Can I retire early before age 60?

[F.I.R.E User]

I agree but 10% inflation is a totally different beast. Investors can get hurt in 2 ways: (1) Even a $1M portfolio does not drop from $1M, the buying power drops by 10% which can force a higher withdrawal rate. (2) If the inflation is severe enough, investors loses confidence and a lost of confidence can result in a bear market which can drops the $1M portfolio. Bonds do not provide a hedge against inflation but commodies do but most investors are not familiar with commodies and will likely do nothing.

The other point: inflation is a stealth tax increase for the government. If wages go up by 10% then the income taxes go up…without the political backlash of a real government tax increase. This means the government benefit by doing nothing.

We don’t control inflation so no worries there. We do what we can do right?

 

[2177V]

We don’t control inflation so no worries there. We do what we can do right?

Most People don’t do anything until we actually have 10% inflation. Only then they realize it is better to buy a car this year before the price of the car goes up 10% next year. Since you are young, you can adapt to inflation. However people who is retired and on fixed income are the ones who get hurt. This is why Social Security next COLA is the biggest in years. I never fear recession or bear markets because this is what bonds are designed for. It also explained why I decided to buy real estate properties recently to protect myself. However some people are not in a position to exchange their paper assets into real assets so their paper assets may be worth less in buying power in the future. The biggest problem is most retirement planning assume low inflation. High inflation can change their retirement plan such as forcing some retirees to move to a lower cost of living area to offset their lower buying power. I always believe in a backup or a contingency plan if the worst happens. If the worst does not happen it is fairly easy to scrap that plan. If there is no plan and the worst happen then their QOL decline or retired people are forced to get a job to make ends meet.

 

[F.I.R.E User]

Most People don’t do anything until we actually have 10% inflation. Only then they realize it is better to buy a car this year before the price of the car goes up 10% next year. Since you are young, you can adapt to inflation. However people who is retired and on fixed income are the ones who get hurt. This is why Social Security next COLA is the biggest in years. I never fear recession or bear markets because this is what bonds are designed for. It also explained why I decided to buy real estate properties recently to protect myself. However some people are not in a position to exchange their paper assets into real assets so their paper assets may be worth less in buying power in the future. The biggest problem is most retirement planning assume low inflation. High inflation can change their retirement plan such as forcing some retirees to move to a lower cost of living area to offset their lower buying power. I always believe in a backup or a contingency plan if the worst happens. If the worst does not happen it is fairly easy to scrap that plan. If there is no plan and the worst happen then their QOL decline or retired people are forced to get a job to make ends meet.

Inflation doesn’t effect everyone equally. I live in a LCOL and also do price compare with coupons.

 

[2cheap2eat]

I don't think there's much point in asking this question, as it is 15 years out.

Just save/invest as much as you can without depriving yourself. When the day comes that you have "enough", you'll know.

Agreed, a lot can change such as getting married, health issues, losing employment for extended period, getting higher paying job, etc, etc.

 

[F.I.R.E User]

Agreed, a lot can change such as getting married, health issues, losing employment for extended period, getting higher paying job, etc, etc.

Yes it can but it’s good to prepare ahead right?

 

[2177V]

Yes it can but it’s good to prepare ahead right?

I agree. Planning ahead means that you become familiar with the issues. Not planning ahead means you may have to make quick decisions which may lead to bad decisions.

Yes you can get married, lose your job, etc, etc which may changes some of your earlier planning calculations and decisions. However, at least you know what the issues are and how to do the re-calculations when the time comes.

Knowledge is accumulative and rejecting knowledge even though you do not need it at the time....does not make sense to me. This is because we teach our children knowledge about 10 to 15 years before they actually need that knowledge.


When I started actively investing using only 10% of my portfolio, I did not make any money at the beginning. However, later I started making money and even later I started making a whole lot of money. This is because knowledge is accumulative. Warren Buffet will probably agree with this point. People who reject knowledge are usually not as successful.

 

[F.I.R.E User]

I agree. Planning ahead means that you become familiar with the issues. Not planning ahead means you may have to make quick decisions which may lead to bad decisions.

Yes you can get married, lose your job, etc, etc which may changes some of your earlier planning calculations and decisions. However, at least you know what the issues are and how to do the re-calculations when the time comes.

Knowledge is accumulative and rejecting knowledge even though you do not need it at the time....does not make sense to me. This is because we teach our children knowledge about 10 to 15 years before they actually need that knowledge.


When I started actively investing using only 10% of my portfolio, I did not make any money at the beginning. However, later I started making money and even later I started making a whole lot of money. This is because knowledge is accumulative. Warren Buffet will probably agree with this point. People who reject knowledge are usually not as successful.

Since you are 70. Wha age did you take SS?

 

[2177V]

Since you are 70. Wha age did you take SS?

I retired for good at 65 but I started collecting at 66 which is my FRA. Age of collecting SS is a personal decision mostly based on the need for SS, your health and your financial situation. I could have collected at 62 with penalties or 70 with an extra 8% per year after my FRA. I decided to split the difference between the two extreme options which is my FRA. This is the "goldilocks" option. (not too early, not too late, just right...at least for me)

 

[F.I.R.E User]

I retired for good at 65 but I started collecting at 66 which is my FRA. Age of collecting SS is a personal decision mostly based on the need for SS, your health and your financial situation. I could have collected at 62 with penalties or 70 with an extra 8% per year after my FRA. I decided to split the difference between the two extreme options which is my FRA. This is the "goldilocks" option. (not too early, not too late, just right...at least for me)

I am leaning towards 70. I cannot regret something when I am dead.

 

[F.I.R.E User]

I had to tap into EF last week. One was for a dental procedure and my Aetna DMO doesn’t cover everything and found out my 12 year old Dryer would require half the cost that I paid for to repair it.

 

[F.I.R.E User]

I reached all time high today according to Mint.

$563,630.