Wondering if there is anyone on here that has retired early (FIRE Movement)

[Pikespeak]

What an absolutely pathetic and senseless existence some people must live when they have to have a job to give their life meaning.

Talk about having over-conformed and given up any sense of individual purpose and identity…. Sheesh.

If you need a job to not be bored, you are a pathetic excuse for a human being: have no sense of passion or creativity and just sleepwalked through your life. I reckon these must be the same people who apparently lack an inner dialogue.

Dude, take this type of immature bullshit back to Reddit. Have some respect.

 

[NRA4LIFE]

If you want to live no different than before/after retirement, do this. We kept very accurate expenditure records for 5 years or so before we retired. A number of years helps as it will account for travelling, house repairs, etc. that are not every day expenses. Then think of how many years you will need money, and it is pretty simple math of how much you need (modest inflation accounted for). I always assumed zero interest. Include pension, Social Security, etc. as additional income. Of course, dealing with outrageous inflation needs to be taken into account, hence my zero interest comment.

 

[5MilesBack]

Obviously every situation is different. Every family is different. Even every city. But what’s a realistic number for a husband and wife to retire at 45 in this day and age (no real estate) and live comfortably?

"No real estate"? Do you mean no real estate for rental income, or you don't own a home? If you don't own a home, then I'd say that's a big risk going forward. You'll never know how much you'll be paying for rent in the future, and rents have been going up exponentially. You can get priced out pretty quickly.

 

[Pezboat]

"No real estate"? Do you mean no real estate for rental income, or you don't own a home? If you don't own a home, then I'd say that's a big risk going forward. You'll never know how much you'll be paying for rent in the future, and rents have been going up exponentially. You can get priced out pretty quickly.

Sorry. By no real estate, I meant no rentals. I know this is a very difficult thing to answer as there are hundreds of variables. I was more just curious if anyone had a number. Something like, $5M would get me $100k for 50 years.

 

[NRA4LIFE]

Sounds about right.

 

[WhatToHunt]

Sorry. By no real estate, I meant no rentals. I know this is a very difficult thing to answer as there are hundreds of variables. I was more just curious if anyone had a number. Something like, $5M would get me $100k for 50 years.

Might take a look at FIRECalc to play around with numbers. I like to think the 4% rule will get me where I need to be, but I'm still 10 or so years from retiring or reaching my goal for financial independence.

 

[txjustin]

Sorry. By no real estate, I meant no rentals. I know this is a very difficult thing to answer as there are hundreds of variables. I was more just curious if anyone had a number. Something like, $5M would get me $100k for 50 years.

That’s $5M liquid. It’s likely you’d want $5M invested and should easily be making 8-10% on it. May never have to touch the principal


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[Crowmangler]

Anyone here utilize structured annuities? I know some folks that do & like them a lot. Been studying up on them & I'm definitely intrigued... it's another interesting tool to have in your box

 

[5MilesBack]

I was more just curious if anyone had a number. Something like, $5M would get me $100k for 50 years.

Like I posted earlier "never spend principle unless it's on an investment". You want to be living on the returns and a pension if you have one. Net worth should be going "up" every year.

 

[txjustin]

Like I posted earlier "never spend principle unless it's on an investment". You want to be living on the returns and a pension if you have one. Net worth should be going "up" every year.

NAiled jt


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[mlevimadden]

Sorry. By no real estate, I meant no rentals. I know this is a very difficult thing to answer as there are hundreds of variables. I was more just curious if anyone had a number. Something like, $5M would get me $100k for 50 years.

Historically, most people used the 4% rule to determine the amount of investments needed for retirement. This is based off the Trinity Study which was published in 1998 where they looked at historic returns (back to 1920 I think) for the US stock market and evaluated the success rates for a 30-year retirement depending on when you retired and what returns you could have taken without running out of money.

Nowadays, most people use the 4% rule because for the last 50 years the average stock market return has been 11% annually. If you account for 3% annual inflation, that gets you a real return of 8% annually, which leaves a 4% buffer for market crashes or high-inflation like we are seeing now.

First, You need to figure out what your estimated annual cost of living will be in retirement, which can be based off your current budget and if you expect to spend more or less in retirement. For simple numbers, let's assume you want to spend $40k annually in retirement.

$ invested = annual expenses / 4%

which is the same as

$ invested = annual expenses * 25

So if you wanted to spend $40k annually, you would need $1 million invested to safely have a 30 year retirement without reducing your principle. If you wanted to spend $80k/yr, you would need $2M invested.

This is why it is so powerful to reduce your spending and avoid the consumer-minded culture we see in America if you want to shorten your working career.

Here is a good calculator for the amount of working time you need depending on your current balance, retirement spending, and contributions.


https://networthify.com/calculator/...0&expenses=20000&annualPct=5&withdrawalRate=4

 

[mtnbiker208]

I don't know if this has been said, on here.

But a modest home allows you to retire more comfortably.
There is also the rule of 72. interest rate x years=72.
basically how long it will take your money to double. ie 10% interest will double your investment in 7.2 years.

 

[CodeMonkey]

I was on track to retire at 45, but I left my job to pursue a Only Fans career.

Turns out only three people wanted to pay $14.99/mo for pics of my feet.

 

[def90]

My retirement plan is to be a Walmart greeter.

 

[Scottf270]

Checking back in on this thread. I'll just add this fellas. No matter how much you think you "own", your gonna leave every damn bit of it behind.

Someone will spend every dollar you ever made and in one or two generations after your dead, no one will be alive that even knew you.

Enjoy "your" life as much as possible as it will be over before you know it.

 

[Iowafarmer]

Retirement isn't what it's cracked up to be. Most folks that retire around where I live get bored in a year and are looking for work. Work as long as you can would be my recommendation.

Yep I could quit any time but don’t know what I’d do with myself couple buddies in same boat

 

[Marble]

Yep I could quit any time but don’t know what I’d do with myself couple buddies in same boat

I would encourage you to really think about what you would do with yourself. Not that you have to retire and not work. Nothing wrong with working until you die, IF you like what you do. Lots of people retire and collect from pensions and SS, only to have another job they really enjoy that puts some money their pocket, whether they need it or not.

I was off work for 18 months prior to retiring and then started a new career at 46 after retiring. The first month (lots of rain) I was bored. Then I realized there was more I could do, so I started making lists, and I was busy every day. The lists included things I wanted to do and chores.

Daily housework
Helping friends with projects
Regular exercise
Volunteering with an organization you support
Fishing and hunting (3-5 days a week)
Special projects as they come up
And a decent 20-30 minute early afternoon nap

That was my core list of things to do. It's different for everyone.

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[5MilesBack]

No matter how much you think you "own", your gonna leave every damn bit of it behind.

That's the goal. Should be easily attainable. We're all just stewards, it's all HIS.

 

[jpmulk]

I think the key is if you retire, you still need a higher purpose. A way to contribute to society or serve. If you retire to only live for self, I don’t think that is healthy or fulfilling.

 

[Gutshot007]

That "decent 20-30 minute early afternoon nap" sounds like a good part of the retirement program