Retire Early with a fun $30K job?

[jclarksnakes]

 

If I had my life to live over again, I most certainly would have done things a lot different.  But you don't get to do that.  I am quite pleased that my life is as good as it is now.  :

Andy,
....There are a whole bunch of things that I could have and should have done differently in my life. Like you I am happy that my life is as good as it is now. I am also extremely surprised that things have worked out so well for my wife and I.
jc

 

[Cransten]

Tough it out.  There are no fun 30 K jobs, unless you don't need the 30 K at all, or get incredibly lucky.  And if you bail now, thinking you'll have an easier gig, you might wind up kicking yourself to death.  

 

[Cransten]

On reflection, it strikes me that my response was a bit too flip to be helpful.

My advice was based upon the fact that I've gone through the same conundrum: making a lot of money doing something very stressful.  I looked into all kinds of other jobs, and businesses, I thought would be more fun, but never made the leap and now I'm glad I didn't.  A lot of those jobs just seem like so much aggravation to me now; I wouldn't want to be bothered with them. 

However, perhaps part of the reason for that is I've been ground down from my job, and haven't aged very well (I have just about ten years on you).  If I'd made the move sooner I might still have the energy to enjoy normal productive cheerful low-stress sorts of work. 

Really, you're asking about downshifting, rather than early retirement.  Which might, or might not, be a great idea.

 

[ESRBob]

Cransten,
Good point -- when does Early semi-retirement become downshifting or vice versa?

I think one difference is that the early retiree who chooses to or needs to work a few hours a week to make ends meet, is doing so in the context of an overall long-term Financial Independence plan. They have been saving and know how much they need to work and are exploring alternatives, including a less-stressful, shorter workweek in their original industry. The downshifter just needs some relief and figures he/she can get by on less income, so asks for a part time job in current industry/company and makes it work, at least in the short term. But the downshifter is missing the overall long-term planning and more significant resources of the early semi retiree, as well as the wide-open options of lifestyle and new work choices that the early retiree with some part-time work has available.

Might seem like splitting hairs, but i'm not sure that particular hair ever got split around here, so thx for raising it!

 

[Meadbh]

Never, ever bank on getting an inheritance. Your rich relative could (a) live longer than you do (2) leave it to somebody else (or charity) (c) invest it foolishly (d) spend it. Whatever about your own investments, other people's are outside your control. If you do get to inherit something, consider it icing on the cake.

Does anyone remember the little old lady in France who sold the equity in her house, maintaining the right to live in it while she lived, when she was in her 80s? That's a common financial strategy for French retirees. Based on actuarial tables, she should have kicked the bucket within a few years. Well, she had a well financed retirement and lived to 123. The guy who bought the house had long since died!

 

[Scrooge]

Does anyone remember the little old lady in France who sold the equity in her house, maintaining the right to live in it while she lived, when she was in her 80s?

Yes, Jeanne Calment.

Well, she had a well financed retirement and lived to 123. The guy who bought the house had long since died!

According to Wikipedia, it was even worse than that:

In 1965, aged 90, with no living heirs, Jeanne Calment signed a deal, common in France, to sell her condominium apartment en viager to lawyer François Raffray. Raffray, then aged 47, agreed to pay a monthly sum until she died, an agreement sometimes called a "reverse mortgage". At the time of the deal the value of the apartment was equal to ten years of payments. Unfortunately for Raffray, not only did she survive more than thirty years, but he died first, in December 1995, of cancer, at the age of 77. His widow had to continue the payments.

 

[Meadbh]

Yes, Jeanne Calment.

According to Wikipedia, it was even worse than that:

Mme Calment had a great attitude, taking up fencing at 85 and playing a cameo in a movie at 114. Below are a few of her quotes. She must have been quite a character!

"I've only got one wrinkle, and I'm sitting on it."
"Wine, I'm in love with that."

 

[Shabber]

Well, the tough it out approach is probably the right thing to do. Seems business is really taking off and financially I would be crazy to leave. My plan is to take more vacations. They seem to be the only satisfying way for me to spend money. I am not a car guy, or clothes, or anything like that. Time off from work means the most. My weekends are precious so I think vacation will help.

So, my risk averse financial planning has me with 90% of my money in a 4.9% money market and the balance in a midcap mutual fund. With a 5 year retirement window, how whould you be invested? Also, all this middle eaast war and terrorism scares me enough to wait for the next "bad" thing before I jump into a SP500 fund. Thoughts?

- Shab

 

[haha]

So, my risk averse financial planning has me with 90% of my money in a 4.9% money market and the balance in a midcap mutual fund. With a 5 year retirement window, how whould you be invested? Also, all this middle eaast war and terrorism scares me enough to wait for the next "bad" thing before I jump into a SP500 fund. Thoughts?

This techniques of waiting for a disaster and then buying worked well for many years.

Lately, the cycles seem to be longer or something, because the opportunies for lower risk entries seem less frequent. Still, I think it is a good plan for anyone who is considering a near term retirement, or who is already retired.

Ha

 

[retire@40]

...Plus, I don't spend much $$ now. Sure I gross 300K, but I spend about 55K a year, so there is no limos and fancy cars....

My fiancee wife has a great job she enjoys, making 100K and doesnt mind if I retire early as long as I can pay my half of the bills and keep us in the same lifestyle. That's why I need about 55K net.

Something doesn't sound right. You and your wife make $400,000 a year and spend $55,000 a year and have only $250,000 saved?

Did you and your wife just start making this money a year or two ago?

 

[Nords]

This techniques of waiting for a disaster and then buying worked well for many years.

Hokus has been using that technique since 1996... of course 2000-2003 wasn't quite bad enough for his criteria, but maybe a suitable disaster will come along in his lifetime.

 

[Shabber]

Well, you probably need to read my other posts on this thread, but the short answer is yes. Keeping the wife out of the equation as she works and saves on her own. I make $300K and live on about 50K after taxes. I am saving, but have only recently started really making headway.