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

[MCS]

Its going to be interesting to see what happens in the coming years with the baby boomer generation retiring. Many of them havent saved enough for retirement. Could get a little dicey.

I think a lot of them will just have to keep working.

 

[CorbLand]

I think a lot of them will just have to keep working.

I do too but I also think there are a lot that work physically demanding jobs that they won’t be able to continue to do.

 

[MCS]

I do too but I also think there are a lot that work physically demanding jobs that they won’t be able to continue to do.

I work with a guy that can't do everything any more he 68. We work on heavy equipment.

 

[MattB]

I have also been looking into rentals. I can’t seem to make the numbers work for my area. What kind of positive cash flow are you looking for before purchasing


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I personally look for a similar cash on cash return to what I can get from alternative investments, and in any case a positive return.

My model is pretty simple, analyze the monthly cash flow, annualize, and then divide that by the equity put into the deal. That gives the cash in cash return.

The two big things you need to consider with RE that are different from stocks/bonds are 1) the potential tax benefit you get from depreciation, and 2) maintenance expenses.

EDIT: you can also count me in the camp of believing investor RE is the best way for us little guys to become wealthy and generate a stable stream of cash flow for retirement.

 

[CorbLand]

I work with a guy that can't do everything any more he 68. We work on heavy equipment.

My wife’s grandpa is in his early 70s and does concrete. It makes me sad that he didn’t prepare for retirement and still has to work. He just had to sell his dream house because he needs the money due to not being able to afford to give up working but can’t physically work that hard anymore.

 

[ianpadron]

I don't agree about the anti-Roth regardless if you're going heavy into RE. It's only $6500/year. Most serious FIRE guys can probably come up with that and why not go ahead and have those nice tax fee earnings when they turn 59.5. FIRE guys want to live that long too. Use multiple financial vehicles to fund your long retirement. I don't think you have to be anti Roth when you're talking FIRE and super confident in all that easy RE money.

I completely understand what you're saying.

Main point of this thread was getting to financial independence/retirement as early as possible.

Tying money up in a Roth isn't the play for that. I'll add some long-winded details below to help guys that might be following along willing to entertain both approaches:

For a young investor that same $6,500, or a couple years worth of it in an expensive market, could be used to get into a 3.5% down FHA loan on an owner-occupied 4-plex (or duplex, or triplex, or sfr where you rent the rooms, doesn't matter). Legally required to live there for a year, during that time you'd be getting paid to live there and increasing your net earnings and reducing your DTI.

Now you have more income freed up to buy a) a nicer place to live b) qualify for more investment properties c) stick more money into other investment vehicles. This stuff snowballs fast because of leverage...I know, that's a dirty word for some.

The same advantages of a Roth exist in real estate. Each property is a mini-bank that you can take tax-free withdrawals from (within reason). A bank will lend up to 80% LTV on just about any piece of real estate in the country that isn't a POS. Run your worst case scenario numbers for potential corrections, stick to them, cash out that tax free money and go buy more. Don't use it to buy a truck, boat, etc. early on.

If you have enough principal in your Roth, it'll replenish itself after a withdrawal...when you're 60. Cool.

If you have a good equity position in a property, your tenants will replenish that position post re-fi. Any equity pulled is still tax free money because it's either a loan or line of credit....but now you can double dip on depreciation, claim real estate professional status, a whole slew of write-offs etc. that do not exist in the world of Roth IRAs.

Most folks will/should eventually pay a handful of properties off in-full as a security blanket, but aggressive growth is ALWAYS done with leverage. Whether that's bank money, other people's money, etc.

The tax rules are there to be taken advantage of, and if a fella was focused on speed...the trajectory through various types of real estate investing is exponentially faster than playing the long game.

When you take into account the fact that there is an estimated 4 MILLION unit shortage in housing in this country TODAY...you can see the opportunity for what it is...and there is a reason institutional money (hedge funds, family offices etc) are scooping resi. at unprecedented rates...

I don't believe that real estate is the holy grail for financial independence because I'm in real estate, I'm in real estate because I know it's the holy grail for financial independence. Big difference.

I'll leave that as my last contribution to this thread, if it helps one guy hunt more and spend more time with his family...worth the 5 minutes it took to type it up.

And if any of you know of any RV or mobile home parks in a red state that may be for sale...hit me up, and I'll make sure you're paid a handsome bird dog fee.

 

[Gutshot007]

Fellas , admittedly i am ignorant on the FIRE retirement philosophy so i did a little research it sounds like there are varying degrees people buy into . At its extremes people save/invest up to 70% of their yearly income with goals of retiring in their 30's-40's . So one would have to live pretty frugal while saving/investing( sorry cuts into hunting expenses). Also in such a short time of investing i suspect to get the percentage yields needed to retire would be in some high risk investments with possible losses as well . Another consideration is health insurance in someone retiring at such a young age . While i think its great to save/invest and be a good steward with your finances i dont think i personally could live a life that revolved around a continous concerns about retirement . Sorry kids no christmas this year . Pass the ramen noodles. I couldnt do it

 

[CorbLand]

Fellas , admittedly i am ignorant on the FIRE retirement philosophy so i did a little research it sounds like there are varying degrees people buy into . At its extremes people save/invest up to 70% of their yearly income with goals of retiring in their 30's-40's . So one would have to live pretty frugal while saving/investing( sorry cuts into hunting expenses). Also in such a short time of investing i suspect to get the percentage yields needed to retire would be in some high risk investments with possible losses as well . Another consideration is health insurance in someone retiring at such a young age . While i think its great to save/invest and be a good steward with your finances i dont think i personally could live a life that revolved around a continous concerns about retirement . Sorry kids no christmas this year . Pass the ramen noodles. I couldnt do it

I support the movement and like I posted earlier hope in the next 20 years to build to a point that I can semi retire and work a job that I want to not that I have to.

I do worry that the level of wealth that has been created in the last three to four years has given people a level of confidence that they shouldn’t have and will get them in over their heads and there will be hell to pay on the back end for it.

 

[WKR]

My plan is to be retired at 45. I am 32 now so that gives me 13 years. In that time I need to continue to grow my contracting business to the point that I can sell it for a large sum and would like to keep a percentage of the company to continue to have income. After I retire I will still have a side business/hobby in the firearms industry and possibly do some consulting in the construction industry. I dont live to work, rather work to live and the sooner I have complete control over my time the better. I have so many things I love to do that I'm sure my time will be filled even after I quit working 8-12 hours per day.

 

[dreamingWest]

I'm a "why not both" guy. But admittedly been less aggressive in real estate and more so in post tax brokerage. At this point I do think I would have to look outside my home state for RE. I've got buddies that have done very well, but they were using their capital and building leverage in that 08-12 time period.

 

[Elite]

Fellas , admittedly i am ignorant on the FIRE retirement philosophy so i did a little research it sounds like there are varying degrees people buy into . At its extremes people save/invest up to 70% of their yearly income with goals of retiring in their 30's-40's . So one would have to live pretty frugal while saving/investing( sorry cuts into hunting expenses). Also in such a short time of investing i suspect to get the percentage yields needed to retire would be in some high risk investments with possible losses as well . Another consideration is health insurance in someone retiring at such a young age . While i think its great to save/invest and be a good steward with your finances i dont think i personally could live a life that revolved around a continous concerns about retirement . Sorry kids no christmas this year . Pass the ramen noodles. I couldnt do it

What if you have a high income though and that 70 percent you save still leaves you with more then enough to hunt and fish as much as you want? We also never eat out but don’t skimp on food and cook some homemade meals that stretch a long ways.

I still enjoy everything I love to do in life. Do I need the 2023 duramax lifted truck? Plus the $80,000 boat and toy hauler (very common around here) No I don’t. I instead save those monthly expenses


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[WV Mountaineer]

I don’t think I’ll ever retire. I’ll slow down. But, my goal is to be in a position to only work when I want to.

I like to work. I like the sweat. The labor. It makes me feel good. But, I like to tinker at my own things too. I am shooting for a retirement that sees me do the things I want for work. Around my other more important interests. Like hunting and fishing.

I’m finding that at almost 50, I do things I thought I’d never do when I was raising kids. I used to dream of not being committed to endure the activities my kids were into. Don’t get me wrong, I love them dearly. But, the endless sports obligations really cut into my personal time. At a time when I had very little options to enjoy personal time doing things I wanted to do.

Now, I find instead of fishing daylight to dark when on a beach vacation, I d rather play in the sand and water with my grandkids at times. I find I’d rather spend a nice Sunday with my wife versus in the woods scouting for deer every chance I got. Etc…. I don’t have a problem hunting during the fall though. It takes first place unless it’s something that I shouldn’t compromise.


Life is short. Be kind. To yourself as well. It’ll be over before you know it. God bless men.

 

[Newtosavage]

I don’t think I’ll ever retire. I’ll slow down. But, my goal is to be in a position to only work when I want to.

I like to work. I like the sweat. The labor. It makes me feel good. But, I like to tinker at my own things too. I am shooting for a retirement that sees me do the things I want for work. Around my other more important interests. Like hunting and fishing.

I’m finding that at almost 50, I do things I thought I’d never do when I was raising kids. I used to dream of not being committed to endure the activities my kids were into. Don’t get me wrong, I love them dearly. But, the endless sports obligations really cut into my personal time. At a time when I had very little options to enjoy personal time doing things I wanted to do.

Now, I find instead of fishing daylight to dark when on a beach vacation, I d rather play in the sand and water with my grandkids at times. I find I’d rather spend a nice Sunday with my wife versus in the woods scouting for deer every chance I got. Etc…. I don’t have a problem hunting during the fall though. It takes first place unless it’s something that I shouldn’t compromise.


Life is short. Be kind. To yourself as well. It’ll be over before you know it. God bless men.

I'd probably work until I die if I only had to work 20 hrs/wk. There are just too many things I want to do that take 3-4-5 consecutive days and I just can't do those things on a 40+ hour work week. So that will be the main reason I retire as soon as I'm eligible. But a 20 hour work week I would do for another decade or more.

 

[Pony Soldier]

I retired from a university at 25 years. There was huge relief from petty squabbles and unjustified egos. I took a job in private industry at twice the pay as a manager. After two years the company ran out of money and I took another job in industry as a manager. I've never been good at managing idiots, when I was ordered to put on another shift when the site resources wouldn't support it, I urged him fully enjoy himself.

As a mining engineer I started offering services to the industry. The more I charge and the grumpier I get, more people line up for my services.

Retirement is work under your terms, at your convenience at your limits. That way you earn what is needed and you never let work get in the way of hunting.

 

[michaelc10]

Just retired at 60, still figuring it out, it's alot different for me living on a tighter budget but having so much extra time

 

[NRA4LIFE]

That’s great to hear! Congrats. Are you just living off dividends/interest or how haven’t you touched your savings?


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My wife gets a fairly nice pension (we were both engineers) and have been getting quite nice dividends from some stocks we own. I was able to take my pension in a lump sum and making a nice bit off of it as well. We were quite lucky in the jobs we had. As disappointing as it was, we were never able to have kids. But we don't dwell on it, it is what it was.

Edit to add: We also have retiree health care from where we worked. At least now until my wife is on Medicare and then me maybe another 1.5 years or so if they cancel it. We were in an engineers union (a bit odd I know) but the benefits have been great.

 

[Desk Jockey]

After wasting my 20s on college and low paying jobs, I was doing well in my 30s And hoping to semi retire at 50. Married a girl with a lot of debt, no job and no family money. Started having kids. I am close to 50 and a long way from retirement. Looking back, I would have Changed a couple of things but not much.

 

[GSPHUNTER]

I was going to retire at 55, but when the time came, I decided to keep at it until someone really pissed me off, which took three more years. I worked commercial industrial A/C, and really loved my work. I woke up one morning and told the wife the department manager pissed me off yesterday, I'm going down and put in my retirement paper this morning. I called the office and gave them my three week notice. Not one minute of regret.

 

[Scottf270]

I retired in January 2021 at 59 1/2. I was just burnt out and sick of where I worked. Loved the folks and work wasn't bad. Just tired of COVID crap and corporate equality sh_t.

I wasn't quite to 7 figures but I was raised poor and live down by the shank of the hog rather than the back of it. I have hunted Kodiak bear, Alaskan moose 4 times, plus mulies, antelope and whitetails several places.

House paid for. Last kid outta college in December 2023. My wife retires in 3 years. Teacher pension for her. My Social security starts in October. We should be good.

I am good at staying busy. I hunt, trap, run bird dogs, work around the house and yard, help folks etc. I love being retired and am stress free. Feel better and sleep better.

I will say be prepared with some interest, hobby, new business etc. I see a bunch of folks get bored and become recliner sitters. You gotta keep moving!

 

[WKR]

What if you have a high income though and that 70 percent you save still leaves you with more then enough to hunt and fish as much as you want? We also never eat out but don’t skimp on food and cook some homemade meals that stretch a long ways.

I still enjoy everything I love to do in life. Do I need the 2023 duramax lifted truck? Plus the $80,000 boat and toy hauler (very common around here) No I don’t. I instead save those monthly expenses


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Nobody needs a brand new truck or 80k boat. I think many people live well beyond there means and owe money on all those fancy things. And for what? A status symbol?

The thing is if you go through with your plan you could have those thing bought and paid for later on while you are still young. Atleast thats how I think of it. And I'm not saying dont have nice things now but just own them rather than finance. I have a really nice duramax diesel truck but its not brand new and I own the thing outright.