Bryan Barnfellow
Thinks s/he gets paid by the post
Hello everyone. I joined in 2004 and have been a periodic, if infrequent poster. You might remember me as the "reaching ravioli" guy. Do a search. I thought I'd post a financial "Hi I am..." because I had never done that.
I am 59 and my wife is 62; no children -- but great aunt/uncle to our many nieces/nephews. We decided in 1992, in our 7th year of marriage, (30 years next year!) that our high stress and time-demanding jobs were keeping us from our favorite activity: being with each other. So, we made a serious plan and joint commitment for early retirement with a no-nonsense budget and kept to it ever since. She stopped working for money a long while back. Now we are ready to push the button for ending my j*b -- in fact I have submitted my resignation letter with a July 18, 2015 effective date, so that my organization has sufficient time to find a suitable replacement. Just 310 days from now, but who is counting!
We have lived by "the plan" through thick and thin but still managed to have a life these last 22 years. We have traveled (always on a budget), collected some art (my one indulgence) and have enjoyed the company of our friends in social occasions. We have not bought designer clothes, expensive toys, or fancy homes. We moved to Switzerland for my last j*b five years ago - partly because the opportunity was exciting but mostly to fulfill a dream of living in Europe.
We refer to Switzerland as the Beverly Hills of Europe. Very expensive. Very. Each year it is either #1 or #2 most expensive in the world (we rotate with Norway). In fact, how two uber-savers ended up here is a mystery. Nonetheless, we now are hooked and want to stay, assuming the very strict Swiss immigration folks agree. We live in the Italian speaking canton of Ticino, which has a warm, mediterranean climate with palm trees locally and snow capped mountains in the distance. Wonderful, warm people as well.
Our town of Lugano has about 50,000 residents (perhaps 150,000 in the region), and its own beautiful alpine lake. We think it is our own piece of paradise. Our Italian improves each day/month/year and we are relishing the multiple challenges of a new language, new culture, new geography. We're just near the border of Italy. It is very easy to travel from here to all the places in Europe we love either by train or air.
Financially like this (retirement assets/income as of next July 2015):
Taxable Stock Account: $1.65M, produces $80,000 annual dividend income
Traditional/Roth Iras: $225,000 (long term hold; no income at present)
US W*rk Pension (non-cola): $47,000 annually (essentially a 6.3% annuity on a corpus of about $750,000 which I treat as a bond asset)
Swiss W*rk Pension (cola): $9,000 annually starting next July
Social Security Spouse: $8,500 annually
Total Annual Income USD: $144,500 USD
This is equivalent to Total Annual Income CHF: 130,000 CHF (Swiss Francs)
Health care insurance in Switzerland is mandatory and offered by private nonprofits (sort of like the old Blue Cross/Blue Shield). It is not linked to your job or paid by your employer. You pay it and you pay it all of your life; there is no single payer, national option. The canton will help you pay later in life if your funds get depleted. No one in Switzerland goes without health care, even if they cannot pay for it themselves. We like that. We pay together about 15,000 CHF (with a low deductible); but the policy is gold plated, no BS or games from our insurance company, which pays promptly for health services. Also, virtually no forms! You go to the doctor, they submit a bill and it gets paid. It includes doctor visits/hospitalizations all medications, even spa treatment for physical ailments and stress/burnout. Well, this is Europe after all. We have yet to try that benefit. There is plenty of hiking and outdoor sports to help keep us fit as well. Although the Italian food here works against that a bit!
We rent for 2,800 CHF/month -- our apartment would cost at least 1.5M CHF if we wanted to buy it and it isn't particularly special as it would be in the US for that price; but it is on Lake Lugano so we have the million dollar view. This small (1100 square foot), two-bedroom apartment would be the first to go if we had to pull in our belts, with a move to a less central/convenient location not on the lake for 750-1000 less/month. That's our plan B. We don't own a car here (haven't most of our lives except for 10 years in a rural state in the US where it was crucial -- even then we kept it for 10 years and even sold it when we left for Europe) and have purchased public transit passes and half-price train cards good for three years at at time at great savings.
So, in July 2015 we will have a gross annual income of 130,000 Swiss Francs, less about 30,000 in BOTH US and Swiss taxes (yes, have to pay both; but get some foreign tax credits to offset the pain). So, net about 100,000 CHF.
Our expenses come to about 14,000 less than our net income, so we can save a bit and travel. Our stock portfolio is filled with high quality, blue-chip dividend growers, so we don't worry much about price volatility or selling shares. It pays about 4.5% overall and most dividends are raised annually around an average of 6-8%. Our plan is that at retirement next summer, we will have about 50,000 CHF in emergency cash and another 65,000 in operational funds, which we will use to fund 6-months of living expenses, replenishing then during the 6 months from our various income streams. Rinsing/repeating twice a year. BTW: we don't have any debt whatsover.
Up ahead there is still my own Social Security plus a small Swiss social security benefit when I'm 66 or so.
I think we are looking okay. If over the years things got too pricey here (especially with the Dollar/Franc exhange rate), we could always move back to the US, where we would get an approximately 30% bump up just in exchange rate differential and lower cost of living. A small pizza out is about 16-19 CHF here ($17.60-$21.00). So, as you might imagine we eat in a lot and take the train to Italy (about 20 minutes away) for lower cost meals out and grocery shopping on occasion. It's fun to decide on a Saturday morning to "go to Italy for lunch"
We have have mostly w*rked for nonprofits our entire lives and started our marriage with very little. Aside from a small inheritance our success so far is due to LBYM (in a very big way). gains from re-selling homes (always condo apartments--I cut my last blade of grass when I left home for university!), and some astute stock purchases during downturns when everyone else was panicking. But I was never a trader; too complicated for me. I focused on buying into good businesses which would pay me for my trouble.
Tell me what you think. I cannot wait to begin "Release 2.0" of our joint life together -- we have many projects in mind plus a lot of travel and just being in the same room together doing whatever. This site and the many good voices on it has been a welcome and constant companion this last decade. There were many dark days when reading the forum was the best medicine, even if I wasn't taking part actively. Thanks to all!!
-Bryan Barnfellow
* Wow, I was holding a lot in these last 10 years Sorry for the length of this. Promise brevity in the future.
I am 59 and my wife is 62; no children -- but great aunt/uncle to our many nieces/nephews. We decided in 1992, in our 7th year of marriage, (30 years next year!) that our high stress and time-demanding jobs were keeping us from our favorite activity: being with each other. So, we made a serious plan and joint commitment for early retirement with a no-nonsense budget and kept to it ever since. She stopped working for money a long while back. Now we are ready to push the button for ending my j*b -- in fact I have submitted my resignation letter with a July 18, 2015 effective date, so that my organization has sufficient time to find a suitable replacement. Just 310 days from now, but who is counting!
We have lived by "the plan" through thick and thin but still managed to have a life these last 22 years. We have traveled (always on a budget), collected some art (my one indulgence) and have enjoyed the company of our friends in social occasions. We have not bought designer clothes, expensive toys, or fancy homes. We moved to Switzerland for my last j*b five years ago - partly because the opportunity was exciting but mostly to fulfill a dream of living in Europe.
We refer to Switzerland as the Beverly Hills of Europe. Very expensive. Very. Each year it is either #1 or #2 most expensive in the world (we rotate with Norway). In fact, how two uber-savers ended up here is a mystery. Nonetheless, we now are hooked and want to stay, assuming the very strict Swiss immigration folks agree. We live in the Italian speaking canton of Ticino, which has a warm, mediterranean climate with palm trees locally and snow capped mountains in the distance. Wonderful, warm people as well.
Our town of Lugano has about 50,000 residents (perhaps 150,000 in the region), and its own beautiful alpine lake. We think it is our own piece of paradise. Our Italian improves each day/month/year and we are relishing the multiple challenges of a new language, new culture, new geography. We're just near the border of Italy. It is very easy to travel from here to all the places in Europe we love either by train or air.
Financially like this (retirement assets/income as of next July 2015):
Taxable Stock Account: $1.65M, produces $80,000 annual dividend income
Traditional/Roth Iras: $225,000 (long term hold; no income at present)
US W*rk Pension (non-cola): $47,000 annually (essentially a 6.3% annuity on a corpus of about $750,000 which I treat as a bond asset)
Swiss W*rk Pension (cola): $9,000 annually starting next July
Social Security Spouse: $8,500 annually
Total Annual Income USD: $144,500 USD
This is equivalent to Total Annual Income CHF: 130,000 CHF (Swiss Francs)
Health care insurance in Switzerland is mandatory and offered by private nonprofits (sort of like the old Blue Cross/Blue Shield). It is not linked to your job or paid by your employer. You pay it and you pay it all of your life; there is no single payer, national option. The canton will help you pay later in life if your funds get depleted. No one in Switzerland goes without health care, even if they cannot pay for it themselves. We like that. We pay together about 15,000 CHF (with a low deductible); but the policy is gold plated, no BS or games from our insurance company, which pays promptly for health services. Also, virtually no forms! You go to the doctor, they submit a bill and it gets paid. It includes doctor visits/hospitalizations all medications, even spa treatment for physical ailments and stress/burnout. Well, this is Europe after all. We have yet to try that benefit. There is plenty of hiking and outdoor sports to help keep us fit as well. Although the Italian food here works against that a bit!
We rent for 2,800 CHF/month -- our apartment would cost at least 1.5M CHF if we wanted to buy it and it isn't particularly special as it would be in the US for that price; but it is on Lake Lugano so we have the million dollar view. This small (1100 square foot), two-bedroom apartment would be the first to go if we had to pull in our belts, with a move to a less central/convenient location not on the lake for 750-1000 less/month. That's our plan B. We don't own a car here (haven't most of our lives except for 10 years in a rural state in the US where it was crucial -- even then we kept it for 10 years and even sold it when we left for Europe) and have purchased public transit passes and half-price train cards good for three years at at time at great savings.
So, in July 2015 we will have a gross annual income of 130,000 Swiss Francs, less about 30,000 in BOTH US and Swiss taxes (yes, have to pay both; but get some foreign tax credits to offset the pain). So, net about 100,000 CHF.
Our expenses come to about 14,000 less than our net income, so we can save a bit and travel. Our stock portfolio is filled with high quality, blue-chip dividend growers, so we don't worry much about price volatility or selling shares. It pays about 4.5% overall and most dividends are raised annually around an average of 6-8%. Our plan is that at retirement next summer, we will have about 50,000 CHF in emergency cash and another 65,000 in operational funds, which we will use to fund 6-months of living expenses, replenishing then during the 6 months from our various income streams. Rinsing/repeating twice a year. BTW: we don't have any debt whatsover.
Up ahead there is still my own Social Security plus a small Swiss social security benefit when I'm 66 or so.
I think we are looking okay. If over the years things got too pricey here (especially with the Dollar/Franc exhange rate), we could always move back to the US, where we would get an approximately 30% bump up just in exchange rate differential and lower cost of living. A small pizza out is about 16-19 CHF here ($17.60-$21.00). So, as you might imagine we eat in a lot and take the train to Italy (about 20 minutes away) for lower cost meals out and grocery shopping on occasion. It's fun to decide on a Saturday morning to "go to Italy for lunch"
We have have mostly w*rked for nonprofits our entire lives and started our marriage with very little. Aside from a small inheritance our success so far is due to LBYM (in a very big way). gains from re-selling homes (always condo apartments--I cut my last blade of grass when I left home for university!), and some astute stock purchases during downturns when everyone else was panicking. But I was never a trader; too complicated for me. I focused on buying into good businesses which would pay me for my trouble.
Tell me what you think. I cannot wait to begin "Release 2.0" of our joint life together -- we have many projects in mind plus a lot of travel and just being in the same room together doing whatever. This site and the many good voices on it has been a welcome and constant companion this last decade. There were many dark days when reading the forum was the best medicine, even if I wasn't taking part actively. Thanks to all!!
-Bryan Barnfellow
* Wow, I was holding a lot in these last 10 years
Sorry for the length of this. Promise brevity in the future.
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