Early Retirement Extreme

[ShokWaveRider]

A slight disagreement, from my biased view retiring it is being able to choose if wants to mow their own lawn and trim their own shrubs, or pay someone else to do it . For some of us it is still an enjoyable pastime. Even if I do not mow to the "perfect pattern" discussion in another thread .

Here in Florida, if you are not careful, doing such things, makes one a great target for the "Biters". No thanks. But I understand why some folks enjoy it.

I have lots of other things I like to do. I basically fix everything I can to do with our home, and I really enjoy doing that, from Pool to AC to Plumbing, Computers, TVs, appliances and anything Electrical, to basically anything I do not have to have expensive specialized tools to do. I also am a go to for the neighbors who need help with such.

Other things that folks like that I do not; Painting (Anything), Tree Trimming, Grouting, Window Cleaning, House cleaning.

We are all different. MMDV

 

[GenXguy]

I also am a go to for the neighbors who need help with such.

Other things that folks like that I do not; Painting (Anything), Tree Trimming, Grouting, Window Cleaning, House cleaning.

Be careful about liability with your neighbors.

It pays to be active in retirement. Mowing and things like that are good for you.

 

[marko]

I call BS on that $7K number. I'm sure he forgot to include some major detail that explains it, or is lying.

I have been around $16K spending for many years now.

Could be "living in a van down by the river".

 

[GenXguy]

There's difference between Early Retire and taking a few months off until the money is gone.

But for the record, I've seen lawnmowers, I've heard them working and I know what they do, but at age 70 I still have yet to even put my hand on one. Literally. A record I intend to maintain.

Get out of the recliner and keep active. Mowing is good for you during retirement. My >70 year old neighbor really enjoys mowing.

 

[Badger]

I'll admit that I did not read much in the link. I thought that we were pretty good at being frugal but the $7k/yr seems more than a bit of a stretch. I would not want to give up our modest home but just the taxes and insurance would eat up most of the $7k and we would still need another place to live if we didn't have it.
Anyway, my plans along with the help/recommendations from this forum worked out for us and we don't need to scrimp and save anymore. We can now do what we enjoy and if travel became safer and more reasonable for air-fare we would again more fully enjoy more travel plans.
Unless we die first we also wanted a stash to fall back on to live out the rest of our lives in some kind of comfort, safety, and quality of life. Otherwise, what would be the point?

Cheers!

 

[razztazz]

I call BS on that $7K number. I'm sure he forgot to include some major detail that explains it, or is lying.

I have been around $16K spending for many years now.

Exactly. I live in on e of the cheapest parts of the country, have no family, no bad habits, and no ongoing hobbies that require funding. I mostly just hang around and eat two meals a day. Even with free medical insurance it's been at least twice the $7,000 figure. Sounds like too much creative accounting

 

[street]

I also enjoy the work/exercise I get from doing everything I can around the ranch or home. All maintenance and repairs are a heath activity for me. I have a neighbor that has been retired about 12 now and basically just sat and didn't stay active and now can't do anything. I feel bad for him, but he got in a habit just to sit and not even do-little things to stay active.

 

[arcyallen]

Jacob at ERE is a great example of what you CAN do if you choose to. He is legit, his and his partner's numbers are legit (he breaks them down on his site). It's funny to see all the naysayers and doubters here who haven't even read his stuff! I get that it's hard to believe. But so is ER. I think his book is phenomenal, and while I'm not living on $7k a year there is a LOT of good info in it. I think if everyone read 10-20 of his often short blog posts they'd get a better idea of what he's about.

 

[Andre1969]

I tried going to his website, but it's set up too sloppy, and he types too long-winded for my tastes. Is there anywhere in there where he actually breaks down a concise budget that shows he was actually living off of $5000-7000 per year?

I'm sure it can be done. But then I look at my own bills. Just the property tax and homeowner's insurance comes out to about $6300 per year, combined. So $700 per year doesn't leave much to do anything else. Of course, most people who live off of $7000 per year don't have that kind of property tax/insurance bill, but still, I'm just having trouble wrapping myself around the idea.

 

[jim584672]

Could be "living in a van down by the river".

1 br. condo, and I don't even have to cut the grass.

 

[jollystomper]

Here in Florida, if you are not careful, doing such things, makes one a great target for the "Biters". No thanks. But I understand why some folks enjoy it.

I can see that in Florida. One reason I shy away from moving there is that I need a place that turns cold enough long enough every year to kill off the insects for a few months .

Even when I mow here in the Mid-Atlantic, I am in full hat/googles/mask/long sleeve shirt/long pants/boots regalia due to allergies. I am very comfortable, and it aids in the weight loss when I decide to use the push mover in place of the riding mower for exercise .

 

[NW-Bound]

I tried going to his website, but it's set up too sloppy, and he types too long-winded for my tastes. Is there anywhere in there where he actually breaks down a concise budget that shows he was actually living off of $5000-7000 per year?

I'm sure it can be done. But then I look at my own bills. Just the property tax and homeowner's insurance comes out to about $6300 per year, combined. So $700 per year doesn't leave much to do anything else. Of course, most people who live off of $7000 per year don't have that kind of property tax/insurance bill, but still, I'm just having trouble wrapping myself around the idea.

Jacob lived with his wife in a motorhome parked in a trailer park. I don't remember if the motorhome was still drivable. And the $7k was per person. They kept their finance separate, and Jacob said his wife also spent around $7k/year.

According to an update, Jacob no longer worked for the stock trading firm. They have bought a small home. He stated that their spending remained $14k/year.

His update is here: https://www.getrichslowly.org/early-retirement-extreme/.

 

[harllee]

For anyone interested in the lean type of retirement I recommend the Mr Money Mustache Forum. Lost of people there living on less than $25,000 per year. I could do that but fortunately I don't have to.

 

[Aerides]

Way back when (mid-90's?) I remember Oprah did an episode on extreme retirement. Piqued my interest until I saw they were living in a 3 room house, making all their own clothes, with a fire stove...basically living Little House on the Prairie..

I remember thinking to myself back then....Ok, well get a bit more money and then you can still retire early, but more reasonably.

Oh, and cutting one's lawn is very different depending where you live. If I did it here (S.Fla), that means every 7 days in 90 degrees + super humidity...plus edging and week whacking. Great workout, if dripping in sweat so hard you can't see is your idea of fun. Go away for 2 weeks in September? ha....only if you want to come back to dirty looks from your neighbors...

If I could simply get a rider mower and do that, I might, but it's all the extra stuff, then the storage, the gas, the oil, the mess... nope I just write that check and someone comes by and it's all taken care of, far better and more quickly than I can.

 

[daylatedollarshort]

For anyone interested in the lean type of retirement I recommend the Mr Money Mustache Forum. Lost of people there living on less than $25,000 per year. I could do that but fortunately I don't have to.

He is another one that used to fudge his expense numbers. I don't read his blog these days, but used to leave out things like home improvements, travel, and income taxes. Those are some of our biggest expenses. If you add those numbers back in, he doesn't live off much less than average household expense numbers.

He posted on Reddit once and people ripped through his FI numbers because none of them made any sense on what was investable assets and what was home equity, and he admitted, "[FONT=&quot]My post-retirement financial picture is confusing and ever-changing because I play around with investments and earnings so much. That's why I am hesitant to focus too much on personal details and can never explain it fully - it always leads to recursively-packed cans of worms."[/FONT]
[FONT=&quot]
[/FONT][FONT=&quot]It is unfortunate none of the reporters who wrote stories about him ever really looked into the details in his budget and asset numbers, as we all know here, those are pretty key to being able to really retire early.
[/FONT]

 

[tulak]

There’s no benefit for any of these extreme retirees to give an honest accounting of their finances. They make good money selling the book, and it sells well.

Is it possible to retire on very little? Sure. But most sane people will take a hard pass, even the extreme retirees.

 

[NW-Bound]

Way back when (mid-90's?) I remember Oprah did an episode on extreme retirement. Piqued my interest until I saw they were living in a 3 room house, making all their own clothes, with a fire stove...basically living Little House on the Prairie..

I remember thinking to myself back then....Ok, well get a bit more money and then you can still retire early, but more reasonably.

Oh, and cutting one's lawn is very different depending where you live. If I did it here (S.Fla), that means every 7 days in 90 degrees + super humidity...plus edging and week whacking. Great workout, if dripping in sweat so hard you can't see is your idea of fun. Go away for 2 weeks in September? ha....only if you want to come back to dirty looks from your neighbors...

If I could simply get a rider mower and do that, I might, but it's all the extra stuff, then the storage, the gas, the oil, the mess... nope I just write that check and someone comes by and it's all taken care of, far better and more quickly than I can.

Cutting lawn is a chore I no longer want to do, and do not wish on anybody else either in this 115+F heat. And it's fundamentally wrong to try to grow grass in the desert. It's almost as wrong as trying to live on Mars. But I digress.

I let my grass die long ago. Just stop watering it, and it's gone. Just like that. Not even weeds can grow without watering. Then, cover the whole thing with gravel, or rather decomposed granite.

Xeriscape is the way to go. Sorry for the diversion.

Photo from the Web:

 

[ncbill]

I have a retired neighbor who mows his own yard, and quite frequently. I think it's one of his greatest joys. And he certainly has plenty of dough.

The unfortunate reality is that sooner than he probably realizes he will no longer be able to do that type of work.

My townhome community is full of retired couples who have downsized from the traditional SFR after the kids left home.

Few would be able to keep up with a large yard, gutter cleaning, etc. anymore.

My in-laws have lived in their small ranch home since the mid-1960s, but he has slowed down physically to the point that she has to do most of the work (both inside and outside) now.

 

[Fermion]

Why live somewhere it gets to 115F

 

[tulak]

Why live somewhere it gets to 115F

So you don’t have to cut grass?

 

[NW-Bound]

Why live somewhere it gets to 115F

"If it's not one thing, it's 'nother" -- Roseanne Roseannadanna

 

[Fermion]

So you don’t have to cut grass?

If my choices are between living in 115 degree heat while not having to cut grass or living in 75 degree bliss in a van down by the river, I'll take the river. Don't have to cut grass there either!

 

[Fermion]

Our property tax will be (estimated) about $1600 a year when our small house is finished. It is a lower population lower taxed area of Washington.

If we got rid of our cars and rode bikes (library is 6 blocks from house, Safeway is 4 blocks away, hospital 8 blocks away), we could drop all of our insurance except homeowners. Ok, also dropped snowmobile, motorcycle and boat insurance and registrations.

Free healthcare.

Super efficient house, high insulation. Electricity will likely average about $200 a month. Water/sewer/garbage about $100 a month.

Technically on our income you can get free internet (kinda feel bad about that so haven't tried).

So, the basics aside from food are $1600 + $2400 + $1200 = $5,200 a year.

$14,000 for a couple would then leave $8,800 for food and toiletries. That is about $170 a week.

It is lean but doable if one was inclined or had to.

 

[NW-Bound]

If my choices are between living in 115 degree heat while not having to cut grass or living in 75 degree bliss in a van down by the river, I'll take the river. Don't have to cut grass there either!

Modern life gives me AC, else I would not last one day in 115F heat. Heck, it got to 118F just last week (all-time record high is 122F).

When the two ACs are powered by solar+battery, it's not too bad.

Still looking to add more PV panels, more batteries, more inverters. Heh heh heh...

 

[Dtail]

The unfortunate reality is that sooner than he probably realizes he will no longer be able to do that type of work.

My townhome community is full of retired couples who have downsized from the traditional SFR after the kids left home.

Few would be able to keep up with a large yard, gutter cleaning, etc. anymore.

My in-laws have lived in their small ranch home since the mid-1960s, but he has slowed down physically to the point that she has to do most of the work (both inside and outside) now.

Yup, when I have to start paying for all housing services, then it is time to move to a condo/townhouse.