Join Early Retirement Today
Thread Tools Search this Thread Display Modes
50 and officially ERed
Old 04-26-2017, 10:44 AM   #1
Dryer sheet wannabe
Join Date: Mar 2004
Location: San Francisco
Posts: 17
Send a message via Yahoo to FlipnSf
50 and officially ERed

Its been a pipe dream since my early 30s and at 50 I finally applied for my annual pension which starts at 2700 per mnth before taxes with a 2% annual cola. I pay nothing for health insurance and will not have to worry bout fees till i qualify for medicare. I am divorced no kids and currently single.

I left my paper pushing job in 2014 at 47 and lived in cambodia and the philippines doing volunteer work for Kiva and the us peace corps spending 3 - 4 months annualy in the usa to spend time with elderly parents. Although I spend more time in the Philippines, international volunteering is a lot of fun and easy access to free vacations. I was recently invited to work in south africa and the ukraine.

I have no debt and as i mentioned above, i have a lifetime mothly pension of 2700 with a 2% annual cola and free health insurance with a big Ca Hmo. My deferred comp balance is 350k roth ira is 100k reg stocks at 100k and cash 100k. I own 2 condos with a 2k net monthly rental income. I currently use this income to cover my expenses and will give myself a raise from my pension and continue to save and invest a good portion of my pension for the next 10 years.

I planned a Thailand vacation in june tocelebrate my 50th bday and my ER. To be honest, I ve never planned beyond reaching this point but having volunteer opportunities is a good way to transition in my newly found FIRE status. I still have to shed some of my frugal ways and transition in the liquidation phase of of being ERed.

Life is good as everything worked out as planned with little tweaks along the way. I am focused on keeping healthy and continuing to contribute to society as this new lease on life truly begins at 50.

ER plan update 10 years later
i wrote this thread when I was 36 and thought I'd revisit it again... i am now 46 and provided an update to my current situation... not yet ERed but almost there....

I am 3 years behind my original ER at 42 plan and added 5 years to the original plan. Currently my annual salary went up 20k to 98k annually.. My deferred comp is up at 240k from 40k and I have a 50k roth IRA and 100k cash. I have a paid off condo valued at 200k rented and earning 15,000 annually and another condo in san diego where i owe 100k , rented out and pays for itself with only 1,200 annual income. I have no debt except for the condo and student loans were just paid off. My pension at age 50 will be 36k annually with a 2% annual cola and I will have healthcare for life. Luckily, our pension funds are always 90% and above funding level.

I am still planning to ER in 2 years and these extra 5 years really put me in a secure position and can retire anywhere I want but still wanting an expatriate retirement... I just signed a 10 year lease on a 3 br house in the highlands of the Philippines 1.5hrs from manila 30 min drive from the beach, with very mild temperatures at $75 per month ($900 annually) with an annual increase rate of 5%... I do frequent trips there and will start remodeling the house (estimated at 3-5k) on my next trip. I am ready to go now but figured that the 2 years will allow me to pay off the san diego condo and save the cash needed for the 2 years before my pension kicks in.

MY PLAN AT 36 (10 years ago)...

Young Dreamer Needs Help
Im John, 36 single and been lurking here this last year and at about the same time started dreaming of early retirement. I have been working for a county government for 5 years and have a db pension plan and a separate 457 plan. I would love to hear your comments on my plans to retire in 6 or 7 years at the age of 42.

Savings Plan:
I am currently earning an annual salary of 78,000 contributing 7.5% to a defined benefit plan. Additionally I am doing a 3 year service buyback of an additional 7.5% annually making my current pretax contribution to this plan at about 12,000. In the last 2 years the retirement plan managers credited this account with 6.25% interest. The current balance of the account is 29,000 and my contributions will go down to 6,000 after I finish the buyback in 3 years. The vesting retirement plan will allow me to leave the balance of the account in the plan and will start paying as early as age 50 where the balance in the account is doubled and divided with an actuarial factor to arrive at the monthly lifetime benefit (currently at 133.7058 subject to change in the future). I calculated that at an annual minimum interest rate of 6% earnings that I expect a balance of 110,000 in 6 years to be left in the account to grow for 8 years and at 50 will have 350000 lump sum or 2,600 a month.

I am also contributing the maximum to my 457 deferred Compensation annuity account (currently 13,000 annualy) which has a current balance of 45,000 invested in a Vanguard S&P 500 Index (70%), Midcap Index (17%), and Small Cap Portfolio (13%). I am projecting an account balance of at least 160,000 in 6 years. Additionally I have another 403 B account from a previous employer with a 7,000 balance in the account and a $16,000 I bond purchased 2 years ago.

Living Expenses:
I live in a 1 br condo i purchased with a fix 5.5% 30 year $180000 first mortgage and a 6% 15 year 40,000 second that allowed me to avoid PMI. With my new 7 year plan I am in the process of refinancing for a 7 year arm of 4% to reduce my monthly mortgage payments. I also owe about 6,000 in credit card debts which I manage to keep between 0-3% annual interest rate through credit card surfing. I have no car payments and I drive a 95 honda civic with 135000 miles and pay a 250 liability insurance annually. I do have a cell phone (free long distance) and satellite tv.

The Plan!!:
Whew!! My financial situation in 2 paragraphs. Like I said I am planning to say adios to my middle management paper pushing position in 6 or 7 years at age 42 and plan on living on my 457 savings while waiting to tap into the pension plan at age 50 and take advantage of the annual COLA currently at 2%. I might not need the $$ at 50 and am planning to reinvest at least the first 5 years of the pension to have extra income at age 65 or 70. I am looking to sell the condo and relocate abroad (I worked in the Peace Corps in Africa after college and have done a lot of 3rd world travelling and slumming since) and am looking at Southeast Asian countries like Thailand or The Philippines expecting to live on 1100/ month. I am also planning on purchasing property in one of those countries and will use the money I save from the mortgage payment reduction (400 monthly) to pay for the property. I havent quite figured out if the moving abroad is temporary or permanent (major flaw of this plan) and have not thought of what I would need if I decide to return to the states after 60.

FlipnSf is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-26-2017, 10:55 AM   #2
Thinks s/he gets paid by the post
2017ish's Avatar
Join Date: Apr 2012
Location: Nashville
Posts: 1,902

You planned and performed well.

Congrats and enjoy!

OMY * 3 2ish Done 7.28.17
2017ish is offline   Reply With Quote
Old 04-26-2017, 11:01 AM   #3
Thinks s/he gets paid by the post
euro's Avatar
Join Date: Oct 2015
Posts: 1,350
Very impressive! Longterm goal-setting at its finest! congrats!
euro is online now   Reply With Quote
Old 04-26-2017, 11:11 AM   #4
Recycles dryer sheets
TrophyWife's Avatar
Join Date: Feb 2016
Posts: 158
So safe is the Philippines? I've never traveled there but the COL sounds spectacular!
TrophyWife is offline   Reply With Quote
Old 04-26-2017, 11:22 AM   #5
Thinks s/he gets paid by the post
exnavynuke's Avatar
Join Date: Sep 2016
Location: Acworth
Posts: 1,184
exnavynuke is offline   Reply With Quote
Old 04-27-2017, 08:03 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
Join Date: Dec 2008
Posts: 8,473
Wow, congratulations!
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
It involved a mannequin hand, and an electric shaver taped to a golf club! - "The Other Guys"
Amethyst is offline   Reply With Quote
Old 04-27-2017, 08:14 AM   #7
Full time employment: Posting here.
Join Date: Jan 2008
Posts: 680
That's a great post. Well played.
Retired July 2013 at age 49.

Lazy Portfolio Investor:
AA: 55% Stocks
35% Bonds
10% Cash
NanoSour is offline   Reply With Quote
Old 04-27-2017, 08:57 AM   #8
Dryer sheet wannabe
Join Date: Mar 2004
Location: San Francisco
Posts: 17
Send a message via Yahoo to FlipnSf
Thanks y'all... Have to say that there are unexpected happenstances youll encounter along the way which can be discouraging. .and for me it was the 2008 crash which meant that i stayed 5 years longer to recover. It was also an opprtunity as propertIes were all on sale and i was able to get another small condo for rental income at bargain basement prices... So stick to your plans make appropriate adjustments and watch out for those opportunities.
FlipnSf is offline   Reply With Quote
Old 04-30-2017, 10:50 AM   #9
Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: California
Posts: 1,002

Aiming_4_55 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
I am ERed! retiringat50 Hi, I am... 9 05-22-2008 07:41 PM
5pm tomorrow afternoon and Im ERed - retiringat50 Hi, I am... 7 05-21-2008 06:20 AM
ERed, but lots to learn - Too Frugal for my Cat toofrugalformycat Hi, I am... 17 08-08-2007 06:00 PM
ERed and Edgy returnofbabyape Hi, I am... 14 07-13-2006 08:10 PM

» Quick Links

All times are GMT -6. The time now is 09:18 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.