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08-27-2018, 02:21 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,534
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What We Believe
While there are a broad diversity of individuals and philosophies on this forum, I’m going to take a stab at what we, as an average group believe. Please feel free to add constructively to the list.
We believe that for most here:
- Early retirement means retiring at 55 or earlier.
- Hope is not a strategy.
- Living below your means prior to retirement is the key to attaining ER.
- FireCalc can give you one of the best predictions as to whether you’re ready financially to retire, but that you should use multiple retirement calculators and/or Monte Carlo simulators to confirm your results.
- Follow the 4% rule or better yet, make it the 3-3.5% rule (confirmed by FIRECALC).
- You need to know your budget prior to retirement.
- You need to know your budget in retirement, and ensure you’ve accounted for everything, including health insurance and possibly LTC.
- Diversified investments diversify risk.
- Asset allocation is king.
- Maintain a solid asset allocation, especially in retirement. Most include some equities (50-60%+ with some % of international funds), some bonds/bond funds (10-60%), and cash/money market/CD reserves (1-3 years living expenses).
- Invest in mutual funds, not individual equities (which carry higher risk).
- Timing the market does not work as effectively as long-term investment with AA.
- Save and invest with withdrawal strategies in mind (including taxes). This means having both taxable and tax-deferred investments.
- Determine the best time for you and your spouse or SO to take SS.
- Plan for a decrease in SS benefits (say, 25%).
- Plan for the elimination of the ACA in its present subsidized form.
- Have something to retire to.
- Plan to maintain or exceed one’s pre-retirement standard of living in retirement.
- Avoid annuities.
- Avoid speculative ‘investments’ with no basis in value.
- Your investable assets are what matters, along with any debt. The value of your house or classic car collection are not investable assets, unless you are going to sell them.
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08-27-2018, 02:41 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2011
Location: central California
Posts: 1,134
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I think the definition of early retirement is different than #1 by the OP. To me, it is retiring before pensions, social security, or medicare. I don't receive a pension. So, less than 65.
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08-27-2018, 02:50 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jan 2017
Location: Hog Mountian
Posts: 2,077
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Some variants for me.
I did not retire until 60. But that was early enough for me. And we retired on one income as DW was SAHM.
Our planned SWR is 2.5 to 3% (beer money). When it gets dark and scary, we can go to zero indef.
I have a couple of modest (survivable) pensions, so am more aggressive at 65/35 (more greedy).
We have excellent lifetime healthcare.
Around the time of SS cliff, one of my pensions will go up more than the SS haircut.
One to add:
Being able to retire while healthy enough to enjoy it is the secret sauce of life.
__________________
Never let yesterday use up too much of today.
W. Rogers
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08-27-2018, 02:55 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 2,534
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Quote:
Originally Posted by Red Badger
...more aggressive at 65/35 (more greedy).
One to add:
Being able to retire while healthy enough to enjoy it is the secret sauce of life.
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I'm also more aggressive than most here (90/6/4). +1 on the add...it's the reason most are here!
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08-27-2018, 02:58 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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If it were just that simple, do you think we would have a gazillion posts?
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08-27-2018, 02:58 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2011
Posts: 8,363
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This is like the Cliff's Notes for this forum. I would modify #14 (When to take SS) to "It just depends"
If everyone fully digested your list, no one would ever need to check in here and ask questions.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
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08-27-2018, 03:02 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,864
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Fully agree with 2, 6, 14, 15, 18 and 20
Partially agree with all others.
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08-27-2018, 03:06 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,132
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For #17, does retiring to just putzing around count?
IMO, retiring for the sake of the absence of work is pretty darn good in itself .
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
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08-27-2018, 03:08 PM
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#9
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Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
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You can't plan for everything. For example, planning for the repeal of the ACA is tough. I retired some years ago, before the ACA and the ACA reduced our costs even without a tax credit. Before the ACA I was on an expensive risk pool. With the passage of the ACA the risk pools disappeared. If it goes it probably won't go before I am 65 and eligible for medicare (in a year). So, for me I probably dodged a bullet. If it goes, what happens then? You can't plan for a big unknown so you have to decide what risk you want to take.
The risk is higher if you have preexisting conditions. Or might develop them in the future.
__________________
.
No more lawyer stuff, no more political stuff, so no more CYA
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08-27-2018, 03:21 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,337
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Quote:
Originally Posted by HNL Bill
- FireCalc can give you one of the best predictions as to whether you’re ready financially to retire,
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I agree that many here believe this but I am not aware of any data that supports the belief.
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08-27-2018, 03:21 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2013
Posts: 11,078
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I wish my Android would separate your points. As it is, past the third point, my feeble mind is lost.
BTW I don't think ER is limited to 55. At 56 if felt early. Many told me it was too early. Including my DF who retired at 60.
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08-27-2018, 03:28 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Bonita (San Diego)
Posts: 1,795
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22. Do not live in a bedroom on a different floor of your house than your children.
__________________
"So we beat to our own drummer in the sun;
We ask for nobody's permission to run.
I just wanna live in a world like that;
Now I'm gonna live in a world like that!" - World Like That, O.A.R.
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08-27-2018, 03:35 PM
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#13
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Dryer sheet wannabe
Join Date: Jun 2017
Posts: 17
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Appears you assume all are male here? And all married to a female?
"14. Determine the best time for you (and your wife) to take SS."
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08-27-2018, 03:40 PM
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#14
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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Quote:
Originally Posted by HNL Bill
Early retirement means retiring at 55 or earlier.
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"Early" is not a single number that applies to everyone.
Quote:
Asset allocation is king.
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Saving is king.
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08-27-2018, 03:43 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,546
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I would add:
We believe flossing is important to oral hygiene
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08-27-2018, 03:46 PM
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#16
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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We believe that dryer sheets are a national treasure, and not to be wasted.
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08-27-2018, 03:53 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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I believe we will never agree on what we believe. And if you don't believe it now, believe me you will after an unbelievable number of belief posts follow this.
__________________
Numbers is hard
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08-27-2018, 03:55 PM
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#18
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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Quote:
Originally Posted by REWahoo
I believe we will never agree on what we believe.
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That's a statement I can believe in...
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08-27-2018, 04:08 PM
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#19
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,199
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Quote:
Believe nothing you hear, and only one half that you see.
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-- Edgar Allan Poe, 1845
__________________
I thought growing old would take longer.
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08-27-2018, 04:13 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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I don't believe in any of that list. I do believe it's some attempt at "group think"
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