My intro

[scrubradio]

Hi, I am Gary.  Nice to meet you all.  For the next several years I will attempt
to refrain from annoying the piss out of you with dumb questions but the truth
is I don't know anything!

I want to retire as early as possible.  Doesn't everyone?  I am going to start
looking around but wanted to drop a post to introduce myself first.

Have a great day!

Gary

 

[Mr._johngalt]

Hi, I am Gary.  Nice to meet you all.  For the next several years I will attempt
to refrain from annoying the piss out of you with dumb questions but the truth
is I don't know anything!

I want to retire as early as possible.  Doesn't everyone?  I am going to start
looking around but wanted to drop a post to introduce myself first.

Have a great day!

Gary

This is your lucky day. You don't know anything and I know everything.
A match made in Heaven.

JG

 

[TromboneAl]

JG will annoy the piss out of you.

 

[scrubradio]

This is your lucky day.  You don't know anything and I know everything.
A match made in Heaven.   

JG

I do know 2 things.

1. I cannot retire today
2. Tomarrow doesn't look good either

 

[scrubradio]

JG will annoy the piss out of you.

Noted...somebody's got to do it

 

[Mr._johngalt]

I do know 2 things.

1.  I cannot retire today
2. Tomarrow doesn't look good either

Some day you won't have a "tomorrow". Keep that in mind.

JG

 

[scrubradio]

Some day you won't have a "tomorrow".  Keep that in mind.

JG

That is why I am looking into early retirement. Just incase I run out of tomarrows
to early in life.

 

[SteveR]

Welcome to the board. Be sure to search on topics that interest you as just about anything you could imagine has been discussed here...usually many times. Most members don't mind answering questions but you are encouraged to do some basic research on a topic before you just start firing questions. After all, many folks here are retired and don't have the time to read and respond to questions all day.

 

[scrubradio]

Welcome to the board.  Be sure to search on topics that interest you as just about anything you could imagine has been discussed here...usually many times.  Most members don't mind answering questions but you are encouraged to do some basic research on a topic before you just start firing questions.  After all, many folks here are retired and don't have the time to read and respond to questions all day.   

Thanks for the advice Steve. I will be making great use of the advanced search
feature just as soon as I figure out what I am looking for

I had a midlife crisis so to speak and suddenly realized I would not be able to
retire if I kept doing what I had been doing.

Since then I wake up everyday and ask myself

1. Can I retire today?
2. If not, then what can I do today to bring me closer to that goal?

Those two questions helped me find this forum.

I find projecting retirement age to be depressing as I haven't done enough
to lower it from 65 yet. I have begun to make changes in lifestyle and money
management that will eventually reduce the age at which i can retire.

For now, I am here to figure out how to improve upon what I have changed
so far.

Thanks for the greeting!

 

[SteveR]

Starting late does not mean you can't finish the race early. I did not start saving and investing and lowering my spending until after my divorce. I was a single parent, deep in debt and was concerned about just paying the bills each month.

Ten years later the only debt was my mortgage (25% of market value of the home) and had a net worth of seven figures. It can be done. My experience is not unique to many on this board. Some were lucky or bright enough to have learned what it takes earlier than I did. Luck is a part of it as is education, risk taking, and knowing when to sit on your hands instead of doing something based on emotion instead of education or skill. I made my share of mistakes and paid big $$$ for the education. I am still learning and earning so to speak.

The basics are pretty simple:

Pay off debt first.

Pay your self each month.

Invest up to the match on any employer retirement plans--then invest in balanced funds within the plan---adjust as needed to keep in balance.

Live below your means to continue to stay out of debt and to fund your accounts-
* Cash account for emergencies or large expenses
* Investment accounts for after tax money to fund early retirement
* After tax accounts to fund later retirement
* Slush fund for toys, travel or just to be nice to yourself

Implement, evaluate, adjust....repeat.

Good luck and remember that every journey begins with a single step.

 

[polloloco]

JG, where the Hell have you been? We have been missing your wit.

 

[HFWR]

Well, it rhymes with "wit"...

 

[scrubradio]

Starting late does not mean you can't finish the race early.  I did not start saving and investing and lowering my spending until after my divorce.  I was a single parent, deep in debt and was concerned about just paying the bills each month. 

Ten years later the only debt was my mortgage (25% of market value of the home) and had a net worth of seven figures.  It can be done.  My experience is not unique to many on this board.  Some were lucky or bright enough to have learned what it takes earlier than I did.  Luck is a part of it as is education, risk taking, and knowing when to sit on your hands instead of doing something based on emotion instead of education or skill.  I made my share of mistakes and paid big $$$ for the education.  I am still learning and earning so to speak.

The basics are pretty simple:

Pay off debt first.

Pay your self each month.

Invest up to the match on any employer retirement plans--then invest in balanced funds within the plan---adjust as needed to keep in balance.

Live below your means to continue to stay out of debt and to fund your accounts-
* Cash account for emergencies or large expenses
* Investment accounts for after tax money to fund early retirement
* After tax accounts to fund later retirement
* Slush fund for toys, travel or just to be nice to yourself

Implement, evaluate, adjust....repeat.

Good luck and remember that every journey begins with a single step.

I have added these suggestions to my current list of notes that
I have taken down.  I appreciate you taking the time to write
them down.

 

[SteveR]

I have added these suggestions to my current list of notes that
I have taken down.  I appreciate you taking the time to write
them down.

Your welcome.

This is not rocket science but it does work and getting to FIRE even with a "late" start is possible and can be done without dumpster diving for your next meal.

Our FIRE clock is ticking down and we are marching towards our RE with a plan and each step is being executed in sequence (maybe this IS rocket science ) as our freedom draws near.

The universal question of "do I have enough" is always relative to what you intend to do and where you live once you retire. Expenses drive your magic number for your FIRE nest egg. Once you know how much you will spend the rest is just math. The hard part is dealing with the reality of what you can afford vs what you would like to have. Once you deal with that you can usually adjust your nest egg needs to a more realistic figure which makes it more attainable.

Good luck.

 

[virginia]

SteveR
What is your secret? You say 7 figures after 10 years.
I get a little sad sometimes when I think about how much I save. I save close to half my after tax income, but when I do just simple crunching of the figures, even with the good amount that I have saved, I don't see myself even at $500k in 10 years - and that's with a generous profit that I've made off of a home sale.
I figure either you work for yourself, invested in real estate, or just made a great income while you were working.
I just feel like I'm saving and saving. I'm not making huge sacrifices like I was a few years ago, but I don't spend a lot of money either. I have become used to living a much more conservative lifestyle than those around me, and I'm completely ok with that. I don't need lots of stuff. I get to travel once in a while and do things for my family and that makes me happy. I also make a decent income (personally in my opinion a very good income, but my opinions are skewed because of the area that I'm from and what I make for a living, compared to what people make in the area that I'm from in VA).
Any tips?
Michelle

 

[retire@40]

SteveR
I get a little sad sometimes when I think about how much I save. I save close to half my after tax income, but when I do just simple crunching of the figures, even with the good amount that I have saved, I don't see myself even at $500k in 10 years - and that's with a generous profit that I've made off of a home sale.
I figure either you work for yourself, invested in real estate, or just made a great income while you were working.
I just feel like I'm saving and saving. I'm not making huge sacrifices like I was a few years ago, but I don't spend a lot of money either. I have become used to living a much more conservative lifestyle than those around me, and I'm completely ok with that. I don't need lots of stuff. I get to travel once in a while and do things for my family and that makes me happy. I also make a decent income (personally in my opinion a very good income, but my opinions are skewed because of the area that I'm from and what I make for a living, compared to what people make in the area that I'm from in VA).

It's all relative.

If you can save half of what you make and you can still be generally happy with what you have, you're in better financial shape than most people. Don't worry about what you don't have, just be happy about what you do have.

If you think you can do better by starting your own business or getting a better-paying job, then either go for it or stop worrying about it.

The key is to do the best you can with what you have.

 

[scrubradio]

If I had 500k in 10 years, I'd be set to retire. $20k a year staying below
the 4% guideline would be cake with my lifestyle. I am new to retirement
planning in general. Right now i am just learning the ins and outs as
well as the minor details that need to be thought out ahead of time.

I haven't messed with the FIRE calc too much yet and don't know exactly
what it is capable of calculating and will be toying around a bit with it.
I'm still in debt reduction and re-organization phase. I am putting in cash
to my 401k and taking advantage of the match as well as tax benefits but
reducing my expenses below my means is priority #1 for me.

The good thing is that I am happy with my life as it is. Now I just want to
figure out new ways to reduce the time that I have to work for money by
having money work for me.

 

[virginia]

That's 500K without a home - having a home would significantly reduce that amount. I could also live on the amount - at least have the necessities. That really wasn't my point. I wouldn't be ungrateful by any means for having that much saved.

 

[scrubradio]

That's 500K without a home - having a home would significantly reduce that amount. I could also live on the amount - at least have the necessities. That really wasn't my point. I wouldn't be ungrateful by any means for having that much saved.

eek...no home. In my senario, I was figuring in owning mine free and clear.

 

[mathjak107]

It's all relative.



yeah a rich relative

 

[scrubradio]

Our FIRE clock is ticking down and we are marching towards our RE with a plan and each step is being executed in sequence (maybe this IS rocket science ) as our freedom draws near.

After browsing the board and confusing myself for a few days, I have
come to the conclusion that it is rocket science.

I've got the pretax investments in line to take care of the later years
but I am having some trouble figuring out what to do to start the RE
part of FIRE.

What is a good investment book that you would recomend? I need to
know where to put my after tax $$ so they can grow until I am ready
to FIRE.

 

[daverph]

SteveR and anybody else,
Should I wait and pay down my debt now and then start my 401k up to the match or should I do both since it will take some time to pay down the debt. I am 30 and my wife is in the process of getting a job after having our first child. So I will have help paying down the debt and saving an emergency/house fund. So should I start the 401k now or wait the two years+ it will take to pay down the debt?

 

[FinanceDude]

SteveR and anybody else,
Should I wait and pay down my debt now and then start my 401k up to the match or should I do both since it will take some time to pay down the debt. I am 30 and my wife is in the process of getting a job after having our first child. So I will have help paying down the debt and saving an emergency/house fund. So should I start the 401k now or wait the two years+ it will take to pay down the debt?

I would do both............does your employer match? If they do, it would be foolish NOT to do both. Think pre-tax..........

 

[daverph]

I want to do both, but it seems people on here say to pay off all debt before starting investing and I am never quite sure if that includes the 401k. My employer matches 40% up to 5% of my salary in cash, vested over 5 years. I plan on being here a good amount of time. I know it doesn't make sense to invest after tax but with the pretax and match, I don't think I can pass it up. Thanks.

Dave

 

[brewer12345]

I want to do both, but it seems people on here say to pay off all debt before starting investing and I am never quite sure if that includes the 401k. My employer matches 40% up to 5% of my salary in cash, vested over 5 years. I plan on being here a good amount of time. I know it doesn't make sense to invest after tax but with the pretax and match, I don't think I can pass it up. Thanks.

Dave

Paying off all debt is far from a consensus view. Take the free money (translation: do the 401k at least up to the match).