The 40 plan

[fluffy]

Figured it's time to join the most enlightened career discussion forum on the net I'm 30, married, full-time software geek, part-time personal trainer and science buff. A couple years ago I finally realized that w*rk sucks and since then I've been taking steps to minimize its damage on my life.

The current very agressive and wildly optimistic plan is to be FIREd by 40... unless we have kids... in which case all bets are off. Not entirely sure what I'll do once "retired" but between spending time with wife, family, and friends, lifting, reading, lazying about, personal training, and/or getting a Ph.D. (astronomy?) I'm pretty sure I won't miss the corporate world too much.

Glad to finally become confused about dryer sheets!

mike

 

[Nords]

Welcome to the board, Mike-- sounds like a great plan...

 

[REWahoo]

...I'm pretty sure I won't miss the corporate world too much.

mike

Welcome fluffy mike.

No, I don't think you will miss the corporate world at all. If you do, you'll need more help than can be found on this forum.

 

[HobbyDave]

Well I'm curious enough, since we're close to the same boat. My wife and I are software people, we don't have kids (not sure if we'll have them or not still), I'm 29 and she's 28, and we're trying to aim for 40. Not certain we'll make it, but there's plenty of uncertainty along the way as well.

On the positive side, while running the numbers for 40 is a bit iffy, if I run the numbers for 65, we're sickeningly rich... so I figure somewhere in the middle should be easy enough

 

[yakers]

Just an idea since you like science, come work for NASA, the work is great. It used to be after WWII that people worked for the govt and then retired and went to work in industry. Now there is traffic in both directions. You would have interesting work, a good but not great income, some retirement benifits and medical coverage. If you have enough saved that you can leave when you want then you would be in a good position.
You could also do this kind of thing with the National Science Foundation, Nat Institute of Health and a log of universities. Find something you like doing and get paid a bit for it. Meet people of similar interests. Leave when you want.

 

[fluffy]

Thanks for the welcome, all!

Ceberon, you guys are actually in better shape than we are, since both of you are in (relatively high-paying) software instead of just one! The 40 plan is definitely iffy for us as well, but figured it's a good goal to shoot for. Our approach is the usual LBYM -- going for $40K/yr budget for ALL expenses this year, including home mortgage PITI, though $45-50K/yr is more sustainable since we'll have big-ticket items like replacement cars, vacations, and home repairs to pay for eventually -- and earning extra-income on the side.

Assuming 5%-above-inflation annualized market returns for life and $60-70K/yr net savings for next 10 years we should be able to pull it off. Right now we don't save anywhere near that much, but hoping we'll get there sooner or later. Personal training and other odd part-time jobs after 40 and eventual (small) SS payments will provide some safety net. Of course having kids will lay waste to all these plans.

Yakers, that's actually a pretty good idea, thanks! I have thought about working for the government before, but as an IT geek which is what I do now and I'm not sure if the pay/benefits trade-off is worth it. Being more on research side never crossed my mind. The big problem is that I am really not qualified to do anything other than software engineering -- I'm better at math and physics than an average joe but I still wouldn't want to fly on a spacecraft designed by an amateur like myself. But at the same time it is a very neat idea and I'll definitely research it.

A university gig would be sweet and I definitely think of it as one of possible long-long term plans. But I (and more important my wife!) am not willing to go back into poor-student mode now, so I'd want to FIRE first, then get the Ph.D. first and then go for the tenure, so the earliest I can start reaping full benefits of university professorship would be at 50 or so. Which is still plenty young of course 8). And after the Ph.D. the NASA or other science gig seems a lot more reasonable too.

 

[HobbyDave]

Having two salaries certainly helps. We tend to spend too much along with the salary, but we're working on curbing that. As with most other people, it is really our expenses causing the problem, not the lack of income

For curiosity, what does your wife do? My wife has volunteered to stay at home to keep the house clean, but I explained that our empty house doesn't get dirty that fast I think we're both looking forward to being able to spend more time at home rather than on the job.

 

[fluffy]

For curiosity, what does your wife do?  My wife has volunteered to stay at home to keep the house clean, but I explained that our empty house doesn't get dirty that fast   I think we're both looking forward to being able to spend more time at home rather than on the job.

My wife volunteered for and received that same position, at least for now . She has mostly worked odd jobs before, but hopefully will get something more stable (and higher paying) once she finishes her Associates. One option would be to become elementary school teacher which are really in demand here. But no definite plans right now, other than the agreement that the current housewife appointment is transient, at least until we are both FIREd.

Once you guys get the L(way)BYM thing down pat, you'll have no problems saving a lot and fast. I remember being shocked when I realized that our joint budget now, with house PITI payments and all, is almost what I alone spent living in a 1-bedroom apartment in my single days.

 

[SteveR]

Welcome Fluffy.

It is always nice to see "younger" folks how have a plan for retirement. Many I see don't seem to understand that someday they will be faced with having to live off whatever they have accumulated, created, or were given over their working life.

It took a divorce and near financial ruin for me to "see the light" and get my ducks in a row. I had nothing saved or invested until I was in my 40s. In 15 years the debt was gone and a very nice nest egg was there instead. I am working now because I wish to; not because I have to. I was technically FIRE at 50. Things happen in life that modify your plans. Sometimes doing nothing different for a while is your best choice.

Things happen and your life changes. Your future is pushed into a new direction and your find yourself faced with different choices than what you imagined. Stepping back and looking over the landscape a while can help you avoid the brambles and tree limbs that can trip you up. Then you can go forward in ernest but with educated caution.

Just felt the need to vent a little today I guess.

 

[haha]

Just felt the need to vent a little today I guess.

You vent so gently I can't decode it.

Ha

 

[laurence]

Welcome! DW and I (aged 31 and 30) originally planned for ER when I turned 45. Then she stayed home with our daughter, so that pushed out the formula to 55, but then her consulting gig from home really got going quickly, so 50 looks doable...so yeah, plans change, but your making the right moves no matter what life throws you. We can't retire yet by any means, but it's great to know, if I really couldn't stand this job anymore, I could leave and take up to a year finding a new job. LBYM has already begun to show dividends in our life and our stress level.

I'm hoping enough of us stick around that we can compare notes ten years from now and see what happened...