A Financial Thought from an Early ER

[unclemick]

Re: A Financial Thought from an Early ER

Of all the folks on this forum, I think Uncklemick has had the worst run of luck the last couple of years, and in the grand scheme of things, he may have loosened his purse strings a bit.

Wiped out by Katrina - not allowed to rebuild, three deaths in the same household within a year - others may have had it worse.

Other than the normal grieving process - on the 'stiff upper lip side off things' - did manage to quit smoking finally maybe cross your fingers, trying to use more humor in my posts and now less charitibly - like the wide receiver who got creamed too many times going out for passes - trying to loosen up before I get too old to enjoy it - with now essentially no heirs - don't want to leave too much on the table.

Although cheap is fun and it's a thrill to bargin shop Salvation Army - will try to spend more on travel/entertainment.

heh heh heh

 

[OkieTexan]

Re: A Financial Thought from an Early ER

Wiped out by Katrina - not allowed to rebuild, three deaths in the same household within a year - others may have had it worse.

use more humor in my posts

heh heh heh

WoW! It is fantastic that you still have a sense of humor! No amount of $$ can buy that!

 

[jdw_fire]

Re: A Financial Thought from an Early ER

I still think that depending on your situation, a SWR of less than 4% might be preferable to avoid living on the edge or worrying about depleting one's portfolio, etc. While it will delay ER, it could be warranted in these situations, especially if many of them apply:

especially early ER, with upwards of 50+ nonworking years
no pension or retiree health care benefits
family issues (young children, older parents who need help)
unwillingness to relocate to less expensive areas

We have all of the above, which is why I am aiming for 2% SWR. I do not want to cut to the bone or look for work again once I stop.

Given your concerns about your future income, have you considered insuring some or all of it with a CPI adjusted immediate annuity? A 44 yo couple can get one with 100% survivor benefits that initially pays out >3% of the purchase price (with CPI adjustments every year after the first). Depending on how big an annuity you were to purchase you could lower the amount you need for retirement by up to one third. For example if you need $60K/yr to start retirement using a 2% WR you would need a portfolio of $3M, however you could buy a CPI adjusted immediate annuity that starts out paying $60K for <$2M.

If you read this board you'll find some posters will hate the idea of buying an immediate annuity (they'll say you can get a better return on your money investing it in the market), but then you'll also find that most posters think that waiting to retire until you can have a 2%WR to means you have built up too large a portfolio to cover your income needs (i.e. you have worked too long). Consider the risks and decide for yourself, I'm just trying to present an alternative.

 

[Moemg]

Re: A Financial Thought from an Early ER

[stock market drop of 50% would not even come close to the tragedy's that life can deal out to you. It pales in comparison to a divorce or death of a loved one. I think most people on this forum are very fortunate if their greatest fear is a stock market drop]


Cut throat ,
You are so right about that .I lost my husband and my son . Nothing the stock market could do would affect me like that did .