Can I retire early before age 60?

[Exchme]

@F.I.R.E User

are you the same user "Vanguard User" on bogleheads? The user with the thread that was recently locked?

He obviously is the same guy, which is fine, a lot of us jump between forums as we get different things out them. But between the two forums, he has received many hundreds of thoughtful replies to his repetitive, thought-free questions.

After wearing out this forum a couple months ago, he apparently discovered Bogleheads and went over there and asked the same questions over and over until their aggressive moderation locked his threads. I encourage him to go back through all the threads both here and there and actually read the replies and the links. If he did, he would find he has already been given an encyclopedia of knowledge about finances.

 

[Dtail]

Why have some generic non confrontational responses been removed?

 

[MichaelB]

Why have some generic non confrontational responses been removed?

No posts have been removed from this thread.

 

[F.I.R.E User]

Why have some generic non confrontational responses been removed?

Which ones?

 

[F.I.R.E User]

No posts have been removed from this thread.

Thanks for update.

 

[rodi]

F.I.R.E User:

Firecalc mentioned in this thread is the calculator linked at the bottom of the page of this forum. It runs your 'plan' through historical cycles. Make sure you fill in all the tabs across the top. Others have linked info to figure out your expected SS income.

You are asking for advice - which you are getting but no one here has a crystal ball to 100% accurately predict the future.

My advice:
* Save as much as you can.
* Take advantage of the ESPP to the maximum allowed. Personally I was able to do 10% of my salary with a 15% discount. I churned it - selling the shares every 6 month window to invest in other funds. Couldn't guarantee that kind of return anywhere else.
* Track your spending. This is different than budgeting... it's see where you spent the money, after the fact. Seeing this may give you ideas of where you can trim your spending (to save more). Over time you'll have solid data on what you will need in retirement income.
* Don't post GIANT screaming statements at us. We don't like to be yelled at. Bold, italics, all fine. Font size changes make it scream.
* Read and absorb what advice you are given. Refine your questions based on what people have said... Don't ignore the responses and ask the same questions (unrefined by previous responses) over and over.

 

[F.I.R.E User]

F.I.R.E User:

Firecalc mentioned in this thread is the calculator linked at the bottom of the page of this forum. It runs your 'plan' through historical cycles. Make sure you fill in all the tabs across the top. Others have linked info to figure out your expected SS income.

You are asking for advice - which you are getting but no one here has a crystal ball to 100% accurately predict the future.

My advice:
* Save as much as you can.
* Take advantage of the ESPP to the maximum allowed. Personally I was able to do 10% of my salary with a 15% discount. I churned it - selling the shares every 6 month window to invest in other funds. Couldn't guarantee that kind of return anywhere else.
* Track your spending. This is different than budgeting... it's see where you spent the money, after the fact. Seeing this may give you ideas of where you can trim your spending (to save more). Over time you'll have solid data on what you will need in retirement income.
* Don't post GIANT screaming statements at us. We don't like to be yelled at. Bold, italics, all fine. Font size changes make it scream.
* Read and absorb what advice you are given. Refine your questions based on what people have said... Don't ignore the responses and ask the same questions (unrefined by previous responses) over and over.

ESPP is max 15% allowed of salary. Isn’t that a big risk? PC app shows that we should not more than 3% total portfolio.

The bold italic was to give emphasis so it’s easier to read. I apologize if it came as screaming.

 

[rodi]

For the ESPP - that's why I churned it (sold it as soon as the window closed) - locking in the 15% discount plus any gains. I used the proceeds to buy diversified holdings.

Where else can you get a guaranteed return (the discount) in that short of a window.

On the plan I was on - it was 6 month windows. If you need the cash - it only hurts the first 6 months. You can use the proceeds after the first sale to offset the extra withholding for the current investment. But - pretty soon you get used to not having that 15% in your paycheck - just like maxing the 401k, or any other 'pay yourself first' diversions from your paycheck.

 

[F.I.R.E User]

For the ESPP - that's why I churned it (sold it as soon as the window closed) - locking in the 15% discount plus any gains. I used the proceeds to buy diversified holdings.

Where else can you get a guaranteed return (the discount) in that short of a window.

On the plan I was on - it was 6 month windows. If you need the cash - it only hurts the first 6 months. You can use the proceeds after the first sale to offset the extra withholding for the current investment. But - pretty soon you get used to not having that 15% in your paycheck - just like maxing the 401k, or any other 'pay yourself first' diversions from your paycheck.

I have 2% of check as ESPP. I do sell them as soon as it’s allowed which is after 1 year.

 

[Dtail]

No posts have been removed from this thread.

My error. Mixed it up with the 4% thread.

 

[F.I.R.E User]

My error. Mixed it up with the 4% thread.

What was removed?

 

[Dtail]

What was removed?

Nothing.
I was looking for a response of mine in this thread, but I posted it in the 4% thread.

 

[rodi]

I have 2% of check as ESPP. I do sell them as soon as it’s allowed which is after 1 year.

Ok - so 2% of your annual salary goes to ESPP, which you convert to other holdings once a year. So at any given point you have $1200 max in your company stock. (2% times your 60k salary). Your networth is $547,498. So the percentage of your portfolio or net worth, invested in your company stock, is about 0.2%. It's simple math:
(2% * $60k) = $1200.
($1200/547498) *100 = 0.2%

I think the risk you worry about is minimal. Risk of holding a single holding gets real at a much bigger percentage... 1/5 of 1% is not a significant risk.

Edited to add: If you didn't have a significant price discount in your ESPP, it might not be worth it - but in this case - it's worth it, IMO.

 

[F.I.R.E User]

Nothing.
I was looking for a response of mine in this thread, but I posted it in the 4% thread.

Thanks.

 

[F.I.R.E User]

Ok - so 2% of your annual salary goes to ESPP, which you convert to other holdings once a year. So at any given point you have $1200 max in your company stock. (2% times your 60k salary). Your networth is $547,498. So the percentage of your portfolio or net worth, invested in your company stock, is about 0.2%. It's simple math:
(2% * $60k) = $1200.
($1200/547498) *100 = 0.2%

I think the risk you worry about is minimal. Risk of holding a single holding gets real at a much bigger percentage... 1/5 of 1% is not a significant risk.

Edited to add: If you didn't have a significant price discount in your ESPP, it might not be worth it - but in this case - it's worth it, IMO.

Once I get the profits from ESPP I take that money and invest into Roth IRA - FZROX and/or taxable VTSAX

NW changed to: $543,449 today according to Mint.

 

[chassis]

There were indeed some posts removed from this thread.

 

[F.I.R.E User]

There were indeed some posts removed from this thread.

Do you know why and what was it about?

 

[Aerides]

No posts have been removed from this thread.

Correct

There were indeed some posts removed from this thread.

False

Do you know why and what was it about?

Enough already. No posts were removed. Not by the posters themselves or mods. Zero. Not in this thread. However, future posts may well be, per community rules.

If any of you would like to question moderator actions, or lack thereof, in-thread is not the place for it. Contact any of the mod team directly, and maybe, re-read the community rules.

 

[chassis]

Correct



False



Enough already. No posts were removed. Not by the posters themselves or mods. Zero. Not in this thread. However, future posts may well be, per community rules.

If any of you would like to question moderator actions, or lack thereof, in-thread is not the place for it. Contact any of the mod team directly, and maybe, re-read the community rules.

@Aerides I stand corrected, my apologies.

 

[F.I.R.E User]

Correct



False



Enough already. No posts were removed. Not by the posters themselves or mods. Zero. Not in this thread. However, future posts may well be, per community rules.

If any of you would like to question moderator actions, or lack thereof, in-thread is not the place for it. Contact any of the mod team directly, and maybe, re-read the community rules.

Thanks for the clarification.

 

[jollystomper]

I don't think there's much point in asking this question, as it is 15 years out.

Just save/invest as much as you can without depriving yourself. When the day comes that you have "enough", you'll know.

+1

It is tough to plan for what changes might occur in 15 years. So keep it simple and re-assess every few years or so. As long as you focus on those things you can control (which you are already doing), you likely will be fine. I was 43 in 2001 with a lower net worth than you, married, with multiple kids college bills about to hit in the mid-2000s. But by sticking to LBYM and doing the types of things mentioned in the OP's first post, getting to that comfortable asset level was doable before 60.

 

[F.I.R.E User]

+1

It is tough to plan for what changes might occur in 15 years. So keep it simple and re-assess every few years or so. As long as you focus on those things you can control (which you are already doing), you likely will be fine. I was 43 in 2001 with a lower net worth than you, married, with multiple kids college bills about to hit in the mid-2000s. But by sticking to LBYM and doing the types of things mentioned in the OP's first post, getting to that comfortable asset level was doable before 60.

When did you retire?

 

[jollystomper]

When did you retire?

June 2018, age 60 (see my signature line for exact date ).


By 2012, all calculators I used and Megacorp financial advisor indicated I could retire. But I decided I wanted a very comfortable, do-not-need-work-at-all-for-money type of retirement, so I simply kept accumulating to build up a buffer (Lucky timing since 2012-2017 was a very good time to be in the market, and the majority of college bills went away, so more to save/invest ) .

 

[F.I.R.E User]

June 2018, age 60 (see my signature line for exact date ).


By 2012, all calculators I used and Megacorp financial advisor indicated I could retire. But I decided I wanted a very comfortable, do-not-need-work-at-all-for-money type of retirement, so I simply kept accumulating to build up a buffer (Lucky timing since 2012-2017 was a very good time to be in the market, and the majority of college bills went away, so more to save/invest ) .

With how much?

 

[LarryMelman]

With how much?

34.75. 29 1/2. Pi-over-eleventy-six.

For Pete's sake, would you PLEASE get it through your head that you have to decide your own numbers. No one else's numbers mean anything.

You've been shown where the calculators are. You've been shown how to use them, by people with amazing and limitless grace and patience.

Now please go do the work.

And if you are just not capable, then you need to sign your affairs over to someone who is.