Financial Samurai Can't Afford FIRE Anymore

[ExFlyBoy5]

There is a lot to unpack here, but I will let the users here sort it all out.

https://www.cnbc.com/2019/12/19/42-...early-retirement-here-is-what-went-wrong.html

For those who want to retire early, my advice is to always plan several years ahead. Set a date for your exit plan and do whatever it takes to meet your goal.

My biggest mistake was failing to consider how my lifestyle and needs would change — and what to do when those changes take place. Downturns do happen. You can’t plan for every variable, but the more prepared you are, the greater your chances for achieving financial freedom.

Now if you’ll excuse me, it’s time to turn in my early retirement membership card and get back to the salt mines!

 

[CardsFan]

Sorry. I can't find my tiny violin

Poor guy.

 

[gayl]

1. He has a mortgage not buying a place so current price is immaterial. His property tax is locked in with an annual increase of 2% per year. What's his problem?
2. As 2 FIREd parents who needs daycare? What's his issue? Schools? Go Charter!

Oh --- issue is he needs a blog topic!!

 

[Gumby]

No one forces you to live in San Francisco. It's a nice place, but there are equally nice and cheaper places. And what is wrong with public schools? There are plenty of great ones, and most are more than adequate for a proper education.

 

[W2R]

Sorry. I can't find my tiny violin

Oh tell me about it! I'm looking everywhere for mine.
Here's my take on it:

1.) He insists on living in San Francisco, which from what I have read is supposed to be the second highest COL location in the entire country (after NYC). Sure, it's doable but I'd imagine that takes some effort.

2.) Yet during the 8 years since he retired, he claims to have traveled to over 20 different countries..... taking him AWAY from his preferred retirement location. So how much does he really want to be there? (answer: maybe not so much).

3.) International travel can become a giant money pit.

 

[Walt34]

Sorry. I can't find my tiny violin

Poor guy.

+1

Peel me a grape.

For those too young to know the history of the expression here's the original movie scene. If you still don't get it, it's spelled out in the comments.

 

[24601NoMore]

$2,000 a month for PRE-SCHOOL?

MINIMUM income of $309,400 to afford a "median priced home" in San Fran?

No wonder he had to "un-retire".

For an alleged "expert", this guy has more holes in his plan than a piece of swiss cheese.

Simple solution: move just down the road to the San Fran Bay Area (not necessarily known as a LCOL area), which would reduce his annual income needs by > $131K. Or, move to the Midwest and live well on $100K a year. Stay retired. Geesh.

 

[steelyman]

I might have missed it but I didn’t see anything that said anyone else has to leave their own early retirement or abandon their goal to achieve it. Just the advice to plan, which is what people here already do.

 

[HI Bill]

His backup plan to move to Honolulu is laughable. He'd need to fund his kid's private education, which would more than eat up any savings from less expensive real estate (and you can't get a very good house in HNL for $850K. 35% of assets for real estate is an arbitrary number. Who cares if it's 50%, if the other 50% provides enough $ to live on?

I sense this is just a big publicity ploy. More people will follow his return to w$rk, then his return to FIRE status, making him even more $, as he pretends to be FIRE while maintaining his money making blog. IMHO.

 

[Aerides]

So...he retired at 34 with, a mortgage, and $3m...then had an unplanned child on top of that? and stayed in a ridiculously high COL area?

If you're only making an average of 80k off 3M from 2011 to 2019, you, my friend, are no samurai...

He "underestimated how low interest rates would go"... um in 2012 weren't they already in the toilet?

He didn't know how babies are made? Didn't ever plan for one and yet...

Sounds like he wanted a fat-fire lifestyle on a regular fire nest egg.

I do generally hate to give side-eyed snark when the mighty fall, but gosh sometimes it can be fun.

 

[Red Badger]

As Bugs bunny would say, "What a maroon!"

As most of here understand (and I learnt it here a few years ago), it ain't what you earn, its what you spend. And financial kung foo panda obviously hasn't figured that out.

 

[Rainbowdash]

It's crazy for me to learn that in San Francisco public schools are not guaranteed, lottery based only and if you are not in, you have to pay for private...

 

[timo2]

Sounds like this guy has a very nice sabbatical.

 

[COcheesehead]

3.) International travel can become a giant money pit.

Slightly off topic, but everyone who loves travel needs to check out sites like Costco Travel. We’re spending a week in Barcelona, air, nice hotel and transfers for $2400 total.

 

[W2R]

Slightly off topic, but everyone who loves travel needs to check out sites like Costco Travel. We’re spending a week in Barcelona, air, nice hotel and transfers for $2400 total.

Like I said, a giant money pit!

 

[ls99]

Samurai no more, cut his top knot off!

 

[RobbieB]

I didn't read a "poor me" story either. Sounds like a great time was had by all!

 

[W2R]

Samurai no more, cut his top knot off!

Best post in the thread! LOLOL

 

[NW-Bound]

If you're only making an average of 80k off 3M from 2011 to 2019, you, my friend, are no samurai...

He said he earned $80k/year on $3M. Then, when his wife joined him in retirement 3 years later, together they made $250k/year. The financial picture is not complete, and a bit perplexing.

Still, he said that was not enough for his lifestyle. If one cannot live in SF for that money, then go elsewhere. He says he will try to make money off his blog, or go to work.

That's fine with me. Does not affect me whatever he wants to do. His story is not that interesting to me.

 

[FIREd]

A very predictable outcome.

 

[NW-Bound]

3.) International travel can become a giant money pit.

What happens to "You cannot take it with you"?

 

[COcheesehead]

Like I said, a giant money pit!

Hard to just get flights for that amount.

 

[Sunset]

His backup plan to move to Honolulu is laughable. He'd need to fund his kid's private education, which would more than eat up any savings from less expensive real estate (and you can't get a very good house in HNL for $850K. 35% of assets for real estate is an arbitrary number. Who cares if it's 50%, if the other 50% provides enough $ to live on?

....

Especially when he says he will keep investing in mid-west "Finally, I will continue investing in real estate in America’s heartland, where valuations are cheaper, cap rates are higher, and job growth is stronger."

Since it's such a deal, he NEEDS to move here !!

 

[Sunset]

Slightly off topic, but everyone who loves travel needs to check out sites like Costco Travel. We’re spending a week in Barcelona, air, nice hotel and transfers for $2400 total.

Yes...
We are taking a 5 day cruise to try out another cruise company. Booze included, tips included, $200 SBC included (which I used to pay for excursion to Mayan ruins) AND a $25 costco card.
Total cost incl taxes & fees for 2 adults: $772.88

 

[cathy63]

It's crazy for me to learn that in San Francisco public schools are not guaranteed, lottery based only and if you are not in, you have to pay for private...

That is not an accurate characterization of the system. If you live in SF, then your child will be able to attend a public school in the city; it just might not be the one that's down the street from your home. Nobody is required to pay for private schooling. Many parents choose to do so because they don't like the school that their child is assigned to by the system.