Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 12-30-2019, 04:29 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,206
Quote:
Originally Posted by Aerides View Post
Balance. No point spending 30 years of your life being miserable to improve the next 30. And depending on your career, your earnings may increase over the next 15-20 years as well. For us, socking it away became a lot easier in the last 10 years before we retired. But we never had a set age or date in mind either.

A 30 year mortgage can still be paid like it's 15, or 20 - you get options that way. I wouldn't consider cutting back your hours below a normal work week, that sort of thing can crimp your future potential.
That’s the conclusion we came to as well. We spent much less than our peers, but not to the extreme some fanatics do. We didn’t deprive ourselves of everything, but we didn’t buy big houses, prestige cars, lavish vacations, etc.*** like almost everyone else we know. And with 30 years to go in retirement, we’re still living well below our means, but not depriving ourselves. Maybe when we’re 90 yo, we’ll go crazy spending if the $’s do pile up...

And like FlaGator, I was really keen on FI by age 30, but didn’t care about retirement until much later...

*** those things don’t add to QOL in my view anyway
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-30-2019, 04:29 PM   #22
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 4,964
Now in ER, I am so glad that we saved what we did because we are greatly enjoying our financial freedom with lots of time to use it. We were far from unhappy in the saving years though, even if as you say we could have increased our QOL by a lot if we saved less. You should not be miserable for decades though. Perhaps the answer is to reduce your saving by perhaps 8-10%, and use that for one special buy per year - the really nice trip, new piece of furniture, or whatever gives you that QOL bump. But mostly stick to the plan.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 12-30-2019, 06:50 PM   #23
Thinks s/he gets paid by the post
HI Bill's Avatar
 
Join Date: Dec 2017
Posts: 2,534
Sergio - great job for where you are, in your 30s! The short answer, is No.

I see your proposed ideas of "Sometimes I'm tempted just to say "screw it" and reduce my 401k contribution to the match minimum, max out the HSA, put less money in Roths, and refinance to a 30-year mortgage. That would free up probably an extra $1500-2000/month which would increase our QOL by an insane amount - 2 nice vacations a year, a new car, less stress when eating out or dealing with unexpected expenses. All without any debt. Maybe I could even cut back to 80% time until my 1 year old is off to pre-school.." as the path to you never being able to retire. It's actually, what most folks, do, inlcuding all the gray-haired ones at my office.

Maybe take the foot off the pedal just a little. A few questions to ask yourself:

1) If you do lighten up on saving that much, what happens if one/both of you are unable to continue to w$rk for health reasons?
2) When you're 50, and your body starts to slow down, and your BS bucket is almost full, do you want to have the choice of FIRE, or be forced to keep at it?

Like my tagline...balance in everything. And no, don't re-fi the house to a new 30-year mortgage. Pay yourself first. I plan to FIRE at 54, and take $50-60K in annual vacations...how does that sound?
__________________
Balance in everything.
HI Bill is offline   Reply With Quote
Old 12-30-2019, 08:34 PM   #24
Thinks s/he gets paid by the post
GravitySucks's Avatar
 
Join Date: Feb 2014
Location: Syracuse
Posts: 3,501
So 5 years after graduation you have a family, house and ~$300k while earning around $100k (I assume reading your old posts.). Great job.
Still thinking of out in your 40s? Maybe that's not worth it. Maybe 55 is a better goal now that you're a Dad.
I'd keep the 15 year mortgage and keep getting the match on the 401k at least. But really you need to enjoy life now while you're living it. Take a nice vacation. Get a reliable car. Try not to fall into the big house big tax big upkeep trap or anything else that raised future expenses.
__________________
“No, not rich. I am a poor man with money, which is not the same thing"
GravitySucks is offline   Reply With Quote
Old 12-30-2019, 10:11 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 35,712
Quote:
Originally Posted by sergio View Post
Sometimes I'm tempted just to say "screw it" and reduce my 401k contribution to the match minimum, max out the HSA, put less money in Roths, and refinance to a 30-year mortgage. That would free up probably an extra $1500-2000/month which would increase our QOL by an insane amount - 2 nice vacations a year, a new car, less stress when eating out or dealing with unexpected expenses...
When I was still working, I never set any real goal to save so much each year. Of course we maxed out our 401k, and whatever was left after expenses became after-tax savings that I stashed away somewhere when I got to it. I never felt deprived. I took vacations, bought what I felt was needed.

In your case, if it feels like such hardship, then perhaps freeing up $1K for a bit more spending will "ease the pain"? Why all or nothing?
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)

"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
NW-Bound is offline   Reply With Quote
Old 12-30-2019, 10:47 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 9,358
Actually, I wish I would have saved more and retired even earlier. I really like being retired. We didn't save so much that we couldn't go out to eat or take vacations. Going out to eat for us usually meant affordable Chinese or Mexican food and vacations were driving vacations along the coast or good value package trips to Hawaii.

Check out some of the happiness studies that are out now, especially on Tedtalks. Most of the factors that really make people happy like enjoying music, going out dancing, being out in nature and having strong social connections don't have to be expensive.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Anyone ever consider if ER is worth it?
Old 12-30-2019, 11:13 PM   #27
Thinks s/he gets paid by the post
 
Join Date: Jan 2007
Location: Thousand Oaks
Posts: 1,111
Anyone ever consider if ER is worth it?

Some of it depends on your occupation. I was a software programmer / Engineer and it was very clear that while I was having fun in my thirties, Once 50 rolled around I would stand a real chance of tiring of the profession or being booted in whatever round of lay-off that might happen at some time in later in my career as one of the higher earners , probably at a time where I would want not want to move etc. my brother is a teacher and he has a nice vacation every year in the summer. I doubt he will retire until sometime after 65. No reason why he should. The district he’s in poses little risk of his job going away.
mh is offline   Reply With Quote
Old 12-30-2019, 11:30 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 5,178
I'm glad I saved enough to be able to retire at 55. I actually have a bigger discretionary spending budget now than before my retirement, so I feel like I'm splurging more. Some of my friends said they wanted to spend the money while they were young and didn't save as much, but I'm glad I did. It was like a penny-pinching game and I didn't feel deprived. Now that I have the freedom to spend a little more, I don't want to go back to the accumulation phase of penny-pinching again though, but so far, I don't have to as the market has been very kind since my retirement.
tmm99 is offline   Reply With Quote
Old 12-31-2019, 02:58 AM   #29
Recycles dryer sheets
 
Join Date: Feb 2017
Posts: 180
Quote:
Originally Posted by sergio View Post
We've always been big savers, but I've recently started considering whether it's worth it or not. We are in our early 30s, have $250k saved for retirement in a mix of accounts, and no debt other than a 15-year mortgage (14 years left). Two kids (1 and 10). We have about $45k in our emergency fund.

My wife only works part-time weekends so she can care for our 1-year old. I currently max out my 401k, HSA, and push hard to max out my Roth and my wife's spousal Roth. Plus $1-2k/year in a 529. We even managed to squeeze $6k into a new taxable account that we opened last year.

Sometimes I'm tempted just to say "screw it" and reduce my 401k contribution to the match minimum, max out the HSA, put less money in Roths, and refinance to a 30-year mortgage. That would free up probably an extra $1500-2000/month which would increase our QOL by an insane amount - 2 nice vacations a year, a new car, less stress when eating out or dealing with unexpected expenses. All without any debt. Maybe I could even cut back to 80% time until my 1 year old is off to pre-school.

Chances are we'd still have a lot of money left over.

There's always the thought in the back of my mind that maybe the stock market will encounter a Japan-like situation, or health issues crop up just as we're getting ready to retire. It would suck to think that we spent our prime years scrimping for nothing.

Anyone else have any doubts like mine?

Thanks for your time.
What are your goals?
My dad always told us his goals for my mother and he for their retirement.
Dad always said work hard and save when you're young as you have time for your money to grow over time and you have boundless energy when younger. He always gave examples of others that didn't save or lived for the day and had nothing to live on when they were older.
We set a set of achievable goals for ourselves which we exceeded.
As others have said you have to find a balance.
Saving now does mean giving up a little living in the present, but they pay dividends later.
nativenewenglander is offline   Reply With Quote
Old 12-31-2019, 03:32 AM   #30
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 22,974
Moderation in all things, my friend. It occurred to me many times over the years that I could scrimp and save more now, so that I could retire earlier to a life of further scrimping and saving. But why would I want to live like that? I wanted to enjoy my life, both in the present and in the future. So we took nice (even if infrequent) vacations, bought things we needed and wanted, got a nice house and fixed it up, went out to eat, etc. But we didn't go overboard or spend wastefully. We worked and saved and invested and eventually retired at 60/58. We enjoyed our life along the way and we're sure enjoying it now.

Let me also say that you are doing admirably well for your age. When I turned 33, I had no income, didn't own a house and had a net worth of just about zero.
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 12-31-2019, 04:42 AM   #31
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2011
Posts: 8,363
Quote:
Originally Posted by Gumby View Post
Moderation in all things, my friend. It occurred to me many times over the years that I could scrimp and save more now, so that I could retire earlier to a life of further scrimping and saving. But why would I want to live like that? I wanted to enjoy my life, both in the present and in the future. So we took nice (even if infrequent) vacations, bought things we needed and wanted, got a nice house and fixed it up, went out to eat, etc. But we didn't go overboard or spend wastefully. We worked and saved and invested and eventually retired at 60/58. We enjoyed our life along the way and we're sure enjoying it now.
^^^ All of this. One must find a way to thread the needle.

I've often mentioned here that my brother was 3 months away from RE when he suffered a massive stroke. Now, his great excitement of his day is when we take him out for dinner. We often say--and console ourselves--that "at least he had a good time when he could".

I had a classmate who, at 17 decided he wasn't going to get married until he became independently wealthy. Over the years he turned down some really nice, gorgeous, solid ladies--and likely a nice life--with that goal in mind; he's FI now at age 68...and still single.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko is online now   Reply With Quote
Old 12-31-2019, 04:58 AM   #32
Full time employment: Posting here.
 
Join Date: May 2011
Location: Twin Cities
Posts: 523
We chose (as I'm sure many on here did) to enjoy the journey along the way and were perfectly content with retiring in our 50's. That meant saving 20-25% of our income each year instead of more aggressive plans.

This allowed us to keep the 15 year mortgage, travel somewhat, save to pay for kids college and never feel like we were missing out on things we really wanted to do.

I was always more interested in the FI than the RE.

It didn't hurt that we have been blessed with good stock market returns for the most part. That may be less assured in the next 30 years but who knows.
Fishingmn is offline   Reply With Quote
Old 12-31-2019, 05:38 AM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 11,701
Our LBYM mostly consisted of staying in one house (over 30 years now) and keeping all cars past 10 years, usually longer. We did not feel deprived. Sure a new car would have been "nice", but it wasn't deprivation.

We took a vacation every year. Many were driving vacations to all the wonderful places the USA has to offer. Again, did not feel deprived.
__________________
Retired Class of 2018


JoeWras is offline   Reply With Quote
Old 12-31-2019, 06:21 AM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
athena53's Avatar
 
Join Date: May 2014
Posts: 7,327
For my late husband and me it was a matter of priorities. He was 15 years older so we knew better than to postpone all the fun stuff till I retired. Travel was our biggest splurge but we used a lot of loyalty program rewards since I frequently traveled on business, and I did a lot of research to maximize the rewards through various promotions. We bought modest cars and drove them till they were no longer reliable and bought less house than we could afford because we didn't care about those. I had a respectable business wardrobe but our casual clothes were mostly jeans and freebie T-shirts.

At 61 I got tired of the toxic politics and quit; he died a little over a year later. I really think we got the balance right. I have wonderful memories of all the places we went together but my finances are solid. I see widows in my church who have to sell the house after losing their husbands because they can't afford to stay there on Survivor SS. I just came back from a magnificent trip to Hawaii last month and right now my passport is at the Bolivian embassy with my visa application- part of a trip I'm taking to the Galapagos in March. I've been driven my entire adult life by a fear of being old and poor and, at 67, I'm pretty sure that the "poor" part isn't going to happen. So- yes, it was absolutely worth it.
athena53 is online now   Reply With Quote
Old 12-31-2019, 07:07 AM   #35
Recycles dryer sheets
Tree-dweller's Avatar
 
Join Date: Jul 2011
Posts: 402
Quote:
Originally Posted by OldShooter View Post
Nothing in life is certain except uncertainty.
You’re 75 years old, healthy, and reviewing your financial situation. Which would you prefer?

A. You find that you’re running out of money.

B. You find that you’ve saved more money than you really need.
."

We’re fortunate that “B” is true for us, at least at this moment in retirement, but still have a decade or so to hit 75, so...will it still be true then? Now that we have years of “Blow that Dough“ options ahead of us, I find fewer temptations now than I probably would have in my youth; you know, the fun stuff that might have caused us to be running out of money at 75. Our adult kids are education debt free because of our particular priorities and that gives us great satisfaction, but I do sometimes look back wistfully at other expensive youthful experiences we opted out of years ago.
__________________
"The future's uncertain, and the end is always near. Let it roll, baby, roll." - The Doors
Tree-dweller is offline   Reply With Quote
Old 12-31-2019, 07:09 AM   #36
Dryer sheet aficionado
tsoispf's Avatar
 
Join Date: Jan 2014
Posts: 40
Quote:
reduce my 401k contribution to the match minimum, max out the HSA, put less money in Roths, and refinance
That's basically what we did and I was able to retire at 55 this year. I wouldn't go hog wild. Moderation is the key IMO. I guarantee "future self" will appreciate what "past self" did to make FI and RE possible.
tsoispf is offline   Reply With Quote
Old 12-31-2019, 07:39 AM   #37
Gone but not forgotten
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 6,335
Sorry, no advice, but your post triggered memories.

Jeanie and I graduated college in 1958, at age 22. Four boys in five years, kept us both busy, as I was working about 65 hours/week (retail catalog store manager). During that time, between the Army, and four job relocations, we moved four times, and after two years on Martha's Vineyard, we settled in and bought a house in Falmouth Mass. As I recall, my salary was about $150/week. Jeanie helped out by minding other neighbor children.

I'm not sure we thought much about money, much less retirement. A different time, a different era.

In 1966 a move from store manager for Sears, to District Manager for Montgomery Ward. A big boost in salary to $15,000/yr. Sold first house, and bought the second in Greenfield Mass. Though my hours away from home were extensive... sometimes 80+/week, we made every last minute at home count... camping, snowmobiling (out of my back yard), and visiting every important landmark in 100 miles. My dearest jeanie was a princess all through these times... working at the local schools, and part time at a boutique.

Through all of this my kids grew up morally and empathetically... which worked out later as they all went through college.

As I was continually promoted, we ended up living in on the border of Mass, Vermont, and New Hampshire, Almost every Spring, Summer and Fall weekend was spent camping in New England and the Adirondaks.. Sometimes with just a few of the kids, other times, with Boy Scout troops, and occasionally with teen church groups. All Seven of the Chain of Lakes and two trips to the Canadian Boundary Waters.

And... do you know?
Hardly ever thought about money. We just lived within our means. Retirement? Are you kidding? At age 37 the thought never crossed our minds. We were just too busy living and loving our lives.
__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
imoldernu is offline   Reply With Quote
Old 12-31-2019, 08:43 AM   #38
Thinks s/he gets paid by the post
 
Join Date: Oct 2011
Location: Philadelphia
Posts: 1,372
+1 on all of the "balance" advice.

Suggestions:

1) Pick a few specific things that you and your better half would really like and fund those rather than just "QOL". A generic "QOL" approach is likely to lead to endless lifestyle creep.

2) Do that by taking 100% of your next raise and letting it drop through to spending...so don't slow down just down speed up. After next year, split each raise 50/50 between lifestyle and savings.

3) Imagine the least fun thing you do at work each year. (For me, its budget season. Just freaking kill me.) Now ask yourself if you really want to do that 30 more times or if, just maybe, after about 20 more times you will want the freedom to say "F this" and walk out.

Never underestimate the value of #3.

My $0.02.
__________________
Luck is when Preparation meets Opportunity.
FIRE'd 1/1/24
Closet_Gamer is offline   Reply With Quote
Old 12-31-2019, 09:11 AM   #39
Thinks s/he gets paid by the post
 
Join Date: Mar 2014
Location: Dallas
Posts: 1,150
Balance. I think lot of young dreamers on blogosphere are propelling the extreme frugality. Ignore those. Don't sacrifice today but don't jeopardize the future either. We had a 30 year mortgage until I was over 35. We saved smaller percent of our income early on simply because income was smaller and "homestead expenses" were more. We saved more money as our income grew. Stay disciplined but don't deprive yourself of happiness. Speaking of happiness: A good read "Happy Money".
pjigar is offline   Reply With Quote
Old 12-31-2019, 09:18 AM   #40
Thinks s/he gets paid by the post
Badger's Avatar
 
Join Date: Nov 2008
Posts: 3,395
Quote:
Originally Posted by Fishingmn View Post
We chose (as I'm sure many on here did) to enjoy the journey along the way and were perfectly content with retiring in our 50's. That meant saving 20-25% of our income each year instead of more aggressive plans.

This allowed us to keep the 15 year mortgage, travel somewhat, save to pay for kids college and never feel like we were missing out on things we really wanted to do.

I was always more interested in the FI than the RE.

It didn't hurt that we have been blessed with good stock market returns for the most part. That may be less assured in the next 30 years but who knows.

+1
We were frugal but that was because we didn't have much desire for expensive things or activities and what we did like did not cost much. ER for us was just a couple of years before SS would kick in. My wife retired earlier than I. I wanted to make sure we were FI with money left over for her, the kids, and donations. It also helped to have about 3 months vacation a year at a job we enjoyed. There was plenty of national and international travel. So we just socked away the money after paying off the mortgage and saving up for what we might want instead of borrowing.



Cheers!
Badger is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Is the Bear Market Causing Anyone to Consider Taking SS Earlier Than They Planned? Ian S FIRE and Money 166 01-28-2019 03:21 PM
Is a high ER ever 'worth it'? BBQ-Nut Active Investing, Market Strategies & Alternative Assets 29 08-01-2014 05:55 PM
If there was ever Absolutely Nothing would there ever be....anything? cashflo2u2 Other topics 35 04-27-2008 11:50 AM

» Quick Links

 
All times are GMT -6. The time now is 08:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.