Trying to figure out when I can tap a retirement account???

[engineernerd]

It’s not the work I do I object to, it’s how it takes away from the time I want for everything else.

Plus it never worked out as planned. I had planned to work for a mega corporation and make so much money the options would be does it make sense to retire really, really young really, really rich or keep working due to the large income and perks. Never even could get that mega corporation job to begin with.

And I’ve seen so many folks who never had to work a day in their life. Some, shamefully, really squandered it.

I think, in the end, my gripe is it should be incredibly easy to do what I intended to do with a college degree, and I couldn’t do it despite being my goal. And I see around me some folks with good college degrees (or at least from good schools) not earning much more than minimal wages.

There are no "easy ways" to earn "far more money" than a decent living, except if you are <mod edit> a talented con artist! Or a trust fund baby, in which case "earn" is kind of a misnomer even if you do nominally work for your big salary at Dad's company or Dad's friend's company.

My brother in law graduated summa cum laude from UVA law school and got a start in Big Law, but found out it required putting in very long hours and a lot of brownnosing, and ended up dropping out. Point being, it would not have been easy.

So please stop torturing yourself with those ideas. They are making you unhappy. Say your serenity prayer (google it if you aren't familiar), and start counting your blessings, including that decent living you say you've made.

 

[MrBojangles]

I don't think you quite understand economics, supply&demand, and things of that sort...

I actually don’t, despite having taken a course in macroeconomics and microeconomics decades ago. If you have a link to something that explains all that, I would enjoy reading it.

Something as simple as how do we have more and more money despite having more folks in the population. For example, let’s say there’s a population of 100 and $100. A dollar for each. The population doubles to 200, so 50 cents each. Unless you pump more money into the economy. But how and to whom? Last time I looked, the powers that be aren’t infusing my bank account with cash every now and again.

I do see massive profits made by companies and feel like they don’t need all that money for what. They could provide easy WFH jobs for folks that are high oay and low stress. I’ve spent 35 years looking for that such job.

 

[MrBojangles]

There are no "easy ways" to earn "far more money" than a decent living, except if you are <mod edit> a talented con artist! Or a trust fund baby, in which case "earn" is kind of a misnomer even if you do nominally work for your big salary at Dad's company or Dad's friend's company.

My brother in law graduated summa cum laude from UVA law school and got a start in Big Law, but found out it required putting in very long hours and a lot of brownnosing, and ended up dropping out. Point being, it would not have been easy.

So please stop torturing yourself with those ideas. They are making you unhappy. Say your serenity prayer (google it if you aren't familiar), and start counting your blessings, including that decent living you say you've made.

Yes, I need to. It eats me up inside. Most mornings I wake up and think, what, I’m STILL working and/or I’m not a billionaire yet?

I should have never thought college was going to make me massively wealthy and gone into the Navy. I tried to get into the Coast Guard when I was 18 but couldn’t due to bilateral tubes in my ears.

 

[RetiredHappy]

You want to make lots of money? Have a positive attitude and work hard. Don't expect money to fall from the sky. When you don't see money raining from the sky, stop whining and suck it up. Work hard for your money!
I worked very hard, moved up the corporate ladder because I was seen as someone who worked hard and could lead. I never whined even when I worked 7 days a week, 12 hours a day to get stuff done. No one expected me to work hard, I made myself achieve the results. I retired at 53. How was I able to retire early? I had saved millions in my taxable account. I wasn't a trust fund child and I did not get a large inheritance. It was achieved through hard work.

 

[MrBojangles]

You want to make lots of money? Have a positive attitude and work hard. Don't expect money to fall from the sky. When you don't see money raining from the sky, stop whining and suck it up. Work hard for your money!
I worked very hard, moved up the corporate ladder because I was seen as someone who worked hard and could lead. I never whined even when I worked 7 days a week, 12 hours a day to get stuff done. No one expected me to work hard, I made myself achieve the results. I retired at 53. How was I able to retire early? I had saved millions in my taxable account. I wasn't a trust fund child and I did not get a large inheritance. It was achieved through hard work.

What’s your background that you were able to get into a corporation and climb the ladder? I couldn’t even get in the door of a corporation so was forced to go the Federal government route. Promotions were few and everyone wanted them, and if it’s that cutthroat in the Federal government, I can only imagine what it’s like in the corporate world. And, in my experience, promotions tended not to be based on qualifications, but who you were ethnically and who you knew. Odds were so against you these were my observations, but maybe I am wrong here. They just never seemed fair as to who got them, even if it wasn’t me.

 

[pb4uski]

Yes, I will be able to retire well before 62, so no complaints with that.

However, a wealthy nation like ours should easily allow for more of the inherited wealth thing, or massive salaries from the start so you don’t have to save, save, save, like I did. All that money saved sits dormant, except for growth. Doesn’t purchase goods and services and stimulate the economy nor does it enable me to lead an exciting lifestyle.

Boy, the glass is half-empty, eh?

 

[RetiredHappy]

What’s your background that you were able to get into a corporation and climb the ladder? I couldn’t even get in the door of a corporation so was forced to go the Federal government route. Promotions were few and everyone wanted them, and if it’s that cutthroat in the Federal government, I can only imagine what it’s like in the corporate world. And, in my experience, promotions tended not to be based on qualifications, but who you were ethnically and who you knew. Odds were so against you these were my observations, but maybe I am wrong here. They just never seemed fair as to who got them, even if it wasn’t me.

I posted my background in a separate thread that you started. I started my career in a quasi-government (Central Bank/Federal Reserve equivalent). I went on to work in the corporate world. Through hardwork, I got the promotions and postings to 2 countries. In the corporate world, it's all about meritocracy and being a woman, I had to prove myself just like other people, maybe some will say even more so. There are some who get promoted because of who they know, but that is by far and few between. Instead of blaming the world for everything that you want that is not happening for you, look at yourself first..

 

[hopefullyoneday]

I told my wife there is 3 ways we can live.
1. Spend every dime and enjoy our life and buy whatever we want but work until we are 70+
2. Spend some and save/invest some and retire between 63-70 but live semi comfortable.
3. Save/invest all we can with a occasional trip here and there and retire on or before 55 and have enough money to then buy and do what we want.
We chose option 3. I will stop going to work at 55 yet still be on the books getting my income for 2-2.5 years. She will be 51, and then I will officially retire right around 58.
Neither one of us have a degree, or trust fund. For us it was all about moving from job to job until we found the one that worked out the best for our goals. Most people I know live from choice number 1 and they love it but dread having to go to work now in their 40s and 50s. They think they can retire when able to collect SS even though they have little to no savings, I tell them to read the home page on the SS website.
The time to retire in my opinion is not a age but rather when you have enough investment income coming in that you can afford the retirement life you want to live.

 

[MrBojangles]

I told my wife there is 3 ways we can live.
1. Spend every dime and enjoy our life and buy whatever we want but work until we are 70+
2. Spend some and save/invest some and retire between 63-70 but live semi comfortable.
3. Save/invest all we can with a occasional trip here and there and retire on or before 55 and have enough money to then buy and do what we want.
We chose option 3. I will stop going to work at 55 yet still be on the books getting my income for 2-2.5 years. She will be 51, and then I will officially retire right around 58.
Neither one of us have a degree, or trust fund. For us it was all about moving from job to job until we found the one that worked out the best for our goals. Most people I know live from choice number 1 and they love it but dread having to go to work now in their 40s and 50s. They think they can retire when able to collect SS even though they have little to no savings, I tell them to read the home page on the SS website.
The time to retire in my opinion is not an age but rather when you have enough investment income coming in that you can afford the retirement life you want to live.

For me, it’s option 3. Save as much as I can, with the occasional trip here and there. I think I could retire at age 55 because of that, but will work a few more years simply for more of a safety net. More years of earning/less years without a safety net until at least some form of subsidization. My only vacation is usually a trip to the beach here and there, and even that is during the off season—I don’t like crowds and there is more availability of parking for less (free) during the off season. Cheaper hotels, meals, etc.

I could see how option 2 could be an option for many. Probably more exotic lifestyles are preferable to mine. I’m not used to a lavish lifestyle, so I do without things some take for granted. For example, I have never been in a country club, never grew up around expensive vehicles in my family (although many surrounding neighborhoods growing up had them, but they weren’t relatives), and expensive housing was never an option, either.

Option 1: Working full time, I don’t see how that is even an option. When you work a lot, how is there even time or the energy to go, go, go and spend every last cent? I thought that’s what I would be doing, bring in a lot, spend it all, but there isn’t time nor money for a huge estate, nor time nor an employer willing to send me to the Kentucky Derby, Super Bowl, Masters, British Open, World Series, etc. To jet sett to Europe and, frankly, to spend money requires time that an average employee does not have due to limited time off from work.

I don’t see how one can be that irresponsible and blow through that much.

 

[Drifter]

I'm lost. Why do you need to be a Billionaire?

 

[MrBojangles]

I'm lost. Why do you need to be a Billionaire?

Well, you don’t. But it would be the thrill of such an accomplishment. Plus, turn on the TV and it’s always about what some billionaire is up to, Trump, Bill Gates, Warren Buffett, Elon Musk, Taylor Swift…

 

[MrBojangles]

There are no "easy ways" to earn "far more money" than a decent living, except if you are <mod edit> a talented con artist! Or a trust fund baby, in which case "earn" is kind of a misnomer even if you do nominally work for your big salary at Dad's company or Dad's friend's company.

I saw a few individuals growing up who thought they were “successful”, working for the family company or being a trust fund baby and thinking they were accomplished individuals. I thought to myself, what a joke it is these folks are accomplished, they only bought their way into Ivy League schools, their income was handed to them. I thought, what a JOKE!

Now, I think, if only I could be so lucky! LOL!

 

[SecretlyFI]

I'm lost. Why do you need to be a Billionaire?

Well, you don’t. But it would be the thrill of such an accomplishment. Plus, turn on the TV and it’s always about what some billionaire is up to, Trump, Bill Gates, Warren Buffett, Elon Musk, Taylor Swift…

MrB, with all due respect, you are either delusional thinking you can become a billionaire, and/or you are continually setting yourself up for lifelong disappointment, because it is unachievable. Most members of this forum are far and away the outliers in society, accumulating 1 or more millions through decades of hard work, sacrifice and purposely living below our means. This is unusual, because most people do not have the discipline to live that way and instead want instant gratification.

You should read through this thread to see how long most of us worked toward achieving the first million in savings.

The first million takes the longest to achieve

Was thinking about this since I look and document at the end of each month my portfolio numbers. I looked at my numbers and dates, since I have been retired, I have added a million dollars every 2.5 years. I'm not contributing any more but comes from growth only. I also have lived off my...

www.early-retirement.org

That is what it takes in the real world. Billionaire status would mean you did this 1,000 times. As I said, this seems quite delusional.

You should look up some statistics on the % of Americans who are millionaires. Then look up the % of Americans who are the billionaires you aspire, or think you are entitled to be. You say you can retire "well before 62" and instead of being happy about that very unusual achievement, you are bitter and resentful that you don't have Bill Gates' wealth? Sounds like you're focusing on the wrong facts.

 

[MrBojangles]

MrB, with all due respect, you are either delusional thinking you can become a billionaire, and/or you are continually setting yourself up for lifelong disappointment, because it is unachievable. Most members of this forum are far and away the outliers in society, accumulating 1 or more millions through decades of hard work, sacrifice and purposely living below our means. This is unusual, because most people do not have the discipline to live that way and instead want instant gratification.

You should read through this thread to see how long most of us worked toward achieving the first million in savings.

The first million takes the longest to achieve

Was thinking about this since I look and document at the end of each month my portfolio numbers. I looked at my numbers and dates, since I have been retired, I have added a million dollars every 2.5 years. I'm not contributing any more but comes from growth only. I also have lived off my...

www.early-retirement.org

That is what it takes in the real world. Billionaire status would mean you did this 1,000 times. As I said, this seems quite delusional.

You should look up some statistics on the % of Americans who are millionaires. Then look up the % of Americans who are the billionaires you aspire, or think you are entitled to be. You say you can retire "well before 62" and instead of being happy about that very unusual achievement, you are bitter and resentful that you don't have Bill Gates' wealth? Sounds like you're focusing on the wrong facts.

And that’s exactly how I did it as well. Hard work, sacrifice, and living below my means. That’s sooooo boring, but how it was done, nonetheless. I think not really desiring a fancy car, buying a reasonable property, not having the time for expensive vacations, and not being able to afford the stuff I really want is how it was accomplished. I’d like a home on substantial acreage, an architecturally significant place, but such a place is going to be well over a million dollars, probably several million. Oddly, I could probably afford just such a place if I wanted it, especially a more modest example of this, but it was so hard to earn that first million, a bit easier the second, etc, but not as easy as it should have been, and so I’ll do without, thank you very much. And the place I really want at the beach is going to be $5 to $10 million plus, and so out of my price range, and so I do without.

But I’d like to be able to not waste time at work, and not even think about what anything costs, or even if it’s a reasonable investment, just maybe walk along a boardwalk, find a mansion, buy it, and not even care what I paid for it, as it’s only money, I can make a lot more if that.

I feel like not having this massive fortune is such a waste. You thereby create jobs for folks by having it. Landscaping crews, architects, buy fancy artwork from upscale auction houses, patronize country clubs, etc. I don’t do any of that, because I can’t afford to and also, at the end of the day, I scrutinize what everything costs and see where maybe I can invest more and spend less. If it’s one thing I ENJOY doing is investing in quality stocks.

 

[YellowSubmarine]

It's only work if you don't en

Now that I think about this more, where’s the lifeline?

Most folks don’t have a pension anymore.

IF someone saved for retirement, there’s usually no strings attached to tapping into that until at least 59 1/2.

Social security isn’t available until age 62. Often, to have a decent 35 years of income, working beyond that is required.

Medicare doesn’t kick in until age 65. Which means, for most, retirement is not viable until one’s 65th Birthday.

And my massive gripe. All of the above safety nets SHOULD be available by age 40, if not earlier, allowing for a retirement that far, far exceeds one’s working years. (Let’s face it, working SUCKS!)

It's only work if you don't enjoy it. If you don't enjoy it, you shouldn't be doing it. Find something you enjoy!!!

 

[Drifter]

I am satisfied with enough so I can live reasonably the rest of my life. Anymore than that, I don't want it. Been married 32 yrs faithfully. Rarely drink and no meds. What else could I possibly ask for that I haven't already been blessed with. Good luck.

 

[pb4uski]

I saw a few individuals growing up who thought they were “successful”, working for the family company or being a trust fund baby and thinking they were accomplished individuals. I thought to myself, what a joke it is these folks are accomplished, they only bought their way into Ivy League schools, their income was handed to them. I thought, what a JOKE!

Now, I think, if only I could be so lucky! LOL!

While there are some situations like you describe above, in my experience there are many more situations where people were born into a family business and started at the bottom at a young age, learned the business from their elders and eventually took over so the elders could retire and enjoy life. After paying their dues and taking the reins they grew the business for the next generation.

 

[Al18]

If you and your partner have a good job (not a great job) and are employed most of the time, there’s plenty of money to buy a house, a new car every 5-10 years and a few weeks of vacation every year and still retire before age 62.

 

[engineernerd]

I feel like not having this massive fortune is such a waste. You thereby create jobs for folks by having it. Landscaping crews, architects, buy fancy artwork from upscale auction houses, patronize country clubs, etc. I don’t do any of that, because I can’t afford to and also, at the end of the day, I scrutinize what everything costs and see where maybe I can invest more and spend less. If it’s one thing I ENJOY doing is investing in quality stocks.

There would be a lot more GOOD jobs if there were less inequality (no billionaires) in our society. A job where you are subservient to someone rich is not a good job, it's soul-killing. Stand proud that you did not bootlick any rich, entitled a**h***s to get where you are today, nor did you have to scrub their floors or toilets.

 

[TripleLindy]

Medicare doesn’t kick in until age 65. Which means, for most, retirement is not viable until one’s 65th Birthday.

The ACA plans have been a good bridge to Medicare for us. I retired at 55 and still have 3 years to go for Medicare - 4 years for my wife. Earnings in retirement are not what they were while working, so the subsidies can be very helpful. I have to structure things to keep income below the max and there have been years where I’ve had to repay the subsidy.

However, a wealthy nation like ours should easily allow for more of the inherited wealth thing, or massive salaries from the start so you don’t have to save, save, save, like I did.

The topic of the wealth gap in the U.S. is an interesting one, but is just a philosophical exercise. Does anyone deserve to be a billionaire? Did those that are work any harder than anyone else? There’s no right or wrong answer to either question. I prefer to focus on things I can control. Not having a pension or being in the inheritance profession meant learning how to maximize my income to the best of my ability, live below my means and save so that I can enjoy an early retirement. And I’m fully aware of the luck/blessing that was involved in getting here. Could have easily gone in a different direction.

 

[CO-guy]

It’s a completely stupid system where you have to work forever for someone else for very little.

Sometimes it can be helpful to put things into context.

Retirement as a system has been around for barely 100 years. Even the concept of ceasing to work at some point is barely 200 years old.

Prior to that, and for all of the thousands of years of human history, the vast majority of people worked until they couldn't work any longer. If they were lucky, family or community members would keep them from starving to death for some period of time before they eventually got sick and died.

IMO, the current system is much better than most of what we've had in the history of our species.

 

[CO-guy]

But I’d like to be able to not waste time at work, and not even think about what anything costs, or even if it’s a reasonable investment, just maybe walk along a boardwalk, find a mansion, buy it, and not even care what I paid for it, as it’s only money, I can make a lot more if that.

What's being described here is pure fiction. There's no world where billionaires are wandering around looking at "for sale" signs on the boardwalk. You might as well say you're flying past a planet in your spaceship and decide to blow some imperial credits on a new moon in a neighboring star system.

Among friends of mine, this fictional amount of money is abbreviated with the initials "F" and "U." However, over the past several years I've come to realize that this amount of money doesn't exist. It's just an imaginary goal that, in many cases, is driven by jealousy and envy.

To quote Shakespeare's Iago: “O beware, my lord, of jealousy; It is the green-eyed monster which doth mock the meat it feeds on.”

 

[SecretlyFI]

And be careful of these fantasies about spending without caring what something costs or snatching up mansions. It’s these day dreams that cause people to line up and buy lottery tickets. A fool’s errand. I still don’t see why you don’t consider the approach you’ve followed as being successful. Retiring well before 62 but writing all about envy, wasted years and dissatisfaction.

For what it’s worth, when I fall prey to any anti-happiness feelings, the one thing that instantly snaps me out of it is thinking of the really big things I have to be grateful for. Being born in a peaceful country, having a home, family & friends, health and financial security. Imagine how difficult a life of the opposite circumstances of those could be?

 

[Alex The Great]

My plan is to spend money from taxable accounts first, in order to minimize MAGI and maximize ACA subsidy. Hopefully it will last till I'm 65. Then, start to draw retirement accounts and apply for SS at 70.

 

[TickTock]

^ ^ ^
Good plan.