Will I Ever Be Able To Retire Early?

[Aiming_4_55]

You will get there... timing might just be off your personal desired pace, such in life many other things.

Take some time to reflect ... what makes you happy and is your current w*rk personally fulfilling. If not, seek opportunities in managing that.

 

[scrabbler1]

Midnighter777, you are in better shape than you think.

Back in 2007-2008, my ER plan was quickly taking shape as more and more of the pieces fell into place. I was 44-45 at the time and had been working part-time at my company since 2001. I was (and still am) debt-free and watching the value of my company stock grow rapdily. That money, after I cashed it out upon leaving the company, was going to be invested into a bond fund and provide me with the monthly income comparable to my low wage income from the part-time work.

The rest of the pieces fell into place in 2008 and I said good-bye to working at the end of October, nearly 3 years ago. I have had to tweak the original plan a few times, but all has gone very well.

Two key parts of my overall ER plan:

(1) Build in a cushion, or surplus, to my ER budget so I can safely and easily cover expenses not originally budgeted for. This provides me with a level of comfort which does not prevent me from spending a little extra from time to time.

(2) My longer-term ER plan is in two parts. One is to get from now to age ~60 when the first of 3 reinforcement will become available to me, unfettered access to my IRA. The other two are my frozen company pension and Social Security. (And I am not counting Medicare Eligibility.) My main goal is to make it to age ~60 on just the taxable accounts and that is so far looking like a snap because those accounts have grown quite a bit in the last 3 years.

 

[Moscyn]

Don't lose faith. If you are on track, you'll get there. As long as you desire ER, you'll find it, sometimes with much adjustment and pain. 13 years ago, I would never have thought to ER in 2010. We were in negative equity in our property although we did have some savings but owed the bank a load on the property. We had a hard time adjusting, downsizing and making the decision to cut losses on the property and buy a much smaller accomodation. We held on to our job, stopped complaining and just worked really hard and spent very little. With a bit of luck in finding better paying jobs, improving economy and better property market conditions, we were on track again. The years of living frugally sort of stuck with us and improved our savings and investments. Last year, I ER. DH still works and he does not like to ER - loves to work. The ER goal was my desire but as a couple, we had to work towards it.

 

[chinaco]

You did not comment on your planned FIRE age (or I missed it). Did you ever establish a realistic age to FIRE?

For example: When I made my plans (back in my 30's)... I chose 55 as the target... Mainly because that was when corp plans offered certain benefits.... other than that, it was just a stake in the ground. 30+ years in the future seemed to be plenty of time to try to make it work. I worked toward that goal and monitored along the way. As it turns out, I could have FIRED a few years earlier (portfolio and asset wise)... but I waited till 55 for some of those benefits I commented about. Looking at the economy and markets at this time... I am really glad I followed through on my original plan (which was conservative).

Investment wise, you are experiencing a bit of an unlucky scenario. You have been investing into the head winds of the tech bubble and the housing bubble and the market results (which are poor). Plus if you own a home or other real estate, that value has suffered. Many that are a little older than you got the benefit of the 80's bull markets and 90's super bull market (which resulted in sustainable gains... so far).

7 to 9 years should put you around the age of 50 (to FIRE). That is a fairly young age to FIRE.

To set a FIRE date there are 2 important issues that can affect it (you know this but it is worth repeating).... change lifestyle (spend less) or somehow get more money. Unless you have a windfall coming your way or the market turns around or we enter a new super bull market soon... Your opportunity for more money is likely to be your job. Have you considered working towards a management position? It usually provides more money (salary and benefits)... and salary is a factor in pension calculation.

It seems to me that those are the two areas (spending and total compensation) that you have some reasonable amount of control to change your FIRE trajectory.

One mistake that many make.... is not seizing the opportunity (today) and assuming that their current situation will go on as long as they desire. IMO - Make hay while the sun shines! Do what you can to (reasonably... within your ability) to boost your total compensation (salary, bonus, benefits, etc) NOW!!

While a career advancement will probably not make you ready to FIRE mext year... It could improve the strength of your current plan (less likely to fail or not achieve expectations) and perhaps shave a few years off the FIRE date.

One other thing you should do... is go back and completely review everything (fresh and without the burden of assumptions you have accumulated over the years). You have a bunch of resources and things that you control that can be adjusted to meet your goal.... look at them closely, how might they change the outcome (e.g., what would it look like if you delayed SS till FRA or 70, same for the pension).

IOW - Look at all of your options and rebuild some model plans using different scenarios and compare them. Look closely at your spending... do you need that level of spending?? Forever? How long is forever (longevity)? What would a modest 20 or 25% boost in compensation do for you over the next 10 years (and to your pension)?


Plan the work, then work the plan!! You can do it. But it will be some work and you have to be able/willing to take action.