Hello! Just registered today.

[ShokWaveRider]

Well, I finally did it! Last August I decided to quit working, and have never been happier. But. (I will get to the "But" in a minute)

A Little History.

My dear wife and I moved to the US from London, in 1988 and have been working for retirement ever since. We are both US, Canadian citizens, and I am also a UK citizen, (Just call me 00-IAN) I am 49 and she is 44. We have no children by choice. (I am the big child in our family)

Well my wife is still working at the moment while our plans are materializing. The main reason is to get our health care.

We have no debt at all, and are in the process of selling our grossly over inflated home, while the market remains good. (South Orange County California) It is a large part of our retirment nestegg.

Here comes the but......

Well, I had it all calculated up until fixed interest rates dived to >2%. I am so wary about investing in the stock market, and risking losing capital. We have enough to live modestly (I think, but am not sure) for a while if we get a cheaper house. Our expenses are not excessive. I have a lot of difficulty getting impartial views from the financial pundits. We are also making a decision whether to rent or buy for a while and where? This is probably not the forum to discuss this so I will post my questions elseware.

Any comments or pointers will be appreciated.

Thanks for listening, and I look forward to some, constructive financial and retirement banter in the future.

Regards,

Ian

[MRGALT2U]

Hello Ian! I also semiretired at 49 and like you am very happy with it. I did not have a big house in an inflated
market, but made it work anyway. You do not have to invest in common stock to make it work. I own none
but am still well diversified. There are plenty of
places to put your money other than common stock.
If you are like me (sounds like you are), you will
sleep much better. I am not suggesting everyone
stay out of equities, but most ERs should. Just my
opinion.

[JWR1945]

ShokWaveRider

Quote:

Well, I had it all calculated up until fixed interest rates dived to >2%. I am so wary about investing in the stock market, and risking losing capital. We have enough to live modestly (I think, but am not sure) for a while if we get a cheaper house. Our expenses are not excessive. I have a lot of difficulty getting impartial views from the financial pundits. We are also making a decision whether to rent or buy for a while and where? This is probably not the forum to discuss this so I will post my questions elsewhere.

Have you considered buying TIPS on the secondary market? The last time that I checked, Barron's was showing up to 2.2% to 2.3% for those that mature close to 30 years from now. (The US Treasury no longer sells these. The coupon rates are around 3.5%.)

You can use the mortgage equation to see how much you could withdraw. Your final balance would be zero. But your withdrawal rate would be above 4.5% and it would increase with inflation (CPI-U). Set some of that aside for reinvestment.

Consider moving almost anywhere else in the nation and your cost of living will drop to zero...from your vantage point. A mansion in many areas costs less than $350K. My house, which is the right size for me, made of brick and sits on an acre, should cost around $100K. After you start looking into it, you may start to get really excited, even today.

Have fun.

John R.

[MRGALT2U]

I now have my real estate investments down to just my house.
It's around 1000 square feet with 100 feet of frontage
on a good sized river. Perfect size for the 2 of us.
Beautiful area and great views. It would sell for
around $90,000 or lease for around $600 month.
When we move south, we may go even smaller on the house, and
get some acreage. The point is that there is plenty
of affordable ER housing around. Especially for us,
since we like to be as far from what passes for
civilization as possible.