Introduce yourself here!

[Mr._johngalt]

You sound very happy with your "September plan".
That's good. Although I am well into retirement now,
my wife still works (healthcare) and trying to integrate
her into my retired state has proven troublesome.
Before we married in 2001, I had it (ER) all worked out,
but for one person. Now that 2 of us have to be
considered, things are complicated, and more than twice so. For example, I am a "planner" and spend a lot of time on "what ifs" etc.. My wife is more impulsive
and tends to plunge into things. I get into enough trouble even after extensive planning and so it may
appear that I am footdragging, when in fact I am
gung ho, just trying to avoid mistakes. Of course,
too much of this leads to paralysis by analysis. On the
other hand a lot of ER types (me included) don't have
a lot of margin for error. This makes us cautious.
I suppose that getting older adds to this trait.

 

[dory36]

I have also started a list of all the things I hope to explore, accomplish, or get involved in once I'm retired.  Now I can't wait!

Once you start thinking about it, you're hooked! Congrats in advance!

Dory36

 

[Gary McDonald]

I had been planning on working til 01-2005, but am being pressured to retire within the next couple of months. I think my spendable income in retirement will be about the same as when I was working, about 30K. Staying til '05 would have gotten me a lump sum check of about 53K. I would like to have seen that money, not knowing any other way I could save up another 50 grand in 2 years. But I have become disenchanted with my job and think I will really enjoy being free to fish, hunt, and travel. I have about $130K in 457 and IRA's in addition to my $30K pension. I will try to refrain from hitting the 457 money for a couple of years unless I have to tap it for some must-have trip to Italy or Spain or something. At 52 I probably should be blowing it while I have good enough health to enjoy it. I am thinking some of my travel will be camping or traveling in our Grand Caravan with the back seats removed. I live in St. Louis and have vowed not to spend another winter here. I have invited my wife to take some vacation and come visit me in Florida. She will probably be retiring when I had originally planned in Jan. '05.

 

[Mr._johngalt]

Re. the health issue, a major reason I ERed. I could see
my contemporaries dropping at an increased rate
or dealing with various health problems. I wanted to
get out while I could still do the things I wanted
(adventures, etc). Wish I'd done it sooner. BTW, we
live west of Chicago and have vowed not to spend another winter here. As usual, the devil's in the details.

 

[Mr._johngalt]

Hey, now I'm replying to my own posts (pay no attention
to that man behind the curtain!)

I had 2 business mentors, both gone many years now.
I had 2 friends who hunted with me before I gave it up.
Both younger and both gone. Neighbors, fishing buddies,
business associates gone in their 30s, 40s and 50s.
My Dad's sisters both gone at age 42. Looking on the bright side, I've outlived Custer by 20 years and Caesar
by 2...............................

Seriously, don't postpone your dreams. Tomorrow
is promised to no one.

 

[kmurphy]

Hi.
I am a 49 y/o professional with a decent income, currently non-working wife and one child in private middle school. I used to 'invest', but got burned in the tech crash. I don't know beans about bonds (or much of anything with regard to investing, it feels like). I'm need help. I feel lost in the world of investing. I have 100K to invest in a 529 for about 6 years before I begin withdrawing it and don't know if I should invest in bonds, if so what kind, or if I should just leave in in cash.
I have a jillion other questions.
Sorry about not making a new topic, but I couldn't figure out how.

kmurphy

 

[Mr._johngalt]

I am an ultraconservative ER who just went into bonds
although very reluctantly. When rates were higher
I was almost 100% CDs and MMs. Couldn't stand it
any more. I am less nervous about bonds now
since the FED just cut rates yet again. Also, just
yesterday I was reading (MONEY I think) where a bunch
of "experts" think bonds (including some "junk") are
the way to go. I may be wrong, but I think Warren
Buffet was quoted as saying he had more faith in junk
bonds than the stock market. Me too I guess as I took
the plunge big time.
Anyway, I went 50% investment grade and 50%
in an aggressive income fund, heavily junk bonds
but with a lot of diversity, company=wise and industry- wise. Time will tell. By the way, in the same magazine
someone else was quoted that in every stock trade
on one side is a genius and on the other an idiot, and
only time will reveal which is which. I like that one.

 

[RYD]

Cut Throat,

I must admit that I agree with your view. BUT I look at Japan and what has happened to their stock market I must admit it causes one to worry.

Overall low cost index funds spread over various sectors proably give the most protection. Easy to say sometimes hard to do!

 

[Michael]

Hello kmurphy, I would like to suggest going to the library, and start checking out books from the financial section. Your librarian can help you to find them. There is absolutely no substitute for learning about financial planning if you are going to mangage your own account. Don't do anything until you understand what you are doing. Here is a helpful web site that explains some of the basics about safe withdrawal rates for when you retire. Since you seem to have a very low risk tolerance, pay special attention to the section on using TIPS to lower portfolio volatility. Time is short. Do not delay in educating yourself about these matters. You are solely responsible for what happens to you and your family.

http://www.retireearlyhomepage.com/

Mike

 

[lewmac]

Hello, everyone lewmac here so glad i found this site can get new information and maybe help on occassion. I am planing on retiring next year ( JUNE 2004 ) if all goes well am a little worried about insurance coverage ( cost going up all the time ) , but we figure why worry about nothing you can do about it. I really do not know what i would like too do yet, we do not have the resources to travel all the time , all these pictures of people happy ,travling around the country seems like you better have deep pockets, well if any one shares any of my connceres let me know.

 

[Jack]

If you are looking for advice, lewmac, we need a little more info. Like, is this ER for you or just normal (if there is such a thing!) retirement?

Regardless, the cost and/or even availability of insurance is always an issue when retirement is being considered. Worrying about insurance coverage is a little different than worrying about where or when to take your next trip or buy a new car.

And since you imply that the rest of us ER's are enjoying our lives strictly via deep pockets that you currently don't have, it really sounds like you may not be ready for this move.

I think most of the others on this board would agree that some planning is required before taking this rather substantial step. Sorry to burst your bubble, but this is just the way I see your situation.

 

[Michael]

He lewmac, I would recommend applying for insurance well in advance of retiring to make sure you qualify under the normal underwriting process. You will not know how much to budget for health insurance until you find out what rating you qualify for. If you have any health conditions that insurance companies don't like, your health care costs could become astronomical.

It is not necessary to travel to enjoy ER, unless this is your passion in life. You should sit down with your spouse and decide on the life style you want so that you can plan your budget accordingly. If 3 1/2 to 4 % of your portfolio will support your desired life style plus health care, ER becomes one option for you to consider. If you cannot afford the health insurance, you should seriously consider working until you can. A single illness or accident can claim your entire portfolio. Health insurance is not optional for ER.

 

[Telly]

I strongly second Mike's comment about health insurance being a must!  Don't stay home without it!

Simple math... 65 - your age = number of years of health insurance vulnerability.  I too am not sure how much it will go up over the years, other than lots!  A high deductable policy will reduce the premium, but can't get too high, because if something does happen to you, you will be paying the policy, plus everything up to the deductable, plus maybe other items that a real high deductible policy may not cover.  Wouldn't want to have to pay that every year if it turns out to be  something chronic.  Can't boost your insurance when you are claiming away, they don't want more risk.

About all those "happy retired people traveling around"... there is a lot of advertising to that effect.  Oh so happy, active (always active!) retirees, playing golf, on cruises, laughing while strolling all points of the world, stopping to pop some "Centrum Silver" tablets, and on and on.  Advertising!  They see retiree dollars as a big market, so they are going to try to tap it for all sorts of products, services (even financial services  eek ).

Kmurphy had a question about a week ago, about how to post a new topic:

Click on HOME PAGE up at the top of page.
Then select what you think is the appropriate FORUM, click on it.
Now will see a list of all topics in that FORUM.
Look down the chart of topics, then either up at the top right side, or down the right side near the bottom, click on the little yellow folder with the green plus symbol on it.
Then fill in the new name for your topic and go at it!

 

[Mr._johngalt]

This is in reply to Cut-Throat, but really may be of
interest to many.

I do NOT move in and out of investments, nor do I try to
time the market. In that way lies madness. I go for
very long term investments on money that I can afford to tie up. But, ......................no common stocks.
My view is that even if a major bull market is just
around the corner, I don't care. I never count on being
here to enjoy it, but I do take into account the
possibility that I might still be alive. Live as if you will die tomorrow, but have a back up plan in case you don't.

 

[edhurst]

Hello! I'm 53 years old and, after 32.5 years with the Federal Gov't, I'm really burn't-out. I can retire in Sept. 2003 with a 2.5% penalty for being short of 55. Although I want to work some when I retire, I want to do something I enjoy and preferably be my own boss. It will be a major jump for me.

 

[JWR1945]

To edhurst: Make sure to look for buyout opportunities. I was able to get $25K for retiring (about $17K after taxes). That was a big enough incentive for me to delay retirement for a few months.

Visit the OPM website for everything official, but not for rumors: www.opm.gov

I had lived a retired life, so to speak, (at home, not on the job) for about a year before I actually did retire. I was very sure that the finances worked out. I was very sure that there would be plenty of interesting things to do throughout my retirement. I was not concerned about any projects. I just wanted to be sure that the normal, day to day routine would be satisfying.

It is.

Have fun.

John R.

 

[earlyout]

to edhurst;

I retired this year after 26 years with gov't.
I am glad i retired this year, but every one's situation different.
If you can live on pension and 4% of your savings then retirement is good possibility. health insurance is a must.
Part-time work you enjoy is another way to supplement income and adds structure to the early part of retiring. good transition activity.


good luck

earlyout

 

[Mr._johngalt]

Re. health insurance, this has been my biggest ER
problem. In an effort to help others avoid one of my
mistakes, a brief history. When I semiretired 10 years ago, I signed up for some individual coverage in case
of disasters ($10,000 deductible I think). Then for various reasons I switched it around many times.
Once an insurance company folded. Several times I
just piggybacked on my wife's coverage from her job.
The problem was that every time I went back into the market (wife laid off or whatever) I was older and my
health history was longer. Thus, I became less and less
attractive to insure even though I think I am generally
healthy. Usually COBRA was not an option for us
as we simply could not afford it. If I was a bit closer to
age 65 I would just wing it. With 6 years to go I don't have the guts. Bottom line; I should have stuck with
my original company regardless of what seemed like
better deals to be had. Jumping all around really messed us up.

 

[friar1610]

Hi; I am actually reintroducing myself. I signed onto this board quite a while ago but have not been very active on it. I have been a frequent contributor to/reader of the Retire Early Home Page on the Motley Fool, but that board is starting to wear a little thin these days what with many of the "off-topic" posts. I recognize a number of posters here from TMF. (I am also trying to learn how the mechanics of this board differ from TMF, so bear with me if things are a little hosed up at first.)

I've been retired for good for about 3 months now; my retirement was particularly "early" in that I was in the Navy for 28 years after college and then worked (with a few multi-month breaks) for about 7 years before hanging it up for good. I'm still trying to get a handle on retirement expenses (although so far things seem to be going pretty well.) I plan to do volunteer work a couple of days a week starting next month and otherwise enjoy myself until my wife decides to stop working. (She will not "retire" because she hasn't had enough years in the work force.)

For a number of years I have been a very big fan of Dory's retirement calculator; I can't tell you how many times I ran scenarios through that before deciding to pull the plug.

In any event, I suspect I will be participating a little more here.

jtmitch

 

[RHM]

Hi:

I am RHm in Florida and am ready to retire now but have three teenagers at home. I have a significant passive income via real estate but just can't seem to pull the plug on work. I own my own company and make significant money through it.

I am a little worried that I would be bored to tears if I didn't have a job and that instead of saving $$$ like we do now, I'll have to spend a large part of my passive income.

Basically, I joined this board just to kind of "feel out" what others are saying/doing. Loved Atlas Shrugged.

RHM

 

[Cut-Throat]

RHM,

What activities do you like to do in your spare time? Do you have any hobbies? - If not, you would be bored to tears.

There are some folks that live for the endless activity of work, lunches with co-workers, beers and socializing with co-workers after work. If most of your friends are work related, this is another indication that you would miss work.

On the other hand, if you spend a lot of your work day thinking about other activities and spend a lot of your free time with friends outside of work. And work does not present a challenge to you anymore, you may be ready to retire.

The first year of retirement is a challenge for most of us (my experience and my friends) - You think that retirement might be like an extended vacation, but it is much different. You have to be content with down time. A lot of people are type "A" and addicted to years of mostly useless activity.

Some things to think about

 

[Mr._johngalt]

Welcome RHM. I've read Atlas Shrugged about 10 times
so far. Am kind of the real life John Galt, with the one
major difference that I am never coming back.

In re. "being bored", I am a certifiable Type A (some
would say just plain certifiable). Fully retired for 5 years
now, I have not been bored a minute. Every day is loaded. Of course sometimes I just loaf, so in that sense I have returned to my youth when doing nothing was doing something. Anyway, I continue to cut back on my activities. If it is not enjoyable on some level
I try to avoid it.

 

[RHM]

Hi Cut/John:

I really don't have any hobbies per se but I do own a small boat that I occasionally use. I have considered getting a car to fart around with/restore as I have owned a few sports cars in the past. Also, I have pissed away a lot of money on boats over the years.

After last night I HAVE decided to cut back..slowly at first but accelerating significantly within the next 2-3 years.

I HATE to travel for business and asked my wife to take a 3 day trip with me to Boca for business. She informed me that she would NOT go that she wanted to become more "independent." Hell, I pay all the bills, she hasn't worked in 15 years. I pay for her hobby which is kayaking which, admittedly, is not expensive to persue but it really struck a nerve when she refused to go on this trip. She has been on exactly two business trips with me in 15 years.

I've decided that I too need to become more "independent." I grew up on the water and love boating and as previously said, pissed away a lot of money on boats. I've now decided to piss away a lot more money on a boat as I am going to start cruising the ICW in the next year or so, hopefully.

As you can tell from the tone of this post I am highly irritated and since I initially posted, I am going to step back and examine my life. I have no plans for the Big D but I've been busting my nuts building a business and accumulating assets for my family. My kids college educations are funded and I am in a position to fully retire now but I am going to ease into it. Over the course of the next few months I am going to examine my life and put ME first for a while.

John, my 14 year old daughter bought Atlas Shrugged to read on a trip out west this summer. I warned her that it may be difficult for her to digest at this point in her life and she hasn't gotten far into the book. I am going to abscond with that sucker tonight and read it again.

Regards to all,

RHM

 

[Mr._johngalt]

RHM

My 2 cents. 'Atlas Shrugged' is a very tough read for most people. If it didn't fit so well with my views
I may not have ever struggled through it. I have been
married for 34 of my 59 years. It ain't easy. You gotta
keep working at it. At least I do.

 

[unclemick]

Another 2 cents. Having ER'd back in 1993, we found going from two jobs to being mutually underfoot is an ongoing adjustment but it's worth it.