Utterly lost. Can somebody please point me in the right direction?

[flintnational]

With no debt, it gets a lot simpler.

It's not about the debt. It's about the low interest rates.

 

[Christian]

Its not about the debt. Its about the low interest rates.

What interest rates are you talking about? We wouldn't be paying interest on anything in the scenario I responded to Nature Lover with.

 

[Nature Lover]

Christian,

Thanks for filling in some of the blanks (the ones you're comfortable with). The most important part of your response was that you believe you'll be ~$500/mo in the black each month, while traveling. It would be my recommendation that you also do a calculation for what your estimated expenses might be after that, and how your income might change at that time, as well.

That being said, I suggest you make a list of all of the suggestions provided so far (even if you found them objectionable), and incorporate them into your "traveling period" Plan and your "post-traveling period" Plan. When you perform your analysis for the post-traveling period, I suspect you will need to include the possibility of either you or your wife getting a part-time job (at least). Even if it's not something you desire, keep it on the list...just in case you need a reminder at that time that when you return from living the "van life", you may desire a different quality of life/lifestyle than you are envisioning today, and a very different financial picture to consider.

Retiring is a big change for most of us, and as we adjust to a new post-employment lifestyle, we sometimes find we want something different from what we planned. I can only guess that a couple who spends several years traveling in a van, and then returns to a more "in place" retirement ----in a community where they're "newcomers", could experience an even larger adjustment.

By making the decision to leave your employment, without saving up more to provide for the potential of higher future spending, may leave you very constrained when you're done traveling unless you and/or your wife are willing to work some. Maybe think of it as a multi-year lean-FIRE sabbatical, followed by a period when you and your wife may need to or decide to work some, in order to have more funds available at that time and not be forced to adjust your lifestyle downward to match your income.

Just my 2 cents.

NL

PS. Don't skip the step of making a list of all the various suggestions the community has provided. They could save you many $000's over time.

 

[Calico]

We did the same thing. We had plenty of money coming in just from my paycheck, to easily cover everything. We didn't need a paycheck from my wife. So she worked when she wanted to, and didn't work when she didn't want to.

This is false. If it were true, you would never have needed to use a credit card for all those things you thought were a bad idea.

We didn't assume that nothing in life would go wrong. But how do you plan for cancer? I'm pretty sure that throws a wrinkle in life for just about anybody.

I believe I can answer this one for you. I was diagnosed with cancer in May of 2018. I can assure you 100% it was not in my plans. I had surgery in June of 2018. I had chemo from Aug - Oct of 2018. I had several months of physical therapy, and two short unexpected hospital stays due to side effects of treatment.

My insurance year runs from Aug. 1 - July 31st. My annual deductible and out of pocket maximum comes to several thousand dollars. I paid the deductible and out of pocket maximum once (between May - Aug 2018) and then again (between Aug - Oct 2018). I had zero problem doing this. Because I am single, I also paid for several months of intermittent support services (transportation and care) that I was unable to perform myself. This came to several thousand additional dollars. I managed to pay all my usual bills on time during this time.

How did I manage this? Let's see:

1. No credit card debt - EVER
2. No car loans - EVER (saved up and paid cash)
3. Saved 50% of what I earned for 20 years and lived on the rest

I did not plan on cancer. What I did plan on was something going wrong at some point in life, so I saved like crazy for whatever unknown and unexpected expenses came along, as well as for my future retirement.

Just because the expenses I incurred were unexpected does not mean I was unprepared for them. I took a financial hit, but it had zero effect on my planned upcoming retirement date.

Managing the unexpected can be done - but it requires discipline and delayed gratification. I did not quit my job or retire when I was diagnosed (although I sure felt like doing so) because I would have given up gold-plated insurance.

BTW, I earn a very average salary - I just live on half and save half for a rainy day. Because the rain will come.

 

[Christian]

Christian,

Thanks for filling in some of the blanks (the ones you're comfortable with).

I'm getting less and less comfortable, the more I'm getting trolled (not by you).

The most important part of your response was that you believe you'll be ~$500/mo in the black each month, while traveling. It would be my recommendation that you also do a calculation for what your estimated expenses might be after that, and how your income might change at that time, as well.

Do you mean after we find a place and settle down, after my SS kicks in at 62?

That being said, I suggest you make a list of all of the suggestions provided so far (even if you found them objectionable), and incorporate them into your "traveling period" Plan...

I will try.

Some of it is just bad math, by people who either didn't actually read my post(s), or are just bad with cars (and the world is full of people like that)

When you perform your analysis for the post-traveling period, I suspect you will need to include the possibility of either you or your wife getting a part-time job (at least). Even if it's not something you desire, keep it on the list...just in case you need a reminder at that time that when you return from living the "van life", you may desire a different quality of life/lifestyle than you are envisioning today, and a very different financial picture to consider.

That's something we're considering, but it would certainly not be "plan-A" for me to go back to work at 62. We want this to be a retirement, not a sabbatical.

I didn't mention it, but we'd probably be selling the van once my SS kicks in at 62 and we find a place to settle down.

Retiring is a big change for most of us, and as we adjust to a new post-employment lifestyle, we sometimes find we want something different from what we planned. I can only guess that a couple who spends several years traveling in a van, and then returns to a more "in place" retirement ----in a community where they're "newcomers", could experience an even larger adjustment.

I understand and accept that.

We've embarked upon some previous epic life adventures that have served as marital team-building exercises for us, and so far everything has worked out really well. We're very thankful to have had the experiences that we've had, and we're very thankful to be able to carry those memories forward, as well as the photos and videos.

By making the decision to leave your employment, without saving up more to provide for the potential of higher future spending, may leave you very constrained when you're done traveling unless you and/or your wife are willing to work some. Maybe think of it as a multi-year lean-FIRE sabbatical, followed by a period when you and your wife may need to or decide to work some, in order to have more funds available at that time and not be forced to adjust your lifestyle downward to match your income.

I hear you.

We really were not expecting her to get cancer at 41.

Thank you for your input.

Just my 2 cents.

NL

PS. Don't skip the step of making a list of all the various suggestions the community has provided. They could save you many $000's over time.

Copy that...

 

[Christian]

I believe I can answer this one for you. I was diagnosed with cancer in May of 2018. I can assure you 100% it was not in my plans. I had surgery in June of 2018. I had chemo from Aug - Oct of 2018. I had several months of physical therapy, and two short unexpected hospital stays due to side effects of treatment.

My insurance year runs from Aug. 1 - July 31st. My annual deductible and out of pocket maximum comes to several thousand dollars. I paid the deductible and out of pocket maximum once (between May - Aug 2018) and then again (between Aug - Oct 2018). I had zero problem doing this. Because I am single, I also paid for several months of intermittent support services (transportation and care) that I was unable to perform myself. This came to several thousand additional dollars. I managed to pay all my usual bills on time during this time.

How did I manage this? Let's see:

1. No credit card debt - EVER
2. No car loans - EVER (saved up and paid cash)
3. Saved 50% of what I earned for 20 years and lived on the rest

I did not plan on cancer. What I did plan on was something going wrong at some point in life, so I saved like crazy for whatever unknown and unexpected expenses came along, as well as for my future retirement.

Just because the expenses I incurred were unexpected does not mean I was unprepared for them. I took a financial hit, but it had zero effect on my planned upcoming retirement date.

Managing the unexpected can be done - but it requires discipline and delayed gratification. I did not quit my job or retire when I was diagnosed (although I sure felt like doing so) because I would have given up gold-plated insurance.

BTW, I earn a very average salary - I just live on half and save half for a rainy day. Because the rain will come.

Okay, so you are obviously unique when it comes to money management- you have done FAR better than we have. I am duly impressed.

But again, this isn't a thread about what we've done wrong, nor is it a thread about how much better you are than us. This is a thread about what we can do from this point in time forward.

And I gotta say, I am absolutely appalled that someone with cancer would have been as rude as you have been to me on this thread. What is wrong with you?- you of all people, should have some idea of what my wife and I are going through. Have some human decency...

I wish you the very best on your cancer, and I can assure you that I would never treat you the way that you have treated me when discussing your cancer.

 

[target2019]

Okay, so you are obviously a unique snowflake when it comes to money management- you have done FAR better than we have. I am duly impressed.

But again, this isn't a thread about what we've done wrong, nor is it a thread about how much better you've done. This is a thread about what we can do from this point in time forward.

And I gotta say, I am absolutely appalled that someone with cancer would have been as rude as you have been to me on this thread. What is wrong with you?- you of all people, should have some idea of what my wife and I are going through.

I wish you the very best on your cancer, and I can assure you that I would never treat you the way that you have treated me when discussing your cancer.

Many, many individuals on E-R have stepped forward about how they did it. What I read here for over ten years is that one pays cash for car, if possible. Honda CRV was under $25K new. We paid cash.
Another refrain which we've lived is to always pay off the CC balance. You can hardly blame early-retired folks for being where you want to be.
A tip for you: put rude people on ignore, and don't reply in a rude way. Snowflake? Really?

 

[Christian]

Many, many individuals on E-R have stepped forward about how they did it. What I read here for over ten years is that one pays cash for car, if possible. Honda CRV was under $25K new. We paid cash.
Another refrain which we've lived is to always pay off the CC balance. You can hardly blame early-retired folks for being where you want to be.
A tip for you: put rude people on ignore, and don't reply in a rude way. Snowflake? Really?

I didn't realize the word "snowflake" was objectionable. I took it out.

I have abhorred credit cards for my entire adult life. I realize the danger. My wife and I had zero credit card debt for the first 13 years of our marriage. It's just been in the last five years that this has happened. Most of it had to do with a traumatic life experience, but I'm not going to go into anything that personal in front of the trolls.