ER might just work.......

[nun]

After a whole month of ER, a month that included quarterly real estate tax and water bills, my net worth is up $7k. This ER thing looks easy......a least until the 20% correction hits when I'm sure my mood will change. #shorttermsuccess

 

[David1961]

Congratulations on your ER. It's great to see your net worth go up after ER, but I wouldn't buy that Lamborghini just yet!!

Seriously, having a nice start will make that 20% correction more bearable.

 

[nun]

Congratulations on your ER. It's great to see your net worth go up after ER, but I wouldn't buy that Lamborghini just yet!! Seriously, having a nice start will make that 20% correction more bearable.

With that Lamborghini reference have you been following the proposed changes to the UK pension system?

There's no fear of me buying an Italian sports car. I have a Honda Civic and used less than a quarter of a tank of gas last month because I did most of my trips on my bike.

With the DOW at an all time high I expect a correction eventually and then I'll see if my ER planning holds water.

 

[Alan]

Congratulations on your retirement. You can say "wheee" when driving your Lamborghini, but please don't say anything about the market's performance

 

[HFWR]

Congratulations on your retirement. You can say "wheee" when driving your Lamborghini, but please don't say anything about the market's performance

Yeah, that...

 

[heeyy_joe]

Asset values are less important than cash flow in most instances.

 

[nun]

Asset values are less important than cash flow in most instances.

Agreed, so I'm putting dividends into my money market rather than reinvesting them and the $1200/month rental income is nice to have. No mortgage or other debt also means that I've minimized my need for income.

 

[FUEGO]

I pulled the plug late last August. The portfolio has increased by 4 year's living expenses since then. It's easy to get a false sense of security when the market keeps going up.

 

[nun]

I pulled the plug late last August. The portfolio has increased by 4 year's living expenses since then. It's easy to get a false sense of security when the market keeps going up.

I agree, most of my gain isn't available to me as it's in tax deferred accounts and I'm 52. I'll take income from dividends and investment gains in my taxable accounts when I have them, but I have enough in cash and an accessible stable value fund to last me until 59.5 so I have no need to sell equites if the market is down.

Most of my $7k gain will just compound (hopefully) and get spent post 59.5

 

[walkinwood]

Congrats!

You've planned and made a commitment & you'll make it work -correction or no correction. Unless your budget is an absolutely rock-bottom essentials only deal, you'll figure a way to cut back when times are rough & let loose a bit when times are good. I think flexibility is the secret sauce of a successful ER - and it is one of the few things that are in our control.

All the best.