Introduce yourself here!

[HFWR]

PIPO...

 

[scrood]

very true when considering some of the fast-food joints around here....

scrood

 

[wildedge]

strategies for the income drop

I just semi-ER'd (mostly due to boredom). My early retirement pays me a DB pension (inflation proofed) of $50k, plus family medical insurance (at no cost). I'm 53, my wife is 48. Married 15 years, 11-year old in the nest. I just took a tenure-track teaching position at our local university to sort of "ease" into retirement. My pay there is only $52k, lower than I've made for over 20 years. My wife still works, making $70k. She'll have a somewhat less lucrative DB pension (~$20k), beginning when she turns 55. We are debt free, including owning our modest home outright. It's a duplex and provides $15k/year in gross rental income, plus some nice writeoffs, so we live for better than free here, in terms of shelter and utilities, about a $6,000 net. Our income is close to $190k right now, but our expenses are about $50k/year, net of taxes. We have about $850k in investments, excluding the duplex. The big "BUT" is that we intend to bail out totally in 3 years and live just on my pension, rents, and a small draw on our portfolio of 2%/year. That will drop our income to about $80k for 4 years, until my wife's pension starts. I'm wondering if we should move to a lower cost of living place (the COL here is about 130% of US average). I've lived in Alaska most of my adult left, since I fled the rat race San Francisco in 1975. We'd like to travel a bit when we're fully retired so that may raise our expenses significantly. We are so cut off from the lower-48 life-style (such as it is), that I can't believe the cost of living numbers in the lower 48. Is it really so much cheaper there? Here we pay no state taxes, harvest a fair amount of our food from the wilderness, and our property taxes are only $3k/year on the $350,000 duplex. Our utilities are high, as are services, especially medical. But, as I said, the medical is covered. How can I get an idea of what our budget would look like in the lower 48? ACCRA and Runsheimer seems to be so skewed as to have no connection with my reality.

 

[Jarhead*]

Re: strategies for the income drop

I just semi-ER'd (mostly due to boredom). My early retirement pays me a DB pension (inflation proofed) of $50k, plus family medical insurance (at no cost). I'm 53, my wife is 48. Married 15 years, 11-year old in the nest.  I just took a tenure-track teaching position at our local university to sort of "ease" into retirement.  My pay there is only $52k, lower than I've made for over 20 years. My wife still works, making $70k.  She'll have a somewhat less lucrative DB pension (~$20k), beginning when she turns 55. We are debt free, including owning our modest home outright. It's a duplex and provides $15k/year in gross rental income, plus some nice writeoffs, so we live for better than free here, in terms of shelter and utilities, about a $6,000 net. Our income is close to $190k right now, but our expenses are about $50k/year, net of taxes. We have about $850k in investments, excluding the duplex. The big "BUT" is that we intend to bail out totally in 3 years and live just on my pension, rents, and a small draw on our portfolio of 2%/year. That will drop our income to about $80k for 4 years, until my wife's pension starts. I'm wondering if we should move to a lower cost of living place (the COL here is about 130% of US average).  I've lived in Alaska most of my adult left, since I fled the rat race San Francisco in 1975. We'd like to travel a bit when we're fully retired so that may raise our expenses significantly. We are so cut off from the lower-48 life-style (such as it is), that I can't believe the cost of living numbers in the lower 48.  Is it really so much cheaper there? Here we pay no state taxes, harvest a fair amount of our food from the wilderness, and our property taxes are only $3k/year on the $350,000 duplex. Our utilities are high, as are services, especially medical. But, as I said, the medical is covered.  How can I get an idea of what our budget would look like in the lower 48? ACCRA and Runsheimer seems to be so skewed as to have no connection with my reality.

Wildedge: Where did you get the idea that the cost of living is much cheaper in the lower 48?

With your net=worth, multiple pensions, etc., you could probably live anywhere you wanted without any financial problems.

Solution: Live in an area that would give you the lifestyle you'd like to have.

(This was an easy one.

 

[maddythebeagle]

Ah yes - the life cycle of the human turd - one of my minor interests in ER.

What is the case for chlorine first, then areobic - before the lagoon

My swamp cane and cattails are double the height of the - other guys.

- what do they say, the grass is always greener on the other side of the septic tank.

 

[unclemick]

Hmmm

Brackish water - water table is above ground many times during the year. Septic tanks are out - unless up on pilings(there's one across the road) or float with proper moorings.

Back in the old days - septic drain fields were great for lilac's - in the PacNW.

 

[sgeeeee]

Thanks for the free poop.   

REW

I think you quoted the wrong segement. You meant this one.

I may not agree with JG's alternative path to ER, but it is nice to see an occasional message that opposes the high-volume, liberal/baby-boomers that spout the old Democrat talking points...

I don't trust ANY baby-boomer, especially a liberal-Democrat, with my well-being or future.
I've experienced too many examples of B4 (Baby-Boomers Behaving Badly).

 

[bosco]

Re: strategies for the income drop

I just semi-ER'd (mostly due to boredom). My early retirement pays me a DB pension (inflation proofed) of $50k, plus family medical insurance (at no cost). I'm 53, my wife is 48.

Sounds like a retired Alaska state employee (except for the inflation-proofed part). State penisons are not inflation-proofed in the early years, and only partially later.

We are so cut off from the lower-48 life-style (such as it is), that I can't believe the cost of living numbers in the lower 48. Is it really so much cheaper there? Here we pay no state taxes, harvest a fair amount of our food from the wilderness, and our property taxes are only $3k/year on the $350,000 duplex. Our utilities are high, as are services, especially medical. But, as I said, the medical is covered. How can I get an idea of what our budget would look like in the lower 48? ACCRA and Runsheimer seems to be so skewed as to have no connection with my reality.

Where in Alaska do you live? Where did you find the 130% statistic? If you live in Anchorage or Fairbanks, I think the 130% is simply not true. If you live in Bethel or Nome, then that sounds about right. Juneau--maybe 115%. Just running off memory here but I had to negotiate a contract recently where this stuff came into play.

If you live somewhere like Nome, then I strongly suggest that you go down south long enough to get a feel for the lifestyle before you even consider such a move. You might find yourself shell-shocked after just a couple months.

Unless you move to somewhere like the deep south, or the Dakotas, you might be disappointed in how little you save due to COL. If you move to California and have to buy a house, you might realize how lucky you are where you are.

 

[Nords]

Re: Strategies for the income drop

That will drop our income to about $80k for 4 years, until my wife's pension starts.

I'm wondering if we should move to a lower cost of living place (the COL here is about 130% of US average).

Welcome to the board, Wild!

We're raising a 12-year-old on less than $75K/year on Oahu which includes a mortgage. Sounds like your plan will work fine unless you're planning on living in the Bay area, LA, DC, or some other expensive part of the country. One ballpark number that frequently arises is $24K/year so, even with state taxes, being able to handle up to $50K/year gives you plenty of maneuvering room. Medical insurance costs could be an issue?

One issue that you didn't mention is whether you'll be keeping the duplex as a remote landlord or whether you'll be fleeing with your equity to buy a new home. That capital expense may make a difference to your portfolio but you definitely want to visit a few different places for a few months each before you make any changes. Again if you're spending $350K in most areas of the country you won't have any problem.

While statisticians can gather data & analyze just about anything, I wonder how good that COL data is. I don't know whether you're getting "average" or "median", and I'm sure that bell curve has very fat tails. You're gonna have to find a part of the country you can live with (I'm guessing that it won't have warm weather?) and then figure out the COL from their local data.

 

[Fletch52]

Hello All: Still finding my way around this site but I will introduce myself. I moved from Canada to US about three and a half years ago. Without really intending to I found that I have become semi-retired down here. I work full out during tax season but rest of year I can only get part-time work so I get to play golf a few times a week.


I am one of those people who do a lot of projecting what our income will be in retirement, then turn around and wonder if my projection will end up on the money. I suspect that if my health is good I will continue to work part-time into my early 70's because I enjoy the personal contacts and the money doesn't hurt.

I suppose it is OK to ask the question here: What does the acronym FIRE stand for?

Fletch52

 

[REWahoo]

I suppose it is OK to ask the question here: What does the acronym FIRE stand for?

Fletch52

Welcome Fletch. Check out this link:

http://early-retirement.org/forums/index.php?topic=3778.0

 

[snkalaska]

Hi to any Alaskans out there. I just turned 51 and am quitting work in December.
29 yrs of Alaskan winters is enough and I thought I'd spend some time with family in Hawaii this winter.
Yeah I know, why would you ever trade Hawaii for Alaska?
Hawaii=expensive, crowded, fished out
Alaska=reasonable, wide open, fishing nirvana
I am in a "transition period", not retirement and any tips on what to do/not to do are welcome! I think one dilemma I'm facing is option overload! Travel, volunteer, start a business, etc, etc. and the excitement is building.

 

[Outtahere]

Hi Ya'll .. I'm new here too, been luring for a while and think I'll enjoy this forum.

C__

 

[AJL]

Newly found site, looks interesting so far. Am probably one of the many that listened and relied for so many years on financial advisors. Would like to have a little more control over retirement investments. Am currently 57 and would like to retire sometime before they plant me in the ground. Unfortunately, do not have a pension to fall back on either. Investments are around 70k, and I am running out of "Time", like so many others in the same boat. I have read that having a financial person handling your investments is not such a good idea, and using the internet is more advantageous?? I could use some guidance here - in simplistic terms so I can understand. Thanks.

 

[Mr._johngalt]

Newly found site, looks interesting so far. Am probably one of the many that listened and relied for so many years on financial advisors. Would like to have a little more control over retirement investments. Am currently 57 and would like to retire sometime before they plant me in the ground. Unfortunately, do not have a pension to fall back on either. Investments are around 70k, and I am running out of "Time", like so many others in the same boat. I have read that having a financial person handling your investments is not such a good idea, and using the internet is more advantageous?? I could use some guidance here - in simplistic terms so I can understand. Thanks.

Welcome. You have found the mother lode of ER info (along with some
real interesting people) . Give us some more data please. You will be
amazed at what you can find here.

JG

 

[peteyperson]

Hi AJL,

That all depends.

For some it will be great help if they 1) know nothing about investments and; 2) are unable or unwilling to take the time to learn.

For those who are willing to read a few books and education themselves, then you're paying someone commission, fees or both, none of which one can afford as investments don't usually produce vast rewards above inflation over time. Here in the UK advisors are commission based, so you're paying 5% sales loads, plus 3% to advisors, plus 0.50% of the balance on the fund to the advisor forever on an annual basis! There are not the range of index funds that there are in the US, so few people know how to avoid this situation. But one certainly cannot afford the cost of the advisors. I looked in their official magazine and the salaries quoted are $100k+ in some cases, way way more than the average income of those investing under their "guidance." So I think they're making a mint, while others don't accumulate funds all that fast net of fees, commissions, loads, taxes and inflation.

Petey

Newly found site, looks interesting so far. Am probably one of the many that listened and relied for so many years on financial advisors. Would like to have a little more control over retirement investments. Am currently 57 and would like to retire sometime before they plant me in the ground. Unfortunately, do not have a pension to fall back on either. Investments are around 70k, and I am running out of "Time", like so many others in the same boat. I have read that having a financial person handling your investments is not such a good idea, and using the internet is more advantageous?? I could use some guidance here - in simplistic terms so I can understand. Thanks.

 

[eric1821]

Hi, Eric here. I choose to retire reluctantly. I was lay off by the company I worked for 20 years and cut again by a startup company where I worked for about 3 months. I am a software engineer and after working in this industry for 33 years, I decided to call it quit. My wife is still working full time, but she works 2 days at the office and others at home.


Financially, we are ready for retirement, but I am still full of energy and in good health. I am 60 years old and would like to get some suggestion how to be a volunteer. I have never done any volunteer work before and I think with all the time I have, I can really help.

Eric

 

[Nords]

Financially,  we are ready for retirement,  but I am still full of energy and in good health.  I am 60 years old and would like to get some suggestion how to be a volunteer. I have never done any volunteer work before and I think with all the time I have,  I can really help.

Eric

Welcome to the board, Eric.

You may not want to pick up a new responsibility so quickly. Someday I'll volunteer at Habitat for Humanity... as soon as we finish getting our own habitat suitable for humanity. Any day now.

But if you're looking for volunteer work, local newspapers frequently have an inset box titled "Volunteer Scene" listing the local volunteer organizations and their needs. The difference is that now you have the time to shop around and to think about what you want to do. Go slow-- you don't want to replace a full-time job with another full-time obligation...

 

[eric1821]

Thanks. definitely I don't want to replace a full time work with another. I will take your advice to take it slow. I have few relatives that I plan to visit. My sister lives at Los Altos - a small town in northern California and I was there last month. Another brother in Vancouver. I also went back in July to Taiwan where my mother is there, she is 84 years old, but very health, and I am very grateful for that. I plan to fulfil my lifetime dream of cruise vacationing to Europe next year. I have two kids, both were graduated this May. My son is now a lawyer with an IP firm and my daughter is a first year architect at a San Antonio architecture firm. Life is good to me.

In the beginning, I didn't quite adjust to the early retirement life. It is getting better now. I still do some conservative stock tradings and I love to bicycle ride and book reading, both English or Chinese books.

I will investigate before I commit myself to a volunteer job.

Eric

 

[Martha]

Think about what you really love to do and see if there is a volunteer opportunity. I love to garden, I can become a master gardener and volunteer in various community gardening programs. I have strong feelings about healthcare reform, so I volunteer to help lobby for some changes. I love music and I wanted to honor my father who loved music, so I joined the symphony board. I want more economic development that helps the poor and underclass, so I was on a board for many years that made microloans to start up businesses.

 

[omni550]

I was on a board for many years that made microloans to start up businesses.

Martha,

This is a subject of interest to me. Could you please provide a little more information and/or some web links? Also, if I may ask, why are you no longer on the board?

Thanks,

omni

 

[Martha]

Martha,

This is a subject of interest to me. Could you please provide a little more information and/or some web links? Also, if I may ask, why are you no longer on the board?

Thanks,

omni

I was on the Northstar Community Development Fund board for 9 years, and for several years was chair. I left the board because of term limits. This organization was very dependent on block grant money and we had a hard time expanding the funding base. The organization closed last year, primarily because funding sources were drying up. The mission was to provide low cost loans to help start small businesses or to help very small businesses expand. It also did a lot of education programs on running a small business. A number of businesses ended up being quite successful. One business now has 300 employees. Most of the other small businesses that were successful have remained small. We also did a lot in helping out daycare facilities to open, providing both grants (through the McKnight foundation) and very small loans.

 

[savinglikecrazy]

Hello, all. I am...savinglikecrazy.

I found my way here from the Motley Fool.

Stats:

I'm a long-term freelancer (writing/editing), 40, living in the NY/NJ/CT tri-state area, no kids.

I'm an introverted, planning type (probably an INTJ or INTP) with a goal of FI (and possible RE) by the age of 50. I'm extremely goal-oriented and disciplined.

We're currently saving 50-60% of income in a mix of retirement/non-retirement savings. We max out our Keoghs and Roths. Everything else goes into personal investments (currently working on building up two years' basic living expenses in cash and CDs, then will move to longer term investments). Other than the mortgage, we have no debt (that took eight long years to dig out from...which is where I learned about planning and discipline, and how important it is to have goals and take responsibility for your own life and future).

Investment style is pure Coffeehouse Investor (www.coffeehouseinvestor.com), which I love because it's simple, non-emotional and takes almost no time to follow (and it's cheap!).

My partner and I also bought an affordable house 11 years ago in an area no one cared about during a buyer's market period. It's half an hour from mid-town Manhattan, and in a good neighorhood -- as such, it has since soared in value as Manhattan prices have pushed people out to the 'burbs. My plan includes hanging on to it and selling upon retirement (or perhaps selling and moving a little earlier if we are in danger of having to pay cap gains on it).

My goal* is to buy 5-10+ acres of land someplace where the weather is more temperate (considering the Pacific Northwest) and build a house on it (unless we can find the perfect house). Then either continue to freelance (but do less of it), or start another business, or become a full-time layabout.

Hobbies include: saving money  long-distance running, cooking, reading (fiction and non-fiction), Web surfing, playing inane Playstation 2 games, and drinking affordable wine. I am a Netflix addict too.

Thanks for reading all of this!

*A few years ago, I referred to this as my "dream". I've since had an epiphany and realized that if you call something a dream, it's less likely to happen than if you call it a goal and take measurable steps toward reaching it. So, in addition to "savinglikecrazy," I'm also making it a to do to research land, go to the area I'm thinking of moving too, etc.

 

[bigkahoonda]

Greetings from Charleston, SC. My wife of 40 years and I moved here in 2002. I am 61. We have six grandchildren, three sons have done our time to finally arrive at this destination by choice. I am still working as VP, Marketing for a mid-size mortgage company. If you neeed a mortgage call me at (deleted by moderator).

The president of our firm is my middle son. We are great friends and he is now a great boss. What a joy to work everyday with the fruit of all your hard work.

As a hobby I have an IT friend who helps me build websites. When I officially retire form the mortgage business I simply plan to keep building websites, fishing, golfing, going to the beach for long walks with Rosemary. (She works in Real Estate selling Ocean Front homes on the Isle of Palms. She says she never gets tired of the beautiful scenery just driving to work.

Three of my websites are of particular interest to retirees:

1. http://www.happilyretired.com (Great content)

2. http://www.raisingababy.com  (forwhen the new grandkids arrive)

3. (deleted by moderator)  (where to get a great mortgae quote, auto loan and other financial services. Need help.

Favorite Quote: Anything from the Good Word of God

 

[Nords]

Bigkahoonda,

We've had a number of posters attempt to use the board to advertise their businesses or their own commercial websites. Your post appears to fall into that category. You're welcome to join the board's discussions and to start your own, but please don't advertise or solicit.

I've edited your post to remove the commercial content. Please contact me here or send me a Private Message if you care to discuss things further.

-- Nords