Walking away from the money

[daylatedollarshort]

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Originally Posted by Lstansbury THIS!!! Is so eye opening. Even if you are just planning for 25 years in retirement because of health reasons, or current age... thats $250K less you have to try to sock away. I'll keep it in my Inspo Quotes file, if you don't mind, DayLateDollarShort

Feel free to use and share. My light bulb moment initially came flipping through a homesteading magazine while looking for something to read on vacation. I realized the people in the magazine actually seemed happier and had healthier lifestyles than most of our coworkers and neighbors - no long commutes, more control of their own lives, more family and friend time, and more exercise and fresh air. Homesteading seemed like too much work and we weren't into having to care for small livestock, but then I read about urban homesteading and that seemed like a good fit.

Since then we've optimized expenses, we no longer have to save for retirement, pay less in income taxes, no longer have small business and work expenses, and our kids are grown and off the payroll. Added all up we live better than we did before on 1/3 the expenses, plus we don't have to work. We are now living off of SS @ 62 and pensions @ 55 and can leave the portfolio and house to our kids so they can ER eventually, too. Not counting the savings from the kids growing up and the taxes, we cut around $40K off our expenses so far, which means needing $1.6M less in total retirement funding over a 40 year retirement.

[Timeisprecious]

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Originally Posted by RobbieB You just do it. If you want to. If not, keep working -

+1. But, yes, I won't deny it can be a bit of a struggle. I wasn't making nearly as much as some in here, but for me $170K a year before all this inflation, with many tangible and intangible benefits, was pretty good compensation. I kind of hated to see that number in my rear view mirror. But you need to look forward to the joys of retirement. I think most in here will agree that a good and fun retirement is something you "develop," but the joy is that you can build it just about any way you want. For me the quitting in a way was easy - I had to go. The Army let me go for age - once my extention had been served, it was time. But I miss the Army dearly - the comradery, the friendships, the common oath, the satisfaction of serving my country in a real and practical way, and even the D & C (drill and ceremony, which some soldiers don't much like) are all things I miss. Again, I think the key is looking to the future and the joy and satisfaction you'll experience as a retiree.

[jollystomper]

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Originally Posted by emmaswan Would you mind explaining this part a bit further: "At a certain point, having much more money for me was less about gaining a nicer life than I already had, and more about dealing with the increasing inconvenience it would bring."? What are some examples of "increasing inconvenience it would bring"?

The more money people tend to have, the more the temptation to spend, and then you have to deal with the maintenance of those things. In my mind that does not bring about a proportional amount of happiness. I have friends who have large $1 million+ dollar homes on 10 acres, but the amount of time they have to spend maintaining it is not what I would want. The amount I see them spend paying someone else to maintain it I would not want to. I am fine with my house on an acre.

If my assets doubled, my first thought would be how much more I would have to deal with taxes, inheritance issues, etc., or paying someone to deal with that for me, which I would not like.

This is my view. Some folks here enjoy owning and maintaining real estate and rental properties. I do not. There is nothing wrong with them, I just choose to channel my happiness differently .

[Koolau]

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Originally Posted by jollystomper If my assets doubled, my first thought would be how much more I would have to deal with taxes, inheritance issues, etc., or paying someone to deal with that for me, which I would not like.

Not to mention RMDs, extra passive income which affects MC or Obama Care limits and other limits, potential tax audits, vultures wanting to manage your money, neighbors looking askance at the "rich" guy on the corner, envy of everyone else, etc. etc. Still.... If someone offered to double my assets.... DANG! I'd go for it! What does that say about me?

[DawgMan]

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Originally Posted by GATime Anyone else been here? How did you deal mentally/emotionally with walking way from the money?

I feel ya bro... I have played this same scenario out on this site many times (some major analysis/paralysis!). For some of us, we need a little time to down shift (in my case). Most people in my profession ride out to mid 60's - 70's, especially if the market is running hot (like now). I intentionally chose to get out when I had what I wanted as it related to NW/investable assets, but allot of forces pushing against me. You may need to slow play your exit if your business allows it. It has worked for me. Good luck!

[Timeisprecious]

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Originally Posted by Koolau Not to mention RMDs, extra passive income which affects MC or Obama Care limits and other limits, potential tax audits, vultures wanting to manage your money, neighbors looking askance at the "rich" guy on the corner, envy of everyone else, etc. etc. Still.... If someone offered to double my assets.... DANG! I'd go for it! What does that say about me?

[WhiskyDave]

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Originally Posted by Timeisprecious I had to go. The Army let me go for age - once my extention had been served, it was time. But I miss the Army dearly - the comradery, the friendships, the common oath, the satisfaction of serving my country in a real and practical way, and even the D & C (drill and ceremony, which some soldiers don't much like) are all things I miss. Again, I think the key is looking to the future and the joy and satisfaction you'll experience as a retiree.

I can imagine transitioning from the Armed Services is even more difficult, as it's a way of life and even more of your identity...I think your advice is spot on, it's about looking forward and not back. One door has to close for another to open.

[Spanky]

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Originally Posted by anothercog True but I certainly enjoy reading other people’s perspective on this to help me plan/time my own escape.

+1 -- it is very helpful and interesting.

[TheWizard]

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Originally Posted by Koolau Not to mention RMDs, extra passive income which affects MC or Obama Care limits and other limits, potential tax audits, vultures wanting to manage your money, neighbors looking askance at the "rich" guy on the corner, envy of everyone else, etc. etc. Still.... If someone offered to double my assets.... DANG! I'd go for it! What does that say about me?

I could EASILY deal with 10X more financial assets, meaning passive investments.
But that doesn't mean I would go out and acquire lots more STUFF.
I have no problem paying 10x higher income taxes but would not want certain other overhead items that sap my time...

[Magus]

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Originally Posted by Montecfo You can't retire early without leaving money on the table. But if you keep working when you don't have to you are leaving your life on the table. Every year you work is one less year of living life on your own terms. These realities helped me.

Great way to look at it!

[MC Rider]

The things you own,
end up owning you.

[pjigar]

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Originally Posted by winyaz You can do anything, or nothing, it's great!

As my recently ERed friend said to me: " ER is great. I highly recommend it to everyone".

[pjigar]

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Originally Posted by daylatedollarshort DH developed health issues so we realized free time and less stress were way more important that more money. I've been getting into low consumption and self sufficiency so I work on those hobbies now instead of making more money. We had a lot of inefficiencies in our budget so for us every $10K in annual cuts meant needing $400K less in total retirement funding (40 years X $10K), which was a lot more money than we were saving each year when we were working.

Thankfully we are healthy but I just value time more than money. I have been on a crusade to cut my expense inefficiency for a last few years. The biggest expense was the housing related cost so we moved to an acreage which allowed me to cut that expense way down AND now we have room to grow. Pun intended. By the way, growing is on the hold until we tidy up the homestead.

[Bunker]

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Originally Posted by pjigar As my recently ERed friend said to me: " ER is great. I highly recommend it to everyone".

After my Dad retired at 68, 2 years later he said:


"Wow! This retirement stuff if great! Everybody should try it at least once in their life."


True story, true quote.

[Bunker]

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Originally Posted by pjigar Thankfully we are healthy but I just value time more than money. I have been on a crusade to cut my expense inefficiency for a last few years. The biggest expense was the housing related cost so we moved to an acreage which allowed me to cut that expense way down AND now we have room to grow. Pun intended. By the way, growing is on the hold until we tidy up the homestead.

Sounds like you're still focused on money, not time. Re-read what you said.

[daylatedollarshort]

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Originally Posted by Bunker Sounds like you're still focused on money, not time. Re-read what you said.

Many people enjoy projects like vegetable gardening over sitting in a cubicle inside all day. It is not a waste of time if it a fun hobby that also saves money.

[pjigar]

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Originally Posted by Bunker Sounds like you're still focused on money, not time. Re-read what you said.

My response was related to homesteading comment. I meant growing vegetable/food and general homesteading. I have cut my work (for money) hours in a last few years and took a pay cut as a result. I spend more time doing things I like which revolves around "create, build, fix" theme. Currently I am building up the acreage and the growing part is on hold.


PS: Ah, I see what you mean. Lot of my hobbies are labor of love so that does not feel work to me. YMMV.

[street]

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Originally Posted by pjigar My response was related to homesteading comment. I meant growing vegetable/food and general homesteading. I have cut my work (for money) hours in a last few years and took a pay cut as a result. I spend more time doing things I like which revolves around "create, build, fix" theme. Currently I am building up the acreage and the growing part is on hold. PS: Ah, I see what you mean. Lot of my hobbies are labor of love so that does not feel work to me. YMMV.

There are many things I do and enjoy doing, but it is work. It is work for me but I love doing it, so the work isn't work to me.

I like what you are focusing on in life. That type of hobby work is so good for health and mind. IMO

[Koolau]

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Originally Posted by street [/B] There are many things I do and enjoy doing, but it is work. It is work for me but I love doing it, so the work isn't work to me. I like what you are focusing on in life. That type of hobby work is so good for health and mind. IMO

YES, and if you save a few bucks (or even make a few bucks) doing that, it's STILL not really w*rk! When my dad retired (more or less against his will) he put out a quarter acre plot of vegetables. No way could he consume that much himself and he couldn't sell much of it (as everybody and their dog was growing veggies during the season.) So he gave most of it away to the little old ladies (you know, the ones a couple of years older than he was) He would come home each day from his garden, hot, dirty, tired - and refreshed. That's not w*rk! YMMV

[Gumby]

That's what I do these days - grow vegetables. I only have about 1500 sqft. of garden, but it produces way more than the young wife and I can eat. I often come back home sweaty, dirty and tired, but I enjoy every minute of it.