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re: Anyone retire early early?
Posted on 5/13/24 at 10:59 pm to JohnnyKilroy
Posted on 5/13/24 at 10:59 pm to JohnnyKilroy
There’s no gaming my post retirement income except by taking less in distributions. 401k and IRA distributions suck.
0
Posted on 5/13/24 at 11:04 pm to TheOcean
Congrats to all of yall looking at retirement so early.
Question, do you have kids?
Own your own business?
I can only think of a handful of careers where someone could truly retire at 40-50 and have had a family.
Question, do you have kids?
Own your own business?
I can only think of a handful of careers where someone could truly retire at 40-50 and have had a family.
Posted on 5/13/24 at 11:17 pm to TheOcean
I retired in my mind at 45…retired one week after I turned 50.
Have federal pension, VA disability and 401k that i pull 4% max a month from if I have unexpected expense (A/C recently).
As much as I hated my job at the end, the sacrifice of 30 years in military/LE was worth it now…I enjoy doing what I want, when I want.
Learning new languages, helping older neighbors, hiking, reading, hunting, etc.
Do it and don’t look back! No one ever while laying in a hospital bed looks back and says, “Sure wish I worked a little longer.”
Have federal pension, VA disability and 401k that i pull 4% max a month from if I have unexpected expense (A/C recently).
As much as I hated my job at the end, the sacrifice of 30 years in military/LE was worth it now…I enjoy doing what I want, when I want.
Learning new languages, helping older neighbors, hiking, reading, hunting, etc.
Do it and don’t look back! No one ever while laying in a hospital bed looks back and says, “Sure wish I worked a little longer.”
This post was edited on 5/13/24 at 11:19 pm
Posted on 5/14/24 at 7:01 am to GREENHEAD22
quote:
I can only think of a handful of careers where someone could truly retire at 40-50 and have had a family.
Dual income with both earning a high wage
Own and subsequently sell a business
High Finance, consulting, partner track in audit/tax/law
Leadership ranks at F500 (VP+)
Sales with a strong kicker for performance
Medical device sales
Programming in tech/AI
Flipping real estate and catching the right deals
None of these are easy or even likely…but that’s why so few retire early.
Posted on 5/14/24 at 7:22 am to GREENHEAD22
Mid 30s. Own a few businesses. Married with one kid (newborn). Wouldn't be in this position if it wasn't for being self employed
Posted on 5/14/24 at 7:36 am to TheOcean
The fascination with early retirement is a symptom of the average persons outlook on this nation
Posted on 5/14/24 at 7:38 am to TheOcean
This topic came up in another thread, but, no I didn't. Kids. College (we helped out). We've been the "single hitter" type of couple, always disciplined in investing in 401k, IRAs, stock purchase plans at work. Locked it in on a monthly deduction and voilà it grew to sizeable figures over the years.
We did invest in rental properties that eventually paid off, but I've always worked. You have to have the mindset and temperament to deal with tenants. Best advice I was ever given.."never rent to someone you wouldn't want to have over for dinner".
Did "get retired" last year...
There was a job in our company in another division I wanted, but there wasn't a position at the time. Got laid off in July of last year. They were fair with severance yada yada and I was going to retire at that point. Fast forward to November, I was contacted to see if I'd be interested in applying for a new position that was coming up. Things didn't move very fast, but eventually it all came together, and I started in early February. Lower salary than before, but good enough for my objectives and I got to work with people I really liked. Prior to that, fantasy football (really) took a lot of my time back then (until the season ended). I did the exercise thing, we travel a lot anyway (I get 6 weeks a year anyway with other days off for holidays), so I didn't miss the travel part anyway. Nothing of interest otherwise to keep me busy. So, no I wasn't bored, but coming back for now works out for us as we have a kid's wedding to pay for, some future trips etc. Maybe I'll "really retire" in a year or two?
FWIW, we're in our late 60's.
We did invest in rental properties that eventually paid off, but I've always worked. You have to have the mindset and temperament to deal with tenants. Best advice I was ever given.."never rent to someone you wouldn't want to have over for dinner".
Did "get retired" last year...
There was a job in our company in another division I wanted, but there wasn't a position at the time. Got laid off in July of last year. They were fair with severance yada yada and I was going to retire at that point. Fast forward to November, I was contacted to see if I'd be interested in applying for a new position that was coming up. Things didn't move very fast, but eventually it all came together, and I started in early February. Lower salary than before, but good enough for my objectives and I got to work with people I really liked. Prior to that, fantasy football (really) took a lot of my time back then (until the season ended). I did the exercise thing, we travel a lot anyway (I get 6 weeks a year anyway with other days off for holidays), so I didn't miss the travel part anyway. Nothing of interest otherwise to keep me busy. So, no I wasn't bored, but coming back for now works out for us as we have a kid's wedding to pay for, some future trips etc. Maybe I'll "really retire" in a year or two?
FWIW, we're in our late 60's.
Posted on 5/14/24 at 7:44 am to GREENHEAD22
From the math I’ve done, dual income with both high earning W-2 employees still makes it possible. Think fields like higher paying engineering, CPAs, medical professionals. Still it takes very intentional saving and some blind faith especially early on. I do think it’s getting tougher, mostly because of all the expensive temptations out there now. Delayed gratification seems all the more costly/risky.
Posted on 5/14/24 at 10:36 pm to turkish
Couple where each earn around $200K can really start stacking the savings, especially once you have a nest egg working for you.
Charlie Munger had the quote of “do whatever it takes to get $100K in savings”…how large number compound on one another is the key, especially if you can hit that as early in your 20s as possible.
Charlie Munger had the quote of “do whatever it takes to get $100K in savings”…how large number compound on one another is the key, especially if you can hit that as early in your 20s as possible.
Posted on 5/14/24 at 11:31 pm to lynxcat
A huge key imo is doing whatever you can to hit the annual max in tax advantaged accounts.
Even if you don't do anything else if you can hit those by like 25/26/27 and keep it that way you can be almost guaranteed a "comfortable" retirement and a decent chance its before 60.
Even if you don't do anything else if you can hit those by like 25/26/27 and keep it that way you can be almost guaranteed a "comfortable" retirement and a decent chance its before 60.
Posted on 5/14/24 at 11:58 pm to JohnnyKilroy
Yes in absolute dollars needed to be saved.
Taxable brokerage account in addition to those is also required to bridge early retirement before some retirement vehicles can be accessed. Tax strategy is critically important, especially in an early retirement scenario. Without the taxable brokerage, it’s very difficult to early retire (unless there is a cash flowing stream for living expenses elsewhere).
Taxable brokerage account in addition to those is also required to bridge early retirement before some retirement vehicles can be accessed. Tax strategy is critically important, especially in an early retirement scenario. Without the taxable brokerage, it’s very difficult to early retire (unless there is a cash flowing stream for living expenses elsewhere).
Posted on 5/15/24 at 6:14 am to lynxcat
Yeah I don't mind playing catch up as much on the taxable account side. I figure if by 40 I've planted the seed in a 401k/roth to have everything I'll need 65+ then I can spend 40-50 worrying more about covering myself between 50-65. And I sleep better knowing the 65+ part is in the bag and it's just a matter of improving the retirement timeline as much as possible.
Part of that is being married, particularly to someone that is not financially savvy. I have to make sure the long-term bag is secured first in case something happens to me. If it were just me I would be much more aggressive.
Part of that is being married, particularly to someone that is not financially savvy. I have to make sure the long-term bag is secured first in case something happens to me. If it were just me I would be much more aggressive.
Posted on 5/16/24 at 4:06 pm to beaverfever
People have different reasons for retiring early. I had a significant health scare when I was 47 and retired a month before turning 48. One of my parents had a long history of very early onset Alzheimer's on their side of the family, displaying significant mental decline and then dying in their late 40's to mid-to-late 50's. I earned two degrees and worked mostly in finance and large scale commercial lending while making a very good income and my wife made a good income working in healthcare. You could not pay her enough to return to healthcare. I had always been interested in investing and most years after we really got started we were investing over 50% of our incomes which is not that hard if you don't have kids and aren't big spenders.
I have had 3 cousins die from ALZ in their early to late 50's, fortunately none of my siblings yet. One of them was a doctor that retired at 58 and died from a heart attack 2 days after selling his ownership in a medical practice. His wife had his brain examined and it was riddled with ALZ. So yeah, I don't worry about getting bored, etc and have many things/activities keeping me busy.
The ACA is not that difficult to navigate as long as you have planned and have stacked enough financial assets properly over time. Need to have a good mix of taxable, Roth, TIRA/401k, HSA and other while targeting your current taxable income to be low enough to obtain max subsidies. I would not hold a lot of high dividend paying stocks nor high interest fixed income in taxable if you are planning on utilizing ACA. We paid less than $5/month for a good gold plan in 2023, and MLPs have been advantageous in that regard...unless they get acquired which is another can of worms.
I have had 3 cousins die from ALZ in their early to late 50's, fortunately none of my siblings yet. One of them was a doctor that retired at 58 and died from a heart attack 2 days after selling his ownership in a medical practice. His wife had his brain examined and it was riddled with ALZ. So yeah, I don't worry about getting bored, etc and have many things/activities keeping me busy.
The ACA is not that difficult to navigate as long as you have planned and have stacked enough financial assets properly over time. Need to have a good mix of taxable, Roth, TIRA/401k, HSA and other while targeting your current taxable income to be low enough to obtain max subsidies. I would not hold a lot of high dividend paying stocks nor high interest fixed income in taxable if you are planning on utilizing ACA. We paid less than $5/month for a good gold plan in 2023, and MLPs have been advantageous in that regard...unless they get acquired which is another can of worms.
Posted on 5/18/24 at 12:56 pm to lynxcat
quote:
Taxable brokerage account in addition to those is also required to bridge early retirement before some retirement vehicles can be accessed. Tax strategy is critically important, especially in an early retirement scenario. Without the taxable brokerage, it’s very difficult to early retire (unless there is a cash flowing stream for living expenses elsewhere).
My plan is to start taking 72T S.E.P.P. draws from my 401k around age 48. I'm comfortable committing to a 2-3% annual draw for 11 years. If the market takes a crap, I'll work part time to invest in another account, because the draws won't stop.
Posted on 5/18/24 at 5:22 pm to dragginass
I’m always impressed at early retirees. Good reading and motivation in this thread.
My FIL retired at 50 on basically a single income.
My brother in law went into tech midway through his career and was able to essentially retire at 43. He consults and does a few other side gigs.
All I know is I will have no problem finding something to do
My FIL retired at 50 on basically a single income.
My brother in law went into tech midway through his career and was able to essentially retire at 43. He consults and does a few other side gigs.
All I know is I will have no problem finding something to do
Posted on 5/18/24 at 7:35 pm to agilitydawg
quote:that’s the big one
have acceess to heatlh care benefits
Posted on 5/18/24 at 7:42 pm to PerceivedReality
quote:thank you for sharing this. May I ask, did his profession not allow him to continue working in it even at a limited capacity? Like was his role all or nothing?
Now he’s 68 and his health is shite. Lives by himself and rarely leaves the house. My only advice is to find something that gives you a purpose. Whether you get paid or not.
Posted on 5/18/24 at 8:10 pm to GREENHEAD22
quote:I'm a self-employed licensed professional and have been since I got that license at 26. The only people I know who have made independent wealth for themselves owned their own businesses, whether or not it required a professional license. I don't know anyone I would consider independently wealthy who has solely worked for a W-2. That might be part of their success, but it's not what generated their wealth. I'm familiar with doctors and lawyers who earn close to seven figures a year if not more on a W-2, and I'm familiar with many of them being so leveraged for their houses and lifestyles that like anyone else they live paycheck to paycheck.
Question, do you have kids?
Own your own business?
I just hit 41. But for my kids I would have been retired at 40 from this line of work and moved into a different incarnation of it, but one that would have revolved around my assets, liquid and RE. If I had merely invested into an S&P 500 ETF what I've placed into children (and their mother) these past 13 years, I would have had a nice pot of money that could throw off frugal annual living expenses. I'm not talking a private jet, but I am talking roundtrips on Southwest lol.
I could have had children up to the day I get put in the ground, but I followed their mother's desire for a family before 30. If I had chosen to start a family now at 41 I would have been able to provide a different lifestyle for those theoretical kids than the ones I had between 28 and 36. Also, women the age of my kids' mom when we married (27) seem to be just fine dating and marrying men my age now (41) who have tasted a little success. Maybe my experience would have turned out different, but I look at my buddies who stayed out the sucker trap, and those 27yos seem to like them just fine.
My advice to my younger self is let Mother Nature take that 27yo that won't wait to start a family on a ride with someone else. Your time, energy, and youth can set you up to have a beautiful family after 40. Mother Nature will not allow your girlfriend at 27 this same luxury.
I wouldn't now trade my children for that pot of money I mentioned above, but there's a cost to that commitment and love. My point is that as a man when you pay that cost will make a world of difference for your future children and yourself.
Posted on 5/18/24 at 10:58 pm to The Rev Tooncinator
quote:
I don't know anyone I would consider independently wealthy who has solely worked for a W-2.
My wife and I will almost certainly be w2 our whole careers and I’m retiring around 50ish with a nearly 8 figure port assuming 7% CAGR.
Two professionals can easily hit FI early if they both work and are reasonably disciplined.
This post was edited on 5/18/24 at 10:59 pm
Posted on 5/19/24 at 4:55 am to JohnnyKilroy
quote:
Two professionals can easily hit FI early if they both work and are reasonably disciplined.
You got down voted just like I did, but you are 100% correct.
As a matter of fact, my wife and I did it with her staying home to raise our children. We bought less house than we could afford and paid it off in our 30s. We drive reasonable vehicles we paid cash for. We take plenty of vacations/trips but the Jones' aren't even on our radar. 2 simple (but big) things made it happen. Saving the amount equal to what most people pay in mortgages and car payments, even if just for a season of your life, will compound into huge wealth growth. Small kids don't care where you live or what you drive. They want time with mom and dad. Live that season of your life saving, and it opens up endless possibilities. You will leave the Jones' in your dust when you come out the other side.
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