy another Glock, but since I already have about a dozen, plus another dozen+ other handguns, I passed – for now. I have also been eyeing a hardwood burning pellet grill, but want to make sure I will use it enough to justify the cost ($899).
My future income streams are still solid. Social Security amounts will be in excess of $3,000 per month at age 70. My pension at 65 will be $1,262. I definitely need to spend more. The DGF will have a bit too. It isn’t that I have not tried to spend money. I went on several trips over the past year, all in the USA. I figure it costs under $1,500 per week to travel for the two of us and a dog, assuming I drive to the destination. I have used any veterans discounts I can get, and GroupOns, credit card rebates, and they have saved many hundreds.
Upcoming Purchases
A 2017 Ford F350 4x4 Platinum diesel is going to be on order in July, that will take away a bit. I am going to buy a fifth wheel as soon as I can get a great deal. I am also in the process of selling a property in Minnesota, and doing a 1031 exchange to a Florida property. That should lower my state income tax bill at some point when I change my residence there.
In the end, I suspect that some stripper that may not have even been born yet will wind up with a bunch…
Travel taken and Planned
July 2016 – Week in Branson, MO
December 2016 – Week in Branson, MO
January 2017 – Three+ weeks in St Louis, MO, Nashville, TN and Florida. One highlight was that I saw a rocket launch at Kennedy Space Center, at night, from the 2-mile restricted area viewing station.
February 2017 – Two weeks in Tuscon, AZ
March 2017 – Two weeks in Biloxi, MS and New Orleans
May 2017 – Drove the 450 miles and attended a Garth Brooks concerti in Kansas City, MO. We had dead center seats, only six rows back from the stage. We also took a day trip to Duluth and toured the Glensheen Mansion later in the month.
June 2017 – Took two weeks to travel around Lake Superior. Some highlights include a visit to Isle Royale National Park, going through the Sault Ste Marie Locks, spending a day on Mackinac Island and a taking a boat tour of the Apostle islands.
Upcoming adventures for 2017 are a two-week trip to Glacier National Park in September, my high school reunion in Massachusetts in November, and a ~10-day trip to Hawaii in December. VIP Gold tickets for a camping adventure at CountryFest in Cadott, WI in June 2018.
I am also already planning a trip in early November 2018 to Churchill, Manitoba to see wild polar bears at the Polar bear Capital of the World.
The goal is to be gone about half of the time.
Looking back, I could have definitely FIRE'd sooner, but I am glad I have the financial resources that I need. I have not missed work for even one day, and have no second thoughts. My former boos even offered a position for me to come back. No dice. Hard work does indeed pay off. I have been thoroughly enjoying the last third+ (hopefully) of my life.
After one year of retirement, I have fared pretty well, at least in my own mind. My strategy of assuming my expenses would be double of what I expected, and my income would be half of what I projected, has worked. Almost too good. It does leave me with a surplus I need to start spending quite a bit more.
Healthcare
My healthcare costs are still $0, as I use the VA Medical Center for all my healthcare needs. There is a $0 premium, and a $0 deductible. If I need any medications, it’s $8 per month, per prescription – or less if Walmart is cheaper. So far, I am healthy and any needs I have are met. My healthcare costs are less than when I was working. The DGF has an even better deal.
Spending
I currently live 100% on rental income and have not taken out any investment account money. A 0% withdrawal rate. My 401K, Roth IRA, traditional IRA and after-tax account have all increased in value by over $300K in the past year. Property values have also increased. I could take $25K+ per year in dividends if I wanted. At some point, I will have to, after I change my residence to a lower tax state. At some point, the market will taketh away what it has given. Hopefully not all.
I have paid an extra $6,000 each month on my rental property mortgages (5.375%), or $72K in additional principle payments, since I quit work. I had been paying extra for a while, and continued it. The mortgage will be paid off in just a few more months. Once that mortgage is paid off, I will have the $6,000 plus another $960 in P&I payment each month in increased cash flow. I have saved a bit on top of that extra mortgage payment amount, probably another $4,000+ a month or so. With a higher cash flow, I avoid bonds and get better returns.
I have not really skimped on buying anything. I did almost buy another Glock, but since I already have about a dozen, plus another dozen+ other handguns, I passed – for now. I have also been eyeing a hardwood burning pellet grill, but want to make sure I will use it enough to justify the cost ($899).
My future income streams are still solid. Social Security amounts will be in excess of $3,000 per month at age 70. My pension at 65 will be $1,262. I definitely need to spend more. The DGF will have a bit too. It isn’t that I have not tried to spend money. I went on several trips over the past year, all in the USA. I figure it costs under $1,500 per week to travel for the two of us and a dog, assuming I drive to the destination. I have used any veterans discounts I can get, and GroupOns, credit card rebates, and they have saved many hundreds.
Upcoming Purchases
A 2017 Ford F350 4x4 Platinum diesel is going to be on order in July, that will take away a bit. I am going to buy a fifth wheel as soon as I can get a great deal. I am also in the process of selling a property in Minnesota, and doing a 1031 exchange to a Florida property. That should lower my state income tax bill at some point when I change my residence there.
In the end, I suspect that some stripper that may not have even been born yet will wind up with a bunch…
Travel taken and Planned
July 2016 – Week in Branson, MO
December 2016 – Week in Branson, MO
January 2017 – Three+ weeks in St Louis, MO, Nashville, TN and Florida. One highlight was that I saw a rocket launch at Kennedy Space Center, at night, from the 2-mile restricted area viewing station.
February 2017 – Two weeks in Tuscon, AZ
March 2017 – Two weeks in Biloxi, MS and New Orleans
May 2017 – Drove the 450 miles and attended a Garth Brooks concerti in Kansas City, MO. We had dead center seats, only six rows back from the stage. We also took a day trip to Duluth and toured the Glensheen Mansion later in the month.
June 2017 – Took two weeks to travel around Lake Superior. Some highlights include a visit to Isle Royale National Park, going through the Sault Ste Marie Locks, spending a day on Mackinac Island and a taking a boat tour of the Apostle islands.
Upcoming adventures for 2017 are a two-week trip to Glacier National Park in September, my high school reunion in Massachusetts in November, and a ~10-day trip to Hawaii in December. VIP Gold tickets for a camping adventure at CountryFest in Cadott, WI in June 2018.
I am also already planning a trip in early November 2018 to Churchill, Manitoba to see wild polar bears at the Polar bear Capital of the World.
The goal is to be gone about half of the time.
