How to retire early - A couple retired in the early 40's

Two thoughts -

1) Suze is not going to be happy. These folks are not 70 nor do they have $5M.

2) And, everybody knows that FIRE is a myth perpetrated by the wealthy to make the middle class feel like they have a chance. :D
 
Now in retirement, the couple and their two daughters will live on approximately $40,000 a year generated from investments.
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This seems to be the key. As long as you understand and are comfortable with the lifestyle of four people living on $40k/yr gross, you're golden. If you'd really be more comfortable with additional flexibility in your spending, perhaps it would be a bit tight and lead to regrets.

A personal decision families need to thoughtfully consider.
 
Wow. A lot of ignorance and denial in the comments. I had to wade into the worst of it, but I might not go back and read the replies.

My only concern is whether they've taken inflation into account and budgeted COLA raises for themselves for 20+ years until SS and Medicare kick in. It might get uncomfortably tight, depending on how the economy is doing.
 
I also think they got fat FIRE wrong -- I think of it as a better retirement lifestyle than you had when working, but the article made it sound like it means living an average, not-frugal pre-retirement lifestyle.
 
All you have to do is save until it hurts, and live well under your means for 40 years. And work the investments somewhat aggressively, avoiding annuities, CD's and money markets with funds intended for retirement.
 
The reason for posting was not so much that a couple retires early or how they did it. That should be obvious to people on this forum who have already retired. I was astonished by the comments from people. I never realized that there was so much resentment towards early retirees.
 
Am I the only one who gets uncomfortable with mainstream articles referring to the "FIRE Movement"? Makes it sound like we're in some kind of cult.
 
Freedom56 said:
I never realized that there was so much resentment towards early retirees.
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I don't think resentment is all that wide spread Freedom unless you're talking about resentment towards ER types who cost the worker-bees tax dollars by scamming the system for benefits meant for the truly unemployed.

In any case, I'm glad I'm not "early retired" nor subject to any possible resentment. I was canned by MegaCorp at 58 in 2006 and was never able to find another job despite looking through the want ads for several hours my very first day off. I'm officially a member of the "long term unemployed" and receive sympathy not resentment from those who hear of my pitiful circumstances......... "12+ years and still no job. You poor guy!"

Better to be long term unemployed than retired (early or not) for resentment avoidance purposes.
 
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Freedom56 said:
The reason for posting was not so much that a couple retires early or how they did it. That should be obvious to people on this forum who have already retired. I was astonished by the comments from people. I never realized that there was so much resentment towards early retirees.
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You better believe there is resentment toward early retirees. Some of that resentment stems from jealousy. Some of it comes from not being in a position to retire early themselves due to their own personal circumstances that may or may not be their fault.



There is a reason I personally never tell anyone who doesn't already know that I am retired. The biggest reason is I don't want to have to justify my decision to someone who I feel I don't have to defend myself to. The other reason is I have nothing to prove to anybody. I live in a rather small town, and I'm sure some know that I am retired. But I have never told them .


They know because everyone around here gossips. There is nothing I can do about that. But as far as I can influence things, like being closed mouth, I do it.
 
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Read the comments. Some are astonishing.
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One commenter hit it on the head: “We both live the way our paychecks allows us to. That would be very hard trying to cut back”

Most of these people don’t get it and likely never will. More power to them - someone needs to keep those SS coffers filled.
 
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youbet said:
I don't think resentment is all that wide spread Freedom unless you're talking about resentment towards ER types who cost the worker-bees tax dollars by scamming the system for benefits meant for the truly unemployed.

In any case, I'm glad I'm not "early retired" nor subject to any possible resentment. I was canned by MegaCorp at 58 in 2006 and was never able to find another job despite looking through the want ads for several hours my very first day off. I'm officially a member of the "long term unemployed" and receive sympathy not resentment from those who hear of my pitiful circumstances......... "12+ years and still no job. You poor guy!"

Better to be long term unemployed than retired (early or not) for resentment avoidance purposes.
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I was referring to comments such as:

"What a boring life. Just find something you like to do and enjoy your life. Who wants to live on a restricted budget for 60 years?"
"Really. That's exactly what I was thinking"

"VERY RISKY! ... the market can go flat for 15 years at a time, during which over 1/2 their initial savings will be gone, and no longer provide an optimistic return needed for paying the bills. The couple here should have saved much more before retiring. ..and what about escalating health insurance costs:confused: This FIRE thing only makes sense for people who HATE their job, and need to quite for mental health reasons, LOL"

"I'll be more interested in their story in five or ten years. No doubt they will both be back at work."

"It sounds great, but go ahead and try it until you basically are sitting around drinking coffee at McDonald's reading the newspaper every day until you die, because you sure can't afford to go on trips or do anything nice with your wife, and your kids will hate you for forever having to pinch every penny and can't afford anything."

"who wants to retire at 43 with a combined income of 40k?? I mean I guess I could live comfy and extremely bored in a trailer out in NO Where America... But they say you need at least 100k p/y to live comfy where I live"

"How ridiculous. No part time job pays health benefits. Since they have limited income, their health insurance is being subsidized by the government. Good way to go, retire early so the government can foot the bill for your insurance. That is the problem with Obamacare!"
 
I don’t think these are resentments. Maybe a little bit of dose of reality.
 
"The greatest gift you can give your children is your time"
True. My dad worked his butt off, made a fortune, and left us an amazing legacy. But I would trade it all to have had more time with him.
 
hesperus said:
"The greatest gift you can give your children is your time"
True. My dad worked his butt off, made a fortune, and left us an amazing legacy. But I would trade it all to have had more time with him.
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It’s not an either or kind of thing. You don’t have to retire to be a great dad and spend time with your kids. My husband has always spends time with his kids. Every moment he is not at work. Luckily he never picked a job that requires travelling much, but also kids don’t need him all the time even. But he is the hands on dad ever since they were babies.
 
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Freedom56 said:
"It sounds great, but go ahead and try it until you basically are sitting around drinking coffee at McDonald's reading the newspaper every day until you die, because you sure can't afford to go on trips or do anything nice with your wife, and your kids will hate you for forever having to pinch every penny and can't afford anything."
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Clearly these are people who haven't heard of credit card churning for free travel.
 
Fedup said:
No Goldstar, nor Groupons either.
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You've got that right! My budget for the week for the two of us is $70 for beer tasting at a park where one of our kids is volunteering, wine tasting / small bite / chamber music event, music crawl in Napa, three plays plus free hiking / walking around a local lake days. And that includes parking and bridge tolls. If I'd known how fun and inexpensive retirement could be for us I would have retired at least 10 years sooner.
 
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Day, don’t even know how that is possible. Give details please
 
Teacher Terry said:
Day, don’t even know how that is possible. Give details please
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The hikes and lake stroll were at free public parks; the beer tasting and music crawl are free public events; the wine tasting and chamber music was a discount senior club activity; and the plays are one pay what you can night and two comp tickets for preview performances (test audience).
 
So you can do beer tasting for free?
 
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