Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Scott Burns Column on OMY
Old 02-06-2016, 09:11 AM   #1
Recycles dryer sheets
 
Join Date: Nov 2015
Posts: 206
Scott Burns Column on OMY

Maybe this will help push someone over the edge that is thinking about going one more year.

Link: Should you work longer? | Dallas Morning News
rdy2go is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-06-2016, 09:22 AM   #2
Recycles dryer sheets
fosterscik's Avatar
 
Join Date: Jun 2013
Location: Chattanooga
Posts: 499
Interesting read - Thanks
fosterscik is offline   Reply With Quote
Old 02-06-2016, 09:24 AM   #3
Full time employment: Posting here.
jjquantz's Avatar
 
Join Date: Jan 2014
Location: Western Maryland
Posts: 926
Exactly the analysis that DW and I did. As a result, I'm retired now and she's out when she decides that w*rk isn't fun for her anymore. The problem with the article, for many people, is, as one of our members says, "numbers is hard." It constantly amazes me that my golf buddies really don't have any understanding of their financial situation. They retired when, "My guy said I had enough money, so I retired."
jjquantz is online now   Reply With Quote
Old 02-06-2016, 09:59 AM   #4
Moderator
MBAustin's Avatar
 
Join Date: Jul 2010
Posts: 7,925
Good article, thanks for sharing. Just sent it to my sister whose SO is suffering from OMY (he'll be 66 this year).
__________________
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
----------------------------------
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 02-06-2016, 11:51 AM   #5
Recycles dryer sheets
 
Join Date: Jun 2011
Location: W Colorado
Posts: 476
Sounds a lot like the rational of the book "Your Money or Your Life". What really is the value of your additional time at work.
pjm-7 is offline   Reply With Quote
Old 02-06-2016, 12:28 PM   #6
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 4,203
In his analysis, he considered the increase in SS, but in the $1.22 per hour, he adjusted 15% for Income taxes but not the reduction in hourly wage for payroll tax. I think, but not sure, the $1.22 is even lower.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 02-06-2016, 12:53 PM   #7
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 4,962
I'm doing OMY to boost my RE income by about 3.5%, but I'm 56.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 02-06-2016, 01:01 PM   #8
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 14,169
What struck me is that Burns was surprised his friend wanted to retire at age 62.... even though his friend could collect SS, had no debt, and had savings. Why is it surprising?
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
rodi is offline   Reply With Quote
Old 02-06-2016, 01:18 PM   #9
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
Quote:
Like millions of others, he had faced a serious decision: Work a bit longer or retire now?

The conventional wisdom is quite clear on this question.

Forget retiring. Work away; you won’t regret it!
I never heard that this is conventional wisdom. I am having trouble focusing on reaching my 7/5/16 goal...
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 02-06-2016, 01:42 PM   #10
Gone but not forgotten
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 6,335
Figuring work beginning at age 16 and retirement at age 53, that totals 37 years. Now entering 27th year of retirement imoldernu's opinion is that OMY ain't worth it.
Long and short, the earlier retirement provides a safety net of being young enough to go back, or to supplement w/part time employment, if there's a problem.
For DW and me, it wasn't necessary. Not a minute of regret.
imoldernu is offline   Reply With Quote
Old 02-06-2016, 01:46 PM   #11
gone traveling
 
Join Date: Oct 2011
Posts: 156
Nice article.


Sent from my iPad using Early Retirement Forum
Moneygrubber is offline   Reply With Quote
Old 02-06-2016, 02:07 PM   #12
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
Quote:
Originally Posted by imoldernu View Post
Figuring work beginning at age 16 and retirement at age 53, that totals 37 years. Now entering 27th year of retirement imoldernu's opinion is that OMY ain't worth it.
Long and short, the earlier retirement provides a safety net of being young enough to go back, or to supplement w/part time employment, if there's a problem.
For DW and me, it wasn't necessary. Not a minute of regret.
You are my inspiration!
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 02-06-2016, 04:21 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 5,307
Quote:
Originally Posted by rodi View Post
What struck me is that Burns was surprised his friend wanted to retire at age 62.... even though his friend could collect SS, had no debt, and had savings. Why is it surprising?
Burns obviously loves his work. It can be hard to understand someone who wants to retire for reasons other than ill health.
Katsmeow is offline   Reply With Quote
Old 02-06-2016, 04:23 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Apr 2005
Location: Midwest
Posts: 2,962
Quote:
Burns obviously loves his work. It can be hard to understand someone who wants to retire for reasons other than ill health.
I retired for medical reasons. I was sick of working
razztazz is online now   Reply With Quote
Old 02-06-2016, 05:58 PM   #15
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
Quote:
Originally Posted by Katsmeow View Post
Burns obviously loves his work. It can be hard to understand someone who wants to retire for reasons other than ill health.
Obviously, he fails to recognize that there are better things than work!
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 02-06-2016, 06:11 PM   #16
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Quote:
Originally Posted by razztazz View Post
I retired for medical reasons. I was sick of working
I also retired for medical reasons having to do with my vision. I could no longer see my @ss going to work.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 02-06-2016, 06:44 PM   #17
Recycles dryer sheets
 
Join Date: Jan 2007
Posts: 398
I'm 56. Depending on the starting date, I may be in OMY x 5. So I think about this all the time. One recent way of thinking goes like this ...

How much of my net worth would I pay for a miracle pill that extended my life by 1 quality year? Would I pay 1%? Heck yeah. That's in the noise. Would I pay 99%? No way. That would turn Top Ramen into a luxury food for the rest of my life.

So I'd pay somewhere between 1% and 99% of my net worth for a miracle pill that extended my life by 1 year. That large range doesn't tell me very much, so let me be more specific. Would I pay 8%? That's pretty close to what OMY means for me, and it's the same percentage Scott Burns uses in his article (although he casts it as income, not net worth).

If I retired today, my net worth at some point in the future would be 8% less than it would be if I retired 1 year from now. I'd give up 8% of money but gain 1 extra year of "life." 8% isn't trivial. It can do a lot of good for me and/or for others.

Of course, this analogy isn't perfect. Just because I work an extra year doesn't necessarily mean I give up 1 year of life. I can still find enjoyment in life while I work - at least to a point.

The weather was nice today so I went on a 4-hour bicycle ride up in the mountains. Deserted road. Little traffic. Peaceful and quiet. Relaxing. Great ride. However, I kept thinking about work on the way back - talking to myself about stressful events during the past week. A lot of negative emotions.

And it was worse last Wednesday. Wednesday was a particularly bad day at work, and I brought my agitation home with me. That's when the neighbors cat stopped by my house looking for his regular evening snack. While I was fixing his treat, he began meowing. He has a most annoying ear-piercing meow. Finally, I yelled at him, "Shut Up!" I picked him up, yelled at him again, "Nothing For You!," and put him outside. He looked so confused. And although I gave him his treat 2 minutes later, I felt so bad. At least he has forgiven me. He spent three hours in my living room last night watching television. He slept. I watched.

But still. One shouldn't let stressful events at work be taken out on the neighbors cat. It says a lot when that happens.

So I keep asking. Is it worth it?
Shawn is offline   Reply With Quote
Old 02-06-2016, 07:40 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
I was canned/er layed off. At age 50 and after some jobshopper work and unemployment periods the jobs offered and working conditions lost their appeal.

The big shift took place between my ears going from 'unemployed slacker' to 'high class ER'.

heh heh heh - and a proud and conceited - 'rally cheap SOB' living expense wise in the early years of ER.
unclemick is offline   Reply With Quote
Old 02-07-2016, 11:55 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2015
Location: the prairies
Posts: 5,027
Quote:
Originally Posted by REWahoo View Post
I also retired for medical reasons having to do with my vision. I could no longer see my @ss going to work.
The correct medical term is anal glaucoma.
Music Lover is offline   Reply With Quote
Old 02-07-2016, 02:24 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,204
Good advice, Scott Burns has always been a good source for investing/retirement reading. I was fortunate, because I lived there, to start reading his column in the Dallas Morning News well before he was known more broadly.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Firecalc in Scott Burns column Tailgate FIRE and Money 22 12-20-2014 06:04 AM
Scott Burns Column on Replacing Income versus Expenses SaveSome FIRE and Money 14 10-30-2006 06:13 AM
New Scott Burns column on Social Security WhodaThunkit FIRE and Money 46 01-31-2006 05:15 PM
Anyone see Scott Burns column yesterday ? * Cut-Throat Other topics 25 12-20-2003 03:45 PM

» Quick Links

 
All times are GMT -6. The time now is 11:50 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.