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ut2sua · 04-12-2021, 10:38 PM

Congratulations to all in this "class" of successful FIRE folks. It is motivational to those of us who will FIRE in the near future. It is great to hear that many have done so well. It actually makes sense since the SWR is "safe" in the worst case scenario, and the last 1x years were not worst case in terms of market performance.

flintnational · 04-13-2021, 06:42 AM

After 7 years our investable assets are up about 45% with AA ranging from 70/30 to current 80/20. Allocations to international, value and short term bonds have been a significant drag on returns compared to total US mkt stock and bond indexes. WR has been around 3.5%.

marko · 04-13-2021, 11:16 AM

Quote:

Originally Posted by NW-Bound

I think what street was talking about was that one could retire early and cash out the pension or 401k in a lump sum and invest it himself to get a better return. But if the 401k plan offers decent MFs for investment choices, then the investment return of that pot of money is not contingent on one cashing it out.

True. But my personal experience was this: While working I paid absolutely no attention to investing other than making sure my 401k was maxed and matched. I didn't know a MF from a dividend. I'm sure I picked poor investment options within my company 401k. IIRC, I was happy with 'safe CD rates'. I just had bigger fish on my plate at the time. (At least I was sharp enough to take my pension lump sum vs leaving it there!)

But! Once I --involuntarily--RE'd it forced me to come up to speed on Wall St as this was now going to be my primary source of income for the rest of my life.

Maybe an early-early retirement could bring some focus and indeed provide a better outcome than being a stooge who just goes to work every day, oblivious to the finer points of investing.

Just a musing.

street · 04-13-2021, 11:32 AM

marko, I think you have described a lot of people going through their young lives. We were to busy to think of retirement and making a better plan, then just adding to a 401K.

The good thing is, I beleive anyway we all had that frugal/saving gene in us to make it retirement easier then some.

NW-Bound · 04-13-2021, 12:09 PM

Quote:

Originally Posted by marko

True. But my personal experience was this: While working I paid absolutely no attention to investing other than making sure my 401k was maxed and matched...

But! Once I --involuntarily--RE'd it forced me to come up to speed on Wall St as this was now going to be my primary source of income for the rest of my life.

Maybe an early-early retirement could bring some focus and indeed provide a better outcome than being a stooge who just goes to work every day, oblivious to the finer points of investing.

Just a musing.

Took the words out of my mouth.

My wife and I both maxed out our 401k contributions, but we were way too conservative in our AA. And I kept my after-tax savings in cash and CD, while telling myself that one day I would spend some time to tend to the matter, but never did. Raising a family and being busy with work left me no desire to do much else.

For me, the time I realized that I had enough accumulated that I should better pay more attention to it was when the two startups that I helped found were crashing and burning. This was in the late 90s. I sat down and added up all my accounts, and found that I had a 7-figure stash. Dang!

Anyway, I have been more active since, except for a few years when I was battling a serious illness. Just selling out-of-the-money options allowed me to collect more than $300K last year. This year, I got more than $100K YTD on option selling. I find making money this way is more fun than blowing it.

I still occasionally missed technical work, but the time I spend watching the market is a lot less than the time I used to spend working. And it brings higher return too, so far that is. Knock on wood.

marko · 04-13-2021, 02:41 PM

Quote:

Originally Posted by street

marko, I think you have described a lot of people going through their young lives. We were to busy to think of retirement and making a better plan, then just adding to a 401K.

The good thing is, I beleive anyway we all had that frugal/saving gene in us to make it retirement easier then some.

The fact that I was able to RE with a low 7 figure starting point (50/50: 401K plus pension lump sum.) just shows how powerful the stock market can be over time and how even an idiot can do well.

I feel sorry for those that use the word 'casino' when talking about the market.

Koolau · 04-13-2021, 03:18 PM

For me, I think I relaxed somewhat about being ready to FIRE once I noticed that my "results" were about the same, then better, then much better than my salary. What revelation! It happened over that roughly 7 year period when I could have said, well, yes, I have pension/medical insurance taken care of and a nice chunk in the 401(k), etc. Then, suddenly, when I looked at results, they began to overwhelm my salary. THAT's when I knew THIS WILL WORK! The first time Megacorp tried to give me a curve ball - I was outa there! YMMV

RetireeRobert · 04-13-2021, 04:10 PM

From April 1 of 2020 to March 31 of 2021 the Russell 2000 index increased about 80%.

Time2 · 04-13-2021, 04:21 PM

Quote:

Originally Posted by RetireeRobert

From April 1 of 2020 to March 31 of 2021 the Russell 2000 index increased about 80%.

And I was in that lowly VTSAX at 41%.

NW-Bound · 04-13-2021, 04:45 PM

Quote:

Originally Posted by RetireeRobert

From April 1 of 2020 to March 31 of 2021 the Russell 2000 index increased about 80%.

Yes, but that's because the whole market crashed when news of the pandemic broke out in early 2020. And the Russell 2000 crashed harder than large cap stocks.

If we looked at the pre-pandemic high in Feb 2020, then the Russel 2000 is up only 31% from that high.

Still pretty darn good. In fact, way too good while people are still waiting to be vaccinated.

ychuck46 · 04-13-2021, 05:13 PM

Looks like many of us are in similar circumstance judging by the posts. Maybe a slight difference in years or what % one's net worth is up, but most are nicely positive. The last 4-5+ years were very good to those with financial assets. Not sure they will continue over the next 4-5 but hope springs eternal.

NW-Bound · 04-13-2021, 05:23 PM

Quote:

Originally Posted by ychuck46

Looks like many of us are in similar circumstance judging by the posts. Maybe a slight difference in years or what % one's net worth is up, but most are nicely positive. The last 4-5+ years were very good to those with financial assets. Not sure they will continue over the next 4-5 but hope springs eternal.

I don't know about eternal hope, but if you miss out on a bull run, you may not have enough fat to live through the next famine.

I would not feel good looking like this guy, going into an economic downturn.

Retired Expat · 04-13-2021, 05:42 PM

Coming on 8 years retired and NW up 400% but admittedly there was a rather nice estate I shared in. But along with that and market returns managed to cut our spending in a very big way. And yet I still worry!

RetireeRobert · 04-13-2021, 05:48 PM

Quote:

Originally Posted by Retired Expat

And yet I still worry!

Don't worry. Be happy!

FIREarly · 04-13-2021, 07:41 PM

Quote:

Originally Posted by Midpack

Similar for us, as with many here I suspect. But I don’t let it go to my head, as we’ll have a serious pullback sooner or later. In the meantime, WHEE!

WHEE!!!!

Purchase some Ethereum... WHEEEEEEEEEEE!!!!!*

*Please don't change the thread topic about the investment choice

FIREarly · 04-13-2021, 07:43 PM

Quote:

Originally Posted by NW-Bound

I don't know about eternal hope, but if you miss out on a bull run, you may not have enough fat to live through the next famine.

I would not feel good looking like this guy, going into an economic downturn.

Downloaded that pic, super funny!!
@Car-Guy might need that pic for one of his funny Thursday posts.

Finance Dave · 04-13-2021, 08:55 PM

Quote:

Originally Posted by Ready

I just rebalanced yesterday to take some of the gains off the table. No reason to be too greedy when things are going so well.

Exactly! As someone once said..."you only need to get rich once".

RetireeRobert · 04-13-2021, 08:58 PM

Quote:

Originally Posted by Finance Dave

Exactly! As someone once said..."you only need to get rich once".

+1

Markola · 04-14-2021, 10:42 AM

Quote:

Originally Posted by street

marko, I think you have described a lot of people going through their young lives. We were to busy to think of retirement and making a better plan, then just adding to a 401K.

The good thing is, I beleive anyway we all had that frugal/saving gene in us to make it retirement easier then some.

+1. 2 of the 3 role models for my career have ended up in their 60s with virtually nothing saved. I know this, because they each revealed it to me when I retired at 54. My jaw dropped, as these were successful, respected professionals who had access to 403bs. The third retired at 60 with enough assets to become a professional clown (I’m not kidding).