FI is of course, dependent on WHAT amount of income one defines as enough, and then the ability for that income to be generated without w*ork required. Naturally, this forum has huge extremes of what constitutes FI. Multimillionaires, life long pensioners, real estate moguls etc, etc. Some FIREd when there was the opportunity to sell home and move from high COL, to simpler less expensive COL, others stayed put when income without work allowed them to. My own personal definition is basically the later, I look at (and have for many years) what my net spendable income that covers everything I do and want to do on a "reasonable, as defined by me, basis" . Like many here that number goes up with life, but plans to drop when all debt (mortgage, mainly) goes away. My mortgage is at such a low rate and small amount that I could pay it off anytime, but then it just becomes a game of earnings and fungiblity. It goes away on its own in 5 years regardless.
Typically, I increased my savings, both long and short term as raises occur, and opportunities existed. I am FI currently at 59 1/2, which was my goal, without being overly frugal. Not wealthy by typical definitions but certainly already a guaranteed income for life well above what my parents ever had or the average Joe Retiree I know. Say around $110k/yr if I withdraw from savings what is equal to what my (maxed out over 35 years income) SS would be, with adequate savings remaing once SS starts at FRA. My interim health insurance is not an issue for me as it is covered by work as a retiree along with a pension. DW is already 65, has her own pension and collecting SS.
But I also know many Joe Verycomfortable retirees and see that as a better goal for my self, so I have not REd. Literally, I do not want to change my lifestyle or be concerned about spending money on whatever. One home is fine. Enough so that I could self fund a reasonable term of LTC. That means age 61 or 62, to bring the income level up closer to $140k, due to increased pension benefit, less withdrawal time, increased growth/appreciation and savings. All typical stuff discussed here all the time. My job pays low six, is low stress, easy short commute, no clock to punch, good friends and associates. Good satisfaction. No health issues.
So, if possible to remember, would you say that you REd when you figured your retirement net (after lower taxes, assume no additions to savings, no SS or Med deductions, etc) income was above, equal, or below your net working income, and if above or below, roughly what percentage or how much? Mine will be above my current working net by about 20%, as only our SS is COLA, neither of our pensions are. I am concerned if inflation should return and that the long term 7-8% returns of the market drop over time (vs the above average returns of the last few years of this bull) making a typical 4% SWR unreasonable. So I want to add to savings some until inflation erodes that. Leaving a large amount to heirs is unimportant.
If below, I can assume you modified your lifestyle to be less than what it was when working. If equal. The same. If above, you love the money or wanted a bigger hedge. I do not know how to make this a poll, or I would.
Typically, I increased my savings, both long and short term as raises occur, and opportunities existed. I am FI currently at 59 1/2, which was my goal, without being overly frugal. Not wealthy by typical definitions but certainly already a guaranteed income for life well above what my parents ever had or the average Joe Retiree I know. Say around $110k/yr if I withdraw from savings what is equal to what my (maxed out over 35 years income) SS would be, with adequate savings remaing once SS starts at FRA. My interim health insurance is not an issue for me as it is covered by work as a retiree along with a pension. DW is already 65, has her own pension and collecting SS.
But I also know many Joe Verycomfortable retirees and see that as a better goal for my self, so I have not REd. Literally, I do not want to change my lifestyle or be concerned about spending money on whatever. One home is fine. Enough so that I could self fund a reasonable term of LTC. That means age 61 or 62, to bring the income level up closer to $140k, due to increased pension benefit, less withdrawal time, increased growth/appreciation and savings. All typical stuff discussed here all the time. My job pays low six, is low stress, easy short commute, no clock to punch, good friends and associates. Good satisfaction. No health issues.
So, if possible to remember, would you say that you REd when you figured your retirement net (after lower taxes, assume no additions to savings, no SS or Med deductions, etc) income was above, equal, or below your net working income, and if above or below, roughly what percentage or how much? Mine will be above my current working net by about 20%, as only our SS is COLA, neither of our pensions are. I am concerned if inflation should return and that the long term 7-8% returns of the market drop over time (vs the above average returns of the last few years of this bull) making a typical 4% SWR unreasonable. So I want to add to savings some until inflation erodes that. Leaving a large amount to heirs is unimportant.
If below, I can assume you modified your lifestyle to be less than what it was when working. If equal. The same. If above, you love the money or wanted a bigger hedge. I do not know how to make this a poll, or I would.
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. The rent control/rent stabilized activists will soon be picketing at your door front.
